Chat with us, powered by LiveChat Assignment ACC705 T3 2017Worth 30 marksDue week 10 - Writemia

Assignment ACC705 T3 2017Worth 30 marksDue week 10

Assignment ACC705 T3 2017Worth 30 marksDue week 10, submit soft copy online on Moodle, and printed copy to lecturer at the start of lecture time.Students on Wednesday class Wednesday lecture time week 10, students on Friday class Friday lecture time week 10. See subject outline for details of assignment requirements.Q1Consolidation worksheet entriesBen Ltd operates a number of supermarkets with an emphasis on the supply of quality produceThe operations of Sam Ltd are primarily in the fine fruit market. Believing that the acquisition ofSam Ltd would enable Ben Ltd to expand its supply of quality produce to its customers, Ben Ltd commenced actions to acquire the shares of Sam Ltd. On 1 July 2013, Ben Ltd acquired all the issued shares (cum div.) of Sam Ltd for $130 000. At this date the equity of Sam Ltd consisted of: Share capital $150 000 Reserves 10 000 Retained earnings 30 000On 1 July 2013, Sam Ltd had recorded a dividend payable of $6000 and goodwill of $5000(net of accumulated impairment losses of $7000). The dividend was paid in August 2013. In theprevious year’s annual report Sam Ltd had reported the existence of a contingent liability fordamages based upon a lawsuit by a customer who had slipped on some fallen fruit in one of theStores operated by Sam Ltd. Ron Ltd calculated that this liability had a fair value of $9 000.Sam Ltd also had some customer databases that were not recorded as assets but Ron Ltd placedaffair value of $6000 on these items. Sam Ltd believed that the databases had a future life of4 years. All of the identifiable assets and liabilities of Sam Ltd were recorded at amounts equal to theirfair values except for the following: Carrying amount Fair value Plant (cost $120 000) $94 000 $96 000 Land 80 000 95 000 Inventory 20 000 26 000 The plant had an expected remaining useful life of 5 years. The land was sold by Sam Ltd inFebruary 2015. All inventories were sold by 30 June 2014. In February 2016, Sam Ltd transferred $3000 of the reserves on hand at 1 July 2013 to retained earnings. The remaining $2000 was transferred in February 2017. The court case involving the damages sought by the customer was settled in May 2017.Sam Ltd was required to pay $7 000 to the customer.RequiredPrepare the consolidation worksheet entries for the preparation by Sam Ltd of its consolidatedfinancial statements at 30 June 2017.Q2The following details are taken from the accounting records of Mercy Ltd as at 30 June 2016: Debit Credit Plant and equipment (net of depreciation)LandBuildings (net of depreciation)Investments (long-term)Accounts receivableAllowance for impairment of receivablesInventoryBank overdraftAccounts payableDividend payableGoodwill (net of impairment)Share capital (3200000 shares)General reserve $ 800000600000900000460000600000520000300000 $ 600002000004000002560002400000290000 Retained earningsIncome tax payableOther debtors 50000 375000249000$4230000 $4230000Additional information(a) Profit for the year was $581000.(b) Balance of retained earnings at 1 July 2015 was $80000.(c) During the year $30000 was transferred from retained earnings to general reserve.(d) A final dividend of 8c per share has been declared by directors and is not subject to shareholders’ approval.RequiredPrepare the statement of financial position and statement of changes in equity to comply with AASB 101. Include Notes to the accounts for the above financial statements

Do you need an answer to this or any other questions?

About Writemia

We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.

How It Works

To make an Order you only need to click on “Place Order” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.

Are there Discounts?

All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.

Hire a tutor today CLICK HERE to make your first order