SUPP ASSESSMENT Student Number: (enter on the line below) Student Name: (enter on the line below) HA2032 Corporate and financial accounting final assessmeNt Trimester 1, 2021 Assessment Weight: 50...

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SUPP ASSESSMENT Student Number: (enter on the line below) Student Name: (enter on the line below) HA2032 Corporate and financial accounting final assessmeNt Trimester 1, 2021 Assessment Weight: 50 total marks Instructions: · All questions must be answered by using the answer boxes provided in this paper. · Completed answers must be submitted to Blackboard by the published due date and time. Submission instructions are at the end of this paper. Purpose: This assessment consists of six (6) questions and is designed to assess your level of knowledge of the key topics covered in this unit HA2032 Final Assessment T1 2021 Question 1(7 marks) XYZ Ltd was registered on 30 June 2020. The next day, the directors issued a prospectus inviting applicants for 200,000 ordinary shares with an issue price of $1. The shares were payable in full on application. By 31 July, the company had received 400,000 applications, together with the application monies. The directors allotted 200,000 shares on 1 August and returned the money for additional applications. Required: a) Prepare general journal entries to record the above data. (3.5 marks) ANSWER: ** Answer box will enlarge as you type b) Enter the above data into the ledger tables below. (3.5 marks) Debit $ Credit $ Balance $ Trust account 2020 Application 2020 Paid-up capital 2020 Bank 2020 Question 2(7 marks) (a)Why is the EPS (earnings per share) figure useful to the users of general purpose financial reports (GPFR)? Give reasons to support your answer. (4 marks) (b)Why might the usefulness of EPS (earning per share) be limited? Give reasons to support your answer. (3 marks) ANSWER: Question 3(7 marks) (a) What is a ‘business combination’ and which Australian accounting standard deals with this topic? (2 marks) (b) Does any goodwill or bargain purchase need to be reported on acquisition? If so, where is the goodwill / bargain purchase amount reported? (2 marks) (c) Parma Ltd purchased a parcel of assets and liabilities comprising a business directly from Pauls Pty Ltd. The parcel, measured at net fair values, consisted of: Balance of Accounts: Plant 250,000 Land 340,000 Vehicles 320,000 Accounts receivable 130,000 Accounts payable (148,000) Total 892,000 Required: Prepare journal entries to record the acquisition by Parma Ltd, if the cost of acquisition was $1,100,000 cash. (3 marks) ANSWER: Question 4(7 marks) On 1 July 2019, Canola Ltd acquired 100% of the share capital to gain control of Palm Ltd. The following intra-group transactions occurred during the financial year ending 30 June 2020. (i)During the 2019 - 2010 financial year, Canola Ltd sold inventory to Palm Ltd for $1,000,000. Canola Ltd purchased this inventory at $700,000. By 30 June 2020, Palm Ltd has sold 70% of that inventory to an outside third party. (ii)Palm Ltd sold a vehicle to Canola Ltd for $100000. The vehicle had been fully depreciated by Palm Ltd at 30 June 2020 and valued at $0 on Palm’s books. Required: a) Prepare the journal entries required to eliminate the intra-group transactions above. Ignore any tax effects. (6 marks) b) When are consolidated profits recorded for inventory transfers within the group? (1 mark) ANSWER: Question 5(11 marks) On 1st July, 2018 Murray Ltd acquired 70% of the share capital of Darling Ltd for $100,000,000. Equity of Darling Ltd at acquisition date was: Share Capital$ 60,000,000 General Reserve$ 20,000,000 Retained Earnings$ 10,000,000 All assets and liabilities of Darling Ltd were recorded at fair value on acquisition. Ignore Tax effects. Required: (a) Complete the worksheet below using the partial goodwill method with the NCI measured at the proportionate share of the acquiree’s identifiable net assets. (5 marks) Elimination of Investment in Darling Ltd Darling Ltd (S) $,000 Murray Ltd (70% of Darling) (P) $,000 30% NCI $,000 Fair Value of consideration transferred   Less: FV of identifiable assets acquired & liabilities assumed   Share capital on acquisition date 60,000 General reserve-acquisition date 20,000 Retained earnings-acquisition date 10,000 Fair value adjustment Goodwill on acquisition Non-controlling interest (b) Prepare the consolidation adjustments and eliminations entries and recognise the NCI in the pre-acquisition equity of Darling Ltd, using the partial goodwill method with the NCI measured at the proportionate share of the acquiree’s identifiable net assets. (6 marks) ANSWER: Question 6(11 marks) The following information relates to Sonata Ltd. (a)At the beginning of the accounting period the company has a salary payable liability of $300 and at the reporting date a salary payable of $400. During the year the salary expense shown in the income statement was $700. (b)At the beginning of the accounting period the company has property plant and equipment (PPE) with a carrying amount of $300. At the end of the accounting period, the carrying amount of the PPE is $1,000. During the year depreciation charged was $90, a PPE with a carrying amount of $70 was sold for $50. (c)At the beginning of the accounting period the company has retained earnings of $1000 and at the end of the accounting period the balance of the retained earnings is $1500. The reported profit for the year was $3800. (d)Sonata Ltd also provides you with the following information on its sale and collection of accounts receivable: Sales for the year $20,000 Discounts provided to customers for early payment $500 Doubtful debts expense for the year $200 Opening balance of accounts receivable $4,000 Closing balance of accounts receivable $3,500 Opening balance of the allowance for doubtful debts $400 Closing balance of the allowance for doubtful debts $320 Required: (a)Calculate the cash paid for salary (2 marks) (b)Calculate the cash paid to buy new PPE (3 marks) (c)Calculate the dividend paid (3 marks) (d)Calculate cash collected from customer (3 marks) ANSWER: END OF FINAL ASSESSMENT Submission Instructions: · Save submission with your STUDENT ID NUMBER and UNIT CODE e.g. EMV54897 HA2032 · Submission must be in MICROSOFT WORD FORMAT ONLY · Upload your submission to the appropriate link on Blackboard · Only one submission is accepted. Please ensure your submission is the correct document. · All submissions are automatically passed through SafeAssign to assess academic integrity. SUPP ASSESSMENT Student Number: (enter on the line below) Student Name: (enter on the line below) HA2032 Corporate and financial accounting final assessmeNt Trimester 1, 2021 Assessment Weight: 50 total marks Instructions: · All questions must be answered by using the answer boxes provided in this paper. · Completed answers must be submitted to Blackboard by the published due date and time. Submission instructions are at the end of this paper. Purpose: This assessment consists of six (6) questions and is designed to assess your level of knowledge of the key topics covered in this unit HA2032 Final Assessment T1 2021 Question 1(7 marks) XYZ Ltd was registered on 30 June 2020. The next day, the directors issued a prospectus inviting applicants for 200,000 ordinary shares with an issue price of $1. The shares were payable in full on application. By 31 July, the company had received 400,000 applications, together with the application monies. The directors allotted 200,000 shares on 1 August and returned the money for additional applications. Required: a) Prepare general journal entries to record the above data. (3.5 marks) ANSWER: ** Answer box will enlarge as you type b) Enter the above data into the ledger tables below. (3.5 marks) Debit $ Credit $ Balance $ Trust account 2020 Application 2020 Paid-up capital 2020 Bank 2020 Question 2(7 marks) (a)Why is the EPS (earnings per share) figure useful to the users of general purpose financial reports (GPFR)? Give reasons to support your answer. (4 marks) (b)Why might the usefulness of EPS (earning per share) be limited? Give reasons to support your answer. (3 marks) ANSWER: Question 3(7 marks) (a) What is a ‘business combination’ and which Australian accounting standard deals with this topic? (2 marks) (b) Does any goodwill or bargain purchase need to be reported on acquisition? If so, where is the goodwill / bargain purchase amount reported? (2 marks) (c) Parma Ltd purchased a parcel of assets and liabilities comprising a business directly from Pauls Pty Ltd. The parcel, measured at net fair values, consisted of: Balance of Accounts: Plant 250,000 Land 340,000 Vehicles 320,000 Accounts receivable 130,000 Accounts payable (148,000) Total 892,000 Required: Prepare journal entries to record the acquisition by Parma Ltd, if the cost of acquisition was $1,100,000 cash. (3 marks) ANSWER: Question 4(7 marks) On 1 July 2019, Canola Ltd acquired 100% of the share capital to gain control of Palm Ltd. The following intra-group transactions occurred during the financial year ending 30 June 2020. (i)During the 2019 - 2010 financial year, Canola Ltd sold inventory to Palm Ltd for $1,000,000. Canola Ltd purchased this inventory at $700,000. By 30 June 2020, Palm Ltd has sold 70% of that inventory to an outside third party. (ii)Palm Ltd sold a vehicle to Canola Ltd for $100000. The vehicle had been fully depreciated by Palm Ltd at 30 June 2020 and valued at $0 on Palm’s books. Required: a) Prepare the journal entries required to eliminate the intra-group transactions above. Ignore any tax effects. (6 marks) b) When are consolidated profits recorded for inventory transfers within the group? (1 mark) ANSWER: Question
Answered Same DayJun 19, 2021HA2032

Answer To: SUPP ASSESSMENT Student Number: (enter on the line below) Student Name: (enter on the line below)...

