ACC3003 Financial Accounting and Reporting – Myer Ltd acquired all the issued shares of Thompson Ltd

Myer Ltd acquired all the issued shares of Thompson Ltd on 1 July 2018 for $200 000. At this date Thompson Ltd recorded a dividend payable of $25 000 and equity of: Share capital                                    $ 54 000 Retained earnings                              36 000 Asset revaluation surplus                    18 000   All the identifiable assets and liabilities of Thompson Ltd were recorded at amounts equal to their fair values at acquisition date except for: Carrying amount                     Fair value Inventory                                             $ 10 000                                  $ 12 000 Machinery (cost $100 000)                      80 000                                    85 000   The machinery was considered to have a further 5-year life. Of…

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Grace Ltd is finalising its financial statements

Question 1   Events after the reporting period   Grace Ltd is finalising its financial statements for the reporting period ending 30 June 2019.  On 29 August 2019, before the financial statements have been finalised and authorised for issue, the company’s directors became aware of the following situations: Grace Ltd’s cloud service provider breached its contract, when the service was down for 14 days in July 2019, causing major disruptions to Grace Ltd’s business operations.  Grace Ltd commenced legal action against the cloud service provider on 2 August 2019, seeking $300,000 in damages for lost profits. On 5 August 2019, the government announced a new airport for Western Sydney.  The flight path for plane’s landing and taking off is directly above…

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ACC515 – GOGreen Motors is considering a new project to produce electric vehicles

Capital Budgeting Background: (EV) GOGreen Motors is considering a new project to produce electric vehicles for the Australian domestic market and international markets. The potential growth in this market has been outlined in a report by Climateworks, which you can view by CLICKING HERE. (https://www.climateworksaustralia.org/sites/default/files/documents/publications/ climateworks_australia_state_of_electric_vehicles2_june_2018.pdf) GOGreen has identified a property/plant that was formerly used to build petrol fueled motor vehicles that could be refitted at minimal cost to manufacture the new EV’s. GOGreen is targeting Australian metrolpolitan centres for initial sales and expanding into regional centres over the next five years.         International demand for EV’s is being driven by China and GOGreen has been in negotiation to provide vehicles to the Chinese market in 2020. Problem: GOGreen has made the…

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FIN700 – Financial Management – In August 2019 Coral Ltd reported net profits after tax

QUESTION 1 In August 2019 Coral Ltd reported net profits after tax of $600,000 for its financial year 2018 -– 19 and announced its net profits after tax expectation for the next financial year, 2019 – 20, to be 25% higher than this year’s figure. The company operates with a dividend payout ratio of 70%, which it plans to continue. It will pay the annual dividend for 2018 – 19 in 1 October, 2019, and the dividend for 2019 – 20 in 1 October, 2020. Dan Brown owns 12% of the ordinary share capital of Coral Ltd. In October, 2020, Dan believes he will need $30,000 for consumption and he also wishes to pay off his home loan of $70,000.  If…

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ATMC ACC506 Task 2 – Mr White is the sole proprietor of White Washers

1. Business Model and Accounting System   1.1 Business Model Introduction Mr White is the sole proprietor of White Washers – a GST-registered retail business that sells washing machines and dryers. It is a continuing business with opening balances in its permanent accounts. The business purchases and sells inventory. It also has some other income from rent received from leasing out part of its building. The business uses MS Excel spreadsheeting software to record transactions, manage accounts and prepare the financial statements.      1.2 Accounting policies Being GST registered, pays GST on sales and services to the Australian Government. The business uses a GST paid (Asset account) and GST collected (Liability account) to record its GST. Unless otherwise stated, assume…

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MAA 363 Corporate Accounting – Finn Ltd

PART A The profit before tax, as reported in the statement of comprehensive income of Finn Ltd (an Australian technology company) for the year ended 30 June 2019 amounted to: $9,820,000 including the following revenue and expense items: Rent Revenue $306,000 Windfall Gain $552,000 Doubtful debts expense $61,000 Depreciation (Equipment) $398,900 Depreciation (Buildings) $98,000 Sick leave expense $276,000 Annual leave expense $184,000 Insurance expense $92,000 Fines expense $153,400 The draft statements of financial position of the company at 30 June 2019 and 2018 showed the following assets and liabilities: 2019 ($) 2018 ($) Assets Cash $644,000 $705,000 Inventory $1,380,000 $1,258,000 Accounts receivable $3,989,000 $3,805,000 Allowance for doubtful debts -$319,000 -$294,000 Prepaid insurance $171,000 $159,000 Equipment $3,989,000 $3,989,000 Accumulated depreciation – Equipment…

