On January 1, 2017, Corgan Company Acquired 70 Percent Of The Outstanding Voting Stock
On January 1, 2017, Corgan Company acquired 70 percent of the outstanding voting stock of Smashing, Inc., for a total of $1,190,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $850,000, retained earnings of $400,000, and a noncontrolling interest fair value of $510,000. Corgan attributed the excess of fair value over Smashing’s book value to various covenants with a 20-year remaining life. Corgan uses the equity method to account for its investment in Smashing. During the next two years, Smashing reported the following: Question 1: On January 1, 2017, Corgan Company acquired 70 percent of the outstanding voting stock of Smashing, Inc., for a total of $1,190,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $850,000, retained earnings of $400,000, and a noncontrolling interest fair value of $510,000. Corgan attributed the excess of fair value over Smashing’s book value to various covenants with a 20-year remaining life. Corgan uses the equity method to account for its investment in Smashing. During the next two years, Smashing reported the following: Net Income Dividends Declared Inventory Purchases from Corgan 2017 $ 300,000 $ 50,000 $ 250,000 2018 280,000 60,000 270,000 Corgan sells inventory to Smashing using a 60 percent markup on cost. At the end of 2017 and 2018, 50 percent of the current year purchases remain in Smashing’s inventory. Compute the equity method balance in Corgan’s Investment in Smashing, Inc., account as of December 31, 2018. Prepare the worksheet adjustments for the December 31, 2018, consolidation of Corgan and Smashing. Required A: Compute the equity method balance in Corgan’s Investment in Smashing, Inc., account as of December 31,2018. Investment balance 12/31/18 $______________ Required B: Prepare the worksheet adjustments for the December 31, 2018, consolidation of Corgan and Smashing. (If no entry required for a transaction/event, select “No journal entry required” in the firs account field. 1 1 Investment in Smashing Cost of goods sold 2 2 Common stock – Smashing Retained earnings – Smashing Investment in Smashing Noncontrolling interest 3 3 Covenants Investment in Smashing Noncontrolling interest 4 4 Equity in earnings of Smashing Investment in Smashing 5 5 Investment in Smashing Dividends declared 6 6 Amortization expense Covenants 7 7 Sales Cost of goods sold 8 8 Cost of goods sold Inventory
Select The Best Answer For Each Of The Following Independent Multiple-choice Questions. Adams Company’s
Select the best answer for each of the following independent multiple-choice questions. Adams Company’s production cycle starts in Department A. The following information is available for July: Units Work in process, July 1 (60% complete) 150,000 Started in July 720,000 Work in process, July 31 (30% complete) 80,000 Materials are added at the beginning of the process in Department A. Using the weighted-average method, what are the equivalent units of production for the month of July? Materials Conversion (1) 720,000 744,000 (2) 870,000 814,000 (3) 734,000 720,000 (4) 795,000 734,000 (5) None of the above Department B is the second stage of Boswell Corporation’s production cycle. On November 1, beginning work in process contained 50,000 units, which were 30 percent complete as to conversion costs. During November, 320,000 units were transferred in from the first stage of the production cycle. On November 30, ending work in process contained 40,000 units, which were 65 percent complete as to conversion costs. Materials are added at the end of the process. Using the weighted-average method, the equivalent units produced during November were as follows: Prior Department Costs Materials Conversion (1) 370,000 330,000 304,000 (2) 370,000 330,000 345,000 (3) 370,000 330,000 356,000 (4) 320,000 330,000 356,000 (5) None of the above Department C is the first stage of Cohen Corporation’s production cycle. The following equivalent unit information is available for conversion costs for the month of September: Beginning work-in-process inventory (30% complete) 20,000 Started in September 340,000 Completed in September and transferred to Department D 320,000 Ending work-in-process inventory (70% complete) 40,000 Using the FIFO method, the equivalent units for the conversion cost calculation are: (1) 298,000 (2) 320,000 (3) 348,000 (4) 342,000 (5) None of the above Page 316 Draper Corporation computed the physical flow of units for Department D for the month of December as follows: Units completed From work in process on December 1 40,000 From December production 140,000 Total 180,000 Materials are added at the beginning of the process. Units of WIP at December 31 were 32,000. As to conversion costs, WIP at December 1 was 70 percent complete and WIP at December 31 was 50 percent complete. What are the equivalent units produced for the month of December using the FIFO method? Materials Conversion (1) 172,000 168,000 (2) 212,000 204,000 (3) 212,000 200,000 (4) 172,000 172,000 (5) None of the above
Activity-Based Costing And Predetermined Overhead Allocation Rates (LO 9-3, 5, 6) Kitchen Supply, Inc.
