New Semester Started Get 50% OFF Study Help! --h --m --s Claim Now

Question Answers

Textbooks

Find textbooks, questions and answers

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Study Help
Tutors
AI Study Planner NEW
Sell Books

Search
Sign In
Register

study help
business
intermediate accounting

Accounting 9th edition Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett - Solutions

Cosenza Ltd acquired a truck with a cost of $250 000, an estimated useful life of 6 years and a residual value of $30 000. Sum-of-years-digits depreciation was used. Ignore GST.RequiredPrepare the journal entries for each of the following events:1. Sell the tractor for cash of $120000
On 3 January 2014, Bennetti Ltd paid $33000 for a machine with a useful life of 10 years and a residual value of $3000. On 31 December 2018, accumulated depreciation on the machine was $15000. The machine was sold on 31 May 2019. Ignore GST.RequiredA. Prepare a general journal entry to record
Amorico Pty Ltd scrapped the following machines as worthless:MachineCostAccumulated depreciation 2 Jan. 2016Removal expense paidDate of purchaseDate of disposal123$8 400 1800040 000$8 4001550027300—$900— 2/1/1230/6/1130/6/122/1/162/1/161/4/16Depreciation expense was
Surguy Ltd has disclosed the following non-current asset classes as at 30 June 2016:MachineryLess: Accumulated depreciation$420000 180000$240000BuildingsLess: Accumulated depreciation$800000 240000$560000At 1 July 2016, the directors of Surguy Ltd decide to adopt the revaluation
Outline the treatment of exploration, evaluation and development costs on a mineral reserve in accordance with the latest accounting standards.
What are biological assets? How should they be accounted for in a company’s accounting records?
Several years ago, Baxter Ltd acquired for $160 000 a patent for the manufacture of special ‘seal-tight’ plastic containers. After 5 years, the manufacture of these containers was discontinued because of the development of a new, more environmentally-friendly container by a competitor. Baxter
Aquarium Ltd has been developing specialised computer software for its own use. At the end of the current reporting period, the company has spent $260 000 on the project. The final date for full implementation of the software is scheduled to be in six-months-time. However, the management accountant
‘Machinery is an asset. It may be disclosed as a tangible asset, an intangible asset, or as part of goodwill.’ Discuss.
In order to comply with IAS 38/AASB 138 Intangible Assets, how must an entity handle goodwill on the acquisition of the net assets or shares of another entity? Is this treatment consistent with the principle of recording all assets acquired at cost? Explain why or why not.
Discuss whether internally generated intangible assets should be treated in the same way as acquired intangible assets.
The following statement was included in the annual report of a company: ‘All research, advertising and promotion costs are charged to expense in the year in which they are incurred. This enables the company to begin each new year with a “clean slate”. Each new year benefits from the future
What is meant by ‘recoverable amount’? When are assets to be written down to recoverable amount? What must an entity do if it is unable to determine the recoverable amount of an individual asset?
Discuss whether and how a company should account for a revaluation increase and a revaluation decrease on property, plant and equipment. Discuss also the accounting treatment if such an increase or decrease is reversed.
Refer to the consolidated financial statements and their notes in the latest financial report of Wesfarmers Ltd on its website, www.wesfarmers.com.au, and answer the following questions.1. How is the property, plant and equipment reported in the consolidated balance sheet? What is the
Pringles Ltd is a large department store that has used the straight-line depreciation method since the company was first formed. For the year ended 30 June 2015, the company made a record profit and management expected these high profits to continue at least into 2016 and 2017, although economists
In groups of four or five, consider the following information:On 1 July 2015, Stevenson Pty Ltd, a proprietary company with three shareholders, acquired some property by issuing 100 000 shares to the owner. Prior to the acquisition, the property had been advertised for sale at $350 000. This
Prestige Property Ltd has acquired a two-story office building on a large piece of land. The land also includes a fully established car park and landscaping. The offices have recently been fitted out with new carpets, curtains and office furniture which are all included in the purchase price.As the
In early July 2015, Masterton Ltd is considering the acquisition of some machinery for $1 200 000 plus GST to be used in the manufacture of a new product. The machinery has a useful life of 10 years, during which management plans to produce 500 000 units of the new product. The residual value of
Your examination of the records of Wilson Ltd, which was established on 1 March 2015, reveals that the accountant debited the Land, Buildings and Equipment account with the following items (ignore GST):Examination of the wage records shows that the salary of the manager, $4000 per month, was
