Partnership A, B, and C is a law firm. You have been engaged as accountant to prepare financial statements for the year ended December 31, 2019.

Part A (2019)   Partnership A, B, and C is a law firm. You have been engaged as accountant to prepare financial statements for the year ended December 31, 2019. The partnership’s trial balance is shown on the “2019 Tr. Bal.” page (see tab below). ‘Salary expenses’ listed on the trial balance are each partners’ withdrawals for the year. Partnership profits are allocated based first on salaries, then on interest on opening capital balances, then on a fixed ratio. Salary allocation amounts are:   A $100,000   B $100,000   C $160,000   Opening capital balances are:   A $70,000   B $60,000   C $70,000   Interest rate is: 5% The fixed ratio is:   A 2   B 3…

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On 1 July 2018 Jenny Ltd acquired all the shares of Patricia Ltd

Question 1 On 1 July 2018 Jenny Ltd acquired all the shares of Patricia Ltd  for $470,000.The equity of Patricia Ltd at 1 July 2018 was: Share capital                                                               $270,000 Retained Earnings                                                        110,000 General reserve                                                             10,000 At 1 July 2018 all…

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On 1 July 2018 Jan Ltd acquired all the share capital of Dean Ltd

Advanced Financial Accounting Required : 1.Prepare Consolidation Journal entries for the Consolidation of Jan Ltd and Dean Ltd 2.Prepare a Consolidated Comprehensive Income Statement for the Group 3.Prepare a Consolidated Balance Sheet for the Group Information: On 1 July 2018 Jan Ltd acquired all the share capital of Dean Ltd for $187,500 .At that date the equity of Jan Ltd and Dean Ltd was : Jan Ltd        Dean Ltd Share Capital                                                         $150,000     $100,000 General Reserve                                                       90,000          60,000 Retained Earnings                                                    20,000          17,500 At 1 July 2018 the identifiable net assets of both companies were recorded at fair value. For the year ended 30 June 2019 the following financial information is provided by both companies: Jan Ltd            Dean Ltd Sales revenue                                                                               $388,500           $200,000…

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You have been provided with the unadjusted and adjusted trial balance for Mars Ltd

You have been provided with the unadjusted and adjusted trial balance for Mars Ltd as of 30 June 2018. These reports are after trading for the year end 30 June 2018.   Mars Ltd Trail Balance as at 30 June 2018       Unadjusted Adjusted No Account Name Dr ($) Cr ($) Dr ($) Cr ($) 100 Cash       28,716                –       28,716                – 110 Accounts Receivable       52,211                –       56,126                – 130 Office Supplies       21,929                –       13,053                – 140 Prepaid Insurance         8,745                –         6,526                – 150 Office Equipment    156,634                –    156,634                – 151 Less Accumulated Depreciation – Office Equipment                –      …

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Benetton Plc is an established manufacturer and retailer of industrial water recycling equipment

Benetton Plc is an established manufacturer and retailer of industrial water recycling equipment for commercial outlets such as cafes and restaurants. They supply equipment across the United Kingdom. It is company policy that before final approval is granted for any new products, a full financial analysis of the proposed project must take place. A new product called Clear Water is being proposed. The Clear Water project is about to be evaluated and the following projections have been prepared: Clear Water machines will be leased to outlets for a fixed term of five years at £2,500 per machine per year. 50 outlets have already registered their interest in leasing a Clear Water machine. At the end of the five years, the outlet will have the opportunity to purchase the…

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Gali Ltd has determined that its fine china division is a CGU

Gali Ltd has determined that its fine china division is a CGU. The carrying amounts of the assets at 30 June 2015 are as follows:

Account Carrying Amount
Land $822,700
Patent $189,000
Building $119,000
Inventory $51,000
Goodwill $42,000
Total CA $1,223,700

 

Gali Ltd calculated the value in use of the division to be: $1,097,700
If the fair value less cost of disposal of the Land is: $792,141

 

Required

Prepare the journal entry(ies) for any impairment loss occurring at 30 June 2015 including supporting calculations.

