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

The following information has been extracted from the annual reports of Lilydale Ltd and Monbulk Ltd.Lilydale LtdMonbulk LtdSales (net credit) revenue for yearAllowance for Doubtful Debts, 1/7/14Allowance for Doubtful Debts, 30/6/15Accounts receivable (gross) 1/7/14Accounts receivable (gross)
Barrett’s Boots Ltd has traditionally made sales for cash and on credit only. Management has resisted accepting credit cards on the basis that the business would lose on average a credit card fee of 4% of the sale value, adversely affecting already low profit margins.Management has become
Norwood Ltd received the following bills during the last 3 months of the financial year ended 30 June.Date of billAmount of debtTerm of billInterest rateDate of discountDiscount rate1. April 12. May 23. May 154. June 15. June 86. June 16$10 00016 00013 0008 50011 00014
The accountant for Debbie’s Dance Ltd prepared an ageing analysis of accounts receivable balances at 30 June 2015 as set out below. The percentages of each age group are based on past experience and are shown next to the aged balances. The company is registered for GST.The allowance method is
All transactions below relate to Biancardi Construction Ltd’s uncollectable accounts for the financial year ended 30 June 2015. The company is registered for GST.July 18Wrote off the $572 account of F. Forrest as uncollectable.Oct. 19Reestablished the account of K.Mears
Cathy Smythe, who trades as Cathy’s Corner, uses the following journals in her business: general, cash receipts, cash payments, sales and purchases. The control account for the accounts receivable in the general ledger at 1 June 2015 (with posting references omitted) is summarised below:Accounts
Great Outdoors Ltd sells outdoor furniture settings on credit. The accounting records at 30 June 2015 reveal the following. Ignore GST.Credit sales (for year)Credit sales returns and allowances (for year)Accounts receivable (balance 30 June 2015)Allowance for doubtful debts (credit balance 30 June
On 1 June, McLean, Roberts and Associates had Accounts Receivable and Allowance for Doubtful Debts accounts as set out below. The firm is registered for the GST.Accounts Receivable1/6Balance847 000Allowance for Doubtful Debts1/6Balance12 250During June, the following transactions occurred.1.
On 1 June, Mason and Boyce had Accounts Receivable and Allowance for Doubtful Debts accounts as below. Ignore GST.Accounts Receivable1/6Balance849 555Allowance for Doubtful Debts1/6Balance12 100During June, the following transactions occurred.1. Fees earned on credit, $1 195
Karen Broderick commenced business on 1 July 2014. On 30 June 2015, she found that she had written off debts amounting to $1875. In addition, she found it necessary to create an allowance for doubtful debts of $3030. During the year to 30 June 2016, debts totalling $2400 proved to be bad and were
The following transactions relate to the business of Richmond Raleigh Ltd.1. A bill dated 6 July provided for payment after 90 days of $4000 plus interest at 10% p.a. was received on 6 July.2. On 6 April, the company received a 90-day, 10% acceptance covering the amount
Cameron’s Cleaning Services Ltd has overdue fees receivable from L. Shore for $10 000. On 22 May, Shore requested a 90-day extension of the payment date, and the company agreed to accept a 90-day, 10% promissory note in exchange for the account receivable.RequiredA. Prepare a general journal
While accounting for accounts receivable for Easy DVD Ltd, the following information became available to the accountant. At 1 July 2014, the Allowance for Doubtful Debts account balance was $8100. To 30 June 2015, debts amounting to $16 560 were written off as bad, and at 30 June 2015, the
The information in the following table relates to the accounts receivable and allowance for doubtful debts of Prime Moving Ltd. Ignore GST. The company policy is to provide an allowance for doubtful debts at the rate of 3% of accounts receivable at 30 June each year. The balance of the Allowance
Refer to the data in exercise 18.6. Assume that the firm is registered for the GST, i.e. consulting fees owing will be $517 000 (including GST) and debts to be written off are $10 010 (including GST).RequiredA. Prepare the appropriate general journal entries.B. Prepare and balance the Allowance for
The following details were obtained from the accounting records of Civil Construction Consultants at the end of the financial year.Consulting fee owingAllowance for doubtful debtsDebts to be written off$470 00030 0009 100(excludes GST)(excludes GST)The firm requires an allowance for doubtful debts
On 30 June, the end of its financial year, Burnside Consulting completed an age analysis of its accounts receivable and determined that an allowance for doubtful debts of $12 320 was needed in order to report accounts receivable at their estimated collectable amount in the balance sheet. Assume a
The following transactions relate to the business of Penrith Produce Ltd. Ignore GST.June 30Based on past experience, it was estimated that 1% of the year’s net credit sales revenue of $330 000 will not be collected, and an allowance for doubtful debts was established.Oct.
