Berry Ltd acquired 70% of the shares of James Ltd

Berry Ltd acquired 70% of the shares of James Ltd on 1st July 2016 for $540,000. The James Ltd equity consisted of the following items at acquisition date   Share Capital                                                    $500,000 General Reserve                                                   80,000 Retained Earnings                                                 50,000 Asset revaluation reserve                                         20,000   All identifiable assets and liabilities of James Ltd are recorded at fair value at this date except for inventory for which the fair value was $10,000 greater than carrying amount and plant which had a carrying amount of $150,000 (Accumulated depreciation net of $40,000) and a fair value was $170,000. The plant has a further 5 years life. The Financial information for…

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Cabarita Ltd (Cabarita) acquired 100% of the shares of Kakadu Ltd

Cabarita Ltd (Cabarita) acquired 100% of the shares of Kakadu Ltd (Kakadu) on 1 July 2019. The cost of investment was $620 000. At that date the capital and reserves of Kakadu were: Share capital            $260 000 Retained earnings    $200 000   At the date of acquisition all assets of Kakadu were considered to be fairly valued, except for a plant that had a fair value $20 000 greater than its carrying amount. The cost of the plant was $100 000 and it had accumulated depreciation of $60 000. The plant had original estimated useful life of 10 years.   During financial year 01/07/2019-30/06/2020, Kakadu sold $30 000 in inventory to Cabarita for on-sale to external parties. The inventory…

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Sam Ltd enters into a 5 years

Sam Ltd enters into a 5 years lease non-cancellable agreement with West Ltd on 1st July 2020. The lease is for an item of truck that has a fair value of $476912 at the inception of the lease. Sam Ltd’s incremental borrowing rate is 9% The truck is expected to have an economic life of 6 years, after which it will have an expected residual salvage value of $50,000. There is a purchase option that Sam Ltd will be able to exercise at the end of 5 year for $70,000. The rate of interest implicit in the lease is quoted as being 8%. There are to be 5 annual payments of $120,000 being made at the end of each year along…

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Morning Star Ltd and Aileen Ltd

Question 1  Morning Star Ltd was registered on 1 July 2020, as a company with a constitution limiting the shares that could be offered to 5 000 000 Ordinary shares (including all classes) and 2 000 000 preference shares. The company issued a prospectus dated 1 July 2020 inviting the public to apply for 3 600 000 Ordinary A class shares at $7.00 per share. The terms of the shares on issue are $3.00 on application, $2.00 on allotment and a future call of $2.00. If the issue is oversubscribed the directors will make a pro-rata issue of shares and the excess application money will be applied to allotment and calls before any refunds will be given. On 30 July, applications…

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Michael J owns renovation business under the name New Home

Michael J owns renovation business under the name New Home. Financial data for New Home as of 30 June 2019 are shown as below:

	$		$
Accounts receivable	109,500	Wages expense	117,000
Renovation revenue	300,000	Advertising expense	48,000
Interest Income	13,500	Prepaid insurance	13,500
Accounts payable	132,000	Insurance expense	10,500
Cash at bank	72,000	Equipment	285,000
Michael J, capital	?

 

Required:

a) Prepare an income statement for the business for the year ending 30 June 2019.
b) Prepare a balance sheet in narrative format for New Home as at 30 June 2019.

Melissa Ltd purchased all the issued shares of Soren Ltd

Melissa Ltd purchased all the issued shares of Soren Ltd for $1115000 on 1 July 2020 when the equity of Soren Ltd was as follows; Share capital 446000 General reserve 334500 Asset revaluation surplus 167250   At this date, Soren Ltd had not recorded any goodwill, and all identifiable assets and liabilities were recorded at fair value except for the followings;   Account Cost Carrying Amount Fair value Further life(Years) Inventories   $33,500 $36,900   Land   $84,000 $92,000   Furniture $130,000 $104,000 $125,000 10 Contingent Liability Soren Ltd identified at acquisition date a lawsuit where Soren Ltd was sued by a former supplier with the Fairvalue of: $13,000   Unrecorded Asset Soren Ltd had unrecorded and internally generated Patent with…

