Sanshain Construction Company has entered into a contract

Sanshain Construction Company has entered into a contract beginning January 1, 2019, to build a parking complex. It has been estimated that the complex will cost $600,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $900,000. The following data pertain to the construction period. Items 2019 2020 2021 Costs incurred to date $270,000 $450,000 $610,000 Estimated costs to complete 330,000 150,000 –0– Billings to date 270,000 550,000 900,000 Collections to date 240,000 500,000 900,000 Instructions Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. Record the necessary journal entry each year. Prepare the partial income statement and statement of financial position…

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‘Kites Galore’ began business on 1 October 2019

Question 1 Retail operations and retail inventory ‘Kites Galore’ began business on 1 October 2019.  The business is owned and operated by Harry Smith as a sole-trader.  The business will sell kites via an online store.  The business is registered for GST.  The following transactions occurred during October 2019: Date: Details: 1 Oct Harry Smith deposited $20,000 into the business bank account. 5 Oct Kites Galore purchased of 50 kites on account for $2,750 ($55 per kite, including GST) from the kite manufacturer, Super Kites Ltd, on terms of 2/10, n/30. 7 Oct Kites Galore received an invoice from Star Track Freight Ltd relating to delivery costs for the kites purchased on 5 October.  The amount due is $110 (including GST),…

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ACCM4100 – Management Accounting – Sweden Ltd manufactures cabinets

Sweden Ltd manufactures cabinets.  You work in the accounting department and have been tasked with preparing the Budget for the next month.   Sweden makes two products: Premium cabinets – large cabinets with mirrors De Luxe cabinets – medium sized cabinets with an innovative shelving solution and mirrors   Direct manufacturing labour is 3 hours for the Premium cabinet and 5 hours for the De Luxe.   The budgeted direct material usage for each product in 2020 is: Square metres     Premium        De Luxe Mirrors                               2                      3 Softwood                           1                      5   Opening direct materials inventory for January 2020 is: Square metres                 Premium        De Luxe Mirrors                              …

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Your twin daughters will be starting high school next year

Question 1 a.      Your twin daughters will be starting high school next year and they have indicated they wish to attend university when they finish school in six (6) years time. You have no current savings and anticipate that it will cost approximately $90,000 in total for both children. Your financial institution has offered you a 6% p.a. (compounded quarterly). How much to you need to deposit to your bank account each quarter in order to save the total amount required before your children commence university? b.  Due to the recent decrease in overseas demand for used plastics for recycling, your company has decided to invest into recycling technologies. The used plastics will be recycled into pellets to sell…

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WACT101 Finance 1A – Excel Assignment – 2019

PART A. THE “AMORTISATION SCHEDULE” SPREADSHEET Download the Excel Assignment Template file from ‘Assessment Tasks’ section under the ‘Excel Assignment’ label in iLearn. Save it with the name: [Student family name_ID number].xlsx (Eg. Wong_43567859.xlsx (a penalty applies for the wrong file name convention) Input your student number digit by digit in cells F2 to M2. You must input your own student ID otherwise a penalty of 7.5 marks will apply. Enter your name into the cells shown at cells O2 and O3. In cell C2, calculate the number of years for the loan as the sum of the first four digits in your student number using the =SUM() function and referencing cell locations. Marks will be deducted if you have +…

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Top Cake shop was established on 1 April 2019 with an initial investment

Accounting for Managers (ACC00724) QUESTION 1 Top Cake shop was established on 1 April 2019 with an initial investment of $100,000 by the owner (Jack Claff). During the first few weeks of business, the owner employed a part-time book-keeper who recorded the following list of accounts: Accounts payable                                           $37,100 Buildings                                                           100,000 Cash at bank                                                    31,000 Furniture                                                           12,000 Jack Claff – Capital                                         150,000 Baking Supplies                                               5,600 Loan payable                                                   20,700 Accounts receivable                                       20,000 Land                                                                  43,200 Mortgage payable                                          40,000 Cash drawings by Jack Claff                         36,000   Required:                                                         Assuming that the amounts above are correct, prepare a statement of financial position in vertical format (show your calculations) Prepare a statement of changes in equity for the period and determine the amount of profit (loss)…

