1 In the second year of business, Marney Ltd purchased land (a non depreciable asset) for $5 million In the third year, a reputable, independent property valuer's report showed that the value of the land was estimated to be $2 million In the fourth year, the value of the land was estimated to be $6 million Marney Ltd adopted the revaluation model to value its non current assets What would be the general journal entries to record this revaluation in the fourth year, assuming that the corporate tax rate is 30 A Dr Land 4m Cr Gain on revaluation OCI2m Cr Asset revaluation surplus 1 4m Cr Deferred tax liability 600k B Dr Land 4m Cr Gain on revaluation P L2m Cr Asset revaluation surplus 1 4m Cr Deferred tax liability 600k C Dr Land 4m Cr Gain on revaluation OCI1m Cr Asset revaluation surplus 2 1m Cr Deferred tax liability 0 9m D Dr Land 4m Cr Gain on revaluation P L1m Cr Asset revaluation surplus 2 1m Cr Deferred tax liability 0 9m 2 Laura Ltd is listed on the ASX It has 3 million shares issued at a price of $5 50 per share The investors were required to pay $2 00 on application and $1 00 on allotment Both these amounts were paid in full A first and final call of $2 50 was made and was due on 28 August 2021 At the end of October 2021, the directors of the company elect to forfeit 50 000 shares on which the holders have failed to pay the call Laura Ltd reissues the shares fully paid up for a price of $4 75 and incurred costs of $1,500 What are the entries required to forfeit the shares, reissue the shares, and make a refund if appropriate A Forfeit the shares Dr Share capital 150 000Cr Forfeited shares liability 150 000 Reissue the shares Dr Cash 87 500Cr Share capital 87 500 Dr Forfeited shares liability 1 500Cr Cash 1 500 Refund the shares Dr Forfeited shares liability 148 500Cr Cash 148 500 B Forfeit the shares Dr Share capital 275 000 Cr Call 125 000 Cr Forfeited shares liability 150 000 Reissue the shares Dr Cash 237 500Dr Forfeited shares liability 37 500Cr Share capital 275 000 Dr Forfeited shares liability 1 500Cr Cash 1 500 Refund the shares Dr Forfeited shares liability 111 000Cr Cash 111 000 C Forfeit the shares Dr Share capital 150 000Cr Forfeited shares liability 150 000 Reissue the shares Dr Cash 87 500Cr Share capital 87 500 Dr Forfeited shares liability 1 500Cr Cash1 500 Refund the shares No entry required D Forfeit shares Dr Share capital 275 000Cr Call 125 000Cr Forfeited shares liability 15 000 Reissue the shares Dr Cash 237 500Dr Forfeited shares liability 37 500Cr Share capital 275 000 Dr Forfeited shares liability 1 500Cr Cash 1 500 Refund the shares No entry required 3 Sushan Ltd has been negotiating a merger with a company that is currently its major supplier Subsequent to reporting date (31 March 2021), the merger agreement is finalised The merger materially affects the size and structure of the new entity and should bring substantial economic benefits to all shareholders How should this event be reported at 31 March 2021 in accordance with AASB 110 IAS 10 A A description of the event, the fact that it occurred after the reporting date and its financial effect on the company should be disclosed by way of a note the financials statements B Disclosure of the event in the Directors' Report is required C No disclosure is required and adjusting entries will be made D The size and significance of this event is such that it should be fully reflected in the financial statements New group accounts should be prepared to reflect the actual economic entity that exists at the time of the completion of the financial reports 4 Payment of 110,000 bonus shares, fully paid at $3 per share from the FOREX Reserve, which of the following journal entries could be used A Dr Retained earnings$330,000 Cr FOREX reserve$330,000 B Dr Retained earnings$330,000 Cr Share capital$330,000 C Dr FOREX Reserve$330,000 Cr Share capital$330,000 D Dr FOREX Reserve$330,000 Cr Cash$330,000 5 An adjusting event is one that A provides additional evidence of or information about condition that existed at the time of completion B occurs before the auditors signed the audited financial statements C occurs after the reporting date and relates to impacts that will occur before the time of completion of the financial statements D provides additional evidence of or information about conditions that existed at the reporting date

