63361 – Assessment Task – Tutorial Questions AssignmentUnit Code:

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Assessment Task – Tutorial Questions AssignmentUnit Code: HI5020Unit Name: Corporate AccountingAssignment: Tutorial QuestionszDue: week 13, Wednesday 11.59 pmWeighting: 50 percent, 50 MarksPurpose: This assignment is designed to assess your level of knowledge of the key topics covered in this unitUnit Learning Outcomes Assessed:1. Apply Australian Accounting Standards and Corporate Legislation to the reporting processes for companies and corporate groups;2. Demonstrate the ability to prepare financial statements and financial reports for companies and consolidated financial statements for corporate groups;3. Evaluate financial reporting contexts and select appropriate accounting practices and standards congruent with the situation of individual companies and corporate groups;4. Demonstrate an ability to critically analyse and interpret the financial statements and other disclosures produced by Australian companies and corporate groups;5. Effectively communicate the financial results and reports of companies or corporate groups to a diverse range of stakeholders.Description: Each week students were provided with three tutorial questions of varying degrees of difficulty. The tutorial questions are available in the Tutorial Folder, for each week, on Blackboard. The Interactive Tutorials are designed to assist students with the process, skills and knowledge to answer the provided tutorial questions. Your task is to answer a selection of tutorial questions for weeks 1 to 11 inclusive and submit these answers in a single document.Question 1 Week 1 (7 Marks)In accounting for the of assets, the assets acquired are to be recorded at the ‘cost of acquisition’. How would you determine the ‘costs of acquisition’ of an asset?Question 2 Week 4 (7 Marks)How are changes in accounting policies accounted for and disclosed?Question 3 Week 3 (7 Marks)Following information relate to Hawke Ltd for the financial year ended 2020Hawke LtdStatement of Financial positionAs at 30 June 20202020 2019AssetsCash at bank 84200 100000Accounts receivable 208000 172000Inventory 200000 208000Prepaid insurance 12000 20000Interest receivable 400 600Investments 80000 40000Plant and equipment 800000 720000Less: Accumulated depreciation -200000 -180000Total assets 1184600 1080600LiabilitiesAccounts payable 152000 128000Provision for employee benefits 24000 16000Other expenses payable 8000 12000EquityShare capital 800000 800000Retained earnings 200600 124600Total liabilities and equity 1184600 1080600Hawke LtdStatement of Financial performanceFor the ended 30 June 20202020IncomeSales revenue $1,920,000Interest revenue on investments $4,000 $1,924,000Less: ExpensesCost of sales $1,344,000Employee expenses $260,000Insurance expense $32,000Loss on sale of equipment $8,000Depreciation expense – plant and equipment $80,000Other expenses $44,000 $1,768,000Profit for the year $156,000Additional informationThe loss on sale of equipment relates to an item that originally cost $80 000 and had a carrying amount of $20000 when sold.Required: Calculate the following:(a) Cash collected from customers (1 mark)(b) Cash paid to suppliers (2 marks)(c) Cash paid to employees for wages and salary (1 mark)(d) Cash spent on plant and equipment (1 mark)(e) Proceeds from sale of equipment (1 mark)(f) Cash paid for insurance (1 mark)Question 4 Week 6 (7 Marks)On 1 July 2017, Bright Star Ltd was incorporated. The accounting profit and other information of Bright Star for the three years to 2019 are as follows:2019 2018Profit before tax $4 500 000 $3 600 000Warranty expense — 1500 000Depreciation expense – machinery 60 000 60 000Gain on sale of machinery for accounting — —Warranty paid 750 000 —Tax depreciation – machinery 90 000 90 000Gain on sale of machinery for tax — —Provision for warranty – carrying amount 750 0001500 000Provision for warranty – tax base — —Machinery – carrying amount 180 000 240 000Machinery – tax base 120 000 210 000The company tax rate is 30%.Required(a) Calculate the current and deferred tax of Bright Star Ltd for each year, 2018 and 2019 (4 marks)(b) Prepare the required tax journal entries for each year. (3 marks)Question 5 Week 12 (11 Marks)On January 1, 20X1, Popular Creek Corporation organized RoadTime Company as a subsidiary in Switzerland with an initial cost of Swiss francs (SFr) 60,000. RoadTime’s December 31, 20X1, Trial balance in SFr is as follows:Debit (SFr) Credit (SFr)Cash 7000Accounts Receivable 20000Receivable from Popular Creek 5000Inventory 25000Plant and Equipment 100000Accumulated Depreciation 10000Accounts Payable 12000Bonds Payable 50000Common Stock 60000Sales 150000Cost of goods sold 70000Depreciation Expense 10000Operating Expense 30000Dividend paid 15000Total SFr 282,000 SFr 282,000Additional Information1. The receivable from Popular Creek is denominated in Swiss francs. Popular Creek’s books show a $4,000 payable to RoadTime.2. Purchases of inventory goods are made evenly the year. Items in the ending inventory were purchased November 1.3. Equipment is depreciated by the straight-line method