Booking.com TripAdvisor dn tr Insearch LTD Dan.. My Student Admin... 1 Tng hp 30 loi m... > Login Remaining Time: 1 hour, 58 minutes, 42 seconds. Question Completion Status: Beers Ltd, Musson Ltd and Tiffany's Ltd entered into a joint operation on 1 July 2018 to explore and mine gold in Western Australia. The economic life of the joint operation is 10 years. The joint operation agreement states that each operator will contribute the following assets to establish the joint operation and to provide for initial running costs. The fair value of the amounts contributed is shown in the following table: From Beers Ltd (20%) $ Deferred exploration and evaluation expenditure 1,000,000 PPE 500,000 Cash 500,000 2,000,000 $ From Musson Ltd (30%) Cash 3,000,000 From Tiffany's Ltd (50%) PPE 3,000,000 2,000,000 5,000,000 Cash th Arti The contractual arrangement is that the operators divide extracted gold in proportion to their contributions to establish tin that in the natin 10.0.0The ant berarte fnndistinn Save All Ar Login Remaining Time: 1 hour, 58 minutes, 37 seconds. Question Completion Status: The contractual arrangement is that the operators divide extracted gold in proportion to their contributions to establish the joint operation, that is, the ratio 20:30:50. The operators meet the costs of production in the same proportions. An external manager is appointed to manage the project and receives a management fee of $100,000 annually. The cash contributed by the operators is used by the manager to purchase additional property plant and equipment at a cost of $4,000,000 from independent third parties. The deferred exploration and evaluation expenditure had been recorded in the books of Beers Ltd at $600,000. The property plant and equipment contributed to the joint operation by Beers Ltd was originally purchased for $1,500,000 with accumulated depreciation of $700,000 at 1 July 2018. This asset is considered impaired. Beers Ltd decides not to revalue its remaining interest in the non-current assets contributed to the joint operation. The PPE contributed by Tiffany's was new and recorded at $3,000,000. Beers Ltd sold 80% of its gold for $200,000. The following was extracted from the accounting records kept by the joint operation manager for the year ending 30 June 2019. Joint operation balance sheet extract at 30 June 2019 Cash and cash equivalents 400,000 Supplies 100,000 Undistributed gold 666,667 Deferred exploration and evaluation expenditure 1,000,000 Property Plant and Equipment 7,500,000 (500,000) Accounts payable Save All Ang D Remaining Time: 1 hour, 58 minutes, 31 seconds. Question Completion Status: Joint operation balance sheet extract at 30 June 2019 Cash and cash equivalents Supplies Undistributed gold Deferred exploration and evaluation expenditure Property Plant and Equipment Accounts payable Net assets 400,000 100,000 666,667 1,000,000 7,500,000 (500,000) 9,166,667 Joint operation cash receipts and payments for the year ended 30 June 2019 Cash contributions from operators 5,500,000 Less: Cash payments Plant and Equipment (4,000,000) Wages (500,000) Materials and supplies (350,000) Utilities (150,000) Management fee (100,000) Save i h Remaining Time: 1 hour, 58 minutes, 25 seconds. Question Completion Status: , TUU,OUT TVCC ASUS Joint operation cash receipts and payments for the year ended 30 June 2019 Cash contributions from operators 5,500,000 Less: Cash payments Plant and Equipment (4,000,000) Wages (500,000) Materials and supplies (350,000) Utilities (150,000) Management fee (100,000) Cash balance at the end of the period 400,000 700,000 Cost of production statement for the year ended 30 June 2019 Wages paid 500,000 Wages payable 200,000 Materials and supplies paid 350,000 Materials and supplies pavable 150 000 Question Completion Status: Cash palance at the end of the period 400,000 700,000 Cost of production statement for the year ended 30 June 2019 Wages paid 500,000 Wages payable 200,000 Materials and supplies paid 350,000 Materials and supplies payable 150,000 Less: Materials and supplies on hand (100,000) Utilities Management fee Total production cost Less: Undistributed Gold Cost of gold distributed 400,000 300,000 100,000 1,500,000 666,667 833,333 Required: Prepare the required entries for Beers Ltd for the year ended 30 June 2019. . arch Booking.com TripAdvisor dn tr Insearch LTD Dan.. My Student Admin... 