Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Assessment
Case Study - Prepare Comprehensive Income Statement and Statement of Changes in Equity
Fergie Ltd incurs the following expenses and income for the year ended 30 June 2015.
$.000IncomeInterest revenue 200Sales revenue 1 600ExpensesCost of goods sold 550Administration salaries 170Depreciation of office equipment 70Major loss owing to insolvency of customer 110Damage caused by 'space junk' re-entering atmosphere 65Interest expense 25Income tax expense 150Opening equity 2460
The income tax expense of $150 000 is calculated after considering a tax deduction of $21 450, which related to the damage caused by the space junk. Tax rate is 33 per cent.
During the year there has also been an increase in the revaluation surplus of $80 000 as a result of a revaluation of land of $80 000. The balance of the revaluation surplus at 1 July 2014 was $nil. A new accounting standard has also been introduced, which has a transitional provision allowing initial write-offs to be recognised as a decrease against retained earnings. The decrease against retained earnings amounts to $50 000. Retained earnings at the beginning of the financial year were $1 950 000, and dividends of $200 000 were paid during the financial year. Issued share capital at 1 July 2014 and 30 June 2015 was $510 000.
REQUIRED
Prepare an income statement (in a single statement with expenses shown by function) and a statement of changes in equity in conformity with AASB 101. Provide only those notes that can be reasonably determined from the above information
discuss the issues you may face when using financial reports subject to earnings management. Given earnings management is regarded as morally reprehensible explain why managers are still motivated to manage earnings?
What kind of lease is this to Lucas? Describe and show how the lease payment was evaluated
On July 1, 2016, Alpha Company exchanged an old computer (Equipment) with a historical cost of $1,000 that had accumulated depreciation of $600 after all June adjusting entries had been processed. The exchange was for a new computer having a fair val..
cartwright inc. has 1000000 of 10 bonds outstanding on december 31 20x8. on january 1 20x9 adam corp. an 80-owned
Eastman Publishing Company is considering publishing an electronic textbook on spreadsheet applications for business. The fixed cost of preparation, textbook design, and Web site construction is estimated to be $160,000. Build a spreadsheet model to ..
Prepare a horizontal analysis of the comparative income statement of Mariner Design Inc. Why did 2015 net income increase by a higher percentage than net sales revenue?
Prepare the journal entry(ies) for any impairment loss occurring at 30 June 2015 - how the existence of goodwill will affect the impairment test - the basic steps to be followed in applying the impairment test.
Calculate Johnson's expense deduction and fill-in 2011 Form 2106 (Employee Business Expenses) based on actual automobile expenses and other employee business expenses as shown above.
On July 2 of 2014, Corporation ABC purchased a 7year personalty asset for $65,000, and on October of 2015, placed in service a 15 years asset which was purchased for $38,000. ABC takes advantage of Section 179 deductions for both assets. Compute the ..
Create an electronic spreadsheet that will allow the firm to prepare pro forma budgets for activities within its relevant range of operations and prepare flexible budgets when sales are: 3,800 units.
You have been hired as a consultant to improve the throughput of the polishing operation. Describe the tactics you would recommend Xcaliber to employ for handling the capacity limitation.
Jean received a commission of $7,000 from her employer. How is the federal withholding tax on this payment calculated if she also earns semi monthly wages of $3,500?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd