Accounting 260
Major assignment
Kowloon Tong ltd- Jordan ltd 1. Acquisition analysis at 1 July 2008
Net fair value of identifiable assets and liabilities of Jordan ltd = 60000 +30000 +21000+6000 +6000(1-30%) Inventory +1000(1-30%) Machinery +6000(1-30%) Land +8000(1-30%) Equipment =131700
Consideration transferred = 137200
Goodwill =137200- 131700 =5500
2. BCVR entries at 30 June 2010
1) Machinery Depreciation expense-machine Dr 100
…show more content…
r expenses | 22 000 | 27 000 | 1 | 100 | 100 | 10 | 52 650 | | | | 2 | 1000 | 100 | 11 | | | | | 4 | 2750 | | | | | | | | | | | | | 87 000 | 80 500 | | | | | 152 950 | Profit before tax | 21 000 | 6 500 | | | | | 15 350 | Tax expense | 7 200 | 2 000 | | | 240 | 1 | 7880 | | | | 8 | 60 | 300 | 2 | | | | | 10 | 30 | 300 | 9 | | | | | 11 | 30 | 600 | 11 | | | | | | | | | | Profit | 13 800 | 4 500 | | | | | 7470 | Retained earnings (1/7/09) | 16 000 | 35 500 | 1 | 140 | 300 | 2 | 20455 | | | | 2 | 1000 | 50 | 10 | | | | | 5 | 29400 | | | | | | | 8 | 140 | | | | | | | 10 | 700 | | | | | | | 10 | 15 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Transfer from BCV reserve | -- | -- | | | 700 | 1 | | | | | 5 | 700 | | | | | 29 800 | 34 000 | | | | | 27 925 | Dividend paid | 4 000 | 2 000 | | | 2000 | 6 | 4 000 | Dividend declared | 10 000 | 3 000 | | | 3000 | 7 | 10 000 | | 14 000 | 5 000 | | | | | | Retrained earnings | 15 800 | 29 000 | | | | | 13 925 | (30/6/10) | | | | | | | | Share capital | 170 000 | 66 000 | 5 | 60000 | | | 170000 | | | | 5 | 6000 | | | | General reserve | 41 000 | 30 000 | 5 | 30000 | | | 41 000 | Other Reserves | | | 5 | 6000 | 6000
* Taxation and salvage: Tax regulation in every country is different, so the company should consider it when calculating NPV. Also, it should clarify the depreciation expense and interest expense to
I would say the top domains of my life right now would include family, faith, friends, and independence. This corresponds very similar to the age group from twenty-five years to thirty-four years. I include faith as one of my values instead of work. I personally believe that work could be included in the same category as independence, because in some way they both relate to maturity throughout a persons life. One thing that I was extremely shocked with about Baltes and his colleague’s domains is that none of them included faith. I believe this is a very important aspect and should be included in every age category. In the oldest category, eighty-five to one hundred and five, there was a category called thinking about life. I believe
Q6. XYZ Ltd is a publicly listed company which has suffered from major sales declines, due to increased foreign completion, and has made a succession of losses over the past three years. During the year, its CEO resigned and was replaced by Chief Operating Officer (COO). The trial balance reveals that sales were $10,000,000 and the company made a loss of $500,000. At what level
A company had a beginning balance in retained earnings of $44,500. It had net income of $7,500 and paid out cash dividends of $6,000 in the current period. The ending balance in retained earnings equals:
On February 2, 2018 at approximately 2136 hours, I was dispatched to the Family Dollar located at 6670 Ridge RD Port Richey, FL in reference to someone attempting to pass a counterfeit twenty dollar bill. Upon my arrival, I made contact with Family Dollar employee, Brandon Viet Le. Brandon advised a W/M had entered the store at approximately 2050 hours. Brandon advised the W/M quickly selected a glue stick valued at $0.97 and preceded to the checkout area of the store. Brandon advised the W/M then attempted to pay for the glue stick with what appeared to be a twenty dollar bill.
