Solved Assignments

One Beauty Ltd, Refresh Ltd and Nutrifresh Ltd

Question 1 Topic 2: Presentation of financial statements    You are the assistant accounting of One Beauty Ltd, a company specializes in distributing beauty products imported from Korea to beauty salons in Riverina regions. The trial balance of the company for the year ended 30 June 2019 includes the following accounts:   Debit Credit $ $ Sales revenue 1,106,000 Interest revenue 8,000 Cost of sales 524,000 Impairment loss – goodwill 5,000 Amortization expense – patent 18,000 Gains from sales of motor vehicles 10,000 Depreciation – motor vehicles 68,000 Doubtful debts expense 11,000 Interest expense 21,000 Office expense 85,000 Rental expense 17,000 Salaries 187,000 Selling expense 68,000 Miscellaneous expense 28,000 Proceeds from insurance claims 20,000 Income tax expense 39,000 Cash on hand…

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NewCat Ltd, a manufacturer and retailer for pet products

NewCat Ltd, a manufacturer and retailer for pet products, commenced operations on 1 July, 2018 by issuing 100 000 $2.00 shares, payable in full on application. There were no share issue costs. For the year ending 30 June 2019, the company recorded the following aggregate transactions:   $’000 Sales 4 265 Cost of sales 1 800 Other income 723 Administration charges 285 Selling and distribution expenses 130 Employee entitlement expenses — (selling) 95 Wages and salaries — (selling) 212 Wages and salaries — (admin) 210 Doubtful debts expense 120 Depreciation expense -to be calculated   Interest expense 160 Other borrowing expense 20 Income tax expense 120   The following additional information was noted during the preparation of financial statements for the…

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Paul services Trial Balance As At 30 June 2016

Paul services Trial Balance As At 30 June 2016 Account No Account Name Debit Credit 101 Cash at Bank 86840.00 105 Accounts Receivable 28950.00 115 Supplies 1870.00 120 Prepaid Insurance 3740.00 135 Office Furniture 46800.00 137 Acc. Depreciation. – Furniture 0.00 140 Office Equipment 93600.00 141 Acc. Depreciation – Equipment 0.00 145 Store Equipment 140400.00 146 Acc. Depreciation – Equipment 0.00 170 Automobile 187200.00 171 Acc. Depreciation – Automobile 0.00 201 Accounts Payable 57900.00 201 Interest Payable 86850.00 201 Unearned revenue 23400.00 201 Loan Payable 9360.00 201 Mortgage Payable 187200.00 201 Paul’s Capital 53857.00 201 Paul’s Drawings 187.00 201  Revenue 187000.00 201 Advertising Expense 1700.00 201 Automobile Expense 5775.00 201 Depreciation Expense – Furniture 0.00 201 Depreciation Expense – Equipment 0.00…

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Jessica Smith started a new sole trader business called Tech Solutions

Financial statements, analysing business transactions and financial statement analysis Jessica Smith started a new sole trader business called Tech Solutions on 1 January 2019. The business provides telecommunication services to start-up businesses who want to enhance their network and customer reach. Jessica has asked her accountant, Megan Brown, to complete financial statements and write a business report on the financial health of Tech Solutions in its first year of operation. Next Step has the following account balances as at 31 May 2019; Cash  $94,600 Accounts receivable $22,500 Fixtures and Fittings $30,000 Communication Server $55,000 Accounts payable $17,800 Bank Loan $25,000 Capital $106,000 Income $79,200 Expenses ($25,900)   The following transactions occurred in the last month of the financial year- June 2019.…

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Baby Shark, Scruffy, Cat and High

Question 1 The accounting profit before tax of Baby Shark Ltd for the year ended 30 June 2019 was $92,550. It included the following revenue and expense items: Accounting fees $5,500 Amortisation of development costs 15,000 Carrying amount of plant sold 30,000 Depreciation expense – equipment 5,500 Depreciation expense – plant 24,000 Doubtful debts expense 8,100 Employee expense 15,400 Entertainment expense 13,200 Goodwill impairment 2,000 Government grant (exempt income) 2,200 Insurance expense 12,900 Proceeds from insurance claim for loss of profits 41,200 Proceeds from sale of plant 33,000 Warranty expense 1,500     The draft statement of financial position as at 30 June 2019 included the following assets and liabilities:   2019 2018 Assets Cash $15,500 $17,500 Trade receivable 35,000 40,500…

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Griffin Ltd is a major Australian company operating

Topic: Consolidation worksheet, consolidated financial statements   Task Details: Griffin Ltd is a major Australian company operating in the manufacture of women’s clothing. One of its major competitors is Frank Ltd whose business was established by a French family over 30 years ago. It has won numerous awards for its designs and has established a number of brands that have been successful, especially with the teenage market. In order to expand its business as well as to reduce the number of players in the market, on 1 July 2016 Griffin Ltd acquired all the issued shares (cum div.) of Frank Ltd for $330 000. At this date the equity of   Frank Ltd was as follows: Share capital $200 000 General…

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Assume that a firm has prepared the following cost estimates

Assume that a firm has prepared the following cost estimates for the manufacture of a sub assembly component based on an annual production of 8,000 units.

