Corporate Stationery and Furniture Supplies Pty Ltd was acquired and registered as a company on 1...

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Corporate Stationery and Furniture Supplies Pty Ltd was acquired and registered as a company on 1 July 2021 under the rebranded name as listed. The company is classified as a Proprietary Limited (Pty Ltd) company and is not listed on the stock exchange. The company is required to prepare financial statements and comply with accounting standards in accordance with the Corporations Act of 2001. The company imports and sources office stationery and supplies and furniture from Australia and around the world and sells to both individuals and corporate customers and provides or sources design services for corporate office refurbishments. All transactions are undertaken using Australian dollars ($A). A list of the assets and liabilities acquired shown at fair value on acquisition date is outlined on the following pages and in the financial data provided in the Excel spreadsheet that accompanies this assessment. Upon the acquisition, goodwill was paid in recognition of existing contracts for the company to continue to be the preferred supplier of stationery and furniture and first option to tender for office refurbishments for a large number of government departments and large corporate organisations over the next 3 to 5 years. 9) Insurance was reassessed and the company had been under insured for property, plant and equipment, vehicles and workers compensation. Overall insurance of $180,000 or $15,000 per month was prepaid on the 1st of June 2023 for 12 months. This prepayment requires a journal adjustment as at 30 June 2023. 10) Dividends of $175,000 from Investments in Equity instruments were due on 30 June 2023 but not yet received and require an adjusting journal for 30 June 2023. 11) Goodwill has been reviewed and is not deemed to be impaired as at 30 June 2023. 12) A potential contingent liability has arisen as a casual staff member was injured in the warehouse with a falling pallet that caused a broken ankle. A dispute is pending as video footage shows the casual worker acting in an unsafe way outside operation protocols prior to the incident. A lawsuit for $150,000 has been filed against the company by the affected worker and lawyers predict a 60% chance of winning that is still a 40% chance of being required to pay compensation. Account for this possible event in line with AASB137. Corporate Stationery and Furniture Supplies Pty Ltd DO NOT CHANGE DATA IN THESE 6 COLUMNS TRIAL BALANCE as at 30 June 2023 ACCOUNT Cash at Bank Short Term Deposits Accounts Receivable Provision for Doubtful Debts 90 91 Bank Bank 100 CA 101 Contra CA Office Supplies 102 CA Inventory Corporate Supplies and Furniture 110 CA Provision for Stock Obsolesence and Losses 111 Contra CA BAS Excluded BAS Excluded BAS Excluded BAS Excluded GST on Expenses GST on Expenses BAS Excluded 6,589,500.00 Interest receivable 120 CA BAS Excluded 1/7/2021 Code TYPE Tax Rate DEBIT Acquisition Opening CREDIT 30/6/2022 Prior Year 30/6/2023 DEBIT CREDIT Current Year UNADJUSTED DEBIT CREDIT 20,000,000.00 20,000,000.00 25,600.00 38,204,806.53 20,000,000.00 54,099.00 5,600.00 2,704.95 24,000.00 8,024,250.00 65,785,759.49 20,400,000.00 187,152.20 36,057.00 4,014,095.00 2,704.95 400,000.00 Prepaid Insurance 130 CA GST on Expenses Dividends Receivable Warehouse - Land 140 CA BAS Excluded 200 NCA BAS Excluded 9,000,000.00 Warehouse - Building 201 NCA BAS Excluded 6,000,000.00 Warehouse - Fixtures