At the end of Sovereign Ltd’s financial year, 30 June 2016, the following items must be resolved before adjusting entries and financial statements are prepared. Ignore GST.1. On 1 July 2015, Sovereign Ltd purchased a used machine for $48 000 cash. The cost was debited to the
Rawsons’ Recycling Ltd commenced business on 31 March 2015 in the recycling industry. The company balances its accounting records at month-end and the end of its reporting period is 31 December. Ignore GST.The following events occurred during 2015 and 2016:2015April 1June
Selected transactions of Coromandel Ltd are given on the next page. The company uses straight-line depreciation and calculates depreciation expense to the nearest whole month.2015Jan. 4April 10Purchased from Brampton Ltd a bottle washer (Serial
Alexander Ltd completed the following transactions during 2016. The company uses sum-of-years’-digits depreciation and records depreciation to the nearest month.Jan. 5Mar. 7Mar. 20April 10June 23Nov. 1Purchased a
Over a 5-year period, Downton Ltd completed the following transactions affecting non-current assets in financial years ending 31 December. The company uses straight-line depreciation on all depreciable assets and records depreciation to the nearest month.2015Jan. 3June
On 2 January 2015, Powerhouse Ltd purchased, by exchanging $300 000 cash and a $180 000, 12%, 18-month finance company loan, assets with the following independently determined appraised values:Appraised valueBuildingLandMachinery and equipment$320 00080 000100 000$500 000The
Powerhouse Ltd purchased machinery on 2 January 2015, at a cost of $800 000 plus GST. The machinery is depreciated using the straight-line method over a useful life of 8 years with a residual value of $80000.On 3 January 2018, an overhaul of the machinery was made at a cost of $112 000 plus GST.
Mason’s Manufacturing Ltd began operations during 2015. The company had a building constructed and acquired manufacturing equipment during the first 6 months of the year. Manufacturing operations began early in July 2015. The company’s accountant, who was unsure how to treat property, plant and
Brunswick Ltd operates four types of equipment. Because of their varied functions, management has decided that four different depreciation methods will be used to determine depreciation charges. Information on the equipment is summarised as follows:Equipment typeDate acquiredCost (net of
Branson Ltd owns two delivery vehicles (each with a residual value of $5000 and useful life of 4 years) and uses the straight-line method of depreciation. The business closes its accounting records annually on 30 June. The following events and transactions occurred during the first 3 financial
Prestige Printing Ltd commenced business on 1 July 2015. On 5 July 2015, a printing machine was purchased for $35 000 plus GST, payable in two equal instalments due on 1 August and 1 October 2015. Transport costs of $1200 plus GST were paid in cash to deliver the machine to Prestige Printing
Edwards Ltd recently paid $290 000 for manufacturing equipment, which is expected to have a useful life of 4 years and a residual value of $50 000. The manager of Edwards Ltd wants information about the effect that various depreciation methods will have on profit and asks you to prepare a schedule
On 1 July 2015, Chadstone Ltd purchased a motor vehicle which is estimated to have a $6000 residual value and a useful life of 4 years. On 1 July 2017, the company purchased plant and equipment which is estimated to have a residual value of $10 000 and a useful life of 4 years. The following is an
At 30 June 2015, the financial statements of McMaster Ltd showed a building with a cost (net of GST) of $300 000 and accumulated depreciation of $152 000. The business uses the straight-line method to depreciate the building. When acquired, the building’s useful life was estimated at 30 years
On 2 January 2015, McGrath Ltd purchased a machine for $36 000 plus GST with a useful life of 5 years and a residual value of $6000. In order to keep the machine running properly, the company has performed regular maintenance and repairs each year since its acquisition. In the fourth year (2018),
Star Ltd purchased new equipment for $60 000 net of GST on 2 July 2015. The equipment was expected to have a $10 000 residual value at the end of its 8-year useful life. Straight-line depreciation has been recorded. While reviewing the accounts in anticipation of adjusting them for the annual
Nevertire Ltd purchased a delivery van costing $52 000 net of GST. It is expected to have a residual value of $12 000 at the end of its useful life of 4 years or 200 000 kilometres.RequiredA. Assume the van was purchased on 2 July 2015 and that the accounting period ends on 30 June.
Hampstead Ltd purchased new equipment on 1 January 2015, at a cost of $590 000 net of GST. The company estimated that the equipment has a useful life of 5 years and a residual value of $45 000.RequiredAssuming a financial year ending 30 June, calculate the amount of depreciation expense for each