The following transactions relate to the gardening maintenance business of Steve Jones. The balance in the Allowance for Doubtful Debts account on 1 July 2014 was $7440. The bad debts during the year ended 30 June 2015 amounted to $5220. Debtors’ balances on 30 June 2015 after the bad debts had
Refer to the information in exercise 18.1. Complete requirements A and B but this time include the impact of a 10% GST.If GST is introduced the information extracted from the accounting records would be: Sales
Centenary Ceramics deals in ceramic pots and figurines. All sales are conducted on a credit basis and no cash discounts are given. Ignore GST. The following information was extracted from the accounting records at 30 June 2015:SalesSales returns and allowancesCash collectedDebts to be written
‘Control over receivables is not quite as important as control over cash.’ Discuss.
'Classification of receivables as current or non-current is not that important. The money is received eventually anyway, so what’s the big deal?’ Discuss.
Several months ago, R. James, a trade debtor for $6600, had his account written off as a bad debt. A cheque has just been received in the post from James for $6600 and the assistant accountant made the following journal entry:
A. Prepare a budgeted income statement for each month during the May to July period. (Assume no expenses owing from previous period.)B. Prepare a cash budget for each month during the May to July period.C. Based on the information in requirements A and B, can
Advantage Manufacturing is preparing a master budget for the quarter ending 30 September 2017, and has compiled the data shown overleaf.1. The firm sells a single product at a price of $60 per unit. The sales forecast (in units) prepared by the marketing department for the quarter ending 30
The following actual balance sheet was prepared for Martin’s Musical Supplies Ltd as at 30 September 2017.Martin’s musIcal supplies LtdBalance Sheetas at 30 September 2017Cash at bankAccounts receivable (net)InventoryPrepaid rentFurniture & equipmentAccumulated depreciationPlant &
1. The firm sells a single product at a price of $24 per unit. The sales forecast (in units) prepared by the marketing department for the quarter ending 31 March 2017 and the first 7 months of the next financial year is as follows:Number of
Prue Williamson Marketing Services is preparing a budget for the quarter year ended 31 December 2017. The information available for the budget is as follows:1. Prue’s hourly charge-out rate for the year ended 30 September 2017 was $160 but she intends to increase this by 5% for the budget
Bristol Brights purchases and installs sky lights. The entity’s estimated sales and expenses for the first 4 months of 2017 are:SalesExpensesJanuaryFebruaryMarchApril$1 087 5001 410 000975 000870 000$285 000285000285000285000Actual sales for November and
Fab and Fast Ltd buys and sells motor vehicle accessories. The firm’s estimated sales and expenses for the first 4 months of 2017 are:SalesExpensesJanuaryFebruaryMarchApril$1 0000001 300000900000800 000$258000 258000258000258000Actual sales for December 2016 were $900 000
The following actual balance sheet was prepared for Colombo Clocks Ltd as at 31 March 2017.Cash at bankAccounts receivable (net)InventoryPrepaid rentFurniture & equipmentAccumulated depreciationPlant & machineryAccumulated depreciation$
KK Pty Ltd is a small manufacturing business. For the year ending 30 June 2016, the company achieved sales of $2772000 and a gross profit margin of 30%. Although satisfied with this result, management was, however, keen to increase the company’s performance in the following year. Management was
Perfect Printers Ltd provides high volume offset colour and black and white printing for newspapers. It applies factory overhead to jobs on the basis of machine hours. The budgeted fixed overhead consists of $54 000 managers salary, depreciation of $27 464 and rent of $45 000. The remainder is
Sami Stitches Ltd produces two types of sewing machines, a standard model and a deluxe model. The budgeted factory overhead costs for the production operation during 2017 are as follows:Variable costs:Indirect materialsIndirect labourElectricityOtherFixed costs:Production manager’s
Gasmania Pty Ltd produces patio heaters for household use. The following information has been gathered so that a production budget, a direct materials budget and a direct labour budget for part of 2017 can be prepared.The materials and labour requirements per tank are as
Sheds Ahead Ltd produces outdoor sheds for domestic use. The manager in charge of production has been asked to prepare a production budget, a direct materials budget and a direct labour budget for part of 2017 based on the company’s sales forecast.The materials and labour requirements per shed
Stanmore Stationery is preparing a quarterly budget covering the 3 months ending 30 June 2017. The information available for the budget is as follows:1. Cash sales represent 30% of all monthly sales; 50% of all credit sales are collected in the month of sale and the remainder are collected in
EBZ Fashion is preparing a quarterly budget covering the 3 months ending 30 September 2017. The information available for the budget is as follows:1. Cash sales represent 80% of all monthly sales; credit sales are collected in the month after sale.2. Inventory purchases that are made on
Cooler Rooms Ltd manufactures airconditioning units designed for apartment use. The company markets this line in two geographic areas, one with a humid climate and the other with a dry climate. Approximately 60% of all new apartment blocks in the two areas will have an individual airconditioner
Contex Cables manufactures digital fibre optic cables designed for telecommunications use. The company markets this product to commercial contractors engaged in government projects. Contex Cables has been successful in its bids for two existing projects. The first one requires supplying the cabling
The Cloudlands Spa Resort has 100 residential villas to accommodate guests. The accountant for the resort has asked you, the marketing manager, to prepare a budget for expected relaxation treatment receipts for the month of September 2017.The facilities are provided exclusively for the use of
Jane, a student of accounting, posed the following question: ‘When one looks at the disposal of accounts receivable, there are three different accounting methods for what is essentially the same thing. How can this be? Discuss.
