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ACC 203: Financial Accounting- Accounting Assignments
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Internal code- MAS40
Examination of the company’s general ledger accounts revealed the following:
1. The following depreciation expense was recorded during the year: buildings $13,200; and equipment $20,900.
2. Investments with a cost of $90,000 were sold for $120,000.
3. Land was purchased for $129,000 with payment consisting of $39 000 cash and a loan payable for $90,000 due on 29 August 2018.
4. Sales for the period were $573,600; cost of sales amounted to $225,300; other expenses (excluding depreciation, carrying amount of investments sold, interest, and bad debts) amounted to $112,400.
5. Bad debts of $3,500 were written off.
6. Income tax paid during the year was $73,200.
7. Interest expense and interest paid were $40,000.
8. The bank overdraft is an integral part of the company’s cash management function.
Required:
(A) Prepare a Statement of Cash Flows for the year ending 30 June 2017 including a note on disclosure to reconcile net cash flows from operating activities.
(B) Prepare any other notes required by AASB 107.
Accounting Assignments
Questions- QUESTION 1: This research question consists of a case study: You are a graduate accountant working for Gray and Associates a public accounting firm. The address of the firm is 777 South Terrace, Adelaide SA 5000. The manager of your firm, Mrs Bella Cans has asked you to draft a letter in response to an email received from a client – Mr Lukas Clown, the managing director of Minner Ltd, raising a number of issues regarding his company. QUESTION 2: Prepare a Statement of Cash Flow
Examination of the company’s general ledger accounts revealed the following:
1. The following depreciation expense was recorded during the year: buildings $13,200; and equipment $20,900.
2. Investments with a cost of $90,000 were sold for $120,000.
3. Land was purchased for $129,000 with payment consisting of $39 000 cash and a loan payable for $90,000 due on 29 August 2018.
4. Sales for the period were $573,600; cost of sales amounted to $225,300; other expenses (excluding depreciation, carrying amount of investments sold, interest, and bad debts) amounted to $112,400.
5. Bad debts of $3,500 were written off.
6. Income tax paid during the year was $73,200.
7. Interest expense and interest paid were $40,000.
8. The bank overdraft is an integral part of the company’s cash management function.
Required:
(A) Prepare a Statement of Cash Flows for the year ending 30 June 2017 including a note on disclosure to reconcile net cash flows from operating activities.
(B) Prepare any other notes required by AASB 107.