ACCT2013 Accounting - Fundamentals of Business Revision Questions 2024 PDF

End of Semester 2 2024 Revision Questions ACCT2013 Accounting – Fundamentals of Business Accounting – Fundamentals of Business ACCT2013 Revision Questions Semester 2, 2024 QUESTION 1...

End of Semester 2 2024 Revision Questions ACCT2013 Accounting – Fundamentals of Business Accounting – Fundamentals of Business ACCT2013 Revision Questions Semester 2, 2024 QUESTION 1 Page 1 of 6 End of Semester 2 2024 Revision Questions ACCT2013 Accounting – Fundamentals of Business Nestle Pty Ltd began operations on 1 July. It uses a perpetual inventory system. During July the business had the following purchases and sales: Purchase Date Units Unit Cost Sales Unit July 1 3 $90 July 6 2 July 11 4 $80 July 14 3 July 21 5 $110 July 27 4 Required: Determine the ending inventory under a perpetual inventory system using (1) FIFO and (2) average cost (Round up to the nearest dollar). Show all workings. Page 2 of 6 End of Semester 2 2024 Revision Questions ACCT2013 Accounting – Fundamentals of Business QUESTION 2 The summarised general ledger trial balance of Maddy Ltd, a manufacturing company, includes the following accounts at 30 June 2024. DR CR Cash 155,000 Deposits(at call) 36,000 Trade Debtors 1,735,000 Allowance for Doubtful Debts 80,000 Sundry Debtors 310,000 Prepayments 141,000 Raw Materials - Inventories 490,000 Work in Progress 151,000 Finished Goods - Inventories 1,042,000 Investment in Listed Firms 52,000 Land( at valuation) 245,000 Buildings (at cost) 1,030,000 Accumulated Depreciation - Buildings 120,000 Plant & Equipment 8,250,000 Accumulated Depreciation - Plant & Equipment 3,726,000 Leased Assets 780,000 Accumulated Depreciation - Leased Assets 310,000 Goodwill 3,200,000 Accumulated Impairment 670,000 Patents 150,000 Trade Creditors 1,630,000 Sundry creditors and accruals 840,000 Bank loans 2,230,000 Debentures 675,000 Other Loans 770,000 Lease Liabilities 350,000 Current Tax Payable 144,000 Deferred Tax Liability 415,000 Provision for employment benefits 275,000 Provision for restructuring 403,000 Provision for Warranty 42,000 Share Capital 3,500,000 Investment revaluation surplus 25,000 Land revaluation surplus 81,000 Retained Earnings 1,481,000 17,767,000 17,767,000 Additional information Page 3 of 6 End of Semester 2 2024 Revision Questions ACCT2013 Accounting – Fundamentals of Business Bank loans and ‘other loans’ are all repayable beyond 1 year. $300 000 of the debentures is repayable within 1 year. Lease liabilities include $115 000 repayable within 1 year. Investments in listed companies are long-term investments. Provision for employment benefits includes $182 000 payable within 1 year. The planned restructuring is intended to be completed within 1 year. Provision for warranty includes $15 000 estimated to be incurred beyond 1 year. Required: Prepare the statement of financial position of Maddy Ltd at 30 June 2022 in accordance with AASB 101/IAS 1, using the captions that a listed entity is likely to use. Include an explanation for each of the items in the statement of financial statements. QUESTION 3 Preparation of a statement of financial position The summarised general ledger trial balance of Lotus Ltd, an investment company, includes the following accounts at 30 June 2024. Dr Cr Cash at bank $ 14 000 Deposits (at call) 242 869 Dividends receivable 22 693 Interest receivable 478 Settlements receivable 10 900 Trading securities 74 455 Investments in listed securities 1 780 000 Deferred tax asset 655 Settlements payable $ 15 505 Interest payable 280 Other payables 83 Current tax payable 242 Provision for employee benefits 752 Deferred tax liability 56 414 Share capital 1 500 000 Revaluation surplus — investments 376 390 Retained earnings 196 384 $ 2 146 050 $ 2 146 050 Additional information Page 4 of 6 End of Semester 2 2024 Revision Questions ACCT2013 Accounting – Fundamentals of Business Provision for employee benefits includes $350 payable within 1 year. Investments in listed securities are held as long-term investments. Revaluation gains and losses will not be reclassified. The deferred tax asset and deferred tax liability do not satisfy the criteria for offsetting in accordance with AASB 112/IAS 12. Required Prepare the statement of financial position of Lotus Ltd at 30 June 2024 in accordance with AASB 101/IAS 1, using the captions that a listed company is likely to use. Include an explanation for each of the items in the statement of financial statements where necessary. Page 5 of 6 End of Semester 2 2024 Revision Questions ACCT2013 Accounting – Fundamentals of Business QUESTION 4 On 1 March 2024, Trent Ltd enters into an agreement with Sheldon Ltd to renovate Sheldon Ltd’s offices. The agreement states that the total consideration to be paid for the renovation will be $480 000. Trent Ltd expects that its total costs for the renovation will be $420 000. As at the end of its reporting period, 30 June 2024, Trent Ltd had incurred labour costs of $110 000 and materials costs of $150 000. Of the materials costs, $65 000 is in respect of materials that have not yet been used in the renovation. All labour costs are in respect of services performed on the renovation project. As at 30 June 2024, Sheldon Ltd had made progress payments to Trent Ltd of $220 000. Required: Calculate Trent Ltd’s revenue to be recognised using the input method outlined in paragraph B18 of AASB 15/IFRS 15 and prepare journal entries to record the transactions described. Assume all of Trent Ltd’s costs are paid in cash. QUESTION 5 On the 1st July, 2023, Brendan Ltd provides a bundled service offering to Crowne Ltd. It charges Crowne Ltd $55 000 for upfront advice and two ongoing services — ‘on-call’ advice and access to Brendan Ltd’s databases over a 2-year period. Crowne Ltd pays the $55 000 upfront. Brendan Ltd determines that, if it were to charge a separate fee for each service if sold separately, the fees would be as follows. Upfront advice $ 5 000 On-call advice 30 000 Access to databases 33 000 The end of Brendan Ltd’s reporting period is 30 June. Required: Prepare the journal entries to record this transaction in accordance with AASB 15/IFRS 15 for the year ended 30 June 2024 and 30 June 2025, assuming Brendan Ltd applies the relative fair value approach. Show all workings. Round up your answers to the nearest dollar. Page 6 of 6