ACCT5023 - Financial Accounting - Accounting & Finance Assignment Help

Assignment Task

QUESTION 1
(a) On 4 Jan 2018, to provide capital to finance an expansion into other states, Long Ltd decided to issue 100,000 shares at an issue price of $2.50 per share, $2.00 payable on application, and $0.50 in future call/s. Applications were received for 120,000 shares. Applications closed on 5 Feb 2018.
The shares were issued on 7 February 2018 and refunds made to any unsuccessful applicants. Costs incurred in the share issue totalled $5,000 and were paid on 7 February 2018.

Required:
Prepare the general journal entries required to account for the above on 7 February 2018 only.
(b) On 30 June 2018 the directors of Company X decided to revalue the following class of assets. Assets in Class Cost or previous Revalued Amount at 1 July 2017 Acc Depn to date (to 30/6/18)
Carrying Amount
At 30/6/18
Fair Value
At 30/6/18
Equipment A 10,000 (3,000) 7,000 8,000
Equipment B 24,000 (4,000) 20,000 23,000
Equipment A was purchased on 1 July 2016 for $16,000 with an estimated useful life of 4 years and an estimated residual value of $1,000. Equipment A was previously revalued at 30 June 2017 from its carrying amount of $12,250 to its fair value of $10,000. Equipment B was purchased on 1 July 2017 at a cost of $24,000. Equipment B has an estimated useful life of 6 years and an estimated residual value of zero.

Required:
Prepare the journal entries required to account for any revaluations required in relation to these assets as at 30 June 2018. Show all calculations.

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