Activity-Based Costing and Predetermined Overhead Allocation Rates (LO 9-3, 5, 6) Kitchen Supply, Inc. (KSI), manufactures three types of flatware: institutional, standard, and silver. It applies all indirect costs according to a predetermined rate based on direct labor-hours. A consultant recently suggested that the company switch to an activity-based costing system and prepared the following cost estimates for year 2 for the recommended cost drivers. Activity Recommended Cost Driver Estimated Cost Estimated Cost Driver Activity Processing orders Number of orders $ 54,000 200 orders Setting up production Number of production runs 216,000 100 runs Handling materials Pounds of materials used 360,000 120,000 pounds Machine depreciation and maintenance Machine-hours 288,000 12,000 hours Performing quality control Number of inspections 72,000 45 inspections Packing Number of units 144,000 480,000 units Total estimated cost $1,134,000 In addition, management estimated 7,500 direct labor-hours for year 2. Assume that the following cost driver volumes occurred in January, year 2: Institutional Standard Silver Number of units produced 60,000 24,000 9,000 Direct materials costs $39,000 $24,000 $15,000 Direct labor-hours 450 450 600 Number of orders 12 9 6 Number of production runs 3 3 6 Pounds of material 15,000 6,000 3,000 Machine-hours 580 140 80 Number of inspections 3 3 3 Units shipped 60,000 24,000 9,000 Actual labor costs were $15 per hour. Required Compute a predetermined overhead rate for year 2 for each cost driver using the estimated costs and estimated cost driver units prepared by the consultant. Also compute a predetermined rate for year 2 using direct labor-hours as the allocation base. Compute the production costs for each product for January using direct labor-hours as the allocation base and the predetermined rate computed in requirement (a). Compute the production costs for each product for January using the cost drivers recommended by the consultant and the predetermined rates computed in requirement (a). (Note: Do not assume that total overhead applied to products in January will be the same for activity-based costing as it was for the labor-hour-based allocation.) Management has seen your numbers and wants an explanation for the discrepancy between the product costs using direct labor-hours as the allocation base and the product costs using activity-based costing. Write a brief response to management.
What Role Did Arthur Anderson Play In The Downfall Of Enron?
What role did Arthur Anderson play in the downfall of Enron?
Please Include The Process Of Answering The Questions And Clearly Mark The Number Of
Please include the process of answering the questions and clearly mark the number of questions, thank you!
Question 1 25 Marks The Condensed Balance Sheet Of A Manufacturing Company On 31
Question 1 25 Marks The condensed balance sheet of a manufacturing company on 31 December 2018 was as follows: BALANCE SHEET AS AT 31 DECEMBER 2018 N$ N$ ASSETS Non-current assets 312 000 Land and buildings 200 000 Machinery 60 000 Furniture 12 000 Vehicles 40 000 Current Assets 60 000 Inventory – Material A 5 000 – Material B 2 000 – Completed goods 16 000 Debtors 30 000 Bank 7 000 Total assets 372 000 EQUITY AND LIABILITIES Equity 346 000 Share capital 320 000 Retained income 26 000 Current liabilities 26 000 Creditors 6 000 Provision for taxation 20 000 Total Equity and Liabilities 372 000 The following details are planned for 2019: Only a single product is manufactured and its composition according to standard is as follows: N$ Material A 2 kg @ N$2.50 5.00 Material B 4 kg @ N$0.50 2.00 Labor 2 hours @ N$3.00 6.00 Overheads 2 hours @ N$1.50 3.00 16.00 Estimated sales 11 000 items @ N$20, 00 each. Desired closing stock: N$ – Material A 6 000 – Material B 3 000 – Work-in-process – – Completed goods 25 600 Selling costs 4 400 Administration costs 10 000 Provision for depreciation is to be calculated as follows: Machinery 10% on cost Furniture 5% on cost Vehicles 10% on cost Company taxation 40% The credit period granted by the suppliers and the delay in payment of debtors can be taken as one month. Required: Prepare the following budgets: Budget Marks 1.1. Sales budget 1 1.2. Production budget (units) 5 1.3 Purchase budget 10 1.4 Labour budget 1 1.5 Overhead budget 7 1.6 Cost of sales budget 1
