1.Handsdown Ltdpays its salaries fortnightly in arrears. The next pay day is Wednesday 10thMarch 2021. The fortnightly salary expense is $210 000, of which $70 000 is retained to pay the Australian Taxation Office (ATO) on behalf of the employees.

Payments to the ATO are made every second Friday, with the next payment being made on Friday 12thMarch. Handsdown Ltd's reporting period ends on 28 February 2021.

Required:

Provide the journal entries in the books of Handsdown Ltd for:

(a) 28 February 2021

(b) 10 March 2021

(c) 12 March 2021.

2.Painter Ltd purchased 90 000 shares in Easel Ltd on the 1 July 2020, at a price of $3.50 each. The Broker charged a fee of $7 000 for processing the transaction.On 30 June 2021 the closing market price of the Easel Ltd shares was $5.20. Painter Ltd does not intend to hold the shares for trading and does not make the fair value through other comprehensive income election (FVOCI).

Required:

Prepare the journal entries for Painter Ltd to account for the initial acquisition of the shares on 1 July 2020, and the subsequent re-measurement at the end of the financial year on 30 June2021.