Direct materials: Per unit: $5 Total: $40,000

Direct labor: Per unit: $4 Total: $32,000

Variable factory overhead applied: $4 Total $32,000

Fixed factory over head applied (150% of direct labor cost)

Per unit: $6 Total: $48,000

Total cost: Per unit: $19 Total: $152,000

The supplier has offered to provide the subassembly at a price of $16 each. Two-thirds of fixed factory overhead, which represents executive salaries, rent, depreciation, and taxes, continue regardless of the decision. Should the company buy or make the product?

Luxe Leather Bags Pty Ltd – Accounting

INTRODUCTION The objective of this Accounting practice set is to provide students with an insight into the process of recording transactions, completing adjusting and closing entries, and preparing financial statements for a retail business. Company Background Luxe Leather Bags Pty Ltd has been operating in Toorak, Victoria, since July, 2013. The company was started by Kent Cognac and operates a business which sells luxury leather bags on a wholesale basis to other bag boutiques on both credit and cash terms. The company’s Share Capital consists of 810,000 ordinary shares, issued at $1 each, that are owned by various members of the Cognac family. The company employs a combination of sales and administration staff to operate the business.   Accounting System Information…

The accounting profit before tax of Baby Shark Ltd

Question 1 The accounting profit before tax of Baby Shark Ltd for the year ended 30 June 2019 was $92,550. It included the following revenue and expense items: Accounting fees $5,500 Amortisation of development costs 15,000 Carrying amount of plant sold 30,000 Depreciation expense – equipment 5,500 Depreciation expense – plant 24,000 Doubtful debts expense 8,100 Employee expense 15,400 Entertainment expense 13,200 Goodwill impairment 2,000 Government grant (exempt income) 2,200 Insurance expense 12,900 Proceeds from insurance claim for loss of profits 41,200 Proceeds from sale of plant 33,000 Warranty expense 1,500     The draft statement of financial position as at 30 June 2019 included the following assets and liabilities:   2019 2018 Assets Cash $15,500 $17,500 Trade receivable 35,000 40,500…

Superstore Ltd, Funland Ltd, Splash Ltd, Firefly Ltd and Flash Ltd

Question 1 Financial statement disclosures You are the financial accountant for Superstore Ltd, and are in the process of preparing its financial statements for the year ended 30 June 2018.  Whilst preparing the financial statements, you become aware of the following situations: Superstore Ltd provides a warranty on goods sold for a period of 12 months from the date of sale.  The company has, in the past, always recognised a provision for warranties equal to 5% of sales made during the year.  Due to increasing warranty costs and the number of goods returned under warranty in previous years, the directors met during the financial year (ended 30 June 2018), and decided to increase the provision to 8% of sales made during…

Peaceful Ltd, Abby Ltd and MyBeauty Ltd

Question 1 Topic 3: Consolidation: Non-controlling interests   On 1 July 2016, Peaceful Ltd acquired 80% of the shares of Serene Ltd on an ex div basis for $305,600. All the identifiable assets and liabilities of Serene Ltd were recorded at amounts equal to their fair values except for: Carrying amount Fair value $ $ Inventories 120,000 130,000 Machinery (cost $200,000) 160,000 165,000   At 30 June 2016, Serene Ltd had recorded a dividend payable of $10,000. The inventory on hand at 1 July 2016 was all sold by 30 November 2016. The machinery had a further 5-year life, but was sold on 1 April 2019. At acquisition date, Serene Ltd reported a contingent liability of $15,000 that Peaceful Ltd considered…

The following employees work for Shy-Fi Contracts Ltd, a public company

The following employees work for Shy-Fi Contracts Ltd, a public company specialising in contract labour force for different projects in construction industry. The employees are paid an hourly rate, based on their Job Classification level.  If an employee works more than 35 hours, they will be paid the overtime rate for the additional hours. The following table summarises the classifications and level of pay per classification: TABLE A:   Classification Levels Level Hourly pay 1 $        30.00 2 $        40.00 3 $        50.00 4 $        60.00 5 $        65.00 6 $        70.00   The overtime hourly rate is $ 80 per hour for ALL employees, regardless of their classification level. Sky-Fi Contracts Ltd has the following employees:   TABLE B:  …