Question 2 (25 Marks) A Company Has Prepared The Following Fixed Budget For The
Question 2 (25 Marks) A company has prepared the following fixed budget for the coming year. Sales 10,000 units Production 10,000 units N$ Direct materials 50,000 Direct labour 25,000 Variable overheads 12,500 Fixed overheads 10,000 Total 97,500 Budgeted selling price N$10 per unit. At the end of the year, the following costs had been incurred for the actual production of 12,000 units. N$ Direct materials 60,000 Direct labour 28,500 Variable overheads 15,000 Fixed overheads 11,000 Total 114,500 The actual sales were 12,000 units for N$122,000 (a) Prepare a flexed budget for the actual activity for the year. (13 marks) (b) Calculate the variances between actual and flexed budget, and summarize in a form suitable for management. (Use an absorption costing approach) (12 marks)
Areva Resources Namibia Plc. Undertook A Project Involving The Construction Of A Seawater Desalination
Areva Resources Namibia Plc. undertook a project involving the construction of a seawater desalination plant at Wlotzkasbaken near Swakopmund. The project was completed on 01 January 2017 at a cost of N$10 000 000. The directors of Areva Resources believe their multi-million dollar project shall be able to supply all the water to be consumed at Trikkopje mine, some 40km into the dessert. After 5 years, the company has an obligation to dismantle and restore the environment in compliance with both the Ministry of Marine Resources
Commercial Law – In The Case Of Gengan V Pathur 1977 (1) SA 826,
Commercial Law – In the case of Gengan v Pathur 1977 (1) SA 826, Gengan bought some buildings from Pathur. The contract (deed of sale) stated that in respect of the property would pass to the buyer Gengan (the buyer) on registration of transfer in the Deed Office. However, before registration of the transfer, but after signing the deed of sale, the buildings were partially destroyed by a fire. Gengan used his own money to restore the buildings. After the transfer of the property was registered, Gengan instituted an action for damages against Pathur for cost of repairing the building. Pathur’s defence was that he was not under any duty to repair the buildings. 1.1 Discuss the transfer of risk in sale agreements. 1.2 Discuss the manner in which the court in the Gengan v Pathur case, applied the law relating to the transfer of risk.
Question 4 4.1 Prepare A Process I Account And Abnormal Loss Account From The
Question 4 4.1 Prepare a Process I Account and Abnormal Loss Account from the following information. (13 marks) Input of Raw material 1000 units @ N$20 per Unit Direct Material N$4,200 Direct Wages N$6,000 Production Overheads N$6,000 Actual output transferred to process II 900 units Normal Loss 5% Value of Scrap per unit N$8 Note: It has been assumed that units of abnormal loss have also been sold at the same rate i.e. of Normal Scrap. 4.2 Caps Ltd produces four joint products. Joint costs for January 2019 were N$140 000. Data pertaining to the four products are as follows: Product Production units Further costs (N$) Selling price (per unit) Weighting A 10 000 3 000 N$5.50 3 B 40 000 6 000 N$1.60 2 C 30 000 5 000 N$1.50 4 D 20 000 10 000 N$3.00 2.5 Required: Allocate the joint costs to each product using the net realisable value method. (12 Marks)
Instructions (a) Assume Shania Twains Corporation Decided To Adopt The Conventional Retail Method. Compute
Instructions (a) Assume Shania Twains Corporation decided to adopt the conventional retail method. Compute the ending inventory to be reported in the balance sheet. (b) Without prejudice to your solution in part (a), assume instead that Shania Twains Corporation decides to adopt the dollar-value LIFO retail method. The appropriate price indexes are 100 at January 1 and 110 at December 31 and the cost to retail ratio for 2017 is 70%. Compute the ending inventory to be reported in the balance sheet. (c) On the basis of the information in part (b), compute cost of goods sold.