Beckett Pumps is a manufacturer of commercial and heavy industrial Pumps

Beckett Pumps is a manufacturer of commercial and heavy industrial Pumps. The firm’s two product lines are called Directlift and Gravity. The primary raw materials are flexible steel sheets, and 23cm x 60cm of plastic sheets. Each Directlift pump requires a 2/3 of a meter and a Gravity pump requires a one metre of steel sheet. Allowing for normal breakage and scrap steel sheet, the company can cut either enough to make four Directlifts or two Gravity pumps from a single steel sheet. Other raw materials are costly and treated as indirect materials. Jo Smith Beckett Pump’s accountant has gathered the following information in preparation for the company’s annual budget for the next year.   Sales in the fourth quarter of…

New Perspectives Excel 2019 | Module 2: SAM Project 1a

Bergamot Urgent Care Clinic Formatting Workbook Text and Data        GETTING STARTED Open the file NP_EX19_2a_FirstLastNamexlsx, available for download from the SAM website. Save the file as NP_EX19_2a_FirstLastNamexlsx by changing the “1” to a “2”. If you do not see the .xlsx file extension in the Save As dialog box, do not type it. The program will add the file extension for you automatically. With the file NP_EX19_2a_FirstLastNamexlsx still open, ensure that your first and last name is displayed in cell B6 of the Documentation sheet. If cell B6 does not display your name, delete the file and download a new copy from the SAM website. PROJECT STEPS Jennifer Williams is the business manager at the Bergamot Urgent Care Clinic.…

New Perspectives Excel 2019 | Module 3: SAM Project 1a

Scrub Jay Peripherals Performing Calculations with Formulas and Functions      GETTING STARTED Open the file NP_EX19_3a_FirstLastNamexlsx, available for download from the SAM website. Save the file as NP_EX19_3a_FirstLastNamexlsx by changing the “1” to a “2”. If you do not see the .xlsx file extension in the Save As dialog box, do not type it. The program will add the file extension for you automatically. With the file NP_EX19_3a_FirstLastNamexlsx still open, ensure that your first and last name is displayed in cell B6 of the Documentation sheet. If cell B6 does not display your name, delete the file and download a new copy from the SAM website. PROJECT STEPS Danilo Lewellen is an entrepreneur planning to manufacture and market an innovative handheld…

New Perspectives Excel 2019 | Module 4: SAM Project 1a

Alanis Parks Department Analyze and Chart Financial Data        GETTING STARTED Open the file NP_EX19_4a_FirstLastNamexlsx, available for download from the SAM website. Save the file as NP_EX19_4a_FirstLastNamexlsx by changing the “1” to a “2”. If you do not see the .xlsx file extension in the Save As dialog box, do not type it. The program will add the file extension for you automatically. With the file NP_EX19_4a_FirstLastNamexlsx still open, ensure that your first and last name is displayed in cell B6 of the Documentation sheet. If cell B6 does not display your name, delete the file and download a new copy from the SAM website. PROJECT STEPS Gudrun Duplessis is a manager in the Alanis Parks Department. Gudrun is compiling…

Corporate Reporting (ACC2CRE) – Stuart Ltd commences its operations

Stuart Ltd commences its operations on 1 July 2019. One year after the commencement of its operations (30 June 2020) the entity presents its first Statement of Comprehensive Income and Statement of Financial Position on 30 June 2020. The statements are prepared before considering taxation. The following information is available. Stuart Ltd Statement of Comprehensive Income for the year ended 30 June 2020     $ $ Sales revenue 10,250,000   Cost of Goods Sold   4,650,000   Gross Profit   5,600,000       Expenses:     Salaries and wages 1,050,000   Selling expense 35,000   Administrative expenses 700,000   Provision for doubtful debts 175,000   Warranty expenses 210,000   Long service leave 350,000   Depreciation expense – Plant 560,000…

New Perspectives Excel 2019 | Module 11: End of Module Project 1

Qualey Consulting CREATE ADVANCED PIVOTTABLES AND USE DATABASE FUNCTIONS      GETTING STARTED Open the file NP_EX19_EOM11-1_FirstLastNamexlsx, available for download from the SAM website. Save the file as NP_EX19_EOM11-1_FirstLastNamexlsx by changing the “1” to a “2”. If you do not see the .xlsx file extension in the Save As dialog box, do not type it. The program will add the file extension for you automatically. With the file NP_EX19_EOM11-1_FirstLastNamexlsx still open, ensure that your first and last name is displayed in cell B6 of the Documentation sheet. If cell B6 does not display your name, delete the file and download a new copy from the SAM website. PROJECT STEPS Nadia Ivanov is a partner at Qualey Consulting, a consulting firm with headquarters…