1 Tng hp 30 loi m... > Login Remaining Time: 1 hour, 58 minutes, 42 seconds. Question Completion Status: Beers Ltd, Musson Ltd and Tiffany's Ltd entered into a joint operation on 1 July 2018 to explore and mine gold in Western Australia. The economic life of the joint operation is 10 years. The joint operation agreement states that each operator will contribute the following assets to establish the joint operation and to provide for initial running costs. The fair value of the amounts contributed is shown in the following table: From Beers Ltd (20%) $ Deferred exploration and evaluation expenditure 1,000,000 PPE 500,000 Cash 500,000 2,000,000 $ From Musson Ltd (30%) Cash 3,000,000 From Tiffany's Ltd (50%) PPE 3,000,000 2,000,000 5,000,000 Cash th Arti The contractual arrangement is that the operators divide extracted gold in proportion to their contributions to establish tin that in the natin 10.0.0The ant berarte fnndistinn Save All Ar Login Remaining Time: 1 hour, 58 minutes, 37 seconds. Question Completion Status: The contractual arrangement is that the operators divide extracted gold in proportion to their contributions to establish the joint operation, that is, the ratio 20:30:50. The operators meet the costs of production in the same proportions. An external manager is appointed to manage the project and receives a management fee of $100,000 annually. The cash contributed by the operators is used by the manager to purchase additional property plant and equipment at a cost of $4,000,000 from independent third parties. The deferred exploration and evaluation expenditure had been recorded in the books of Beers Ltd at $600,000. The property plant and equipment contributed to the joint operation by Beers Ltd was originally purchased for $1,500,000 with accumulated depreciation of $700,000 at 1 July 2018. This asset is considered impaired. Beers Ltd decides not to revalue its remaining interest in the non-current assets contributed to the joint operation. The PPE contributed by Tiffany's was new and recorded at $3,000,000. Beers Ltd sold 80% of its gold for $200,000. The following was extracted from the accounting records kept by the joint operation manager for the year ending 30 June 2019. Joint operation balance sheet extract at 30 June 2019 Cash and cash equivalents 400,000 Supplies 100,000 Undistributed gold 666,667 Deferred exploration and evaluation expenditure 1,000,000 Property Plant and Equipment 7,500,000 (500,000) Accounts payable Save All Ang D Remaining Time: 1 hour, 58 minutes, 31 seconds. Question Completion Status: Joint operation balance sheet extract at 30 June 2019 Cash and cash equivalents Supplies Undistributed gold Deferred exploration and evaluation expenditure Property Plant and Equipment Accounts payable Net assets 400,000 100,000 666,667 1,000,000 7,500,000 (500,000) 9,166,667 Joint operation cash receipts and payments for the year ended 30 June 2019 Cash contributions from operators 5,500,000 Less: Cash payments Plant and Equipment (4,000,000) Wages (500,000) Materials and supplies (350,000) Utilities (150,000) Management fee (100,000) Save i h Remaining Time: 1 hour, 58 minutes, 25 seconds. Question Completion Status: , TUU,OUT TVCC ASUS Joint operation cash receipts and payments for the year ended 30 June 2019 Cash contributions from operators 5,500,000 Less: Cash payments Plant and Equipment (4,000,000) Wages (500,000) Materials and supplies (350,000) Utilities (150,000) Management fee (100,000) Cash balance at the end of the period 400,000 700,000 Cost of production statement for the year ended 30 June 2019 Wages paid 500,000 Wages payable 200,000 Materials and supplies paid 350,000 Materials and supplies pavable 150 000 Question Completion Status: Cash palance at the end of the period 400,000 700,000 Cost of production statement for the year ended 30 June 2019 Wages paid 500,000 Wages payable 200,000 Materials and supplies paid 350,000 Materials and supplies payable 150,000 Less: Materials and supplies on hand (100,000) Utilities Management fee Total production cost Less: Undistributed Gold Cost of gold distributed 400,000 300,000 100,000 1,500,000 666,667 833,333 Required: Prepare the required entries for Beers Ltd for the year ended 30 June 2019. . arch