and Fittings 202 NCA BAS Excluded Warehouse - Plant and Equipment 203 NCA BAS Excluded Office Furniture & Fixtures 204 NCA BAS Excluded Office Equipment and Computers 205 NCA BAS Excluded Motor Vehicles 210 NCA BAS Excluded Investments in Equity Instruments 240 NCA BAS Excluded Deferred Tax Asset 250 NCA BAS Excluded 560,000.00 73,900.00 7,800.00 15,600.00 5,000,000.00 17,510.59 Accumulated Depreciation - Warehouse Building 290 Contra NCA BAS Excluded Accumulated Depreciation - Warehouse Fixtures and Fittings Accumulated Depreciation - Warehouse Plant and Equipment Accumulated Depreciation Office Furniture and Fixtures Accumulated Depreciation Office Equipment and Computers Accumulated Depreciation - Motor Vehicles 291 Contra NCA BAS Excluded 292 Contra NCA BAS Excluded 293 Contra NCA BAS Excluded 294 Contra NCA BAS Excluded 295 Contra NCA BAS Excluded Goodwill Accumulated Impairment - Goodwill Accounts Payable Interest Payable Salaries Payable Superannuation Payable PAYG Withholdings Payable Annual Leave Accrual GST Current Tax Payable Dividend Payable 300 ΙΑ 301 Contra IA BAS Excluded BAS Excluded 2,752,150.00 400 CL BAS Excluded 18,950.00 405 CL BAS Excluded 410 CL BAS Excluded 411 CL BAS Excluded 412 CL BAS Excluded 3,500.00 100,000.00 0.00 180,000.00 0.00 9,000,000.00 9,000,000.00 6,000,000.00 6,000,000.00 597,650.00 613,490.00 102,900.00 115,530.00 59,200.00 70,500.00 63,900.00 75,300.00 45,000.00 113,000.00 5,000,000.00 17,510.59 240,000.00 240,000.00 31,031.33 31,031.33 7,425.33 7,425.33 2,824.00 2,824.00 6,045.00 6,045.00 4,812.50 4,812.50 2,752,150.00 2,752,150.00 0.00 0.00 145,458.10 442,439.60 0.00 0.00 0.00 413 CL BAS Excluded 450 CL 460 CL BAS Excluded 490 CL BAS Excluded Provision for Employee Benefits - LSL 510 NCL BAS Excluded Provision for Warranty 515 NCL BAS Excluded Loan, non-current (8% pa 1 July 2021) 520 NCL BAS Excluded 15,000,000.00 Deferred Tax Liability 550 NCL BAS Excluded Issued Share Capital - Ordinary Shares (20 million @ $2 paid to 560 Equity BAS Excluded Issued Capital - 5% Cumulative Preference shares (10 million @ Asset Revaluation Surplus - Land 561 Equity BAS Excluded 10,000,000.00 40,000,000.00 562 General Reserve 565 Equity BAS Excluded Retained earnings 599 Equity BAS Excluded 550,000.00 28,802.08 2,638,921.30 6,770,739.50 550,000.00 26,861.61 14,500,070.45 159,147.56 10,000,000.00 40,000,000.00 114,443.91 40,989.58 2,231,978.70 0.00 0.00 68,482.14 0.00 14,500,070.45 159,147.55 10,000,000.00 40,000,000.00 0.00 15,334,122.41 Sales Revenue 600 REV GST on Income Cost of Sales Discount Received 700 COS 610 COS/Rev GST on Expenses GST on Income 42,630,911.00 57,892,687.00 15,553,650.00 22,189,565.00 25,988.00 36,895.00 Cost of Sales Discount Received Freight inwards 700 COS 610 COS/Rev 711 COS/Exp GST on Expenses Delivery Expenses - Inventory 712 COS/Exp GST on Expenses Discount Allowed 716 COS/Exp GST on Expenses GST on Expenses GST on Income 15,553,650.00 34,522.00 127,800.00 26,899.00 25,988.00 22,189,565.00 54,895.00 289,565.00 35,685.00 36,895.00 Interest Revenue 610 Other Income BAS Excluded Dividend Revenue 665 Other Income BAS Excluded 400,000.00 100,000.00 Gain on Revaluation of Land (OCI) 680 OCI BAS Excluded Loss on Sale Plant and Equipment 690 OCI BAS Excluded Wages and Salary Expenses 800 EXP BAS Excluded Superannuation Expenses 801 EXP BAS Excluded Long Service Leave Expense 802 EXP BAS Excluded Gas & Electricity Expense - Warehouse 805 EXP GST on Expenses 2,552,464.58 394,074.38 26,861.61 78,565.00 3,064,025.00 457,775.63 41,620.54 124,570.00 