Brown Company paid cash to purchase the assets of Coffee Company

Brown Company paid cash to purchase the assets of Coffee Company on January 1, 2019. Information is as follows: Total cash paid $2,990,000 Assets acquired: Land $600,000 Building $600,000 Machinery $500,000 Patents $600,000   The building is depreciated using the double-declining balance method. Other information is: Salvage value $60,000 Estimated useful life in years 30   The machinery is depreciated using the units-of-production method. Other information is: Salvage value, percentage of cost 10% Estimated total production output in units 400,000 Actual production in units was as follows: 2019: 40,000 2020: 80,000 2021: 120,000   The patents are amortized on a straight-line basis. They have no salvage value. Estimated useful life of patents in years 20. On December 31, 2020, the value…

ACC202/ACC2004 Financial Accounting Standards and Corporate Reporting

Prepare a Statement of Profit and Loss and Other Comprehensive Income and the Statement of Changes in Equity for the reporting period ending 30th June 2018.You are to adhere to the requirements of AASB101 Presentation of Financial Statements with relevant notes and is to be presented professionally.   The following transactions occurred for a logistics company during the year.  Finanzial Ltd generated revenues from the provision of services for the financial  year ended 30 June 2018 of $3 500 000.   (a) Balance of retained earnings on 1 July 2017 was $1 301 577. (b) On 1 January 2018 the company revalued its buildings by $600 000. (c) Other expenses given below:   Wages $800 000 Electricity 100 000 Rates 50…

Hobbiton Farm grows corn, which it sells for $4per bushel

  HOBBITON FARM   Hobbiton Farm grows corn, which it sells for $4per bushel. Variable costs are$1 per bushel; fixed costs are $4.8 million. All costs and revenues are in cash. The only asset on Hobbiton’s balance sheet is land, which has both a book value and market value of $15 million. Hobbiton has no debt and a cost of equity capital of 12%. This represents a 4% risk-free interest rate plus an 8% premium that investors expect in exchange for bearing the risk of the investment. All earnings are distributed to the owners in the form of dividends. There are no income taxes   Part I:   What is Hobbiton’s break-even point? Suppose Hobbiton’s produces and sells 2.5 million bushels…

ACC204 – Sprintfast Couriers, Petersen Ltd, Deliveries Ltd and Lightning Bolt Ltd.

Question 1 On 1 July 2011 Sprintfast Couriers, which has a year-end of 30 June, purchased a delivery truck for use in its courier operations at a cost of $65 000. At the end of the truck’s useful life it is expected to have a residual value of $5000. During its six-year useful life, Sprintfast Couriers Limited expected the truck to be driven 246 000 kilometres. Required Calculate the annual depreciation charge for each of the six years of the truck’s life using the following methods: the straight-line method the sum-of-digits method the declining-balance method the units-of-production method using kilometres as the basis of use and assuming the following usage:   Year Kilometres 2012 28 000 2013 34 000 2014 42…

ACC102 – Fundamentals of Accounting II (Perpetual Inventory, Depreciation and Disposal and Revaluation)

Question 1: Perpetual Inventory System with Returns During the year ended 30 June 2014, TooBakko Ltd sold each unit of its goods at $9. Purchases and sales of the goods are shown below. Ignore GST. 2013 July 1 Inventory on hand 200 units@ $5.00 each   30 Sales 120 units Aug. 25 Purchases 300 @ $5.25   30 Sales 250 units Sept. 3 Purchases 450 units @ $5.30   10 Purchases returns 50 damaged units from 3 September purchase   30 Sales 300 units Oct. 5 Purchases 300 units @ $5.40 Dec. 8 Purchases 250 units at $5.45 2014 11 Sales 500 units Feb. 21 Purchases 150 units @ $5.50 Marc 18 Purchases 100 units at $5.60 April 30 Sales 300…

ACC102 – Fundamentals of Accounting II – Depreciation of Machinery

Depreciation of Machinery In early July 2013 Admirable Ltd is considering the acquisition of some machinery for $1200 000 plus GST to be used in the manufacture of a new product. The machinery has a useful life of 10 years, during which management plans to produce 500 000 units of the new product. The residual value of the machinery is $100 000. The following projections were made in order to select a depreciation method to be used for the machinery: Year ended 30 June Units of output Repairs  and maintenance Profit  before depreciation 2014 2015 50 000 45000 $ 70000 60000 $350000 340000 2016 55000 90000 355000 2017 58000 95000 360000 2018 60 000 100000 380000 In calculating  the  profit  before …