Question 2 [40 Marks] 2.1 Explain Why These External Users Of Financial Statements Use
Question 2 [40 marks] 2.1 Explain why these external users of financial statements use financial statements for decision making: [10 marks] Investors Lenders Suppliers Government Management 10 2.2 Briefly discuss providing a well-reasoned answer as to what you consider the difference between recording and reporting in the practice of accounting. [ 6 marks] 2.3 Define the following terms: 2.3.1 Income [2 marks] 2.3.2 Expense [2 marks] 2.3.3 Equity [2 marks] The accountant of Butler Ltd has gone on sick leave and there are some outstanding issues. The Finance Director provided you with the following statement of financial position of Butler Ltd. Statement of financial position on 31 December 2018 ASSETS PPE 590,000.00 Share capital ( 2 000 000 authorises NPV shares) 250,000.00 Cash 10,000.00 Overdraft (4,000.00) Inventory 52,000.00 Trade receivables 30,000.00 Shareholders for dividends 22,000.00 Total assets 950,000.00 Equity and liabilities Retained earnings 610,000.00 Trade payables 220,000.00 Long-term loans 158,000.00 Accumulated depreciation 42,000.00 Income tax expense 60,000.00 Total equity and liabilities 1,030,000.00 You are required to: 2.4 Write a report critically evaluating the presentation of the above statement according to the requirements IAS 1. [18 marks]
Question 3 [40 Marks] Rabie Ltd Is A Company That Distributes A Range Of
Question 3 [40 marks] Rabie Ltd is a company that distributes a range of thermal and fleece clothing to retailers around the country. The company is listed on the Namibian Stock Exchange. The draft trial balance of Rabie Ltd at 31 March 2019 is as follows: Rabie Ltd Trial Balance as at 31 March 2019 Debit Credit Ordinary share capital 1,000,000.00 Retained earnings 7,380,000.00 Equipment – carrying amount 6,800,000.00 Accounts receivable 950,000.00 Bank 307,000.00 Inventory 2,200,000.00 Borrowings 900,000.00 Accounts payable 320,000.00 Sales 12,100,000.00 Cost of sales 9,600,000.00 Packing expenses 300,000.00 Road transport cost 240,000.00 Stationery expense 436,000.00 Staff canteen expenses 213,000.00 Cleaning expenses 105,000.00 Depreciation – equipment 75,000.00 Salaries 700,000.00 Bad debts 10,000.00 Donations 50,000.00 Finance costs 54,000.00 Profit on the sale of equipment 400,000.00 Dividends 60,000.00 22,100,000.00 22,100,000.00 The following information is relevant and should be considered: 1. The ordinary share capital consists of 2 000 000 shares. 2. The net realizable value of the inventory at the reporting date was estimated at N$ 2 080 000. 3. Rabie Ltd classifies expenses according to their function. The financial director categorizes the function of the business into three areas, namely; sales, distribution and administration. 12 I. The distribution department specially wraps all items in a protective wrapping before the items are shipped. The goods are transported by an independent road transport entity to the retailers. N$ 8 000 of the road transport cost have been paid in advance for the following period. II. The administrative department issue stationery, provide refreshments and are responsible for the cleaning of the head office. Cleaning expenses of N$ 5 000 have been invoiced but not paid in respect of March 2019. III. The depreciation expense is allocated N$ 50 000 to distribution and N$ 25 000 to administration. The salaries are allocated N$ 250 000 to distribution and N$ 450 000 to administration. The bad debts are a distribution expense and the donations are an administration expense. 4. The income tax expense has been correctly calculated at N$ 180 000. 5. The borrowings represent a loan of N$ 900 000. The loan agreement was signed on 01 October 2018 and is repayable in three equal annual arrear instalments. Interest on the loan is at 12% and payable on the first day of each month. The first installment is due to be paid on 30 September 2019. The existing loan agreement provides Rabie Ltd with the option before the end of the current reporting period. 6. A final dividend of N$ 75 000 was declared on 15 April 2019 in respect of the year ended 31 March 2019. No interim dividends were declared. A final dividend of N$ 60 000 was declared on 14 April 2018 in respect of the year ended 31 March 2018. 7. There are no components of comprehensive income. 8. The financial statements have not yet been authorised for issue. You are required to: 3.1 Prepare the statement of profit or loss and other comprehensive income of Rabie Ltd for the year ended 31 March 2019 in conformity with the IFRS and Companies Act 71 of 2008. [19 marks] 3.2 Prepare the statement of financial position of Rabie Ltd as at 31 March 2019 for the year ended 31 March 2019 in conformity with the IFRS and Companies Act 71 of 2008. [15 marks] 3.3 Prepare the following notes to the financial statements of Rabie Ltd for the year ended 31 March 2019 in conformity with the IFRS and Companies Act 71 of 2008. [6 marks] 3.3.1 Summary of significant accounting policies 3.3.2 Long-term borrowings The end 13 Assignment 2 Question 1 The following are the post-closing trial balances of Crazehill Ltd as at 30 June 2014 and 30 June 2015:
