Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CALPro Ltd, a manufacturing company, commenced operations on 1 July 2017 by issuing 308 200 S5.00 shares, payable in full on application on a first-come,

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
CALPro Ltd, a manufacturing company, commenced operations on 1 July 2017 by issuing 308 200 S5.00 shares, payable in full on application on a first-come, first- served basis. By 15 August 2017 the shares were fully subscribed and duly allotted. There were no share issue costs. For the year ending 30 June 2019, the company recorded the following aggregate transactions: Sales Interest income Cost of Sales Sundry income Employee benefit expenses - Admin Depreciation expense- Admin Distribution Expenses Insurance expense Rental expenses - office Sales and marketing Doubtful debts expense Interest expense Other borrowing expenses Income tax expense 5 756 000 6 000 4287 000 13 000 144 000 42 000 86 000 37 000 23 000 820 000 6 000 44 000 4 000 85 000 The following additional information was noted during the preparation of financial statements for the year ended 30 June 2019: (a) There were no further share issues during the year ended 30 June 2018 (b) On 1 July 2018 30 000 fully paid shares were issued for $150 000 (c) A dividend of $150 000 was declared and paid during the 2019 financial year and a final dividend for 2019 of S101 460 was proposed but not recognised in the financial statements. (d) The balances of the land revaluation reserve and the investments revaluation reserve at 30 June 2018 were $15 000 credit and $35 000 credit respectively. (e) The following revaluations were recognised during the year ended 30 June 2019: land revalued upward by S50 000 (related income tax $15000) by Valuations R Us Pty Ltd and available-for-sale investments were revalued upward by S10 000 (related income tax S3000). (1) The available for sale investments are held as part of a long-term investment strategy. (g) S40 000 of bank loans is repayable within 1 year. (h) S110 000 of other loans is repayable within 1 year. (i) The provision for employee benefits includes $58 000 payable within 1 year. 6) The warranty provision is in respect of a 12-month warranty given on certain goods sold. (k) CAL Pro Ltd uses the single statement format for the statement of profit or loss and other comprehensive income and classifies expenses by function within the statement. (1) CAL Pro Ltd measures inventory at the lower of cost and net realizable value and buildings, plant and equipment using the cost model. Summarised account balances are provided below: Year-end balances, 30 June 2019 Cash on hand Cash on deposit, at call Accounts receivable - trade Allowance for doubtful debts/ impairment Other debtors Raw Materials inventories, 30 June 2019 Finished goods inventories, 30 June 2019 Land Buildings Accumulated depreciation - buildings Plant and equipment Accumulated depreciation - plant and equipment Patents Accumulated amortisation of patent Goodwill Listed investments (available for sale) Bank loans Other loans Accounts payable-trade Provision for employee benefits Provision for warranty Current tax liability Deferred tax liability Retained earnings, 30 June 2018 Investments revaluation reserve Share Capital Dividends paid Land revaluation reserve 4 000 100 000 450 000 14 000 93 000 188 000 714 000 102 000 155 000 36 000 1 260 000 564 000 48 000 3 000 870 000 225 000 66 000 570 000 510 000 93 000 37 000 25 000 135 000 326 000 42 000 1 691 000 150 000 50 000 Required: For the year ending 30 June, 2019, 1. Using the pro forma table supplied in appendix B, prepare a preliminary trial balance for CALPro Ltd; (10 Marks) 2. Prepare a statement of comprehensive income for CAL Pro Ltd in accordance with the requirements of AASB 101. CALPro Ltd uses the single statement format for the statement of comprehensive income and classifies expenses by function within the statement; (20 marks) 3. Prepare a statement of changes in equity for CAL Pro Ltd in accordance with the requirements of AASB 101; (10 marks) 4. Prepare a statement of financial position for CAL Pro Ltd in accordance with AASB 101. Use the currenton-current presentation format; (20 marks) 5. Prepare appropriate notes to the accounts. (You do not need to prepare notes related to income taxes. Include the following note as note 1. You may optionally add accounting policies to this note): (20 marks). "1. Summary of significant accounting policies Basis of accounting The financial report is a general purpose financial report which has been prepared on the historical cost basis, except where stated otherwise. Statement of Compliance The financial statements have been prepared in accordance with the requirements of the Corporations Act, Australian Accounting Standards which include Australian equivalents to International Financial Reporting Standards (AIFRSs) and AASB Interpretations. Compliance with AIFRSs ensures the financial statements and notes comply with International Financial Reporting Standards" APPENDIX B CALPro Ltd - Trial Balance as at 30 June 2019 DR S'000 CR S'000 Sales Interest income Sundry income Cost of sales Employee benefit expenses- Administration Depreciation expense - Administration Distribution expenses Insurance expenses Rental expense-Office Sales and marketing expenses Doubtful debts expense Interest expense Other borrowing expenses Income tax expense Cash on hand Cash on deposit, at call Accounts receivable - trade Allowance for doubtful debts/ impairment Other receivables Raw materials inventories, 30 June 2019 Finished goods inventories, 30 June 2019 Land Buildings Accumulated depreciation - buildings Plant and equipment Accumulated depreciation - plant and equipment Patents Accumulated amortisation of patent Goodwill Listed investments (available for sale) Bank loans Other loans Accounts payable -Trade Provision for employee benefits Provision for warranty Current tax liability Deferred tax liability Retained earnings, 30 June 2018 Investment revaluation reserve Dividends paid Land revaluation reserve Share capital Totals

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Frank Woods Business Accounting

Authors: Frank Wood. Sangster, Alan

12th Edition

0273759280, 9780273759287

More Books

Students also viewed these Accounting questions

Question

Who will implement and maintain the project after launch?

Answered: 1 week ago

Question

analyze aesthetic enhancing design rules.

Answered: 1 week ago

Question

apply communication design concepts into creative projects.

Answered: 1 week ago