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Assessment Task – Tutorial Questions Assignment
Unit Code: HI5020
Unit Name: Corporate Accounting
Assignment: Tutorial Questions
Due: week 13, Wednesday 11.59 pm
Weighting: 50 percent, 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: 1-6
Description: Each week students were provided with three tutorial questions of varying degrees of difficulty. The 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 and submit these answers in a single document.
The questions to be answered are;
Question 1 Week 7 (7 marks)
Jaguar Ltd purchased a machine on 1 July 2016 at the cost of $640,000. The machine is expected to have a useful life of 5 years (straight-line basis) and no residual value. For taxation purposes, the ATO allows the company to depreciate the asset over 4 years.
The profit before tax for the company for the year ending 30 June 2017 is $600,000. To calculate this profit the company has deducted $60,000 entertainment expense, and $80,000 salary expense that has not yet been paid. Also the company has included $70,000 interest as income that the company has not yet received. The tax rate is 30%.
Question 2 Week 8 (7 marks)
The P Ltd acquires all issued capital of the S Ltd for a consideration of $1,000,000 cash and 800,000 shares each valued at $1.50. The summary statement of the financial position of the subsidiary company immediately following the acquisition is:
Fair value of assets acquired $2,640,000
Fair value of liabilities acquired $720,000 Total shareholders’ equity of the subsidiary company $800,000 Retained earnings of the subsidiary company $1,120,000
Question 3 Week 4 (7 marks)
Aqua Ltd issues a prospectus inviting the public to subscribe for 30 million ordinary shares of $2.00 each. The terms of the issue are that $1.00 is to be paid on application and the remaining $1.00 within one month of allotment.
Applications are received for 36 million shares during July 2019. The directors allot 30 million shares on 15 August 2019. The shares were allotted on a first-come, first-serve basis. The directors refunded the application money for 6 million shares on 15 August 2019. The amounts payable on the allotment are due by 20 September 2019.
By 20 September 2019, the holders of 5 million shares have failed to pay the amounts due on allotment. The directors forfeit the shares on 30 September 2019. The shares are resold on 15 October 2019 as fully paid. An amount of $1.90 per share is received. The remaining balance of forfeited shares were refunded on 20 October 2019.
Provide the journal entries necessary to account for the above transactions and events.
Question 4 Week 10 (7 marks)
$8000. The tax rate is 30%. The group accountant for Jessica Ltd, Li Chen, maintains that the appropriate consolidation adjustment entries are as follows:
Sales | Dr15 000 | |
Cost of Sales | Cr | 13 000 |
Inventory | Cr | 2 000 |
Deferred Tax Asset Dr Income Tax ExpenseCr
300
300
Pass the necessary entries on 30 June 2017 and 30 June 2018 to eliminate the intra-group transfer of equipment. (7 marks)
On 1 July 2014 Padma Ltd acquires 25 per cent of the issued capital of Jamuna Ltd for a cash consideration of $360 000.
At the date of acquisition, the shareholders’ equity of Jamuna Ltd is:
Share capital | $450 000 |
Retained earnings | $300 000 |
Total shareholders’ equity | 750 000 |
Additional information
Apply equity method of accounting to:
Submission Directions:
The assignment will be submitted via Blackboard. Each student will be permitted only ONE submission to Blackboard. You need to ensure that the document submitted is the correct one.
Holmes Institute is committed to ensuring and upholding Academic Integrity, as Academic Integrity is integral to maintaining academic quality and the reputation of Holmes’ graduates. Accordingly, all assessment tasks need to comply with academic integrity guidelines. Table 1 identifies the six categories of Academic Integrity breaches. If you have any questions about Academic Integrity issues related to your assessment tasks, please consult your lecturer or tutor for relevant referencing guidelines and support resources. Many of these resources can also be found through the Study Skills link on Blackboard.
Academic Integrity breaches are a serious offence punishable by penalties that may range from deduction of marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of course enrolment.
Plagiarism | Reproducing the work of someone else without attribution. When a student submits their own work on multiple occasions this is known as self-plagiarism. |
Collusion | Working with one or more other individuals to complete an assignment, in a way that is not authorised. |
Copying | Reproducing and submitting the work of another student, with or without their knowledge. If a student fails to take reasonable precautions to prevent their own original work from being copied, this may also be considered an offence. |
Impersonation | Falsely presenting oneself, or engaging someone else to present as oneself, in an in-person examination. |
Contract cheating | Contracting a third party to complete an assessment task, generally in exchange for money or other manner of payment. |
Data fabrication and falsification | Manipulating or inventing data with the intent of supporting false conclusions, including manipulating images. |
Source: INQAAHE, 2020
If any words or ideas used the assignment submission do not represent your original words or ideas, you must cite all relevant sources and make clear the extent to which such sources were used.
In addition, written assignments that are similar or identical to those of another student 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 suspension of enrolment. The penalty would be dependent on the extent of academic misconduct and your history of academic misconduct issues. All assessments will be automatically submitted to SelfAssign to assess their originality.
Further Information:
For further information and additional learning resources please refer to your Discussion Board
The profit before tax (PBT) is realized at $600,000. Profit calculation is done after adjustment of depreciation as per ATO Standard Guidelines which is for the machine life to be 4 years which was to be depreciated at 5 years.
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