On 2 January 2015, Johnston Ltd purchased a machine with a list price of $234 300 (including GST) and credit terms of 2/10, n/30. Payment was made within the discount period. Freight costs of $5400 plus GST and installation costs of $5280 plus GST were also paid. The machine has a useful life of 4
Baxter Ltd acquired a parcel of land, buildings and machinery on 10 July for a cash price of $2 400 000. Fair values of the assets on the acquisition date were appraised as:LandBuildingMachinery$1 400 000800 000 150 000$2 350 000The acquisition was not considered to
‘With proper maintenance, certain equipment will last almost indefinitely, in which case depreciation is not necessary.’ Discuss.
What is the distinction between an overhaul, replacement of a component, and day-to-day repairs and maintenance? Give an example of each and explain how the accounting treatment is different.
(This is based on an actual case): A ‘particularly aggressive’ DVD rental store chain amended its depreciation charges for DVDs by extending their useful lives from 12 months to 48 months. This had the effect of adding $5 million to the company’s profits, an increase of nearly 20% for the
At a recent seminar, a managing director of a well-known company argued that the diminishing balance method of depreciation was the best method to use because it had the effect of producing a ‘nice, smooth income (profit) flow’. Discuss how this could occur, and consider the desirability of
Should depreciation be recorded on a building for a year in which the market value of the building has increased? Discuss.
Z Ltd depreciates its equipment using the straight-line method of depreciation. Y Ltd, which owns the same equipment, and has purchased the item on the same day from the same supplier as Z Ltd, uses the diminishing balance method. Are the depreciation charges of these two companies non-comparable?
During your lunchtime, which you usually spend at the university canteen in the presence of other students, one particular accounting student who was having difficulty with the textbook complained that he did not understand which costs were to be regarded as part of the acquisition cost of land,
ABC acquired a piece of open land for speculation purposes. It is expected that the value of the land will increase so that it can be sold in the future at a profit. Where should this land be reported in the balance sheet?
‘According to IAS 16/AASB 116, an item of property, plant and equipment that qualifies for recognition must be recorded at cost, representing the fair value of any assets given up in order to acquire them. Would it not be better to record the assets acquired at their own fair values rather than
Discuss which of the following should be included in the cost of equipment: (a) installation charges, (b) freight charges, (c) cost of building foundations, (d) new parts needed to replace those damaged while unloading, (e) borrowing costs incurred to finance the purchase of the equipment. What is
Refer to the consolidated financial statements in the latest financial report of JB Hi-Fi Limited on its website, www.jbhifi.com.au, and answer the following questions.1. What value is placed on the consolidated group’s inventories at the end of the current year?2.
The manager of Felicity’s Fashions Ltd, importer and wholesaler of fashion clothing for women, has been investigating the inventory levels of the business at the end of the previous year ended 30 June 2014. She discovered, in consultation with the purchasing department, that an error had been
During an audit of the inventory records of Winthrop Ltd for the year ended 30 June 2016, the auditor discovered that the ending inventory balance was overvalued by $36 000. On further investigation, it was discovered as well that the ending inventory for the previous year was correctly counted and
A. Record the information on a perpetual inventory record using each of the following methods: 1. FIFO 2. moving average 3 LIFOB. Prepare an income statement based on each of the three methods of
Below are the income statements for Campbell’s Camping Ltd for the year ended 31 December for 2 years.20152016Sales revenue$325000$400000Cost of sales:Beginning inventoryPurchases68000200000100000220000Goods available for saleEnding inventory268000100000320000 90000Cost of
Pet and Produce Ltd balances its books at month-end, uses special journals, and uses the perpetual inventory system with the moving average cost flow assumption. All purchases and sales of inventory are made on credit. Reporting date is 31 December. Ignore GST.Sales and purchases of product AZL-002
The purchases and sales of Big Flower Pty Ltd of one brand of lawn fertiliser for the year ended 31 December 2016 are contained in the schedule on the next page.The selling price up to 30 June was $12 per unit but was raised to $14 for the rest of the year. Ignore GST.RequiredA. Prepare the income
During the year ended 30 June 2016, Laing Ltd sold each unit of its goods at $9. Purchases and sales of the goods are shown below. Ignore GST.2015July 1 30Aug. 25 30Sept. 3 10
Part ABeyer Ltd is registered for GST, balances its accounts at month-end, uses special journals, and uses the perpetual inventory system with the FIFO cost flow assumption. All purchases and sales of inventory are made on credit. End of the reporting period is 30 June. Sales and purchases (all net
