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Lease accounting-Annabel Ltd leased a portable sound recording studio from Lessor Ltd.

Annabel Ltd leased a portable sound recording studio from Lessor Ltd. Lessor has no material initial direct cots. Annabel does not plan to acquire the portable studio at the end of the lease because it expects that, by then, it will need a larger studio. The terms of the lease are as follows: ·      Date of entering lease: 1 July 2019 ·      Duration of lease: four years ·      Life of leased asset: five years ·      Lease payments: $50 000 at the beginning of each year ·      First lease payment: 1 July 2019 ·      Lease expires: 1 July 2023 ·      Interest rate implicit in the lease: 8 per cent ·      Guaranteed residual value expected to be paid: $40 000. Required: (a) Determine the fair value of the portable sound recording…

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Lease Accounting

Hopeful limited leased a portable sound recording studio from Lessor Limited. Lessor Limited has no material initial direct costs. Hopeful Limited does not plan to acquire the portable studio at the end of the lease because it expects that, by then, it will ne//ed a larger studio. The terms of the lease are as follows: – Date of entering lease: 1 July 2011 – Duration of lease: 4 years – Life of leased asset: 5 years – Lease payments: $50,000 at the beginning of each financial year – First lease payment: 1 July 2011 – Lease expires: 1 July 2015 – Interest rate implicit in the lease: 8% – Guaranteed residual: $40,000 a) Determine the fair value of the portable sound…

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Consolidation worksheet entries – Ben Ltd operates a number of supermarkets with an emphasis on the supply of quality produce

    Please check new version of question at https://myassignmentguru.com/assignments/new-consolidation-worksheet-entries-ben-ltd-operates-a-number-of-supermarkets/ Assignment ACC705 T2 2017  Q1 Consolidation worksheet entries  Ben Ltd operates a number of supermarkets with an emphasis on the supply of quality produce The operations of Sam Ltd are primarily in the fine fruit market. Believing that the acquisition of Sam Ltd would enable Ben Ltd to expand its supply of quality produce to its customers, Ben Ltd commenced actions to acquire the shares of Sam Ltd. On 1 July 2013, Ben Ltd acquired all the issued shares (cum div.) of Sam Ltd for $123 500. At this date the equity of Sam Ltd consisted of:                           Share capital                           $100 000                         Reserves                                 5 000                         Retained earnings                   10 000…

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Keon Ltd has two mutually exclusive projects under consideration. Both projects can be considered replacement projects.

Keon Ltd has two mutually exclusive projects under consideration. Both projects can be considered replacement projects.   The details of the projects are given in the table below.       Project A   Project B Development costs to date   $125,000   $135,000           Life of project   4 years   5  years           Depreciation   Straight line, fully over life of project   Straight line, fully over life of project           Machine cost   $2.4 million   $3.5million           Residual   No residual   No residual           Working capital needs   Injection of $250,000 at beginning of project   One…

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Piscataway Plastics Company manufactures a highly specialized plastic that is used extensively in the automobile industry

Q1 Piscataway Plastics Company manufactures a highly specialized plastic that is used extensively in the automobile industry. The following data have been compiled for the month of June. Conversion activity occurs uniformly throughout the production process. Work in process, June 1 – 50,000 units: Direct material: 100% complete cost of ……………………………………. $120,000 Conversion: 40% complete, cost of ……………………………………………. 34,400 Balance in work in process, June 1 …………………………………… $154,400 Units started during June ………………………………………………….. 200,000 Units completed during June and transferred out to finished-goods inventory … 190,000 Work in process, June 30: Direct material: 100% complete Conversion: 60% complete Costs incurred during June: Direct material …………………………………………………………… $492,500 Conversion costs: Direct labor ………………………………………………………………………………. $ 87,450 Applied manufacturing overhead ………………………………………….. 262,350 Total conversion costs ………………………………………………….. $349,800…

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Income Statement, Financial Analysis, Time Value of Money, Risk and Return

Question 1 [Calculation-based]: The Income Statement [Chapter 3 Study Questions 3.2 and Study Problems 3.1, 3.2, 3.3] (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 At the end of its third year of operations, the Sandifer Manufacturing Company had: ·         $4,500,000 in revenue; ·         $3,375,000 in cost of goods sold; ·         $450,000 in operating expenses, which included a depreciation expense of $150,000; ·         a tax liability equal to 30% of the firm’s taxable income. a.    Construct an Income Statement with the above data. b.    What is the net profit of the firm for the year? c.    Explain how net profit…

