Assisment coorporate accounting PDF

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ASSESSMENT BRIEF Subject Code and Name

ACCT2002: Corporate Accounting

Assessment

Assignment 1

Individual/Group

Individual

Length

Part A: Practical calculations (40 marks) Part B: Video Presentation (60 marks)

Learning Outcomes

Prepare consolidated financial statements and related accounting entries for incorporated entities

Submission

By 11:55pm AEST/AEDT Sunday of week 7

Weighting

25%

Total Marks

100 marks

Context: This assignment will cover the learning objectives from: Module 1.1 Introduction to consolidation and 1.2 Principles of consolidation.

Part A: This assessment is designed to demonstrate your understanding of the initial entries for a group structure at acquisition date, including the preparation of an Acquisition Analysis report. You will also be required to enter journal entries and complete the consolidation worksheet, including the preparation of a financial statement for the Group’s shareholders. All answers must be hand written (not typed) in pen and scanned as a pdf document on submission. JPEG files will not be accepted.

Part B: You will be required to prepare a short video (4-6 mins) addressing the specific questions provided in this assignment. This is designed to access your understanding of the concepts you have applied in Part A and also demonstrate your communication skills to your audience.

ACCT2002 Assignment 1

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Instructions:

Part A: • •

Print out the templates for Question 1. All answers must be hand written (not typed) on the templates provided.

•

Answers must be written in pen only. Answers in pencil or typed will not be marked and will attract a zero grade. Round all amounts to the nearest dollar.

•

Part B: Prepare a video presentation to answer the questions in Part B. Upload your file on Blackboard by reading the instructions contained in the following link: https://laureateau.blackboard.com/webapps/blackboard/content/listContentEditable.jsp?content_id=_387629_1&c ourse_id=_4044_1

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Part A Question 1 (40 marks) On 1 July 2019, John Ltd acquired all the issued shares of Wayne Ltd for $250,000. At this date, the financial statements of Wayne Ltd showed the following: $ 170,000 30,500 4,800 205,300

Share capital Retained earnings General Reserve Total equity

At acquisition date, all the net identifiable assets and liabilities in Wayne Ltd were recorded at amounts equal to their fair value except for: Asset Inventories Plant (cost $400,000)

Carrying amount ($) 5,000 200,000

Fair Value ($) 8,000 210,000

The records also showed that the company had recorded existing goodwill of $5,000. The Plant was calculated to have a further life of 5 years, and was depreciated on a straightline basis. All inventory was sold by 30 June 2020. Assume 30% tax rate Required: (a) Prepare the acquisition analysis at 1 July 2019. (6 marks) (b) Prepare the consolidation entries at acquisition date, 1 July 2019. Include narrations for each entry. (15 marks) (c) Prepare the consolidation worksheet as at 1 July 2019. (13 marks) (d) Prepare a Balance sheet for the reporting Group, James Ltd as at 1 July 2019 in narrative format. (6 marks)

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Question 1 (a) (6 marks) Acquisition Analysis answer: ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

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Question 1 (b) (15 marks) General Journal answer: Date

ACCT2002 Assignment 1

Details

Debit ($)

Credit ($)

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ACCT2002 Assignment 1

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Question 1 (c) (13 marks) Consolidation worksheet answer: Financial statements

John Ltd

Wayne Ltd

Group

 

Adjustments Debit Credit

 

 

  Share capital

 

 

 

 

200,000

170,000

50,000

30,500

General Reserve

0

4,800

BCVR

0

0

 

250,000  

205,300  

Current Assets Inventory

  30,000

  5,000

0

41,300

    45000

    400,000

Goodwill

-25,000 0

-200,000 5,000

Investment in Kelly Ltd

250,000

Total Assets   Current Liabilities

300,000

  251,300

   

   

Deferred Tax liability  Debentures

50,000  0

0  46,000

Net Assets

250,000

205,300

Retained earnings

Total Equity

Other assets   Non-current Assets Plant (at cost) Accumulated depreciation

ACCT2002 Assignment 1

 

 

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Question 1 (d) (6 marks) Balance sheet answer: ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

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Part B

Video Presentation (4-6 mins) (60 marks)

Technical accuracy of your presentation

= 40 marks

Presentation skills (Refer marking Rubric on Blackboard) = 20 marks Prepare a video presentation to address each of the following questions. You will be assessed on your technical understanding of each question and also your presentation skills. Please refer to the marking rubric which details the assessment criteria for the communication and presentation skills. You may use visual aids to support your presentation, however you must be seen at all times in front of the camera. Marks will not be awarded if you read directly from your notes. Please introduce yourself and the purpose of your presentation. Speak slowly and clearly to address each of the following:

1.

Explain each of the steps involved in preparing your acquisition analysis in Question 1(a). (10 marks)

2.

Explain the Business Combination entry you have prepared for the Plant information given in Question 1 and below. Explain each account and the amount you have used. (10 marks) Asset Plant (cost $400,000)

Carrying amount ($) 200,000

Fair Value ($) 210,000

3.

Discuss each account and amount you have used in your pre-acquisition entry. Explain why you have debited or credited that particular account and amount. What is the reason for each line in your journal entry? (10 marks)

4.

Consolidation worksheet: Explain to your audience how you prepared the Group column in the worksheet. Use the Group’s equity accounts as an example of how these were calculated and what do these balances represent at acquisition date. (5 marks)

5.

Explain the closing balance of Accumulated Depreciation (Plant) for the Group column. How has this closing balance been calculated? Why is it not the same figure as the closing Accumulated Depreciation balance for the Subsidiary? (5 marks)

ACCT2002 Assignment 1

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