Assume that Auswide engaged in the following representative transactions duringthe fiscal year ended June $30,2021$:

$1.$ On July $3,2020,$ the bank issued $1,000,000$ shares of common stock for AUD$4\mathrm{.}90$ per share.

$2.$ On August $8,2020,$ the bank borrowed an additional AUD$40$ million under the Reserve Bank of Australia$’$s term funding facility at a rate of $0\mathrm{.}25\%$ for a term of three years. Auswide reflected this borrowing on its balance under $“$other borrowings.$”$

$3.$ On September $7,2020,$ the bank purchased AUD$300,000$ in office supplies from Officeworks on credit. The terms of the purchase required the bank to pay cash in $60$ days.

$4.$ On September $24,2020,$ the bank used cash to purchase AUD$700,000$ in office furniture from IKEA.

$5.$ Customers made AUD$300$ million in deposits and AUD$100$ million in withdrawals over the year.

$6.$ Customers took out AUD$680$ million in loans and repaid AUD$450$ million in loans over the year.

$7.$ Interest revenue received from loans outstanding totaled AUD$120$ million for the year. Of this amount, $95\%$ was paid in cash while the remaining $5\%$ was accrued as interest receivable.

$8.$ Interest expense on customer deposits totaled AUD$37$ million for the year. Of this amount, $85\%$ was paid in cash while the remaining $15\%$ was accrued as interest payable.

$9.$ Employee benefits expense totaled AUD$24$ million for the year, all of which was paid in cash.

$10.$ Commissions to third$-$party mortgage brokers for originating mortgages totaled AUD $8$ million for the year, all of which was paid in cash.

$11.$ The bank sold one of its loans with a carrying value of AUD$800,000$ to another bank for AUD$850,000$ in cash.

$12.$ On March $31,2021,$ the bank paid a dividend of AUD$12$ million.

$13.$ The bank recorded depreciation expense of AUD$3$ million for the year.

$14.$ The bank recorded loan impairment expense of AUD$8$ million for the year.

$15.$ The bank determined that its goodwill had not been impaired during the year. Assignment Questions

$1.$ Record the representative transactions in the spreadsheet accompanying this case using the balance sheet equation.

$2.$ Prepare a balance sheet as of the fiscal year end June $30,2021$ assuming that the representative transactions were the only ones that occurred during this fiscal year.

$3.$ Calculate fiscal year $2021$ net income and cash flow assuming that the representative transactions were the only ones that occurred during this fiscal year.

Answer rating: 100% (QA)

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