A business student was heard to make the following remark: ‘With the advent of credit cards and the existence of factor businesses, it now possible for business entities to offer extensive credit facilities to customers without having to worry about accounting for accounts receivable and all the
‘The determination of the appropriate amount of the allowance for doubtful debts is a fairly complicated and onerous process. The method of determining the amount of the allowance by using a percentage of net sales is the obvious way to do it.’ Discuss.
A basic difference between the direct write-off and the allowance method of recording bad debts is that of timing. Explain.
Discuss how the Allowance for Doubtful Debts account might have a debit balance before the end-of-period adjustment is made.
Refer to the latest financial report of JB Hi-Fi Limited on its website, www.jbhifi.com.au, and answer the following questions.1. From the nature of the report, JB Hi-Fi Limited is a reporting entity. Why is this so?2. Who would you consider to be the main users of the JB Hi-Fi Limited financial
Visit the websites of the IASB (www.ifrs.org), the FASB (www.fasb.org) and the AASB (www.aasb.com.au).RequiredA. Discuss what influence politics has on the establishment of accounting standards?B. Examine whether political factors have played a role in the development of
Based on the Conceptual Framework and IAS 18/AASB 118 Revenue, decide whether and when revenue exists, and decide on the appropriate time for this revenue to be recognised in the accounts of Brian Kelly, Gold Prospector.Brian Kelly has spent many years of his life panning for gold, with little
Dampier Dirtworks Company Ltd (DDC) was floated by public subscription on 1 July 2017. The entity so formed engaged in a number of revenue-earning activities which had been previously administered by the government’s Maritime Department. However, the government, in order to generate much-needed
Carl Caldersmith owns 80% of the issued shares of Caldersmith Commercial Cleaning Ltd (CCC), a distributor of cleaning equipment for industrial purposes. During the annual audit of CCC, the firm’s auditors, Standing and Sampson, noticed two irregularities in the accounts and asked Caldersmith to
Cambridge Ltd is a public company supplying different types of packaging for the food and bev¬erage industry. Among its products are labels for beer bottles, soft-drink bottles and jam jars and tins, and packages for frozen foods, cheese, yoghurt, confectionery and snack foods.Cambridge Ltd has
Marshall Manufacturing Ltd is a manufacturer of fuel injection systems for the automotive industry. At the beginning of the current financial year, Marshall Manufacturing Ltd entered an agreement with Auto Essentials Ltd to manufacture and to supply to Auto Essentials Ltd 10 000 fuel injection
Read the following extract from an article about Bob Jane’s latest business venture:He may have turned 80 but there’s no stopping Bob Jane from wheeling and dealing. He recently signed a heads of agreement document with senior Chinese government officials to build three car racing tracks within
Read the following extract:Museum and art gallery annual general-purpose financial reports may amount to misrepresentations if they include heritage and art collections that are not assets, as defined by the Australian Accounting Standards.The Australian accounting profession defined an asset in
Landsdale Leasing Ltd (LLL) is the owner–lessor of some high-quality apartment blocks, which have pleasant surroundings of parks and gardens and are only a short walk to a busy shopping centre and to public transport.In order to achieve tax benefits, the company leased all units in the blocks to
Celebrity Monthly is a glossy monthly magazine that has been on the market for nearly 2 years. It currently has a circulation across several countries of 1.6 million copies per month. Currently, negotiations are under way for the company that produces the magazine, among other publications, to
Dowden Machinery Ltd (DML), a reporting entity which distributes heavy-duty equipment to industrial entities, has had a significant increase in sales over the last few years to government departments. By 30 June 2017, the percentage of sales to the government sector had risen to 40% of total
Land and Water Waste Disposal Ltd (LAWWD) is a public company providing waste disposal services to private homeowners and to customers in the commercial, industrial and public sectors. Because of its active research program, the company has built a fine reputation as the leading handler of waste
A legal wrangle developed between the Australian Taxation Office (ATO) and Box Hill Ltd con¬cerning the treatment of certain disputed income tax payments. This prompted ASIC to seek a formal ruling on the dispute and call for full disclosure of the effects of tax disputes in the com¬pany’s
Martindale Ltd uses the historical cost system. While reviewing the business activities of the company, you discover that the following transactions and events were recorded. Ignore GST.1. Ending inventory for the current year had a cost of $115200 and a selling price of $102000. The inventory