PUBLIC SECTOR ACCOUNTING ASSIGNMENT CASH Vs ACCRUAL ACCOUNTING IN PUBLIC SERVICES Transition From Cash
PUBLIC SECTOR ACCOUNTING ASSIGNMENT CASH vs ACCRUAL ACCOUNTING IN PUBLIC SERVICES Transition from cash based accounting to modified accrual accounting has imperatively been slow but a gradually evolving global movement across the nation which is being undertaken by majority state and local governments over past two decades. This migration from cash to modified accrual accounting was being called from increased demand for accountability and transparency in the public sector which only the use of cash accounting was not able to suffice. Therefore, the Public Service Committee [PSC] of International Federation of Accountants [IFAC] has been continually putting forward words of encouragement to adopt the International Public Sector Accounting Standards [IPSAS] to all developing nations. Many countries has made several attempts to achieve this on two previous occasions back in the years 1994 and 1998, however the project of migration was put aside on both occasions. Besides that, in the year 2005 a similar attempt was made, yet public service ended up adopting a different approach which was used in the previous unsuccessful attempts. Despite of many years of attempts, many countries are still in the process of this migration. It was noted that overall unstable government and regular coups created hindrance in the progress of fast migration towards modified accrual accounting. Therefore, modified accrual accounting is yet to be effectively blended into the accounting systems of one countries public service. IFAC has signified that there may have been certain “factors” that has influenced the migration of cash based accounting to modified accrual accounting and made it a slow progress. DISCUSSION POINT 1: From your viewpoint what could have been these factors that IFAC is placing emphasis on? Required: Students must include a reference list [Mandatory] – APA referencing style AND in writing the report, the emphasis should be placed on the above mentioned discussion point [content/body of the assignment]
PUBLIC SECTOR ACCOUNTING CASH VS. ACCRUAL ACCOUNTING IN PUBLIC SERVICE ASSIGNMENT “Professional Development Training
PUBLIC SECTOR ACCOUNTING CASH VS. ACCRUAL ACCOUNTING IN PUBLIC SERVICE ASSIGNMENT “Professional development training for staffs serve to be the best when actual data is used, either trained locally or internationally, because it becomes more appropriate and meaningful to those personnel who are being trained to serve back their public sector” Now it has been evidently known that the project of migration from cash to modified accrual basis accounting was at a very slow pace. Obviously, the scale of this migration project has been reduced or downsized over the years from what it was when it was being implemented initially. From the above quoted statement, it can be concluded that professional training should be more structured and focused in public sector. The reason being that the trained expertise will oversee the operation of the whole project of migration from cash to modified accrual accounting instead of only providing consultations as to how to manage a software for example. Since accountants are now more engaged into managerial roles rather than bookkeeping, they appreciate the fact that the budge to modified accrual accounting comprise of more aspects than just getting an expensive software. DISCUSSION POINT 3: When it comes to providing professional trainings to public sector officials, there are always vital questions that perhaps remains in the minds of the public sector. From your viewpoint, discuss some of these questions that would come to your mind if you have to represent yourself as the “Government of any country”. Required: Students must include a reference list [Mandatory] – APA referencing style AND in writing the report, the emphasis should be placed on the above mentioned discussion point [content/body of the assignment]
Th Starlight Hotel Received An Invoice For $1,450 Dated August 28th, With Terms 2/10
Th Starlight Hotel received an invoice for $1,450 dated August 28th, with terms 2/10 EMO.Using this information, Determine the last date of the discount and credit periods, Determine how much the Starlight Hotel will pay if the payment is made on October 3rd.