Thomas Turnbull, who operates a business as a toy retailer, was concerned about the end-of-year physical stocktake and ‘cut-off’ procedures.The Inventory Control account balance at 30 June 2015, under the perpetual inventory system, was $77 200. The physical stocktake count, however, revealed
The following information relates to the inventory of Harry’s Hardware during the month of December:UnitsUnit costTotal costDec. 1 10 23Beginning inventoryPurchasesPurchases500500
The following information has been extracted from the records of Steven’s Stationery about one of its popular products. Steven’s Stationery uses the perpetual inventory system. Its annual reporting date is 31 December. Ignore GST.No. of unitsUnit cost2015Jan. 1
Tamworth Trading Ltd is a company operating in the retail sector. The beginning inventory of Product EF5089 and information about purchases and sales made during June are shown below:June1
The information below relates to barrels of oil held in the inventory of Olsen’s Ltd during 2015.BarrelsUnit cost1 January15 April13 May9 August28 OctoberBeginning inventoryPurchasesSales ($52 per barrel)PurchasesSales ($52 per barrel)30000 40000 (50000)35000 (40000)$444444Owing to
The following information applies to the inventory of Carson’s Camera Store as at 30 June 2016:Unit price (excluding GST)Model numberQuantityActual costNet realisable valueCameras:A-4C-7G-1Z-8Video equipment:BD-5FY-918122061510$ 951006550180240$ 751206055190220RequiredA. Calculate the
An explosion at Fenshaw’s Pharmaceuticals on the night of 15 May destroyed the entire inventory. The accounting records, which survived the explosion, contained the following account balances for the period 1 January to 15 May:SalesSales returns and allowancesPurchasesPurchases returns and
Redfern Retailers provided the following information for the month of June 2016. The entity uses the retail inventory method for interim reporting purposes. Normal mark-up on cost is 60%. Ignore GST.Beginning inventory (cost)Net purchases (cost)SalesMark-downs (some items still in stock)Mark-down
Weston’s Washers Ltd buys and sells brand-name washing machines, which are identified by the manufacturer’s initials and model number.The inventory on 1 July 2015 is as follows:Identification numberQuantityUnit costSelling
The following information relates to the inventory of Margaret’s Megamart Ltd during December.UnitsUnit costTotal cost1/12 Beginning inventory10/12 Purchase (excluding GST)15/12 Purchase (excluding GST)23/12 Purchase (excluding GST)700500300
A. Explain the effect of each of the following errors in the ending inventory of a retail business. a. Incorrectly included 100 units of Commodity A, valued at $1 per unit, in the ending inventory; the purchase was recorded. b.
Felton Ltd’s inventory transactions for November 2016 were as shown below:DateTransactionNo.Unit costTotal costNov. 1Nov. 6Nov. 10Nov. 14Nov. 18Nov. 23Nov. 28Inventory on handPurchaseSalePurchasePurchase returnSaleSale return (on 23 November
Biancardi Ltd, a retail business, took a physical stocktake of inventory at retail price at the end of the current year and determined that the total retail value of the ending inventory was $190000. The following information for the year is available:CostSelling priceBeginning inventoryNet
Part ABranxton Ltd’s inventory on 1 April 2015 had a cost of $100000 and a retail value of $170000. During April, the company’s net purchases cost $216000 and had a net retail value of $324000. Net sales for April totalled $390000. Ignore GST.RequiredA. Calculate estimated cost of the inventory
Brown Brothers’s income statements for the past 3 years are as shown:201520162017Net sales$68000$78000$70000Beginning inventoryNet purchases160003000014000360002000022000Goods available for saleEnding inventory460001400050000200004200012000Cost of sales320003000030000Gross profitOther
Toowoomba Irrigation Ltd began operations in the south-east Queensland region in July 2012. During the annual audit for the year ended 30 June 2017, it was discovered that errors had been made in the annual physical stocktake. Further investigation revealed the following details for the years ended
Soakwell Supplies Ltd manufactures and sells soakwells for use in suburban and light industrial areas of Perth. Over the past year, the cost of manufacturing the soakwells has gradually risen and the company has been required to increase inventory levels to meet expected demand in the new year,
Bristols Bicycles maintains inventory records under the perpetual inventory system. At 30 June 2015, the inventory balance determined by the system showed a value of $300000. However, on conducting a physical stocktake, ending inventory was calculated as being only $260000. An investigation
Chelsea’s Cameras Ltd records its inventory of digital cameras by using a perpetual inventory system on a FIFO basis. The following details are supplied for one particular popular make and model for the month of November. Ignore GST.Nov. 1Inventory on hand consisted of 18 cameras
