Recent Question/Assignment

Question One:
XYZ PTY LTD acquired a toy-stuffing machine at a cost of $150 000 on 1 July 2009. The machine had a useful life of 10 years and a residual value of $30 000. The benefits from the machine are expected to be derived evenly over its life. On 1 July 2011 the assets fair value is $110 000 and the salvage value and useful life are expected to be unchanged (that is, there is 8 years of remaining life). On 30 June 2011 the machine is sold for $60 000 cash.
Required:
What are the journal entries required to record the depreciation for the year ended 30 June 2011 and the sale of the machine in accordance with AASB 116 if: (a) the revaluation is undertaken and (b) the revaluation is not recorded?
Question Two:
Darling Harbour Pty Ltd owns an item of machinery that has a cost of $700 000 and accumulated depreciation of $200 000 as at 1 July 2014. On that date the machine is sold to Blue Ltd for $533 493, and then leased back over 8 years (the remaining life of the machine). The lease is non-cancellable. The lease payments are $100 000 per annum, payable in arrears on 30 June each year. The interest rate implicit in the lease is 10% and the economic benefits of the asset are expected to be realized evenly over its life.
Required:
What are the entries to record the transactions in Darling Harbour’s books on 1 July 2014 and 30 June 2015 (rounded to the nearest dollar)?
Question Three:
NSW Pty Ltd had recorded an accounting profit of $150000, which include the following items:
$25000 Depreciation of plant and equipment
$5000 Doubtful debts expense
$8000 Long-service leave expense
For taxation purposes the following amounts were regarded as allowable deductions:
$32000 Depreciation of plant
$6000 Bad debt written off
$3000 Long service leave paid
Assume a tax rate of 30%.
Required:
(1) Calculate taxable income (tax loss) for the current year (3 marks)
(2) Prepare the journal entry to record income tax expense. (2 marks)
Question Four:
Kiama Ltd purchased 100% of the issued capital of Wollongong Ltd for a cash consideration of $1.7 million on 1 July 2014. At that time the fair value of the net assets of Wollongong Ltd were represented by:

Goodwill had been determined to have been impaired by $20 000 during the period. During the period ended 30 June 2015, Wollongong Ltd sold inventory that cost $450 000 for $620 000 to Kiama Ltd. Twenty per cent of this inventory remains on hand in Kiama Ltd at the end of the year. Both companies use a perpetual inventory system. The taxation rate is 30%. At the end of the period Wollongong Ltd declared a dividend of $45 000 that has not yet been paid.
Required:
What consolidation journal entries are required for the period ending 30 June 2015?
Question Five:
AQC Ltd purchased 75 per cent of the issued capital and in the process gained control over WMN Ltd on 1 July 2013. The fair value of the net assets of WMN Ltd at purchase was represented by:

AQC Ltd paid cash consideration of $4 000 000 for WMN Ltd. During the period ended 30 June 2015, WMN Ltd paid management fees of $540 000 to AQC Ltd and WMN had an operating profit of $980 000. WMNs opening retained earnings at the beginning of the period were $1 460 000. At the end of the period WMN Ltd declared a dividend of $90 000. There were no other inter-company transactions. Goodwill was determined to have been impaired by $19 000 during the period. Companies in the group accrue dividends when they are declared by subsidiaries.
Required:
For the period ended 30 June 2015, what consolidation journal entries are required and
Calculate the non-controlling interest?

Looking for answers ?


Recent Questions

The following links could be helpful: (These links were given to be used when wring the report)https://www.mtvehicles.com/blog/how-much-does-it-actually-cost-manufacturers-to-make-a-car/https://carfromjapan.com/article/industry-knowledge/how-much-does-it-cost-to-make-a-car/Can...Assessment 1 Question – MBA _ECON6000 Context:Assessment 1 assesses students’ understanding of the application of some of the knowledge garnered from the microeconomics part of the syllabus to analyse...Assessment InstructionBSBITU402 Develop and use complex spreadsheets Table of ContentsTable of Contents 2Assessment Information 3Assessment Instructions 5Assessment Task 1: Safe work practices observation...AS SESSMENT 1A BRIEFSubject Code and Title MGT502 Business CommunicationAssessment Part A: Annotated BibliographyIndividual/Group IndividualLength 1500 wordsLearning Outcomes This assessment addresses...Question 1 (Total of 12 marks)On Marys 16th birthday, her parents invest on her behalf an amount of $4,000 into an account that pays interest at 3.8% compounded semi-annually.(5 marks) How much will the...1. Students should access the papers listed below and available in Blackboard Course Readings , and select one of the qualitative research papers for their assignmentVasey, J., Smith, J., Kirshbaum, M....Assignment 1Report: Implications of trends in Business SystemsAnalysis on understanding the requirements from a Systems Analyst perspectiveThis assignment requires you to conduct research into, identify,...Show All Questions