PUBLIC SECTOR ACCOUNTING CASH VS. ACCRUAL ACCOUNTING IN PUBLIC SERVICE- ASSIGNMENT Discussion Point 1
PUBLIC SECTOR ACCOUNTING CASH VS. ACCRUAL ACCOUNTING IN PUBLIC SERVICE- ASSIGNMENT Discussion Point 1 Scenario: Transition from cash based accounting to modified accrual accounting has imperatively been slow but a gradually evolving global movement across the nation which is being undertaken by majority state and local governments over past two decades. This migration from cash to modified accrual accounting was being called from increased demand for accountability and transparency in the public sector which only the use of cash accounting was not able to suffice. Therefore, the Public Service Committee [PSC] of International Federation of Accountants [IFAC] has been continually putting forward words of encouragement to adopt the International Public Sector Accounting Standards [IPSAS] to all developing nations. Fiji has made several attempts to achieve this on two previous occasions back in the years 1994 and 1998, however the project of migration was put aside on both occasions. Besides that, in the year 2005 a similar attempt was made, yet Fiji’s public service ended up adopting a different approach which was used in the previous unsuccessful attempts. Despite of many years of attempts, Fiji is still in the process of this migration. It was noted that overall unstable government and regular coups created hindrance in the progress of fast migration towards modified accrual accounting. Therefore, modified accrual accounting is yet to be effectively blended into the accounting systems of Fiji’s public service. IFAC has signified that there may have been certain “factors” that has influenced the migration of cash based accounting to modified accrual accounting and made it a slow progress. DISCUSSION POINT 1: From your viewpoint what could have been these factors that IFAC is placing emphasis on? Discussion Point 2 Scenario: A great value of effort and expense had been considered when the first two attempts of migration to modified accrual accounting in Fiji’s public service had failed. As a result, in the election of the year 1999, the Permanent Secretary had given an advice to the Public Accountants Committee: “the failure of the project in the year 1994 was driven by a major contributing factor of the absence of an appropriate manager to oversee and guide the operations when accrual accounting project was in the process of being implemented”. Furthermore, the Auditor General [AG] supported this notion by saying that these additional expenses of migration were borne by the government due to lack of accounting expertise in Fiji’s public service who could have understood the concepts of accrual budgeting better. If referred back to a past literature, Fellow and Kelaher [1991] argued that the concepts of cash accounting are simple to understand and so is the case for accrual accounting, however, accrual accounting is complex to implement. On this note, the Public Sector Committee [from the treasury board of Canada] has examined some lessons which are claimed, that it has been experienced by the nations that has already converted to modified accrual accounting systems. One of these lessons was that “Professional development training for staffs serve to be the best when actual data is used, either trained locally or internationally, because it becomes more appropriate and meaningful to those personnel who are being trained to serve back their public sector” DISCUSSION POINT 2: From your viewpoint do you agree/disagree with this statement? If Yes, then explain “why” and if No then explain “why not”. Use relevant examples where appropriate to support your justifications. Discussion Point 3 Scenario: Now it has been evidently known that the project of migration from cash to modified accrual basis accounting was at a very slow pace in Fiji. Obviously, the scale of this migration project has been reduced or downsized over the years from what it was when it was being implemented initially. From the above underlined statement, it can be concluded that professional training should be more structured and focused in public sector. The reason being that the trained expertise will oversee the operation of the whole project of migration from cash to modified accrual accounting instead of only providing consultations as to how to manage a software for example. Since accountants are now more engaged into managerial roles rather than bookkeeping, they appreciate the fact that the budge to modified accrual accounting comprise of more aspects than just getting an expensive software. DISCUSSION POINT 3: When it comes to providing professional trainings to public sector officials, there are always vital questions that perhaps remains in the minds of the public sector. From your viewpoint, discuss some of these questions that would come to your mind if you have to represent yourself as the “Government of Fiji”. Discussion point 4 Scenario: Once you attempt discussion points one to three, it will be rectified that there are potential difficulties for Fiji as being a developing nation to completely shift from cash to accrual accounting, it surely will take some more years. DISCUSSION POINT 4: However, to you as students for Public Sector Accounting, questions that should be coming up to your minds are: Is it wise for Fiji and other developing countries to adopt accrual accounting or IPSAS? Whether cost vs. benefit analysis will be favorable? Will modified accrual accounting reports prove to be a better measure of decision making and assessing financial performance? To be fair from my perspective, these are unanswered questions in accounting literature. Critically present your contentions on these questions from your viewpoint. PREPARATION OF THE ASSIGNMENT 1. The assignment report should be of at least 1500 – 2000 words 2. The report must be compiled individually. 