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FINANCIAL ACCOUNTING – ACCT1101 – Accounting Practice Set online

Another version of this question is available here 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 Salzbruck Musical Instruments Pty Ltd has been in business in Sydney since July, 2012. The company was started by William Jacques and operates a shop which sells musical instruments on a wholesale basis to other businesses on credit and cash terms. The company’s share capital consists of 1,134,000 ordinary shares, issued at $1 each, that are owned by various members of the Jacques family. The company employs a combination of both sales and administration staff to operate…

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FINA2006 Principles of Finance

Case study 1 (Valuation of stocks): (5 + 5 = 10 marks) You are an analyst employed by Vanguard Wealth, a wealth management firm operating in Sydney’s financial district. You have been approached by Mr George Fero who recently inherited $10 million dollars from his late aunt’ estate.  Mr Fero is considering putting all his money in stocks of one of these two Australian mining companies, his friends have told him that these two companies are good investments. Being a first time player on the market, he does not want to invest in more than one company. He thus want expert advice on which of the two to invest in. The following is information that is publicly available which is from…

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ACC514 – Accounting for share issues and revaluation of property, plant and equipment

Accounting for share issues On 1 February 2017, Beach Supplies Ltd was registered and issued a prospectus inviting applications for 2,000,000 shares, at an issue price of $3.50, payable as follows: $1.00 on application $1.50 on allotment (payment due within 1 month of allotment) $0.60 on first call $0.40 on final call The issue is underwritten at a commission of $30,000. By 28 February 2017, applications had been received for 1,900,000 shares. On 3 March, shares are allotted, and the underwriter forwarded the application and allotment money due on the 100,000 shares less their commission. All remaining allotment money is received by 3 April. Legal costs re company formation are $5,000 and are paid on 5 April. Share issue costs of…

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Norden Ltd grants to each of its 10 executives a choice

Task One Norden Ltd grants to each of its 10 executives a choice of receiving a cash payment equivalent to 1000 shares or receiving 1200 shares. The grant is conditional on the completion of 3 years’ service with the company. If the share alternative is chosen, the shares must be held for 2 years after vesting date. At the grant date the company’s share price is $25 per share. At the end of years 1, 2 and 3 the share price is $27, $28 and $30 respectively. The company does not expect to pay dividends in the next 3 years. After taking into account the effects of post-vesting transfer restrictions, the company estimates that the grant-date fair value of the share alternative is $24 per share.…

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BZ102 – ACCOUNTING PRINCIPLES

Complete Questions P 7-5 on pages 353 to 354 of Horngren’s Financial Accounting 8th Ed. P7-5 Using all the journals, posting and balancing the ledgers [30-40 mini] Prudhoe Bay uses the perpetual inventory system and makes all credit sales on terms of 2/10, n/30. During March, Prudhoe Bay completed these transactions: Mar 2 Issued invoice no. 191 for sale on credit to L. E. Wooten, $2350. Prudhoe Bay’s cost of this inventory was $1 390. 3 Purchased inventory on credit terms of 3/10, n/60 from Delwood Plaza, $5900. 4 Sold inventory for cash, $3410 (cost, $1 820). 5 Issued cheque no. 473 to purchase furniture for cash, $1 080. 8 Collected interest revenue of $120. 9 Issued invoice no. 192 for…

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MBA 5850 Spring 2018 Block 2 – PMD Corporation

MBA 5850 Spring 2018 Block 2 Case Study #1 PMD Corporation was formed by three shareholders on January 1, 2016. After a difficult first year (the company has reported retained earnings as of December 31, 2016 of negative $65,000), the company believes they need to obtain a line of credit to expand the business. The bank has requested financial statements for the nine months ended September 30, 2017 in order to determine eligibility for the line of credit. Although none of the shareholders have any accounting experience, one of them has taken on the role of bookkeeper and has prepared the following financial statements for year-to-date operations through September 30, 2017.   PMD CORPORATION Income Statement For 2017 Product revenue      …

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FINC20018 T1 2018: Assessment 1

