Urgent (accounting)

ACC514
FINANCIAL ACCOUNTING
Session
201360
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ADDITIONAL ASSESSMENT

Project:
Drawback-solving Questions Worth: 20%
Due
date: seventh February 2014
Submission
technique: electronic mail to Miranda Dyason (midyason@csu.edu.au)

Process

You
are to finish all four problem-solving questions. A complete of 60 marks are
allotted to the questions under, which can then be transformed to a mark out of
20%.

Rationale

This evaluation
process covers subjects four – eight. Extra particularly it seeks to evaluate your means to:

•
put together journal entries for
transactions involving share points, over/below subscription of shares,
forfeiture and reissue of shares;

•
account for revenue tax in accordance with AASB
112;
•
focus on applicable accounting remedy for
intangible property;
•
account for property, plant and tools utilizing
the revaluation mannequin.

Marking
standards

Essay/dialogue
questions

Within the awarding
of marks for essay/dialogue questions, consideration might be given to:

•
proof of understanding of the important thing points
recognized within the query;
•
lively evaluation of recognized parts as
applicable;

•
clear indication of studying of the
texts, readings and different related references as applicable;

•
clear and logical written expression;
•
applicable construction and structure as required;
•
applicable referencing; and
•
commentary of the phrase restrict, if any.

Numerical
questions

Within the awarding
of marks for numerical questions, consideration might be given to:

•
correctness of solutions;
•
applicable formatting and headings;
•
related workings;
•
strategy taken to unravel the issue; and
•
completeness of solutions.

Presentation

Bodily
presentation of assignments

It’s important that presentation of assignments
adheres to accepted requirements in relation to neatness and structure, as you might be
practising to current materials in a piece state of affairs. Appropriate formatting and
referencing procedures of fabric ought to be strictly adhered to for essays.
It’s best to submit a correct reference checklist (utilizing APA referencing fashion) for all
essay kind assignments. A reference checklist accommodates solely these works cited or
quoted from in your essay. A bibliography is appropriate for practical-type
assignments.

For sensible
questions:

•
all journal entries should embody narrations until
in any other case specified;

•
any ledger accounts ought to
ideally be proven in ‘T’ account format and dates and descriptions be
included;

•
journal entries and ledger accounts should replicate
the strict order of sequence of occasions;

•
monetary statements (together with
extracts) ought to embody correct headings and accord with presentation
requirements.

Penalties
might be incurred if materials shouldn’t be accurately referenced and if presentation is
not of an appropriate normal.

Please additionally
observe the next:

•
Journal entries, ledger accounts,
worksheets and monetary statements ought to at all times stability. If you need to
submit a chunk of labor that doesn’t stability since you can’t detect your
error please embody some remark in regards to the supply of your drawback so the
marker can present applicable suggestions.

•
Embody workings the place
applicable. Partial marks may be allotted for workings the place the ultimate reply
is wrong.

Necessities

All workings,
when applicable, should be proven to substantiate your solutions.

Query 1 [15
marks]

Accounting for
share capital

The
structure of Hill Ltd indicated that the corporate may problem as much as 5,000,000
odd shares and 1,000,000 choice shares. Prospectuses had been
printed providing 1,000,000 choice shares at $1.50 payable in full on
utility by 31 March 2013, and a couple of,000,000 odd shares at $1.20 with 50%
due on utility by 31 March 2013, 25% due on allotment, and 25% due on a
name to be made by the administrators at a later date.

By
31 March 2013, the corporate had obtained quantities due on 800,000 of the
choice shares and on functions for two,400,000 odd shares. The
administrators met on 10 April 2013 and resolved to problem the choice and
odd shares.

The
odd shares have been allotted to candidates on a professional rata foundation and the quantities
obtained in extra of that due have been to be credited towards quantities due on
allotment. The quantity due on the allotment of the odd shares was payable
by 15 Could 2013 and this was obtained on all shares.

The
administrators made the decision on the odd shares on 31 August 2013, with quantities
payable by 30 September 2013. By this date, quantities due on 1,997,000 shares had
been obtained.

On
5 October 2013, as offered by the corporate’s structure, the administrators
forfeited the shares on which calls have been unpaid.

On
25 October 2013, the forfeited shares have been reissued as absolutely paid for a
consideration of $1 per share. Prices of reissue amounted to $700. The
structure offered for any surplus on resale, after satisfaction of unpaid
calls and prices, to be returned to shareholders whose shares have been forfeited.

Required:

Present the journal entries to account for the
above entries. Present all related dates, narrations and workings.

