The following employees work for Shy-Fi Contracts Ltd, a public company specialising in contract labour force for different projects in construction industry. The employees are paid an hourly rate, based on their Job Classification level.  If an employee works more than 35 hours, they will be paid the overtime rate for the additional hours. The following table summarises the classifications and level of pay per classification: TABLE A:   Classification Levels Level Hourly pay 1 $        30.00 2 $        40.00 3 $        50.00 4 $        60.00 5 $        65.00 6 $        70.00   The overtime hourly rate is $ 80 per hour for ALL employees, regardless of their classification level. Sky-Fi Contracts Ltd has the following employees:   TABLE B:  …

Part A: Income Statement and Balance Sheet  Laura Golarsa’s Asset and Liabilities as at June 30 are outlined in the post-closing trial balance below.   Debit Credit Cash at Bank $2,700.00   Inventory (at cost) $4,000.00   Accounts Receivable $3,100.00   Plant & Equipment $6,600.00   Accumulated Depreciation: Plant & Equipment   $2,640.00   Debit Credit Motor Vehicles $18,000.00   Accumulated Depreciation: Motor Vehicles   $4,500.00 Land & Buildings $225,000.00   Accrued Expenses Payable   $530.00 Bank Loan   $51,730.00 Capital: Laura Golarsa   $200,000.00   $259,400.00 $259,400.00   Laura Golarsa estimates that her sales for the next three months will be as follows: July August September $15,750 $19,250 $17,500 Selling price is firmly established a cost plus 75% Markup, with…

Eureka Ltd commences operations on 1 July 2018. One year after the commencement of its operations (30 June 2019) the entity presents its first Statement of Comprehensive Income and Statement of Financial Position on 30 June 2019. The statements are prepared before considering taxation. The following information is available.   Eureka Ltd Statement of Comprehensive Income for the year ended 30 June 2019      $       $ Gross Profit   2,700,000       Expenses:     Administrative expenses 200,000   Selling expenses   80,000   Salaries 420,000   Interest expenses   14,000   Provision for doubtful debts   70,000   Long service leave 140,000   Warranty expenses   84,000   Depreciation expense – plant 224,000   Insurance   84,000…

Sampras Ltd issued $1 million of convertible notes on 1 July 2019. The notes have a life of 6 years and a face value of $1 each. They offer interest, payable at the end of each financial year, at a rate of 5 percent per annum. The notes were issued at their face value and each note can be converted into one ordinary share in Sampras Ltd at any time in the next 6 years. Organisations with a similar risk profile to Sampras Ltd have issued debt with similar terms but without the option to convert at the rate of 7%. The holders of the options elect to convert the options to ordinary shares at the end of the second year…

Financial statement presentation, accounting for income tax, statement of cash flows The trial balance of Dress to Impress Ltd, a new clothing retailer in Sydney (commenced operations on 1 July 2017), includes the following accounts at 30 June 2018:   DR ($) CR ($) Sales revenue   4,278,000 Interest income   19,000 Cost of goods sold 2,620,000   Advertising 230,000   Annual leave 28,000   Depreciation - administration office equipment 8,000   Depreciation - shop fittings 23,000   Doubtful debts expense 13,000   Electricity 26,000   Insurance 28,000     DR ($) CR ($) Interest expense 4,000   Long service leave 8,000   Rent 240,000   Salaries 518,000   Sundry expenses 74,000   Income tax expense ?   Cash on hand…

Bill has bought a new home in Canberra. He borrowed $600000 at a rate calculated to be 150 basis points over the Australian 10-year government bond yield for 2018*. The loan is to be repaid in annual instalments over a thirty year period. The first instalment was due on 19 March 2020. a. In your spreadsheet, in your first tab (labelled ‘A’), draw up the loan repayment schedule for Bill. Calculate the annual loan repayment amount using Goal Seek. Like Bill, in question 3 above, Scott has bought a house in Canberra, borrowing the same amount, and on the the same terms. Scott’s bank, however, offers an ‘interest offset’ account facility with the loan. Like Bill, Scott’s first payment is on 19…

 Pumpkin Group – Consolidated financial statements   Pumpkin Ltd is a large successful agricultural company based in Morrinsville. You are the assistant accountant with the company and have been asked to draft the company’s group accounts. Tom Ato, head of group accounting briefed you as follows and followed up with emailed information for you to work with.   Tom has stressed that the company has a staff code of conduct, which requires staff to treat all company information as strictly confidential. The code permits reviewing reference material, conducting research, and discussing and seeking advice about accounting procedures with others but does not allow sharing any financial information with anyone including unauthorised staff. He suggests that similar ethics apply, to those you…

Another version of this question is available here.   FlixCity & Gaming Post-closing Trial Balance for the month ended 30 June 2017 Account No's Account Names Opening Balances Dr Cr ASSETS 100 Cash at Bank             15,690.00 110 Accounts Receivable               2,650.00 130 Prepaid Advertising               1,430.00 140 Prepaid Insurance                  980.00 150 Land           860,000.00 160 Buidling           130,000.00 165 Accumulated Depreciation - Building             17,500.00 170 Equipment - Computer/console/candy bar/projector           360,000.00 175 Accumulated Depreciation - Equipment           180,000.00 LIABILITIES 200 Accounts Payable             12,100.00 210 Unearned revenue               5,600.00 220 Interest Payable               4,850.00 230 Loan Payable - Principal due May 2030           985,000.00 240 Wages Payable               6,200.00 250 Utilities Payable               7,600.00 EQUITY 300 Nicholas Robbins,…

On 1 July 2014 Padda Ltd acquired all the issued shares (cum div) of Slang Ltd. At this date the statement of financial position of Slang Ltd included the following information:     Carrying amount Fair value Assets     Cash $   7 500 $    7 500 Receivables 22 800 22 800 Inventories 22 500 28 500 Goodwill 7 200   Plant and Equipment 300 000 264 600 Accumulated depreciation – plant and equipment (38400)   Total assets $321 600         Liabilities     Dividend payable 12 000 12 000 Provisions 28 800 28 800       Equity     Share capital (180 000 shares) 180 000   General reserve 34 800   Retained earnings 66 000…