代写ACC204 – Advanced Financial Accounting

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  • Unit:  ACC204 – Advanced Financial Accounting
    Submission Date:  7-Aug-2015 before 4.00 pm
    Weighting: The assignment is worth 40% of the total unit weight.
    Instructions:
    1. Students are required to cover all stated requirements.
    2. Your answer must be both uploaded to Moodle in word file and handed over a
    printed copy.
    3. You need to support your answers with appropriate Harvard style references where
    necessary.
    4. Only include information in your appendixes that has been directly referred to in
    the body of your document.
    5. Include a title/cover page containing the subject title and code and the name,
    student id numbers.
    6. Please save the document as ACC204AT2_first name_Surename_Student Number
    Eg: ACC204AT2_John_Smith_NA20150000

    Question 1: Accounting for Lease
    Owing to low liquidity, Lisa Ltd decides on 1 July 2015 to sell its land and buildings to Anderson Ltd. The carrying
    values of the land and buildings in the books of Lisa Ltd, at 1 July 2015, are:
    The land and buildings are sold for $4334 700 (their fair value), with the amount being allocated equally as
    follows:
    Land  $2167350
    Buildings $2167350
    Immediately following the sale, Lisa Ltd decides to lease back the land and buildings from Anderson Ltd. The
    term of the lease is 20 years. The implicit interest rate in the lease is 12 per cent. It is expected that the
    buildings will be demolished at the end of the lease term. The lease is non-cancellable, returns the land and
    buildings to Anderson Ltd at the end of the lease, and requires the following lease payments:
    Payment on inception of the lease on 1 July 2015 $600000
    Payment on 30 June each year starting 30 June 2016 $500000
    There is no residual payment required
    REQUIRED
    a) Provide the entries for the sale and leaseback in the books of Lisa Ltd as at 1 July 2015.
    b) Provide the entries for the purchase and lease in the books of Anderson ltd as at 1 July 2015
    c) Provide the entries in the books of Lisa Ltd as at 30 June 2025.
    d) Provide the entries in the books of Anderson Ltd as at 30 June 2025.
    Question 2: Accounting for Income Tax
    MR Limited commences operations on 1 July 2014 and presents its first statement of comprehensive income
    and first statement of financial position on 30 June 2015. The statements are prepared before considering
    taxation. The following information is available:
    Statement of comprehensive income for the year ended 30 June 2015
    Gross profit
    730000
    Expenses
    Administration expenses  80000
    Salaries  200000
    Long-service leave  20000
    Warranty expenses  30000
    Depreciation expense-plant  80000
    Insurance  20000  430000
    Accounting profit before tax  300000
    Assets and liabilities as disclosed in the statement of financial position as at 30 June 2015
    Buildings, at cost 
    Accumulated depreciation 
    3
    Assets
    Cash  20000
    Inventory
    100000
    Accounts receivable
    100000
    Prepaid insurance
    10000
    Plant-cost  400000
    less Accumulated depreciation  80000  320000
    Total assets
    550000
    Liabilities
    Accounts payable
    80000
    Provision for warranty expenses  20000
    Loan payable
    200000
    Provision for long-service leave
    expenses
    -20000
    Total liabilities
    320000
    Net assets  230000
    Other information
      All administration and salaries expenses incurred have been paid as at year end.
      None of the long-service leave expense has actually been paid. It is not deductible until it is actually paid.
      Warranty expenses were accrued and, at year end, actual payments of $10000 had been made (leaving an
    accrued balance of $20000). Deductions are available only when the amounts are paid and not as they are
    accrued.
      Insurance was initially prepaid to the amount of $30 000. At year end, the unused component of the prepaid
    insurance amounted to $10000. Actual amounts paid are allowed as a tax deduction.
      Amounts received from sales, including those on credit terms, are taxed at the time the sale is made.
      The plant is depreciated over five years for accounting purposes, but over four years for taxation purposes.
      The tax rate is 30 per cent.
    REQUIRED
    Provide the journal entries to account for tax in accordance with AASB 112.
    Question 3: Consolidation
    Sandy Ltd acquired 100 per cent of the issued capital of Beach Ltd on 30 June 2014 for $900 000, when the
    statement of financial position of Beach Ltd was as follows:
    $000
    $000
    Assets
    Accounts receivable  70
    Loan  300
    Inventory  100
    Land  400
    Shareholders' equity
    Property, plant and equip.  700
    Share capital  500
    Accumulated depreciation  -270
    Retained earnings  200
    1000  1000
    4
    Additional information
      The tax rate is 30 per cent.
      As at the date of acquisition, all assets of Beach Ltd were at fair value, other than the property, plant and
    equipment, which had a fair value of $530000. Beach Ltd adopts the cost model for measuring its property,
    plant and equipment. The property, plant and equipment is expected to have a remaining useful life of 10
    years, and no residual value.
      One year following acquisition it was considered that Beach Ltd's goodwill had a recoverable amount of
    $60000.
      Beach Ltd declared a dividend of $40000 on 10 July 2014, with the dividends being paid from pre-
    acquisition retained earnings.
      The statements of financial position and statements of comprehensive income of Sandy Ltd and Beach Ltd
    one year after acquisition are as follows:
    Statements of financial position of Sandy Ltd and Beach Ltd as at 30 June 2015
    Sandy
    Ltd
    Beach
    Ltd
    $000  $000
    Assets
    Cash  80  40
    Accounts receivable  50  50
    Inventory  140  123
    Land  600  400
    Property, plant and equipment  900  700
    Accumulated depreciation  -300  -313
    Investment in Beach Ltd  900
    Total  assets 2370  1000
    Liabilities
    Accounts payable  100  10
    Dividends payable  100  50
    Loan  670  140
    Shareholders' equity
    Share capital  1000  500
    Retained earnings  500  300
    2370  1000
    Reconciliation of opening and closing retained earnings
    Profit after tax  400  190
    Retained earnings -30 June 2014  300  200
    Interim dividend  -90  -40
    Final dividend  -110  -50
    Retained earnings -30 June 2015  500  300
    REQUIRED
    Prepare the consolidated statement of financial position for the above entities as at 30 June 2015.