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ACST201 – Today is 1 January 2019. MQU bank is offering a y year $1,500,000 loan product

Throughout this assessment you will need to consider y years. To calculate y, you will use your student ID number. Let r be the integer remainder after dividing your student ID number by 25. Let y = r + 20. For example, if the ID number is 12345678, then 12345678 = 493827×25+3, r = 3 and y = 23. You should use this value for y throughout the assessment. Today is 1 January 2019. MQU bank is offering a y year $1,500,000 loan product from the beginning of 2019 to its customers. a. This loan product requires customers to make monthly repayments. Payments will be made at the beginning of each month with an amount of $9,000. Use the Goal Seek…

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Your daughter has expressed a wish to attend university

Question 1 (a)  Your daughter has expressed a wish to attend university when she finishes school in five (5) years.  You anticipate the cost will be $60,000 at the time she commences university.  If your financial institution is offering you 4% pa (compounded monthly), how much do you need to deposit in your account each month in order to save the required amount before your daughter commences university? (b) You have been offered the opportunity to purchase a start up company building electric cars for the Australian market called Green Motors P/L.  Your initial investment is $22,000,000. The term of the project is 5 years. The project has an expected rate of return of 10% pa.  All expected cash flows for…

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ACC501 – Home Designs, Aussie Campers and Accor Australia

Question 1 Preparation of financial statements Home Designs Ltd, a homewares manufacturing company, commenced operations on 1 July 2018. You are the company’s financial accountant. The accounting records for the year ended 30 June 2019 showed the following accounts and balances:   Home Designs Ltd Account balances at 30 June 2019 $ Advertising expense 46,000 Accounts payable 56,300 Accumulated depreciation – buildings 20,000 Accumulated depreciation – plant and equipment 40,000 Allowance for doubtful debts 1,600 Annual leave expense 25,000 Bank account 143,000 Bank loan 200,000   Buildings 800,000 Cost of goods sold 780,000 Current tax liability 274,000 Depreciation expense 60,000 Dividends paid 200,000 Doubtful debts expense 2,000 Finished goods inventory 322,000 Income tax expense 274,000 Interest expense 22,000 Interest income 3,100…

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ACC512: Management Accounting for Costs & Control – David and FOL

Question 1 Cost of Manufacturing Statement David has asked for a Cost of Goods Manufacturing Statement and Income Statement for the month of July. Use the following information taken from the books that David has been keeping to prepare the statement. Advertising expense 5,000 Interest expense 5,000 Sales travel expense 1,530 Machinery maintenance 250 Depreciation – factory machinery 1,600 Office Salaries 5,000 Depreciation – office machinery 600 Rates – factory 1,400 Direct Labour 6,000 Raw materials inventory 1/7/19 4,800 Factory power 150 Raw materials inventory 31/7/19 5,200 Factory rent 9,195 Raw materials purchases 53,200 Factory supplies 4,800 Sales revenue 158,500 Finished goods 1/7/19 11,200 Sales salaries 4,780 Finished goods 31/7/19 10,500 Telephone 500 Freight inwards materials 730 Work in process 1/7/19…

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The trial balance for Pete’s Handyman Services

Preparation of accounting records – using spreadsheets The trial balance for Pete’s Handyman Services (a small business operated by Pete Smith, as a sole trader) as at 30 June 2019 is as follows (after closing entries prepared on 30 June 2019): Pete’s Handyman Services Trial Balance as at 30th June 2019 Debit Credit $ $ Bank 3,600 Accounts receivable 800 Prepaid expenses 300 Supplies 400 Equipment 1,800 Less: Accumulated depreciation 800 Motor vehicle 12,000 Less: Accumulated depreciation 3,600 Accounts payable 300 Unearned revenue 600 Pete Smith, capital 13,600 Pete Smith, drawings Service revenue Advertising Depreciation Insurance Interest expense Motor vehicle expenses Repairs Supplies expense Telephone Total 18,900 18,900 During July 2019, the following transactions took place: Date Detail 1-Jul Purchased a…

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ACCT2000: FINANCIAL ACCOUNTING – Milestone Ltd and Foresters Ltd

Question 1: Shares Milestone Ltd’s equity at 30 June 2019 was as follows:   400 000 ordinary shares, issued at $1.60, fully paid                                $ 640 000 500 000 ordinary shares, issued at $2, called to $1.20                                600 000 180 000 redeemable preference shares, issued at $1, fully paid                180 000 Calls in advance (10 000 ordinary shares)                                                       8 000 Share issue costs                                                                                            (7 000) General reserve                                                                                             60 000 Retained earnings                                                                                         310 000   The following events occurred during the year ended 30 June 2020:        2019      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…

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