MyAssignmenthelp

Get Help From World's No.1 Online Tutoring Company

Get Online Tutoring through WhatsApp

Question & Answers

HA3011 Advanced Financial Accounting

Assessment Task – Tutorial Questions Assignment 2

Unit Code: HA3011

Unit Name: Advanced Financial Accounting Assignment: Tutorial Questions Assignment 2 Due: 11:30pm, 26th June 2020

Weighting:   25% Total Mark: 50 Marks Purpose:

This assignment is designed to assess your level of knowledge of the key topics covered in this unit

Unit Learning Outcomes Assessed

  1. Understand the various theoretical models of accounting
  2. To apply knowledge and understanding to specific financial reporting issues unit to AASB accounting standards
  3. Discuss the theoretical constructs of contemporary financial accounting
  4. Evaluate and explain the need for the development of a conceptual framework for accounting, and discuss the influence of such a framework on accounting
  5. Understand the Australian accounting regulatory framework and the conceptual framework
  6. Be able to understand how to account for assets, non-current assets and liabilities
  7. Be able to calculate for revaluations and impairments of non-current assets, and then journalise
  8. Account for leases for both lessees and
  9. Account for company income taxes
  10. Accounting for extractive industries

Description:

Each week students were provided with three tutorial questions of varying degrees of difficulty. These tutorial questions are available in the Tutorial Folder for each week on Blackboard. The Interactive Tutorials are designed to assist students with the process, skills and knowledge to answer the provided tutorial questions. Your task is to answer a selection of tutorial questions for weeks 6 to 10 inclusive and submit these answers in a single document.

The questions to be answered are:

Week 6 – Question 1 (10 Marks)

An item of depreciable machinery is acquired on 1 July 2016 for $280 000. It is expected to have a useful life of 10 years and a zero-residual value (straight-line). On 1 July 2020, it is decided to revalue the asset to its fair value of $150 000.

Required:

Provide journal entries to account for the revaluation.

Week 7 – Question 2 (10 marks)

On 1 July 2018 BMW Ltd issues $2 million in 10-year debentures that pay interest each six months at a coupon rate of 10 per cent. At the time of issuing the securities, the market requires a rate of return of 12 per cent. Interest expense is determined using the effective-interest method.

Formula for PV of $1 in n periods =1/(1+k)n

Formula for present value of annuity of $1 per period for n periods = where, k is the discount rate expressed in decimal

Required:

  • Determine the issue price of the
  • Provide the journal entries at 1 July 2018 and 30 June 2019.

1-1/(1+ k)n

k

Week 8 – Question 3 (10 marks)

FRM Ltd acquired an item of equipment and enters into a non-cancellable lease agreement with FEN Equipment Ltd on 1 January 2015. The lease consists of the following:

  • Date of inception: 1/1/15
  • Duration of lease: 4 years
  • Life of leased asset: 5 years
  • Lease payments (annual): $550 000 (annual) which includes $80 000 for

Maintenance and insurance costs per annum.

  • Guaranteed residual value

(Added to final payment):                      $190 000

  • Interest rate: 7%

Formula for PV of $1 in n periods =1/(1+k)n

Formula for present value of annuity of $1 per period for n periods = where, k is the discount rate expressed in decimal

Required:

1-1/(1+ k)n

k

  1. Determine the present value of minimum lease rental (5 Marks)
  2. Prepare the journal entries for FRM Ltd (the Lessee) using the Net Method for the following;

(5 Marks)

  1. Transfer of control
  2. Payment of annual payments for 2015 and

Week 9 - Question 4 (10 marks)

  1. You are provided with the following information form the accounts of BBS Ltd for the year ending 30 June 2019
Cash Sales 950 000
Cost of Goods Sold 35 000
Amount received in advance for services to be performed in August 2019 9 500
Rent expenses for year ended 30 June 2019 9 000
Rent Prepaid for two months to 31 August 2019 1 200
Doubtful debts expenses 1 200
Amount provided in 2019 for employees’ long-service leave entitlements 5 000
Goodwill impairment expenses 7 000

Required:

Calculate the taxable profit and accounting profit for the year ending 30 June 2019.

  1. GYV Ltd has the following deferred tax balances as at 30 June

Deferred tax asset                                             $9 00 000

Deferred tax liability                                         $7 00 000

The above balances were calculated when the tax rate, was 20 per cent. On 1 December 2019 the government raises the corporate tax rate to 25 per cent.

Required:

Provide the journal entries to adjust the carry-forward balances of the deferred tax asset and deferred tax liability.


Week 10 - Question 5 (10 marks)

“Mining, explorations and other similar extractive businesses are naturally and fundamentally possessing risk, in addition to uncertain outcome” consequently all expenditures of such activities should be accounted for as expenses as and when incurred.

Required:

Assess, evaluate and briefly discuss this statement.

Submission Directions

The assignment has to be submitted via Blackboard. Each student will be permitted one submission to Blackboard only. Each student needs to ensure that the document submitted is the correct one.

Academic Integrity

Academic honesty is highly valued at Holmes Institute. Students must always submit work that represents their original words or ideas. If any words or ideas used in a class posting or assignment submission do not represent the student’s original words or ideas, the student must cite all relevant sources and make clear the extent to which such sources were used. Written assignments that include material similar to course reading materials or other sources should include a citation including source, author, and page number.

In addition, written assignments that are similar or identical to those of another student in the class is also a violation of the Holmes Institute’s Academic Conduct and Integrity Policy. The consequence for a violation of this policy can incur a range of penalties varying from a 50% penalty through to suspension of enrolment. The penalty would be dependent on the extent of academic misconduct and the student’s history of academic misconduct issues. All assessments will be automatically submitted to Safe-Assign to assess their originality.

Further Information

For further information and additional learning resources, students should refer to their Discussion Board for the unit.

Expert's Answer

For Viewing Complete Solution

Chat with our Experts

Want to contact us directly? No Problem. We are always here for you

Professional

Online Tutoring Services

17,148

Orders Delivered

4.9/5

5 Star Rating

748

PhD Experts

 

Amazing Features

Plagiarism Free

Top Quality

Best Price

On-Time Delivery

100% Money Back

24 x 7 Support

Ask a New Question
*
*
*
*
*

TOP

  Connect on WHATSAPP: +61-416-195006, Uninterrupted Access 24x7, 100% Confidential

X