After conducting an audit of the accounts of Parramatta Ltd, you discover that the following transactions and events were recorded during the current year. Parramatta Ltd uses the historical cost system.1. The company borrowed $600000 from a bank at an interest rate of 10% to construct a new
A well-known Australian airline has placed a non-cancellable order for a new Airbus A380. The price between the airline and the manufacturer is fixed, and delivery is to occur in 24 months with full payment to be made on delivery.RequiredA. Should the airline recognise an asset or liability at the
Hampton Housing Ltd (HHL) is a land development company trading in the construction of residential house and land packages in Sydney’s western suburbs. The company is currently developing a residential subdivision, and the total cost of the development has been estimated at $18 000 000. This is
Wyoming Wines Ltd has suffered a significant reduction in profitability, as a result of the current economic downturn and doubts about the quality of certain boutique wines. The company’s profit for the year ended 30 June 2017 was only $2 150 000. The general purpose financial reports for
Brunswick Ltd is seeking your advice on how to account for the following transactions, in line with the Conceptual Framework and other relevant documents. Discuss and explain your recom¬mended treatment of each of the situations below.1. Brunswick Ltd spends $10 000 per year to have its head
For several seasons, Megan Gale and Jennifer Hawkins have been employed by David Jones Limited and Myer Limited respectively in order to attract more fashion-conscious customers to their stores. This strategy has met with some success and their continued employment at fashion events in the future
The following items occurred in Mitcham Ltd for the year ended 30 June 2017:(a) Some of Mitcham Ltd’s plant and equipment is situated in an area which, on average, is flooded every 15 years. The company has no flood insurance, but provides an amount each year as a liability in the accounts for
Greenvale Ltd sold some property to Thornleigh Ltd for $1 000 000 cash in June 2017, recording a profit of $200 000. A further element of the sale was that Greenvale Ltd gave Thornleigh Ltd an option to sell the property back to Greenvale Ltd at any time after 30 June 2017, the end of Greenvale
Outline whether you would recognise each item below as a liability, justifying your answer by reference to the Conceptual Framework’s liability definition and recognition criteria: (a) Your parents have lent you $20 000 to buy a car and have told you to pay it back whenever you
State the amount of revenue that should be recognised by Whitehall Ltd in the year ended 31 December 2017 for each item below, justifying your answer by reference to the revenue definition and recognition criteria in IAS 18/AASB 118. Prepare any journal entries where necessary:(a) Whitehall Ltd’s
Telecommunications company, Toronto Ltd, signed a 15-year deal to sell capacity on its cable net¬work to a rival company for $200 million. The deal was completed on the last day of Toronto Ltd’s financial year, 30 June. The company received an upfront payment of only $20 million from its
Randwick Medical Laboratory Ltd, RMLL, a medical research entity, has discovered a cure for a previously incurable disease. RMLL is protecting the drug’s formula by keeping it secure in the company vault, rather than by patenting it. RMLL shortly plans to start discussions with vitally interested
Explain whether you would recognise each item below as an asset, justifying your answer by ref¬erence to the Conceptual Framework’s asset definition and recognition criteria:(a) A trinket of sentimental value only(b) Discovery (at insignificant cost) of evidence of mineral reserves(c)
Described below are several transactions and events for Chisholm Insurance Ltd for the year ended 30 June 2016.1. The company issued a 1-year insurance policy to Boronia Ltd on 1 March 2016, costing $8000, received in advance.2. The company leased premises to Red Hill Ltd for a period of 3 years,
Several independent situations are described below.1. The owner of the business included his personal dental expenses in the entity’s income statement.2. The company spent $40 000 on computer software development and recorded the cost as an asset. As yet it is impossible to predict whether this
A major step in the framework project being undertaken by the regulators is the measurement of assets and liabilities. Some accountants argue that this will lead to a re-emergence of the current value debate.Why is measurement such an important issue? What alternatives for measurement have been put
Outline and compare the revenue recognition criteria required by accounting standards for the sale of goods, the provision of services, contributions, and government grants. Are there any inconsistencies in these requirements? If so, discuss.