[adapted
from: Dagwell, R., Wines, G. & Lambert, C. (2012). Corporate accounting
in Australia: Pearson Australia]

Query
2 [15 marks]

Accounting for
revenue tax

Brilliant Ltd commences operations on 1 July 2012 and
presents its first Assertion of Revenue or Loss and Different Complete Revenue,
and first Assertion of Monetary Place on 30 June 2013. The statements are
ready earlier than contemplating taxation. The next info is obtainable:

Assertion of Revenue or
Loss and Different Complete
Revenue for the yr ended
30 June 2013

$

$

Gross revenue

530,000

Bills

Administration
bills

115,000

Salaries

180,000

Lengthy service
go away

5,000

Guarantee
bills

30,000

Depreciation expense – plant

80,000

Insurance coverage

20,000

430,000

Accounting revenue earlier than tax

100,000

Property and liabilities as
disclosed within the Assertion of
Monetary Place as at
30 June 2013

$

$

Property

Money

20,000

Stock

100,000

Accounts
receivable

100,000

Pay as you go
insurance coverage

10,000

Plant – value

400,000

Much less:collected
depreciation

80,000

320,000

Complete property

550,000

Liabilities

Accounts
payable

95,000

Provision for
guarantee bills

20,000

Mortgage payable

200,000

Provision for lengthy service go away

5,000

Complete liabilities

320,000

Internet property

230,000

Different
info:

•
All administration and salaries bills incurred
have been paid as at yr finish.

•
Not one of the lengthy service go away
expense has truly been paid. It’s not deductible till it’s truly paid.

•
Guarantee bills have been accrued
and, at yr finish, precise funds of $10,000 had been made (leaving an accrued
stability of $20,000). Deductions can be found solely when the quantities are paid
and never as they’re accrued.

•
Insurance coverage was initially pay as you go to
the quantity of $30,000. At yr finish, the unused part of the pay as you go
insurance coverage amounted to $10,000. Precise quantities paid are allowed as a tax
deduction.

•
Quantities obtained from gross sales,
together with these on credit score phrases, are taxed on the time the sale is made.

• The
plant is depreciated over 5 years for accounting functions, however over 4
years for taxation functions.

•
The tax charge is 30%.

Required:

a)
Decide the stability of any
present and deferred tax property and liabilities as at 30 June 2013, in
accordance with AASB 112. Present all mandatory workings.

b)
Put together the journal entries to
document the present tax legal responsibility and actions in deferred tax property and
liabilities.

[adapted from: Deegan, C. (2010). Australian
financial accounting (7th ed.).
Sydney: McGraw Hill]

Query three [15
marks]

Intangible property

Scooters Ltd was included 5
years in the past on 1 July 2008. Within the 5 years since then, the corporate has been
growing a design for a brand new four-wheel motorised scooter for aged individuals.
The corporate has patents pending for the design and manufacturing of the scooter.

By 30 June 2011, the company’s
work on the scooter design was sufficiently superior for it to think about that
the design was technically possible and would ends in a far superior product
to another motorised scooter out there at the moment. The corporate concluded at
that point that it possessed enough assets to finish the event of
the scooter’s design.

The corporate has incurred the
following expenditure in growing its scooter design over the previous 5 years:

Yr ended

Expenditure

$

30 June 2009

Analysis on
preliminary scooter design

125,000

Skilled
charges for preliminary patent

30,000

30 June 2010

Additional
refining of the scooter’s design

140,000

30 June 2011

Analysis
and remaining choice of the design, manufacturing supplies

145,000

and processes

30 June 2012

Design of
tooling and jigs for manufacturing of the scooter

150,000

30 June 2013

Manufacturing
and testing of a pre-production prototype

85,000

Additional
growth of the scooter’s design

50,000

Expenditure
on workers coaching to function the scooter

30,000

Improvement of
a buyer checklist
of potential producers
and

25,000

retailers for the
scooter

Authorized and
skilled charges to register a remaining patent

35,000

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Required:

Focus on
the accounting therapies for the expenditure incurred by Scooter Ltd within the
final 5 years in accordance with AASB138. Present related paragraph numbers
from the usual to assist your reply.

[adapted
from: Dagwell, R., Wines, G. & Lambert, C. (2012). Corporate accounting
in Australia: Pearson Australia]

Query
four [15 marks]

Property, plant
and tools

Gardiner Ltd acquired a machine on
1 July 2011 at a value of $300,000. On the date of acquisition, Gardiner’s administrators
decide to depreciate the machine on a straight-line foundation over a interval of
six years. The machine has an estimated residual worth of nil. The corporate
elects to undertake the revaluation mannequin subsequent to acquisition.

The administrators of Gardiner estimated
the honest values for the machine to be $265,000 and $190,000 on 30 June 2012 and
30 June 2013 respectively. There aren’t any modifications within the initially estimated
helpful life and residual worth for the machine.

Assume a tax
charge of 30%.

Required:

Put together journal
entries to account for the above transactions for the years ended 2012 and
2013.

[adapted
from: Dagwell, R., Wines, G. & Lambert, C. (2012). Corporate accounting
in Australia: Pearson Australia]

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