with a 10-year life and no residual value. A full year’s depreciation is taken in the year of acquisition. The equipment was acquired on March 1.4. The dividends were declared and paid on November 1.5. Exchange rates were as follows:January 1 1SFr=$.73March 1 1SFr=$.74November 1 1SFr=$.77December 31 1SFr=$.8020X1 1SFr=$.756. The Swiss franc is the functional currency.Required(a) Prepare a schedule translating the December 31, 20X1, trial balance from Swiss francs to dollars. (8 marks)(b) Where is the translation adjustment reported on Popular Creek’s consolidated financial statements and its foreign subsidiary? (3 marks)Question 6 Week 8 (11 Marks)(a) Zealandia ltd is the parent company holding 90 percent interest in the Oceania ltd. For each of the following independent cases, provide adjusting entries necessary to eliminate the effect of intragroup transaction at 30 June 2020:(i) During the period Oceania Ltd sold inventory to Zealandia Ltd at a price of $240000. The cost of the inventory to Oceania ltd was $168000. Ninety percent (90%) of the inventory has been sold by Zealandia Ltd to outside third parties by the end of the period. (2 marks)(ii) During the period, Oceania borrowed $1500000 from Zealandia Ltd which is still unpaid by the end of the period. During the period Oceania Ltd has paid $30000 interest to Zealandia Ltd for the borrowing. (2 marks)(iii) At the end of the year, Oceania Ltd declared and paid a dividend amounting to $180000. Zealandia Ltd has declared and paid a dividend of $150000. (2 marks)(iv) One year ago, at 1 July 2019, Oceania Ltd sold equipment to Zealandia Ltd for a price of $810000. At the time of the sale, the carrying value of the equipment in the Oceania Ltd.’s account was $450000 and the accumulated depreciation was $450000. Zealandia is depreciating the equipment over a further 5 years period. The expected salvage value is zero. Assume a corporate tax rate of 30 percent. (2 marks)(v) During the period Zealandia has paid a consultancy fee to Oceania Ltd of $75000. Zealandia has provided a management service to Oceania Ltd for $80000 which ahs not been paid as yet by Oceania Ltd. (2 marks)(b) When are profits realised in to inventory transfers within the group? (1 mark)Submission Directions:The assignment will be submitted via Blackboard. Each student will be permitted only ONE submission to Blackboard. You need to ensure that the document submitted is the correct one. Academic IntegrityHolmes Institute is committed to ensuring and upholding Academic Integrity, as Academic Integrity is integral to maintaining academic quality and the reputation of Holmes’ graduates. Accordingly, all assessment tasks need to comply with academic integrity guidelines. Table 1 identifies the six categories of Academic Integrity breaches. If you have any questions about Academic Integrity issues related to your assessment tasks, please consult your lecturer or tutor for relevant referencing guidelines and support resources. Many of these resources can also be found through the Study Skills link on Blackboard.Academic Integrity breaches are a serious offence punishable by penalties that may range from deduction of marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of course enrolment. Table 1: Six categories of Academic Integrity breachesPlagiarism Reproducing the work of someone else without attribution. When a student submits their own work on multiple occasions this is known as self-plagiarism.Collusion Working with one or more other individuals to complete an assignment, in a way that is not authorised.Copying Reproducing and submitting the work of another student, with or without their knowledge. If a student fails to take reasonable precautions to prevent their own original work from being copied, this may also be considered an offence.Impersonation Falsely presenting oneself, or engaging someone else to present as oneself, in an in-person examination.Contract cheating Contracting a third party to complete an assessment task, generally in exchange for money or other manner of .Data fabrication and falsification Manipulating or inventing data with the intent of supporting false conclusions, including manipulating images.Source: INQAAHE, 2020If any words or ideas used the assignment submission do not represent your original words or ideas, you must cite all relevant sources and make clear the extent to which such sources were used.In addition, written assignments that are similar or identical to those of another student is also a violation of the Holmes Institute’s Academic Conduct and Integrity policy. The consequence for a violation of this policy can incur a range of penalties varying from a 50% penalty through suspension of enrolment. The penalty would be dependent on the extent of academic misconduct and your history of academic misconduct issues.All assessments will be automatically submitted to SelfAssign to assess their originality.Further Information:For further information and additional learning resources please refer to your Discussion BoardHI5020 Corporate Accounting Tutorial Assignment T3 2020 Page 7 of 7

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