‘I find the distinction between income, revenue and gains confusing.’ This is a student’s statement overheard in a corridor. Help this student by discussing the major issues involved.
‘Accounting profit is determined by recognising the income earned by the entity, and associating with that income the costs incurred in generating it.’This statement describes the way in which accountants have determined profit in practice for many years under the historical cost system. Is the
Outline the definitions of a liability and equity as provided in the current Conceptual Framework. Provide and discuss examples of situations where there is confusion in determining whether a liability exists as opposed to equity.
‘To determine whether an entity should classify its costs either as an asset or an expense, accounting standards must contain definitions of these terms.’ With reference to the above statement, discuss the concept of an asset and an expense provided in the Conceptual Framework. Provide also a
The Conceptual Framework discusses ‘essential’ and ‘non-essential’ characteristics of an asset. Consider which characteristics of an asset are ‘essential’, explaining why you regard other characteristics as being non-essential. How would these characteristics change as a result of the
From the current Conceptual Framework, outline the qualitative characteristics of financial information to be included in general purpose financial reports.
Specify the objectives of general purpose financial reporting, the nature of users, and the information to be provided to users in order to achieve the objectives, as provided in the Conceptual Framework.
Briefly explain the nature of the Conceptual Framework for Financial Reporting, and discuss the perceived advantages and disadvantages of having a conceptual framework.
‘One of the major changes in both corporations legislation and accounting standards is the adoption of the reporting entity concept.’This comment was made in a presentation at an accounting conference. One of the directors of your entity, a Brisbane-based company that is a wholly owned
What is meant by an entity’s financial position and performance? To whom and for what purpose are the financial position and performance appropriate sources of information?
Refer to the consolidated financial statements in the latest financial report of JB Hi-Fi Limited on its website, www.jbhifi.com.au, especially the statement of changes in equity, and answer the following questions.1. How many ordinary shares have been issued by the company at the end
Recyclers Ltd was formed for the purpose of collecting and recycling household garbage in Australia’s capital cities. The company has been in operation for 5 years and has managed to be profitable enough to survive. Nevertheless, it has come across a number of problems, especially related to the
A. Answer all the questions for the three partners.B. Should they proceed with incorporation? Are there other factors which they should consider?Fifteen years ago, John Kerr worked as a production manager for a small manufacturing firm involved in the production of metal furniture. Owing to his
The trial balance of Victoria Ltd at 30 June 2016 is shown .There was no movement in share capital for the year. The following adjustments are required.1. Record income tax expense of $7500.2. Transfer $1000 to general reserve.3. Accrued expenses: sales staff’s salary $650;
The accounts in the ledger of Zetland Ltd as at 30 June 2017 had balances.The Share Capital account represents 30000000 shares fully paid at $1 and 50 000 000 shares issued at $1 but called to 75c per share. A call of 25c per share had been made on these 50000000 shares during the year, but 2 000
Swansea Ltd prepared the unadjusted trial balance as at 30 June 2016.The following information and events are yet to be recorded by the company on 30 June 2016.1. Inventory on hand after a physical stocktake at 30 June 2016 amounted to $265 000.2. Prepaid insurance at the end of the
The equity of Lochinvar Ltd at 30 June 2016 was:Share capital50000 10% cumulative preference shares — fully paid100000 ordinary shares — fully paid$ 50000 200000Revaluation surplusContingencies reserveRetained earnings250000 60000 20000 (40000)Total
In January 2015, the management of Branxton Ltd decided on a program of expansion for the business. On 1 July 2015, the company had $900 000 in retained earnings, and another reserve totalling $600 000 had been set aside out of retained earnings for the acquisition of equipment. Share capital
A trial balance taken from Galston Ltd’s accounting records at 30 September 2016 showed the following account balances:Galston LTDTrial Balanceas at 30 September 2016AccountDebitCreditShare capital (700 000 shares fully paid)General reserveRetained earningsCurrent tax liabilityAccounts
At 30 June 2016, Box Hill Ltd’s equity was as follows:Issued capital: 400000 ordinary shares issued at $1.20, fully paid80000 7% preference shares issued at $1, fully paid$480000 80000Retained earningsGeneral reserveTotal equity560000348000 70000
Gundagai Ltd was incorporated on 30 June 2016. On 1 July 2016, the company issued a prospectus offering 300 000 ordinary shares at an issue price of $10, payable on the following terms: $3 on application $3 on

Showing 5700 - 5800 of 6751

First
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
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