3. Students must include a reference list [Mandatory] – APA referencing style 4. In writing the report emphasis should be placed on the above mentioned 4 discussion points [content/body of the assignment] FORMAT OF THE ASSIGNMENT REPORT Sections Allocated Marks Introduction 1.5 Literature Review 5 Analysis and Discussion [4 discussion points] 20 Conclusion 1.5 Reference List 2 Total Marks 30 Weighting 10%
Un December 31st, 2017 The Blue Cat Inc Purchased A $100,000 Five Year Bond
Please indicate the process of answering the questions and clearly mark the number of questions
The Following Information Relates To An Equity Investment Of Charlotte Inc, A Publicly Accountable
Please write the process of answering the questions and clearly mark the number of questions
Question 2 [15 Marks] Financial Statement Presentation Snow Gear Ltd, A Manufacturing Company, Commenced
Question 2 [15 marks] Financial statement presentation Snow Gear Ltd, a manufacturing company, commenced operations on 1 July 2018. You are the company’s financial accountant. The trial balance for the year ended 30 June 2019 has been prepared as follows: Snow Gear Ltd Trial balance as at 30 June 2019 DR ($) CR ($) Cost of goods sold 860,000 Advertising expense 123,000 Salaries and wages – administration staff 50,000 Salaries and wages – selling and distribution staff 180,000 Annual leave expense – administration staff 3,000 Annual leave expense – selling and distribution staff 16,000 Doubtful debts expense 4,000 Depreciation expense 90,000 Interest expense 32,000 Other expenses 36,000 Warranty expense 31,000 Income tax expense 375,000 Cash on hand 41,000 Cash management account 200,000 Trade debtors 185,300 Goodwill 50,000 Raw material inventory 206,000 Finished goods inventory 456,000 Land 500,000 Buildings 650,000 Accumulated depreciation – buildings 20,000 Plant and equipment 900,000 Accumulated depreciation – plant and equipment 70,000 Patents 100,000 Deferred tax asset 13,000 Investment property 368,000 Sales revenue 2,650,000 Interest income 2,500 Rental income 16,000 Bank loan 300,000 Trade creditors 91,200 Deferred tax liability 8,000 Allowance for doubtful debts 2,600 Provision for annual leave 19,000 Provision for warranty 28,000 Accrued expenses 82,000 Current tax liability 380,000 Retained earnings, 1 July 2018 0 Dividends paid 200,000 Share capital ________ 2,000,000 5,669,300 5,669,300 Additional information: In relation to ‘other expenses’ in the trial balance, 90% relates to administration, and 10% relates to selling and distribution. In relation to ‘depreciation expense’, 80% relates to selling and distribution, and 20% relates to administration. Raw materials used during the year totalled $1,316,000. The bank loan is repayable over 10 years ($30,000 principal each year). The provision for annual leave is payable within 1 year. The provision for warranty is in respect of 12-month warranties given on all products sold. Share capital consists of 1,000,000 ordinary shares, fully paid to $2.00 each. Snow Gear Ltd is a reporting entity. In relation to the statement of financial position, where AASB 101 requires entities to disclose further sub-classifications of the minimum line items on the face of the statement or in the notes, the directors of Snow Gear Ltd want to report only the minimum line items on the face of the statement, and leave the sub-classifications to be disclosed in the notes. Required: i) Prepare a memo to the directors, explaining the methods available for classifying expenses on the statement of profit or loss and other comprehensive income. The directors would also like to know which method will result in the highest profit being reported to shareholders. Finally, also advise the directors of any factors that need to be considered when selecting between the available methods. Provide references to key paragraphs in the accounting standards. ii) To illustrate the differences in the methods discussed above, prepare the statement of profit or loss and other comprehensive income using each of the available methods, for the year ended 30 June 2019, in accordance with AASB 101. Use the single statement format. Show all workings (for example, to show how amounts in the financial statements have been calculated). iii) Prepare the statement of financial position of Snow Gear Ltd as at 30 June 2019, in accordance with AASB 101. Notes and comparative figures are not required. Show all workings (for example, to show how amounts in the financial statements have been calculated).
I Need The Correct Answers And Explanations Of How To Calculate Them For Parts
I need the correct answers and explanations of how to calculate them for parts B, C, and D. Thank you
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