FNSACC614: Prepare Complex Corporate Financial Reports - Glen Case Study - Finance Assignment Help

Scenario: You are expected to prepare each report in accordance with corporation law, accounting standards, ASX listing requirements and Generally Accepted Accounting Principles (GAAP) and comply with disclosure requirements. Refer to the handout called Complex ‘Corporate Financial Reports – Notes’ for further information. 

Question 1

Complete the following task in line with organisational policy, procedures and relevant accounting standards (see handout).

Livingstone Ltd acquired 80% of the issued capital of Stanley Ltd on July 1, 2018 for $138,000. At that date the shareholders’ equity of Stanley Ltd was:

Share capital $50,000

Retained earnings $50,000

Reserves $60,000

Additional information for the year ended June 30, 2020:

• Intercompany sales:
  Sales from Stanley Ltd to Livingstone Ltd $100,000

• The directors review the balance of goodwill each year. They agree that:
  For the year ended June 30, 2020 goodwill was impaired by $1,000
  For the year ended June 30, 2019 goodwill is to be impaired by $1,000

• Make sure you do the dividend elimination entries – note there is only a dividend which has been declared today, so it is an outstanding liability. 

Using appropriate accounting treatments complete the following tasks in Excel. 

1. Prepare the elimination entries and NCI entries in the worksheet. 

2. Using the worksheet figures, prepare a classified balance sheet as at 30th June 2020 and income statement for the year ending 30th June 2020.

3. Present the data in the income statement in visual form, e.g. diagram or chart.

Question 3:

Complete the following task in line with organisational policy, procedures and accounting standards (see handout).

Scenario:

Glen is a wholesaler sole trader working at his own business in Melbourne. He provides you with his business transactions for the month of October and additional data. Glen has asked you to prepare accounting entries including the general journal for any transaction involving foreign currency which he occasionally undertakes. 

1. Glen asks you to code and classify the following transactions (using the chart of accounts provided at the end), in the Analysis Chart provided. If any of the transactions involve foreign currency conversions they are to be recorded as general journal entries.

2. Comment on how you would verify (check for accuracy and reliability) the price of the damaged goods Glen returned to the supplier (see Oct 12th 2019)

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