Tinka Ltd signs a contract on 1 May 2018 to build an office building

Tinka Ltd signs a contract on 1 May 2018 to build an office building. The construction is scheduled to commence 1 July 2018 and the estimated date of completion is 30 June 2021. The cost of the building is estimated to be $120m and the total contract price is fixed at $134m. The following data relates to the construction period:   For the year ended 30 June 2019 2020 2021 $’000 $’000 $’000 Costs to date 48,000 84,000 120,000 Estimated Costs to complete 72,000 36,000 – Progress billings to date 40,000 84,000 134,000 Cash received to date 19,000 79,000 134,000   Assume that actual costs and cash collections coincide with expectations and that cost (an input measure) is used as the…

Details

You have been appointed the accountant of a new organisation

You are required to finish each of these 4 questions. Please give the solutions in detail, show calculations, it can be Excel format, Word format or PDF format, no requirement on word limits. If any reference was used, please refer to Harvard style. You have been appointed the accountant of a new organisation that is preparing its first set of financial statements. In determining the depreciation for the first year, what sorts of information would you need and why? Please include knowledge from this subject with references. (Please note that references have not been provided in the solution) During the reporting period ending 30 June 2018, Midnight Boil Ltd constructed a nuclear power generator just outside of Melbourne. The cost of…

Details

ACT305 CORPORATE ACCOUNTING

  Question 2 (Marks 20)   ChallengeMe Pty Ltd acquired 100 per cent of the issued capital of TakeItEasy Ltd on 30 June 2018 for $900 000, when the statement of financial position of TakeItEasy Ltd was as follows:   Statement of financial position TakeItEasy Ltd as at 30 June 2018   $(‘000) $(‘000) Assets Liabilities Accounts receivable 70 Loan 300 Inventory 100 Shareholders’ equity Land 400 Property, plant and equip 700 Share Capital 500 Accumulated depreciation (270) Retained Earnings 200 1,000 1,000   Additional Information:   Tax rate is 30 per cent As at the date of acquisition, all assets of TakeItEasy Ltd were at fair value, other than the property, plant and equipment, which had a fair value of…

Details

ACT204 UNIT NAME: FINANCIAL ACCOUNTING

Assignment Information Semester 2 2017 Question 2 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…

Details

Cottesloe Ltd manufactures and sells two products

Question 1 Cottesloe Ltd manufactures and sells two products: Thingone and Thingtwo. In July 2014, Cottesloe Ltd’s budget department gathered the following data to prepare budgets for 2015: 2015 Projected Sales Product Units Price Thingone 60,000 $165 Thingtwo 40,000 $250   2015 Inventories in Units Expected Target Product January 1, 2015 December 31, 2015 Thingone 20,000 25,000 Thingtwo 8,000 9,000   The following direct materials are used in the two products:   Amount used per unit Direct Material Unit Thingone Thingtwo A Kilogram 4 5 B Kilogram 2 3 C Each 0 1   Projected data for 2015 with respect to direct materials are as follows: Direct material Anticipated purchase price Expected inventories January 1, 2015 Target inventories December 31, 2015…

Details

CVP Analysis

CVP Analysis Guide to marks: 20 marks – 4 for a, 4 for b, 4 for c, 8 for d Show all calculations to support your answers. A manufacturer can make two products, A and B. The following data are available:B Product A B Total Sales price per unit $10 $20 Variable cost per unit $5 $12 Total fixed costs $4,000 (a) Calculate the unit contribution margin for each product. (b) This month the manufacturer will specialise in making only Product B. How many does he need to sell to break even? (c) If they specialise in making only A what is the breakeven sales volume for the month in sales dollars? (d) He now decides to manufacture both A and…

Details

Bo Vonderweidt, the production manager for Sportway Corporation

Bo Vonderweidt, the production manager for Sportway Corporation, had requested to have lunch with the company president.  Vonderweidt wanted to put forward his suggestion to add a new product line.  As they finished lunch, Meg Thomas, the company president, said, “I’ll give your proposal some serious thought, Bo.  I think you’re right about the increasing demand for skateboards. What I’m not sure about is whether the skateboard line will be better for us than our tackle boxes. Those have been our bread and butter the past few years.” Vonderweidt responded with, “Let me get together with one of the controller’s people.  We’ll run a few numbers on this skateboard idea that I think will demonstrate the line’s potential.” Sportway is a…

