A junior accounts clerk has prepared the following summarised information as at 30 June 2016 for Heaven Ltd:<\/b><\/p>\n
Assets<\/b><\/p>\n
Inventories (at lower of cost and net realisable value)<\/b><\/p>\n
Accounts receivable <\/b><\/p>\n
Cash<\/b><\/p>\n
Land and buildings<\/b><\/p>\n
Plant and equipment<\/b><\/p>\n
Prepayments<\/b><\/p>\n
Calls in arrears (2500 shares at 20c)<\/b><\/p>\n
Patents \u2014 cost<\/b><\/p>\n
$ 970<\/b>000<\/b><\/p>\n
651<\/b>020<\/b><\/p>\n
1<\/b>598<\/b>080<\/b><\/p>\n
1<\/b>750<\/b>000<\/b><\/p>\n
1<\/b>716<\/b>000<\/b><\/p>\n
3<\/b>400<\/b><\/p>\n
500<\/b><\/p>\n
100<\/b>000<\/b><\/p>\n
$6<\/b>789<\/b>000<\/b><\/p>\n
Liabilities and equity<\/b><\/p>\n
Retained earnings (30\/6\/16)<\/b><\/p>\n
Liabilities<\/b><\/p>\n
Share capital (5<\/b>000<\/b>000 shares)<\/b><\/p>\n
Reserves and provisions<\/b><\/p>\n
575<\/b>480<\/b><\/p>\n
1<\/b>038<\/b>520<\/b><\/p>\n
4<\/b>086<\/b>000<\/b><\/p>\n
1<\/b>089<\/b>000<\/b><\/p>\n
$6<\/b>789<\/b>000<\/b><\/p>\n
Upon further investigation, you have discovered the following additional information:<\/b><\/p>\n
(a) Liabilities of $1<\/b>038<\/b>520 comprise:<\/b><\/p>\n
Accounts payable<\/b><\/p>\n
Accrued expenses<\/b><\/p>\n
Mortgage loans<\/b><\/p>\n
$790<\/b>000<\/b><\/p>\n
8<\/b>520<\/b><\/p>\n
240<\/b>000<\/b><\/p>\n
(b) Reserves and provisions of $1<\/b>089<\/b>000 include:<\/b><\/p>\n
Employee benefits (payable after 1 July 2023)<\/b><\/p>\n
Current tax liability<\/b><\/p>\n
Dividends<\/b><\/p>\n
Allowance for impairment of receivables<\/b><\/p>\n
Accumulated depreciation \u2013 plant and equipment<\/b><\/p>\n
Accumulated depreciation \u2013 buildings<\/b><\/p>\n
Accumulated amortisation \u2013 patents<\/b><\/p>\n
$400<\/b>000<\/b><\/p>\n
160<\/b>000<\/b><\/p>\n
200<\/b>000<\/b><\/p>\n
10<\/b>000<\/b><\/p>\n
72<\/b>000<\/b><\/p>\n
207<\/b>000<\/b><\/p>\n
40<\/b>000<\/b><\/p>\n
(c) Cash of $1<\/b>598<\/b>080 consists of:<\/b><\/p>\n
Cash at bank<\/b><\/p>\n
10% Telstra bonds (regarded as long-term investments)<\/b><\/p>\n
$ 298<\/b>080<\/b><\/p>\n
1<\/b>300<\/b>000<\/b><\/p>\n
(d) Retained earnings balance as at 1 July 2015 was $275<\/b>000.<\/b><\/p>\n
(e) Profit for the period was $500<\/b>480.<\/b><\/p>\n
(f) Shareholder approval is not required for final dividends declared by directors.<\/b><\/p>\n
(g) During the year, Earth Ltd paid $75<\/b>000 to its auditor, of which $19<\/b>000 related to services other than the annual audit and half-yearly review.<\/b><\/p>\n
Required<\/b><\/p>\n
Prepare, for Heaven Ltd, the statement of financial position, statement of changes in equity and notes thereto at 30 June 2016 in accordance with the requirements of AASB 101.<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"
A junior accounts clerk has prepared the following summarised information as at 30 June 2016 for Heaven Ltd: Assets Inventories (at lower of cost and net realisable value) Accounts receivable Cash Land and buildings Plant and equipment Prepayments Calls in Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-52930","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/52930","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=52930"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/52930\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=52930"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=52930"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=52930"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}