SOLUTION:-
NewCat Ltd, a manufacturer and retailer for pet products, commenced operations on 1 July, 2018 by issuing 100 000 $2.00 shares, payable in full on application. There were no share issue costs For...
$200 000 of other loans are repayable within 1 year. The remaining amount is payable in full at the end of 2022. The provision for employee benefits includes $22 000 payable within 1 year. The warranty provision is in respect of a 12-month warranty given on certain goods sold. NewCat Ltd transferred $10 000 out of retained earnings into general reserve. The bank loan is for 5 years and repayable in full at the end of the term. The interest...
Question 2 (30 marks) At 30 June 2018, Spencer Ltd had the following temporary differences: Asset or liability Carrying amount ($000) Tax base ($000) Computers at cost 300 300 Accumulated depreciation (60) (100) Computers (net) 240 200 Accounts receivable 100 100 Allowance for doubtful debts (10) 0 Accounts receivable (net) 90 100 Provision for warranty costs 30 0 Provision for employee benefits (LSL) 20 0 The following information is available for the year ending 30 June 2019. Statement of comprehensive...
Accounting for income tax Tulip Ltd commenced business on 1 July 2018, with share capital of $700,000. The following information is available for the year ended 30 June 2019: Calculation of profit for the year ended 30 June 2019 $ $ Income: Revenue 1 430 000 Royalty (exempt from income tax) 10 000 Expenses: Cost of sales 725 000 Advertising expense 204 000 Annual leave expense 24 000 Depreciation – equipment 35 000 Depreciation – motor vehicles 20 000 Doubtful...
I Love Corporate Accounting Ltd commences operations on 1 July 2018 and presents its first statement of profit and loss and other comprehensive income and first statement of financial position on 30 June 2019. The statements are prepared before considering taxation. The following information is available: Statement of Profit or Loss and other comprehensive income for the year ended 30 June 2019 Gross Profit $ 730,000.00 Expenses Administration expenses $ 80,000.00 Salaries $ 200,000.00 Long-service Leave $ 20,000.00 Warranty expenses...
Only Answer Question 1 Please Preparation of a statement of cash flows A summarised comparative statement of financial position of Bronze Ltd is presented below, together with a statement of profit or loss and other comprehensive income for the year ended 30 June 2019 LO3, 4, 5 30 June 2018 30 June 2019 $ 35000 105000 $45000 69000 (3000) 45000 53000 187 000 (35 000) $361000 Cash Trade receivables Allowance for doubtful debts Inventories Equity investments Plant Accumulated depreciation (6000)...
At 30 June 2018, Hawaii Limited had the following balances: Asset or liability Computers at cost Accumulated depreciation Carrying amount Tax base 300 000 300 000 100 000 60 000 Accounts receivable 100 000 100 000 Allowance for doubtful debts 10 000 Provision for warranty costs 30 000 Provision for employee benefits (LSL) 20 000 The following information is available for the year ended 30 June 2019. Statement of comprehensive income for Hawaii Limitedfor the year ended 30 June 2019...
Ethan Ltd acquired all the issued shares ( div.) of Darren Ltd on 1 July 2018 for $110 000. At this date Darren Ltd recorded a dividend payable of $10 000 and equity of: Share capital $54 000 Retained earnings 36 000 Asset revaluation surplus 18 000 All the identifiable assets and liabilities of Darren Ltd were recorded at amounts equal to their fair values at acquisition date except for: Carrying amount Fair value Inventories 14 000 16 000 Machinery...
100 ML ULUL PIELIQUIe plant is determined as being 6 years, (b) Company A recognises income arising from service contracts on the basis of the stage of completion (C) Company A determines that it will calculate its warranty provision using past experience of defective products. (d) The current year's warranty provision is calculated by providing for 1% of current year sales, based on last year's warranty claims amounting to 1% of sales. Pate ercise 16.6 PREPARATION OF A STATEMENT OF...
ONLY ANSWER QUESTION 2 PLEASE. Please include any T Accounts used to figure out values. Preparation of a statement of cash flows A summarised comparative statement of financial position of Bronze Ltd is presented below, together with a statement of profit or loss and other comprehensive income for the year ended 30 June 2019 LO3, 4, 5 30 June 2018 30 June 2019 $45000 69000 $ 35000 Cash Trade receivables 105000 (6000) 67000 60000 225000 (3000) 45000 53000 Allowance for...
Sky Ltd acquired all the issued shares (Ex div.) of Nu Ltd on 1 July 2018 for $100 000. At this date Nu Ltd recorded a dividend payable of $10 000 and equity of: | Share capital Retained earnings | Asset revaluation surplus $54 000 36 000 18 000 All the identifiable assets and liabilities of Nu Ltd were recorded at amounts equal to their fair values at acquisition date except for: Inventories Machinery (cost $100 000) Carrying amount 16...