Joe Edmonds, CPA, was retained by Fox Cable to prepare financial statements for April 2012
1.Joe Edmonds, CPA, was retained by Fox Cable to prepare financial statements for April 2012. Edmonds accumulated all the ledger balances per Fox’s records and found the following. FOX CABLE Trial Balance 30 April 2012 Dr. Cr. Cash $4,200 Accounts Receivable 3,300 Supplies 900 Equipment 10,700 Accumulated Depreciation $1,450 Accounts Payable 2,200 Salaries Payable 710 Unearned Revenue 990 Manion, Capital 13,000 Service Revenue 5,550 Salaries Expense 3,400 Advertising Expense 610 Miscellaneous Expense 290 Depreciation Expense 500 $23,900 $23,900 Joe Edmonds reviewed the records and found the following errors. Cash received from a customer on account was recorded as $840 instead of $480. A payment of $75 for advertising…
Group Accounting – Consolidation
Group Accounting – Consolidation On 1 July 2016, ASD Ltd purchased 80% of EPY Ltd’s shares for $1,300,000 cash. On that day, the equity of EPY Ltd was: Share capital $700,000 Retained earnings 500,000 $1,200,000 At the time of acquisition, EPY Ltd recorded all its assets at their fair values except for an item of plant and some land. ASD Ltd considered that an item of plant shown in the accounts of EPY Ltd was less than the fair value. The fair value should be 80,000 not 62,000 as shown in EPY Ltd's accounts. The plant was assessed to have a remaining useful life of 5 years and was to be depreciated on a straight-line basis. The land was recorded…
ACC204 Advanced Financial Accounting
You are required to complete each of two questions below. Provide detailed solutions and ensure that you include any relevant calculations. You should submit your assignment to Moodle using a single file; it can be Excel format, Word format or PDF format. There is no specified word limits. Any references included should use APA style. Question 1 (20 marks), Question 2 (10 Marks), John Pty Ltd is an Australian diversified industrial company with its major business activity being to manufacture flotation devices for babies and toddlers. Over the past decade, the business has been very profitable and the directors, Simon and Lisa, have kept payment of dividends to a minimum to allow the company to diversify into other activities. The following…
Business combination valuation entries, pre-acquisition entries
Business combination valuation entries, pre-acquisition entries On 1 July 2016, Merelyn Ltd acquired all the issued shares of Cathy Ltd for $220 800. At this date the equity of Cathy Ltd consisted of share capital of $100 000 and retained earnings of $58 800. All the identifiable assets and liabilities of Cathy Ltd were recorded at amounts equal to fair value except for: Carrying amount Fair value Patent $70 000 $72 000 Plant (net of $40 000 depreciation) 40 000 60 000 Inventory 21 600 28 000 The patent was considered to have an indefinite life. It was calculated that the plant had a further life of 10 years, and was depreciated on a…
The following transactions occurred for McDonalds Ltd
CHARLES DARWIN ...UNIVERSITY Part A: 1 Question Question 1 (80 Marks) McDonalds Limited Balance Sheet as at 1 July 2015 Assets Liabilities Current Assets Current Liabilities Cash 43900 Accounts Payable 28600 Accounts Receivable 27800 Accrues salaries 7100 Inventory 17500 Total current liabilities 35700 Prepaid Rent 6000 Total Current Assets 95200 Non-current liabilities Long term loan 75000 Total Liabilities 110700 Non-Current Assets Plant and Equipment 275000 Shareholder's equity Accumulated depreciation -65000 Share capital 150000 Investment 20000 Retained profits 64500 Total non-current assets 230000 Total shareholder's equity 214500 Total Assets 325200 Total Liabilities and shareholder's equity 325200 The following transactions occurred for McDonalds Ltd for the year ending 30 June 2016: Issued additional share capital for $5000 cash Received $26 800 from…