The following information relates to the inventory of a bookseller in the records of Bayside Books Ltd, a company registered for GST. All unit prices below exclude GST.July 1Aug. 14Sept. 25Jan. 8March 3April 13June 10Beginning
The following information relates to the inventory of Gadgets Ltd during May:May 1 3 10 12 17 25Beginning
Value Vehicles is a car dealership. One of its models was used as a demonstrator during the year. Presented below is information relating to the demonstrator as of 30 June 2016, the end of the current financial year.Normal sales price (net of GST)Original cost (net of GST)Estimated sales value in
The inventory of Gordon Ltd contains the following items at 30 June 2015.Unit priceItem typeQuantityCostNet realisable value30112507 601450028257530205040$ 3.00 7.0030.00 3.50 6.00$ 2.60 8.5027.00 2.50 7.00RequiredA. Determine the
Inventories and purchases for the month of June for Glow Light Ltd are as follows:DateDetailUnitsCost per unitTotal1-Jun3-Jun15-Jun20-Jun30-JunInventoryPurchasePurchasePurchaseInventory 9000 8500130001550018000$18$19$20$21—$162000161 500260000325 500
Sapphire Ltd’s ending inventory was assigned a cost of $55 200 by way of a physical inventory count on 31 December 2015. An audit of the company’s records revealed the following information.1. Sapphire Ltd had recorded a $4500 invoice (net of GST) from a supplier for goods shipped
Why must decision makers consider various inventory costing methods when interpreting ratios used in retail operations?
If the ending inventory is understated because of an error, what is the effect on profit in that reporting year and in the next reporting year? What is the effect on the value of assets as reported in the balance sheet at the end of each year?
Why is the lower of cost and net realisable value rule required by accounting standards? Is it permissible to revalue inventories upwards? If so, when? Are there any limits to revaluation?
‘Now that we have adopted the perpetual inventory system, we no longer need to conduct a costly and time-consuming stocktake’. Discuss.
‘Estimating the value of inventory is not sufficiently accurate to justify using such an approach. Only a full physical stocktake can give full accuracy.’ Discuss.
Cottesloe Ltd has been using the FIFO costing method to account for inventories for several years. The company also has a policy of paying out all of its profits in cash dividends. What are the likely effects, adverse or otherwise, of continuing these policies?
Critically examine the following statement: ‘During times of high inflation, the LIFO cost assumption should be permitted in financial statements because it allows the entity to show a more up-to-date profit figure.’
Must a company use the inventory costing method that best conforms to the actual physical movement of the goods? Explain.
‘With sophisticated computer equipment available these days, the controversy over cost flow assumptions is no longer an issue.’ Discuss.
What costs should be included in the cost of an item of inventory?
Refer to the latest financial report of Wesfarmers Ltd on its web site: www.wesfarmers.com.au and answer the following questions using the consolidated balance sheet and notes to the consolidated financial statements.Have the receivables (current) of Wesfarmers Ltd increased or decreased over the
Jenny Pike, assistant accountant for Blenheim Instruments Ltd, was finalising the balance sheet of the company as at 30 June 2015 with the accountant of the business, Russell Bayer. Although both agreed that everything appeared to be in order, Jenny had noticed that a large loan had been taken out
Divide into groups and, under the guidance of a group leader, compare and contrast the credit policies and methods of monitoring cash collections appropriate for the following types of businesses:1. A large hotel serving liquor and meals, together with the provision of motel-style accommodation to
Two members of the management staff of Practical Products Ltd were debating the merits of the percentage of net credit sales method and the ageing of debtors method for determining the allowance for doubtful debts at year-end. Lance held the view that ‘during times of economic stability when
A. Prepare a table setting out the average credit/collection costs both in total dollars and as a percentage of net credit sales.B. Prepare a table to show the cost of interest earnings forgone as a result of not being able to invest money which would become available if
The information on the next page has been extracted from the financial statements of Crystal Craft Ltd.201520162017Cash at bankMarketable securitiesAccounts receivableSales revenue (all sales on credit)Cost of sales$ 44 00088 000102 0001 108 000672 000$ 40 000100 000108 0001 120 000680 000$ 36

Showing 5600 - 5700 of 6751

First
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
Last

Step by Step Answers

Services

Sitemap
Fun
Definitions
Become Tutor
Used Textbooks
Study Help Categories
Recent Questions
Expert Questions
Campus Wear
Sell Your Books

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship
Online Quiz
Give Feedback, Get Rewards

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Student Discount
Campus Ambassador

Secure Payment

Download Our App

© 2026 SolutionInn. All Rights Reserved