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1 In the second year of business, Marney Ltd purchased land (a non depreciable asset) for $5 million  In the third year, a reputable, independent property valuer's report showed that the value of the land was estimated to be $2 million  In the fourth year, the value of the land was estimated to be $6 million  Marney Ltd adopted the revaluation model to value its non current assets  What would be the general journal entries to record this revaluation in the fourth year, assuming that the corporate tax rate is 30   A  Dr  Land 4m Cr  Gain on revaluation   OCI2m Cr  Asset revaluation surplus   1 4m Cr  Deferred tax liability   600k B  Dr  Land 4m Cr  Gain on revaluation   P L2m Cr  Asset revaluation surplus   1 4m Cr  Deferred tax liability   600k C  Dr  Land 4m Cr  Gain on revaluation   OCI1m Cr  Asset revaluation surplus   2 1m Cr  Deferred tax liability   0 9m D  Dr  Land 4m Cr  Gain on revaluation   P L1m Cr  Asset revaluation surplus   2 1m Cr  Deferred tax liability   0 9m 2 Laura Ltd is listed on the ASX  It has 3 million shares issued at a price of $5 50 per share  The investors were required to pay $2 00 on application and $1 00 on allotment  Both these amounts were paid in full  A first and final call of $2 50 was made and was due on 28 August 2021  At the end of October 2021, the directors of the company elect to forfeit 50 000 shares on which the holders have failed to pay the call  Laura Ltd reissues the shares fully paid up for a price of $4 75 and incurred costs of $1,500  What are the entries required to forfeit the shares, reissue the shares, and make a refund if appropriate  A  Forfeit the shares Dr Share capital 150 000Cr Forfeited shares liability 150 000 Reissue the shares Dr Cash 87 500Cr Share capital 87 500 Dr Forfeited shares liability 1 500Cr Cash 1 500 Refund the shares Dr Forfeited shares liability 148 500Cr Cash 148 500 B  Forfeit the shares Dr Share capital 275 000 Cr Call 125 000 Cr Forfeited shares liability 150 000 Reissue the shares Dr Cash 237 500Dr Forfeited shares liability 37 500Cr Share capital 275 000 Dr Forfeited shares liability 1 500Cr Cash 1 500 Refund the shares Dr Forfeited shares liability 111 000Cr Cash 111 000 C  Forfeit the shares Dr Share capital 150 000Cr Forfeited shares liability 150 000 Reissue the shares Dr Cash 87 500Cr Share capital 87 500 Dr Forfeited shares liability 1 500Cr Cash1 500 Refund the shares No entry required D  Forfeit shares Dr Share capital 275 000Cr Call 125 000Cr Forfeited shares liability 15 000 Reissue the shares Dr Cash 237 500Dr Forfeited shares liability 37 500Cr Share capital 275 000 Dr Forfeited shares liability 1 500Cr Cash 1 500 Refund the shares No entry required 3 Sushan Ltd has been negotiating a merger with a company that is currently its major supplier  Subsequent to reporting date (31 March 2021), the merger agreement is finalised  The merger materially affects the size and structure of the new entity and should bring substantial economic benefits to all shareholders  How should this event be reported at 31 March 2021 in accordance with AASB 110 IAS 10  A  A description of the event, the fact that it occurred after the reporting date and its financial effect on the company should be disclosed by way of a note the financials statements B  Disclosure of the event in the Directors' Report is required C  No disclosure is required and adjusting entries will be made D  The size and significance of this event is such that it should be fully reflected in the financial statements  New group accounts should be prepared to reflect the actual economic entity that exists at the time of the completion of the financial reports 4 Payment of 110,000 bonus shares, fully paid at $3 per share from the FOREX Reserve, which of the following journal entries could be used  A  Dr  Retained earnings$330,000 Cr  FOREX reserve$330,000 B  Dr  Retained earnings$330,000 Cr  Share capital$330,000 C  Dr  FOREX Reserve$330,000 Cr  Share capital$330,000 D  Dr  FOREX Reserve$330,000 Cr  Cash$330,000 5 An adjusting event is one that  A  provides additional evidence of or information about condition that existed at the time of completion B  occurs before the auditors signed the audited financial statements C  occurs after the reporting date and relates to impacts that will occur before the time of completion of the financial statements D  provides additional evidence of or information about conditions that existed at the reporting date

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1.In the second year of business, Marney Ltd purchased land (a non-depreciable asset) for $5 million. In the third year, a reputable, independent property valuer's

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