Solved Assignments

FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food

FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements. Type of Box C                P Direct material required per 100 boxes: Paperboard ($.20 per pound) …………………………………………………………………………….. 30 pounds     70 pounds Corrugating medium ($.10 per pound) ………………………………………………………………… 20 pounds    30 pounds Direct labor required per 100 boxes ($12.00 per hour) …………………………………………. .25 hour            .50 hour The following manufacturing-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 495,000 units for each type of box. Manufacturing overhead is applied on the basis of direct-labor hours. Indirect material ………………………………………………………………………………………………………………………….. $ 10,500 Indirect labor…

Details

Joe Murphy retired a few years ago at the age of 48, having built up a substantial retirement portfolio

Information for management   Joe Murphy retired a few years ago at the age of 48, having built up a substantial retirement portfolio through a range of entrepreneurial activities. He moved to the Snowy Mountains to follow his dream of a peaceful mountain life. However, after a few months, Murphy became restless and opened a ski equipment store. This single store soon grew into a chain of four outlets spread from the Snowy Mountains to the Victorian Alps. As Murphy put it, ‘I can’t believe how fast we’ve expanded. It’s basically been uncontrolled growth—growth that has occurred in spite of what we’ve done’. Although business was profitable, the chain did have its share of problems. Sales tended to be seasonal, with…

Details

Supernova Company had the following summarized balance sheet

Supernova Company had the following summarized balance sheet on December 31 of the current year: ​ Assets Accounts receivable $ 350,000 Inventory 450,000 Property and plant (net) 600,000 Total $1,400,000 ​ ​​ Liabilities and Equity Notes payable $ 600,000 Common stock, $5 par 300,000 Paid-in capital in excess of par 400,000 Retained earnings 100,000 Total $1,400,000 ​ The fair value of the inventory and property and plant is $600,000 and $850,000, respectively. ​ Assume that Redstar Corporation exchanges 75,000 of its $3 par value shares of common stock, when the fair price is $20 per share, for 100% of the common stock of Supernova Company. ​ Required: ​What journal entries will Redstar Corporation record for the investment in Supernova and issuance…

Details

On January 1, 16, Brown Inc. acquired Larson Company’s net assets in exchange for Brown’s common stock

On January 1, 16, Brown Inc. acquired Larson Company’s net assets in exchange for Brown’s common stock with a par value of $100,000 and a fair value of $800,000. Brown also paid $10,000 in direct acquisition costs and $15,000 in stock issuance costs.

On this date, Larson’s condensed account balances showed the following:

	Book Value	Fair Value
Current Assets	$280,000	$370,000
Plant and Equipment	440,000	480,000
Accumulated Depreciation	(100,000)
Intangibles – Patents	80,000	120,000
Current Liabilities	(140,000)	(140,000)
Long-Term Debt	(100,000)	(110,000)
Common Stock	(200,000)
Other Paid-in Capital	(120,000)
Retained Earnings	(140,000)

 

Required: Record Brown’s purchase of Larson Company’s net assets.

 

Shrieves Casting Company is considering adding a new line to its product mix

Shrieves Casting Company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by Sidney Johnson, a recently graduated MBA. The production line would be set up in unused space in Shrieves’s main plant. The machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. The machinery has an economic life of 4 years, and Shrieves has obtained a special tax ruling that places the equipment in the MACRS 3-year class. The machinery is expected to have a salvage value of $25,000 after 4 years of use. The new line would generate incremental sales of 1,250 units…

Parent Ltd acquired 100% of the issue shares of Subsidiary Pty Ltd

Question 1 Consolidation Parent Ltd Subsidiary Ltd DR CR Consolidated Sales 700,000 500,000 Dividend income 2,000 0 Expenses 290,000 260,000 Profit 412,000 240,000 Retained earnings 1 July 2015 300,000 250,000 Less Dividend declared -1,000 -2,000 Retained earnings 30 June 2016 711,000 488,000 Share capital 1,000,000 600,000 General reserve 200,000 0 Trade and other creditors 530,000 208,000 Dividend payable 1,000 2,000 Income tax payable 140,000 42,000 2,582,000 1,340,000 Trade and other receivables 643,000 508,000 Dividend receivable 2,000 0 Shares in Subsidiary Ltd 900,000    – Property plant and equipment (net) 730,000 710,000 Inventories 200,000 20,000 Other assets 107,000 102,000 Goodwill on consolidation 2,582,000 1,340,000   Parent Ltd paid for subsidiary’s equity for $900,000       Question 2 Consolidation Parent Ltd Subsidiary…

Fast Feet Couriers Limited’s Balance Sheets as at 30 June 2016 and 2017 were as follows