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HappyDaze T-shirts manufactures and prints customised designs on T-shirts

Cost behavior; engineered cost; committed and discretionary costs: manufacturer (10 Marks) HappyDaze T-shirts manufactures and prints customised designs on T-shirts. Below is a list of some of their major costs. (a)           Cost of daily radio advertising on the local community radio station. (b)           Cost of the fabric used to make the T-shirts. (c)           Cost of the ink used in the designs. (d)           Salary of the managing director. (e)           Wages of the production employees who sew and print the T-shirts. (f)            Cost of movie tickets provided for the Employee of the Month award each month. (g)           Depreciation of the sewing machines, calculated on a units of production basis. (h)           Cost of electricity used in the factory building. (i)            Rent of the building.…

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Medina Company received its February bank statement on March 6. The statement showed a balance of

Medina Company received its February bank statement on March 6. The statement showed a balance of $316,500. Included on the statement were memorandum showing collections from Medina customers (A/R), totalling $16,000. The statement also showed a returned check for a customer who paid the balance on his account, for $2,825. The bank charged a returned check fee of $75 for this NSF check. This $75 charge will be added to the customer’s balance. There were other service charges for the monthly service charge and ATM fees, totalling $200. These are bank service charge expenses. Medina’s accountant looked at her accounting records. At the end of February, the cash balance was $312,300. The statement did not reflect a deposit made late on…

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Impairment, two CGUs – Last Ltd has two divisions, Time and Leisure. Each of these is regarded as a separate CGU.

Exercise 7.14 – Impairment, two CGUs Last Ltd has two divisions, Time and Leisure. Each of these is regarded as a separate CGU. At 31 December 2016, the carrying amounts of the assets of the two divisions were: Time Leisure Plant $1 500 $1 200 Accumulated depreciation (650) (375) Patent 240 Inventories 54 75 Receivables 75 82 Goodwill 25 20   The receivables were regarded as collectable, and the inventories’ fair value less costs of disposal was equal to its carrying amount. The patent had a fair value less costs of disposal of $220. The plant at Time was depreciated at $300 p.a., and that at Leisure was depreciated at $250 p.a. Last Ltd undertook impairment testing at 31 December 2016,…

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Some years ago, Wattle Ltd established a defined benefit superannuation plan for its employees

Accounting for defined benefit superannuation plans Some years ago, Wattle Ltd established a defined benefit superannuation plan for its employees. The company has since introduced a defined contribution plan, which all new staff join when commencing employment with Wattle Ltd. Although the defined benefit plan is now closed to new recruits, the fund continues to provide for employees who have been with the company for a long time. The following actuarial report has been received for the defined benefit plan:   2016 $ Present value of the defined benefit obligation 1 Jan. 20000000 Past service cost 2000000 Net interest ? Current service cost 800000 Benefits paid 2100000 Actuarial loss on DBO 100000 Present value of the defined benefit obligation 31 Dec.…

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FINC20018T22017 Financial Statements, Analysis, Time Value of Money, Risk and Return

Question 1 [Theory]: Understanding Financial Statements [Chapter 3 Study Questions 3.1, 3.2, 3.3, 3.4]   Develop your responses by reviewing peer-reviewed articles, professional publications and/or credible texts. Part 1 Describe the content and the importance of the balance sheet and the income statement. Part 2 From the firm’s perspective, how are dividends different from interest payments? Part 3 What is a firm’s net working capital, and what does it tell you about the liquidity of a firm?   Question 2 [Calculation-based]: The Income Statement [Chapter 3 Study Questions 3.2 and Study Problems 3.1, 3.2, 3.3] (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.…

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During January, Microchem Ltd produced 1200 units of special product called Stylex, and the accounting records indicated the following

Question 1  During January, Microchem Ltd produced 1200 units of special product called Stylex, and the accounting records indicated the following: Direct material purchased                         36000 kilograms @ $1.30 per kilogram Direct material used                                 19000 kilograms Direct labour 4200 hours @ $17 per hour Stylex has the following standard prime costs: Direct material: 20 kilograms @ $1.20 per kilogram          $24.00 Direct labour hours: 4 hours @ $16 per hour            64.00 Standard prime cost per unit          $88.00 Required: 1              Calculate the total standard direct material costs and direct labour costs for January. (2 marks) 2              For the month of January, calculate the following variances, indicating whether each is favourable or unfavourable: a) Direct material price variance. b) Direct material quantity…

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