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Jenny Ltd, Hawaii Limited and Ethan Ltd

Question 1 Jenny Ltd’s equity at 30 June 2019 was as follows: 200 000 ordinary shares, issued at $3.20, fully paid 250 000 ordinary shares, issued at $4, called to $2.40 180 000 redeemable preference shares, issued at $1, fully paid Calls in advance (5 000 ordinary shares) Share issue costs General reserve Retained earnings $640 000 600 000 180 000 8 000 (7 000) 60 000 310 000         The following events occurred during the year ended 30 June 2019: 2018 July 15 The final call, due 31 August, was made on the partly paid shares. Aug. 31 All call money was received, except for that due on 12 000 shares. Sept. 10 In accordance with the constitution, the shares on which the call was unpaid were forfeited. The…

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Jacque Mercedes owns and operates a successful tour business – Balance Day Adjustments

QUESTION 1: Balance Day Adjustments Jacque Mercedes owns and operates a successful tour business specialising in mountain e-bike adventure holidays. The business also sells a range of cycling products but its main item is a custom made mountain e-bike, “Vampex”. The “Vampex” is made only for The E-Bike Tour Company and has recently featured in a number of bike touring / holiday magazines. As a result of this recent positive media coverage, Jacque has been too busy to undertake any record keeping for the company and has handed the record keeping over to the accounting practice where you work as a graduate accountant.   The E-Bike Tour Company Trial Balance 30 June 2019 $ $ Cash 3,060 Accounts Receivable 3,500 Inventory…

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Morning Star Ltd was registered on 1 July 2018, as a company

Another version of this question is available here. Question 1 Morning Star Ltd was registered on 1 July 2018, as a company with a constitution limiting the shares that could be offered to 7 000 000 Ordinary shares (including all classes) and 2 000 000 preference shares. The company issued a prospectus dated 1 July 2018 inviting the public to apply for 4 000 000 Ordinary A class shares at $3.00 per share. The terms of the shares on issue are $1.50 on application, $1.00 on allotment and $0.50 to be called within six months of allotment before 31 December 2018. If the issue is oversubscribed the directors will make a pro-rata issue of shares and the excess application money will…

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Futura robotics manufacture custom made robotic components

Scenario Futura robotics manufacture custom made robotic components.  Each job is unique and costed individually. You are required to create a spreadsheet that records a list of completed jobs and allows the company to cost up new jobs.   Start by downloading the assessment workbook from iLearn and copying/moving it to an appropriate folder. When you open the workbook it is very important that you Enable Macros/Content. You will then be asked to enter your Student Number (you will not be able to edit it afterwards, so type it in carefully) and then enter your Student Name.   General Guidelines With the exception of the Journal Accounts, which are to be selected from the drop-down list, all the light blue cells…

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Bolan Ltd – Accounting for associates, liquidation

Question 1 On 1 July 2017, Bolan Ltd purchased 40% of the shares of Rex Ltd for $151 680 and signed a joint venture agreement with the two other shareholders in Rex Ltd. At that date, equity of Rex Ltd consisted of: Share capital                                   $300 000 Retained earnings                               26 400   At 1 July 2017, the identifiable assets and liabilities of Rex Ltd were recorded at amounts equal to their fair values.   Information about income and changes in equity for both companies for the year ended 30 June 2020 was as shown. Bolan Ltd Rex Ltd Profit before tax Income tax expense Profit Retained earnings (1/7/19)   Dividend paid Dividend declared   Retained earnings (30/6/20) $ 62…

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Newsurf Ltd – Preparation of Financial Statements

Newsurf Ltd, has been manufacturing and selling surfboards for the last two years. Newsurf Ltd commenced operations on 1 July, 2017 by issuing 500 000 $3.50 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:   Accounts $ Sales 5 385 000 Interest income 11 000 Cost of Sales 3 409 000 Gain on sale of plant 25 000 Employee benefit expenses – Admin 136 000 Depreciation expense- Admin 54 000 Selling & Distribution Expenses 932 000 Insurance expense – Admin 60 000 Doubtful debts expense 5 000 Interest expense 38 000 Other borrowing expenses 4 000 Income tax expense 268 000  …

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