The standard costs and variances for direct materials, direct labor, and factory overhead for the month of May are as follows:
You have done a very good progress this week. Your grades are good and improving. You have not missed any assignment or class. I am very proud of what you are doing. Keep doing such a good job. Your grades have been updated. Check them in the Excel document I attached to my email.
f) To evaluate the material misstatement in the accounts, I think both of the consolidated income statement and the three financial statements are useful. We need to use the information properly from all the financial statements. However the consolidated income statement is the most useful one. If there is a significant change in an account balance comparing with preceding two years, the auditor will examine whether there a material misstatement exists. For instance, the bad debt expense as a percent of net sales in 2011, 2010 and 2009 are 0.56%, 0.70% and 0.69%, respectively. There should
For years 1983-1985, additional corporate assessment expense was given. This would lower Polymold’s earnings on their income statement. Another piece of data that was given is research and development expense. Without the CAD/CAM investment, research and development expense is $130,000. This is double to $260,000 without the CAD/CAM investment. This would lower earnings. We are also given the savings that the investment would yield. Without the CAD/CAM investment, there would still be savings – but not as much as with the CAD/CAM investment, which is due to the depreciation of the equipment and tax credits.
A vertical and horizontal analysis of each company's balance sheet and income statement in this particular case will be enlightening. A vertical analysis will for instance shed some light on how revenue is being used. In this case, each component of the companies' financial statements will be converted into a percentage of a key component of either the balance sheet or the income statement. A special common size balance sheet and income statement will be utilized to ease comparison. The
11 Revenues, Expenses, & Net Income ......................................................................................... 12 EBIT / EPS Analysis ................................................................................................................. 13 a II. Lowe‟s Past & Current Strategies ........................................................................................... 1
For example the extra charge for maintenance accumulated from last year and for this year should be equally divided and not charged to the first quarter only. Similarly, cost of relocating the Southern Paper Sioux Springs office that has been charged to the first quarter, had been the expenditure incurred last year. It should not have been included in the first quarter. No doubt these are good accounting practices but nevertheless reverting the charges to their respective results would not compromise GAAP practice. Unrealized income would be better off transferred to the next or the last quarter as the income received would not materialize until at the end of the year. Including the dividend from the company's Brazilian unit would not help increase profitability at the end of the year unless the company is assured of its profitability. As of now it needs to balance its accounts before it can estimate correct profit level at the end of the year. With regard to the obsolete inventories, there is no alternative course of action but to write-off from this
b) Determine the carrying amount and tax base of the plant at year end. Prepare the
I have included the firm's original income statement and balance sheet without the purchase and then with the machine purchase. I have assumed that the firm would use the $218,000 to reduce the bank loans balance for each year. This reduction of the bank loan balance will lower their three restrictive financial ratios.
996 301,346 316,413 332,233 Others 10000x12 60,000 120,000 120,000 126,000 132,300 138,915 145,861 153,154 160,811 168,852 177,295 186,159 195,467 205,241 215,503 Wood Chopper Expenses 10x4000x25x12 12,000,000 12,000,000 12,600,000 13,230,000 13,891,500 14,586,075 15,315,379 16,081,148 16,885,205 17,729,465 18,615,939 19,546,736 20,524,072 21,550,276 Total Cash Outflow 89,575,000 9,456,000 20,105,000 20,105,000 20,543,250 21,870,413 22,648,933 23,781,380 25,370,449 26,218,971 37,929,920 28,906,416 30,351,737 31,869,323 33,462,790 35,635,929 Net Cashflow (89,575,000) (9,456,000) 5,431,000 13,699,800 31,744,750 33,031,988 34,998,587 36,748,516 38,185,942 40,515,239 32,141,001 44,668,051 46,901,454 49,246,526 51,708,853 53,794,295 Discount Factor @15% 1.0000 0.8670 0.7562 0.6575 0.5718 0.4972 0.4323 0.3759 0.3269 0.2843 0.2472 0.2149 0.1869 0.1625 0.1413 0.1229 Discount Factor @30% 1.0000 0.7692 0.5917 0.4552 0.3510 0.2693 0.2072 0.1594 0.1226 0.0484 0.0943 0.0558 0.0429 0.0330 0.0254 0.0064 Present Value @15% (89,575,000) (8,197,879) 4,106,922 9,007,619 18,151,648 16,423,504 15,129,889 13,813,767 12,482,984 11,518,482 7,945,255 9,599,164 8,765,882 8,002,561 7,306,461