Title | Allocate+ ACW1120 Tutorial 08 MA |
---|---|
Author | hokage desu |
Course | Financial Accounting |
Institution | Monash University |
Pages | 18 |
File Size | 1.8 MB |
File Type | |
Total Downloads | 87 |
Total Views | 148 |
Download Allocate+ ACW1120 Tutorial 08 MA PDF
5.1
5.2
5.3
5.4
5.5
7.1
7.2
7.3
8.1
10.1
10.2
12.1
12.2
13.1
13.2
14.1
15.1
Index of comments 5.1
Required to answer definition criteria and recognition criteria of assets in JASMINE's book A. Definition Criteria 1) There are future economic benefits to Jasmine through the sale of the restaurant from Ken to Jasmine with an additional value of $800,000 as goodwill. This additional value of $800,000 represents increased patronage (revenue) from its good name/reputation/history etc. The restaurant is expected to continue to bring in revenue. 2) Control=> This additional amount of $800,000 will be under the control of the new owner, i.e. Jasmine 3) Past events => The sale of restaurant at a higher price over its assets represents a past event
5.2
$800,000 = Intangible asset
5.3
recorded as as ASSET => Ken or Jasmine's balance sheet ?
5.4
B. Recognition Criteria 1) Probable occurrence => the restaurant was sold by Ken to Jasmine represents an asset is acquired 2) Reliable Measurement => RM800,000 represents a reliable measure of the asset as that is the selling price resulted from negotiations between Ken and Jasmine
5.5
Conclusion For an item to be recorded as an Asset, it must meet ALL the definition and recognition criteria associated with ASSET in the balance sheet The additional value of the price paid /Goodwill can be recorded as an asset in Jasmine's book as all the definition and recognition criteria are fulfilled.
7.1
Accrual of cleaning services from Sureclean Services of Quarter 4 due to yet to receive the tax invoice => $ 500 (x) 3 months = $1,500 Dr. Cleaning expense Cr. Accrued cleaning expense
7.2
Depreciation provided for of Printer for the period November 2019-June 2020 - $3,000/5 years /12 months x 8 months = $400 Dr Depreciation Cr Accumulated depreciation-Office Equipment
7.3
Dr Commission receivable
8.1
Cr. Rental revenue received in advance / Unearned revenue
10.1
A new policy….was purchased on CASH on June 15 2020.
10.2
Closing balance
12.1
If a company adopts a perpetual inventory system, it would need to compare the ledger balance with the stock count quantity of each inventory item at the end of the financial year . The difference would be treated as inventory gain (loss) if the stock ledger balance is less (more) than the physical count .
$2,300
If a company adopts a periodic inventory system, there would be nil inventory gain or loss as there is no comparison between ledger and stock balance. The company will take the physical count quantity as the ledger balance at year end . 12.2
You are required to answer on the designated page - "Answer to Question 4" => No marks awarded
13.1
Payment to Orange Manufacturer [( 26-1) x $300 = $7,500 ]and earn discount received 1% ($7,500 x 1% = $ 75) as paid within the discount period. Dr. Accounts payable Cr. Discount received Cr. Cash / Bank
Index of comments 13.2
You are required to answer on the designated page - "Answer to Question 4" => No marks awarded
14.1
Required to prepare the Closing entries to COGS Dr. COGS 46,500 Dr. Inventory (Ending balance)-385 x $300 115,500 Cr. Inventory (Op. Balance)-400 x $300 120,000 Cr. Purchase-140 x $300 42,000
15.1
COGS = 150 x $300 = $45,000 Inventory loss = 5 x $300 = $1,500...