Details

ACG 23 BUSINESS FINANCE – Financial Management

Question 1 (Total marks for this question = 10 marks) Suppose $1,000 is invested each year for 5 years at an interest rate of 10% per annum compounded. Calculate the future value of the investment if the payments are invested at the end of each year and the compounding is annual compounding. (2 marks) Calculate the future value of the investment if the payments are invested at the beginning of each year and the compounding is annual compounding. (2 marks) Calculate the future value of the investment if the payments are invested at the end of each year and the compounding is monthly compounding. (2 marks) Explain what is meant by continuous compounding. (2 marks) Calculate the future value of the…

Details

Mackay Ltd reported sales revenue of $16 million

Mackay Ltd reported sales revenue of $16 million for the year ended 30 June 2017. In preparing the financial statements the following matters were considered: (a) Income tax expense for the year ended 30 June 2017 was $218 640. (b) Financial restructuring has resulted in the disposal of land, bought in 2006 for future expansion, for a profit of $200 000. (c) A dividend of $26 000 has been received from a subsidiary company. (d) Other expenses incurred: Interest $480,000 Wages and salaries 5,492,000 Selling expenses 2,500,000 Administration expenses 100,000 Bad debts 200,000 Other expenses 440,667 Electricity/water 480,000 Cost of sales 5,000,000     (e) On 10 October 2016, plant with a carrying amount of $320 000 was destroyed by an…

Details

Farhmahouse Ltd reported sales revenue of $16 million

AC202/ACC2004 Financial Accounting Standards and Corporate Reporting Excel Assignment – 15% Farhmahouse Ltd reported sales revenue of $16 million for the year ended 30 June 2013. In preparing the financial statements the following matters were considered: (a) Income tax expense for the year ended 30 June 2013 was $218 640. (b) Financial restructuring has resulted in the disposal of land, bought in 2002 for future expansion, for a profit of $200 000. (c) A dividend of $26 000 has been received from a subsidiary company. (d) Other expenses incurred: Interest $480,000 Wages and salaries 5,492,000 Selling expenses 2,500,000 Administration expenses 100,000 Bad debts 200,000 Other expenses 440,667 Electricity/water 480,000 Cost of sales 5,000,000     (e) On 10 October 2012, plant…

Details

Maple Ltd conducts a business that makes women’s shoes

ACC210 Major Assignment (Task 2)   Question 1: (Approximately 400 words)   Exercise 3.1- Valuation premise for measurement of fair value Maple Ltd conducts a business that makes women’s shoes. It operates a factory in an inner suburb of Perth. The factory contains a large amount of equipment that is used in the manufacture of shoes. Maple Ltd owns both the factory and the land on which the factory stands. The land was acquired in 2007 for $200 000 and the factory was built in that year at a cost of $520 000. Both assets are recorded at cost, with the factory having a carrying amount at 30 June 2017 of $260 000.   In recent years a property boom in…

Details

MPA903 Advanced Corporate Reporting – Taxation woksheet and Consolidation

MPA903 Advanced Corporate Reporting Individual Assignment (30%) Semester 2, 2017 QUESTION 1 At 1st July 2016, Green Bay Ltd’s opening balances of asset and liability accounts for both accounting and tax purposes were shown as follows:   Accounting Tax Goodwill $800,000 (Dr.) Nil Plant and equipment (net) $640,000 (Dr.) 600,000 (Dr.) Provision for long service leave $100,000 (Cr.) Nil Accounts Receivable (net) $320,000 (Dr.) $350,000 (Dr.) Provision for Warranty expenses $75,000 (Cr.) Nil Research and development expenses Nil Nil Deferred tax assets (DTA) 49,500 (Dr.)   Green Bay Ltd’s operating profit before income tax was $3,500,000 for the year ended 30th June, 2017. In preparing the financial statements for the year ended 30th June, 2017, the company accountant used the following…

Details