Question 2 [Calculation-based]: The Income Statement [Chapter 3 Applying the theory] (Refer to Example on page 46 of Textbook)   Construct an Income Statement. Use an Excel spreadsheet and/or tables to present your work. Show all workings. Mark Part 1 CQU Oil Limited is a an oil wholesale company that had: ·         sales last year of $2.5 million; ·         cost of goods sold of $700,000; ·         paid interest of $200,000; ·         cash operating expenses of $150,000; ·         Depreciation expense amounting to $150,000 ·         a tax liability equal to 30% of the firm’s taxable income. a.    Construct an Income Statement with the above data. b.    Determine CQU Oil’s taxable income and tax payable for the year. c.    Determine the total amount of:…

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Finance 211 Case 2 – Capital Budgeting Analysis

Finance 211 Case 2 – Capital Budgeting Analysis   Dimples  Baby Products (DBP), projects unit sales for its new Vegey Goo pablum,  as follows:       Year Unit Sales         1 90,000   2 100,000   3 110,000   4 117,000   5 65,000         Production of the Pablum will require $10 million in net working capital to start and additional net operating working capital investments each year equal to 35 percent of the projected sales increase (in $’s) for the following year. (Because sales are expected to fall in the fifth year of sales, there is no NOWC for that year). Total fixed costs are $175,000 per year, variable production costs are $227…

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Accounting and Finance for Executives – UUAC5300

Question 2 (LO 2 a, b c): Preparation and evaluation of financial statements under the guidelines of New Zealand accounting framework. (60 marks) Please read the following information regarding Interwood, and answer the questions given at the end of the information. Bruce Minogue has decided to go into a retail business selling tables and chairs. He has named his business as Interwoo. He decided to open his first showroom in Remuera, Auckland. Bruce had the following transactions during June 2017 (The first month of his business):   Date Transaction detail 01/06/2017 Opened a bank account in the name of the business and transferred $ 22,000 from his personal account to business bank account. 02/06/2017 Obtained a bank loan worth $ 20, 0000 from ANZ…

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Scorpio Ltd is an Australian public company. The accounting staff of Scorpio Ltd have asked

Question 2                                                                                                                                                 Total 6 marks Scorpio Ltd is an Australian public company. The accounting staff of Scorpio Ltd have asked for your assistance in preparing the company’s financial statements for the year ended 30 June 2017 and have provided you with the following information: Scorpio Ltd Trial Balance As at 30 June 2017 Item Debit Credit Sales revenue   540,000 Gain on sale of financial assets   4,000 Revaluation of property, plant and equipment   20,000 Other income   16,000 Unrealised gains on cash flow hedges   13,000 Loss for the year from discontinued operations 5,000   Remeasurement of defined benefit superannuation plan 7,500   Occupancy expenses 45,000   Income tax expense 15,000   Finance costs 27,500   Distribution expenses 55,000…

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CQU Oil Limited is a an oil wholesale company that had

  Construct an Income Statement. Use an Excel spreadsheet and/or tables to present your work. Show all workings. Mark Part 1 CQU Oil Limited is a an oil wholesale company that had: ·         sales last year of $2.5 million; ·         cost of goods sold of $700,000; ·         paid interest of $200,000; ·         cash operating expenses of $150,000; ·         Depreciation expense amounting to $150,000 ·         a tax liability equal to 30% of the firm’s taxable income. a.       Construct an Income Statement with the above data. b.      Determine CQU Oil’s taxable income and tax payable for the year. c.       Determine the total amount of: i.        fully franked dividends ii.      imputation credits that the company is able to declare from its past year’s results.…

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On January 1, 2017, Cage Company contracts to lease equipment for 5 years

On January 1, 2017, Cage Company contracts to lease equipment for 5 years, agreeing to make a payment of $120,987 at the beginning of each year, starting January 1, 2017. The leased equipment is to be capitalized at $550,000. The asset is to be amortized on a double-declining-balance basis, and the obligation is to be reduced on an effective-interest basis. Cage’s incremental borrowing rate is 6%, and the implicit rate in the lease is 5%, which is known by Cage. Title to the equipment transfers to Cage at the end of the lease. The asset has an estimated useful life of 5 years and no residual value. Instructions: (a) Prepare the journal entry or entries that Cage should record on January…

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