WEEK 13 TUTORIAL QUESTIONS CASH FLOW STATEMENT II BASED ON LECTURE 12 Due Date: Week 13 (GP – Wed, 25/10/17; CAB – Thu, 26/10/17)   PRACTICAL QUESTION                                                                                        (18 marks) Fast Feet Couriers Limited’s Balance Sheets as at 30 June 2016 and 2017 were as follows: Fast Feet Couriers Limited’s Balance Sheet as at 30 June 2017 2016 ASSETS $ $ Current Assets Cash Accounts Receivable 140,000 260,000 Provision for Doubtful Debts (21,000) (20,000) Inventory 420,000 240,000 Prepaid Insurance 3,000 4,000 542,000 484,000 Non-Current Assets Land 230,000 230,000 Buildings 200,000 200,000 Accumulated Depreciation – Buildings (75,000) (50,000) Plant & Equipment 300,000 280,000 Accumulated Depreciation – Plant & Equipment (70,000) (45,000) 585,000 615,000 TOTAL ASSETS 1,127,000 1,099,000 LIABILITIES AND OWNERS’ EQUITY Liabilities Bank…

ACC701 – The Sunshine Coast Bank Limited has set monthly key performance indicators

ACC701 – Task 3 – Semester 2 2017 ACC701 – ACCOUNTING FOR MANAGERS Question 1 (7 MARKS) The Sunshine Coast Bank Limited has set monthly key performance indicators (KPIs) for the lending division, as listed below. The bank is pursuing a profitable, internet growth strategy. You must categorise each KPI as strategic or operating AND driver or outcome. Major brand building advertising spend (1) Loan approval times (1) Loan approved (in dollars) (1) Loan applications numbers received online (1) Loans numbers sent for collection due to being 60 days overdue (1) Profitability of the loan book (1) Percentage of loans funded against loans approved (1)   Question 2 (13 MARKS) Manufacturers Limited produces two products, A and B, for the fishing…

Australasia Ltd started operating on 1 July 2017 with 12 employees

Australasia Ltd started operating on 1 July 2017 with 12 employees. Three years later all of those employees were still with the company. On 1 July 2019 the company hired 15 more people but by 30 June 2020 only 10 of those employed at the beginning of that year were still employed by Australasia Ltd. All employees are entitled to 13 weeks’ long-service leave after a conditional period of 10 years of employment with Australasia Ltd. At 30 June 2020 Australasia Ltd estimates the following: the aggregate annual salaries of all employees hired on 1 July 2017 is now $600,000 the aggregate annual salaries of all current employees hired on 1 July 2019 is now $400,000 the probability that employees hired…

On 1 July 2017, Westland Limited an Australian company acquired the issued shares of Bull Limited

ACC322 PQ 17.8                          Translation to presentation currency On 1 July 2017, Westland Limited an Australian company acquired the issued shares of Bull Limited a company incorporated in the United States. The draft statement of profit or loss and other comprehensive income and statement of financial position of Bull Ltd at 30 June 2018 was as follows:   US$ US$ Sales revenues 1,600,000 Cost of sales: Opening inventory 140,000 Purchases 840,000 980,000 Closing inventory 280,000 700,000 Gross profit 900,000 Expenses: Depreciation 90,000 Other 270,000 360,000 Profit before income tax 540,000 Income tax expense 200,000 Profit 340,000 Retained earnings as at 1 July 2017 200,000 540,000 Dividend paid 120,000 Dividend declared 200,000 320,000 Retained earnings as at 30 June 2018 220,000 2018 2017…

On 1 July 2017. Echidna Ltd, an Australian company, acquired the issued shares of Bear Ltd

ACC322 PQ 17.8                          Translation to presentation currency On 1 July 2017. Echidna Ltd, an Australian company, acquired the issued shares of Bear Ltd. a company incorporated in the United States. The draft statement of profit or loss and other comprehensive income and statement of financial position of Bear Ltd at 30 June 2018 was as follows:   US$ US$ Sales revenues 1,600,000 Cost of sales: Opening inventory 140,000 Purchases 840,000 980,000 Closing inventory 280,000 700,000 Gross profit 900,000 Expenses: Depreciation 90,000 Other 270,000 360,000 Profit before income tax 540,000 Income tax expense 200,000 Profit 340,000 Retained earnings as at 1 July 2017 200,000 540,000 Dividend paid 120,000 Dividend declared 200,000 320,000 Retained earnings as at 30 June 2018 220,000 2018 2017…

On 1 July 2.017. Melbourne Ltd, an Australian company, acquired the issued shares of Memphis Ltd

ACC322 PQ 17.8                          Translation to presentation currency On 1 July 2.017. Melbourne Ltd, an Australian company, acquired the issued shares of Memphis Ltd. a company incorporated in the United States. The draft statement of profit or loss and other comprehensive income and statement of financial position of Memphis Ltd at 30 June 2018 was as follows:   US$ US$ Sales revenues 1,600,000 Cost of sales: Opening inventory 140,000 Purchases 840,000 980,000 Closing inventory 280,000 700,000 Gross profit 900,000 Expenses: Depreciation 90,000 Other 270,000 360,000 Profit before income tax 540,000 Income tax expense 200,000 Profit 340,000 Retained earnings as at 1 July 2017 200,000 540,000 Dividend paid 120,000 Dividend declared 200,000 320,000 Retained earnings as at 30 June 2018 220,000 2018 2017…