Akshay Kumar answered on Jun 19 2021
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SUPP ASSESSMENT

Student Number: (enter on the line below)
Student Name: (enter on the line below)

HA2032
Corporate and financial accounting
final assessmeNt
Trimester 1, 2021
Assessment Weight:     50 total marks
Instructions:
· All questions must be answered by using the answer boxes provided in this paper.
· Completed answers must be submitted to Blackboard by the published due date and time.
Submission instructions are at the end of this paper.
Purp
ose:
This assessment consists of six (6) questions and is designed to assess your level of knowledge of the key topics covered in this unit
            
        
HA2032 Final Assessment T1 2021
Question 1            (7 marks)
XYZ Ltd was registered on 30 June 2020. The next day, the directors issued a prospectus inviting applicants for 200,000 ordinary shares with an issue price of $1. The shares were payable in full on application. By 31 July, the company had received 400,000 applications, together with the application monies. The directors allotted 200,000 shares on 1 August and returned the money for additional applications.
Required:
a) Prepare general journal entries to record the above data. (3.5 marks)
ANSWER: ** Answer box will enlarge as you type
Journal Entries in the Books of XYZ ltd.
Date Particulars Debit Credit
31-Jul-20 Bank A/c $400,000
Share Application Account $400,000
(400,000 Share Applications together with application
monies of $400,000 received)
01-Aug-20 Share Application Account $200,000
Paid up Capital Account $200,000
(200,000 Shares allocated at price of $1 per share)
01-Aug-20 Share Application Account $200,000
Bank A/c $200,000
(Excess share application money returned)
b) Enter the above data into the ledger tables below. (3.5 marks)
    
    
    Debit
$
    Credit
$
    Balance
$
    
    
    Trust account
    
    
    
    
    2020
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Application
    
    
    
    
    2020 July 31
    Bank A/c
    
    $400,000
    $400,000
    
    2020 August 01
    Paid up capital account
    $200,000
    
    $200,000
    
    2020 August 01
    Bank A/c
    $200,000
    
    $0
    
    
    
    
    
    
    
    
    Paid-up capital
    
    
    
    
    2020 August 01
    Share Application Account
    
    $200,000
    $200,000
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Bank
    
    
    
    
    2020 July 31
    Share Application A/c
    $400,000
    
    $400,000
    
    2020 August 01
    Share Application A/c
    
    $400,000
    $0
    
Question 2            (7 marks)
(a)    Why is the EPS (earnings per share) figure useful to the users of general purpose financial reports (GPFR)? Give reasons to support your answer. (4 marks)

(b)    Why might the usefulness of EPS (earning per share) be limited? Give reasons to support your answer. (3 marks)
ANSWER:
a. EPS (earning per share) means the income which is earned by a company per share outstanding at the reporting date. Earning per share indicates the money which company is left with after covering up all its expenses for its shareholder (owners). General Purpose financial statements are the financial statements which provides the information about the result of the operations of the company and is widely used by the investors, financial institutes and other stakeholders to make a decisions about to whether invest the funds or not. Earning per share is very important metric in determing the profitability of the company as it represents te actual earnings of the company. All the investors and financial institutes refer to the EPS figure reported in the General purpose financial report to decide whether to provide the funds to the company company or not. Multi-period General purpose financial reports with EPS figures provides a trend analysis of the performance of the company as year on year Increase in the EPS figure shows that the company has good profitability where as a decrease in EPS shows that company is facing issues and not able to maintain its performance. EPS figures also helps in determing the prices of the stocks. Thus, EPS (earnings per share) figure is very useful to the users of general purpose financial reports (GPFR).
b. Earning per share’s usefulness is limited because one can make an investment based on the EPS however it has some drawbacks. Companies can play a game and manipulates its earning per share to make is attractive. Companies could buy back its shares, reducing the numbers of shared outstanding on the reporting date, thus inflating the EPS. Changes in the accounting policies can also affect the EPS. EPS also doesn’t consider the cash flow...
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