Office Supplies Expense 810 EXP GST on Expenses 22,356.00 16,899.00 Bank Fees 820 EXP BAS Excluded 0.00 0.00 Consulting and Accounting Expenses 830 EXP GST on Expenses 15,000.00 25,700.00 Cleaning Expenses 831 EXP GST on Expenses 18,200.00 24,580.00 Vehicle Expenses 832 EXP GST on Expenses 13,400.00 18,950.00 Maintenance Expenses - Plant and Equipment 833 EXP GST on Expenses 6,900.00 22,500.00 Maintenance Expenses - Building 834 EXP GST on Expenses 4,500.00 16,900.00 Maintenenace Expenses - Other 835 EXP GST on Expenses 2,588.00 7,985.00 Interest Expense 836 Finance Costs GST on Expenses 1,073,070.45 Insurance Expense 837 EXP GST on Expenses 38,500.00 0.00 3,500.00 Telephone and Internet Expenses 838 EXP GST on Expenses 29,500.00 Advertising Expenses 839 EXP GST on Expenses 15,000.00 Doubtful Debts Expense 840 EXP GST Adjust 2,704.95 36,500.00 295,800.00 0.00 General Expenses 841 EXP GST on Expenses 9,750.00 15,890.00 Entertainment Expenses 842 EXP GST on Expenses 10,356.00 12,650.00 Stock Write-offs Obsolesence and Losses 845 EXP GST Adjust 11,600.00 0.00 Warranty Expense 846 EXP GST on Expenses 0.00 0.00 Income Tax Expense 850 EXP BAS Excluded 6,912,376.46 0.00 Depreciation - Warehouse Building 890 EXP BAS Excluded 240,000.00 0.00 Depreciation - Warehouse Fixtures and Fittings Depreciation Warehouse Plant and Equipment Depreciation - Office Furniture and Fixtures Depreciation 891 EXP BAS Excluded 31,031.33 0.00 892 EXP BAS Excluded 7,425.33 0.00 893 EXP BAS Excluded 2,824.00 0.00 Office Equipment and Computers 894 EXP BAS Excluded 6,045.00 0.00 Depreciation Motor Vehicles 895 EXP BAS Excluded 4,812.50 0.00 65,024,550.00 0.00000 65,024,550.00 118,271,742.71 0.00000000 118,271,742.71 141,116,099.45 141,116,099.45 0.00000 Corporate Stationery and Furniture Supplies Pty Ltd was acquired and registered as a company on 1 July 2021 under the rebranded name as listed. The company is classified as a Proprietary Limited (Pty Ltd) company and is not listed on the stock exchange. The company is required to prepare financial statements and comply with accounting standards in accordance with the Corporations Act of 2001. The company imports and sources office stationery and supplies and furniture from Australia and around the world and sells to both individuals and corporate customers and provides or sources design services for corporate office refurbishments. All transactions are undertaken using Australian dollars ($A). A list of the assets and liabilities acquired shown at fair value on acquisition date is outlined on the following pages and in the financial data provided in the Excel spreadsheet that accompanies this assessment. Upon the acquisition, goodwill was paid in recognition of existing contracts for the company to continue to be the preferred supplier of stationery and furniture and first option to tender for office refurbishments for a large number of government departments and large corporate organisations over the next 3 to 5 years. 9) Insurance was reassessed and the company had been under insured for property, plant and equipment, vehicles and workers compensation. Overall insurance of $180,000 or $15,000 per month was prepaid on the 1st of June 2023 for 12 months. This prepayment requires a journal adjustment as at 30 June 2023. 10) Dividends of $175,000 from Investments in Equity instruments were due on 30 June 2023 but not yet received and require an adjusting journal for 30 June 2023. 11) Goodwill has been reviewed and is not deemed to be impaired as at 30 June 2023. 