Solved Assignments

Preparation of accounting records – using spreadsheets – Flash Cleaning Services

Preparation of accounting records – using spreadsheets Flash Cleaning Services commenced operations on 1 July 2018. The company opened a cleaning business – providing cleaning services to local schools, preschools and childcare centres. During its first month of operations, the following transactions occurred: Date Transaction details   1 July 2018 Sally Flash invested $30,000 into the business, and the money was deposited into the bank account. Sally Flash operates the business as a sole-trader.   1 July 2018 Flash Cleaning Services borrowed $20,000 from the bank. The loan is interest-only, and interest is charged at 12% p.a.   1 July 2018 Flash Cleaning Services purchased a motor vehicle – a van that will be used for the cleaning business. The motor…

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PACC6004 – On 1 August 2016, NBS Ltd was incorporated and a prospectus was issued

Question (Part 1): On 1 August 2016, NBS Ltd was incorporated and a prospectus was issued inviting applications for 250 000 ordinary shares to the public at an issue price of $12, payable as follows:   $4 on application (due by closing date of 1 October) $5 on allotment (due 1 November) $3 on final call/calls (to be determined by the directors)   By 1 October, applications had been received for 350 000 ordinary shares of which applicants for 50 000 shares forwarded the full $12 per share, applicants for 100 000 shares forwarded $9 per share and the remainder forwarded only the application money. At to directors’ meeting on 7 October, it was decided to allot shares in full to…

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Danial Delivery Service completed the following transactions during its first month

Task 1 (20 marks) Danial Delivery Service completed the following transactions during its first month of operations for January 2019: Danial started his own business by investing $50,000 cash and giving a truck valued at $100,000. Insurance of $6,000,paid Performed delivery services for a customer and received $7,000 cash. Completed a large delivery job, billed the customer $20,000, and received a promise to collect the $20,000 within one week. Received $9,000 cash for performing delivery services. Collected $5,000 in cash for delivery service to be performed later. Collected $20,000 cash from a customer on account. Purchased fuel for the truck, paying $1,000 in cash. Performed delivery services on account, $8,000. Danial withdrew $19,000 cash for his own personal use. Requirements Record…

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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…