12) A potential contingent liability has arisen as a casual staff member was injured in the warehouse with a falling pallet that caused a broken ankle. A dispute is pending as video footage shows the casual worker acting in an unsafe way outside operation protocols prior to the incident. A lawsuit for $150,000 has been filed against the company by the affected worker and lawyers predict a 60% chance of winning that is still a 40% chance of being required to pay compensation. Account for this possible event in line with AASB137. Corporate Stationery and Furniture Supplies Pty Ltd DO NOT CHANGE DATA IN THESE 6 COLUMNS TRIAL BALANCE as at 30 June 2023 ACCOUNT Cash at Bank Short Term Deposits Accounts Receivable Provision for Doubtful Debts 90 91 Bank Bank 100 CA 101 Contra CA Office Supplies 102 CA Inventory Corporate Supplies and Furniture 110 CA Provision for Stock Obsolesence and Losses 111 Contra CA BAS Excluded BAS Excluded BAS Excluded BAS Excluded GST on Expenses GST on Expenses BAS Excluded 6,589,500.00 Interest receivable 120 CA BAS Excluded 1/7/2021 Code TYPE Tax Rate DEBIT Acquisition Opening CREDIT 30/6/2022 Prior Year 30/6/2023 DEBIT CREDIT Current Year UNADJUSTED DEBIT CREDIT 20,000,000.00 20,000,000.00 25,600.00 38,204,806.53 20,000,000.00 54,099.00 5,600.00 2,704.95 24,000.00 8,024,250.00 65,785,759.49 20,400,000.00 187,152.20 36,057.00 4,014,095.00 2,704.95 400,000.00 Prepaid Insurance 130 CA GST on Expenses Dividends Receivable Warehouse - Land 140 CA BAS Excluded 200 NCA BAS Excluded 9,000,000.00 Warehouse - Building 201 NCA BAS Excluded 6,000,000.00 Warehouse - Fixtures and Fittings 202 NCA BAS Excluded Warehouse - Plant and Equipment 203 NCA BAS Excluded Office Furniture & Fixtures 204 NCA BAS Excluded Office Equipment and Computers 205 NCA BAS Excluded Motor Vehicles 210 NCA BAS Excluded Investments in Equity Instruments 240 NCA BAS Excluded Deferred Tax Asset 250 NCA BAS Excluded 560,000.00 73,900.00 7,800.00 15,600.00 5,000,000.00 17,510.59 Accumulated Depreciation - Warehouse Building 290 Contra NCA BAS Excluded Accumulated Depreciation - Warehouse Fixtures and Fittings Accumulated Depreciation - Warehouse Plant and Equipment Accumulated Depreciation Office Furniture and Fixtures Accumulated Depreciation Office Equipment and Computers Accumulated Depreciation - Motor Vehicles 291 Contra NCA BAS Excluded 292 Contra NCA BAS Excluded 293 Contra NCA BAS Excluded 294 Contra NCA BAS Excluded 295 Contra NCA BAS Excluded Goodwill Accumulated Impairment - Goodwill Accounts Payable Interest Payable Salaries Payable Superannuation Payable PAYG Withholdings Payable Annual Leave Accrual GST Current Tax Payable Dividend Payable 300 ΙΑ 301 Contra IA BAS Excluded BAS Excluded 2,752,150.00 400 CL BAS Excluded 18,950.00 405 CL BAS Excluded 410 CL BAS Excluded 411 CL BAS Excluded 412 CL BAS Excluded 3,500.00 100,000.00 0.00 180,000.00 0.00 9,000,000.00 9,000,000.00 6,000,000.00 6,000,000.00 597,650.00 613,490.00 102,900.00 115,530.00 59,200.00 70,500.00 63,900.00 75,300.00 45,000.00 113,000.00 5,000,000.00 17,510.59 240,000.00 240,000.00 31,031.33 31,031.33 7,425.33 7,425.33 2,824.00 2,824.00 6,045.00 6,045.00 4,812.50 4,812.50 2,752,150.00 2,752,150.00 0.00 0.00 145,458.10 442,439.60 0.00 0.00 0.00 413 CL BAS Excluded 450 CL 460 CL BAS Excluded 490 CL BAS Excluded Provision for Employee Benefits - LSL 510 NCL BAS Excluded Provision for Warranty 515 NCL BAS Excluded Loan, non-current (8% pa 1 July 2021) 520 NCL BAS Excluded 15,000,000.00 Deferred Tax Liability 550 NCL BAS Excluded Issued Share Capital - Ordinary Shares (20 million @ $2 paid to 560 Equity BAS Excluded Issued Capital - 5% Cumulative Preference shares (10 million @ Asset Revaluation Surplus - Land 561 Equity BAS Excluded 10,000,000.00 40,000,000.00 562 General Reserve 565 Equity BAS Excluded Retained earnings 599 Equity BAS Excluded 550,000.00 28,802.08 2,638,921.30 6,770,739.50 550,000.00 26,861.61 14,500,070.45 159,147.56 10,000,000.00 40,000,000.00 114,443.91 40,989.58 2,231,978.70 0.00 0.00 68,482.14 0.00 14,500,070.45 159,147.55 10,000,000.00 40,000,000.00 0.00 15,334,122.41 Sales Revenue 600 REV GST on Income Cost of Sales Discount Received 700 COS 610 COS/Rev GST on Expenses GST on Income 42,630,911.00 57,892,687.00 15,553,650.00 22,189,565.00 25,988.00 36,895.00 Cost of Sales Discount Received Freight inwards 700 COS 610 COS/Rev 711 COS/Exp GST on Expenses Delivery Expenses - Inventory 712 COS/Exp GST on Expenses Discount Allowed 716 COS/Exp GST on Expenses GST on Expenses GST on Income 15,553,650.00 34,522.00 127,800.00 26,899.00 25,988.00 22,189,565.00 54,895.00 289,565.00 35,685.00 36,895.00 Interest Revenue 610 Other Income BAS Excluded Dividend Revenue 665 Other Income BAS Excluded 400,000.00 100,000.00 Gain on Revaluation of Land (OCI) 680 OCI BAS Excluded Loss on Sale Plant and Equipment 690 OCI BAS Excluded Wages and Salary Expenses 800 EXP BAS Excluded Superannuation Expenses 801 EXP BAS Excluded Long Service Leave Expense 802 EXP BAS Excluded Gas & Electricity Expense - Warehouse 805 EXP GST on Expenses 2,552,464.58 394,074.38 26,861.61 78,565.00 3,064,025.00 457,775.63 41,620.54 124,570.00 Office Supplies Expense 810 EXP GST on Expenses 22,356.00 16,899.00 Bank Fees 820 EXP BAS Excluded 0.00 0.00 Consulting and Accounting Expenses 830 EXP GST on Expenses 15,000.00 25,700.00 Cleaning Expenses 831 EXP GST on Expenses 18,200.00 24,580.00 Vehicle Expenses 832 EXP GST on Expenses 13,400.00 18,950.00 Maintenance Expenses - Plant and Equipment 833 EXP GST on Expenses 6,900.00 22,500.00 Maintenance Expenses - Building 834 EXP GST on Expenses 4,500.00 16,900.00 Maintenenace Expenses - Other 835 EXP GST on Expenses 2,588.00 7,985.00 Interest Expense 836 Finance Costs GST on Expenses 1,073,070.45 Insurance Expense 837 EXP GST on Expenses 38,500.00 0.00 3,500.00 Telephone and Internet Expenses 838 EXP GST on Expenses 29,500.00 Advertising Expenses 839 EXP GST on Expenses 15,000.00 Doubtful Debts Expense 840 EXP GST Adjust 2,704.95 36,500.00 295,800.00 0.00 General Expenses 841 EXP GST on Expenses 9,750.00 15,890.00 Entertainment Expenses 842 EXP GST on Expenses 10,356.00 12,650.00 Stock Write-offs Obsolesence and Losses 845 EXP GST Adjust 11,600.00 0.00 Warranty Expense 846 EXP GST on Expenses 0.00 0.00 Income Tax Expense 850 EXP BAS Excluded 6,912,376.46 0.00 Depreciation - Warehouse Building 890 EXP BAS Excluded 240,000.00 0.00 Depreciation - Warehouse Fixtures and Fittings Depreciation Warehouse Plant and Equipment Depreciation - Office Furniture and Fixtures Depreciation 891 EXP BAS Excluded 31,031.33 0.00 892 EXP BAS Excluded 7,425.33 0.00 893 EXP BAS Excluded 2,824.00 0.00 Office Equipment and Computers 894 EXP BAS Excluded 6,045.00 0.00 Depreciation Motor Vehicles 895 EXP BAS Excluded 4,812.50 0.00 65,024,550.00 0.00000 65,024,550.00 118,271,742.71 0.00000000 118,271,742.71 141,116,099.45 141,116,099.45 0.00000

Answer rating: 100% (QA)

Detailed Explanation Based on the given data Lets go through them one by one 1 Insurance Prepayment Adjustment The company prepaid insurance for 12 mo... View the full answer