for the following scenarios make notes and disclose them in accordance with AASB 101, AASB 108, AASB 110 make notes and explain while considering and referring back to Accounting standards the notes should be for a report and explain in detail a) Revenue received in advance relates to deposits received for special orders Where customers order goods that are not items that the company usually supplies, it requires a 20 deposit to be paid Accrued revenue relates to service revenues where work has been completed but not yet invoiced Receivables, note within note, material 101, para 97, b) Prior to 1 July 2023 the company had 3 issues of shares These were in share capital note, 300,000 ordinary shares at an issue price of $4 50 were issued in March 2019 These are fully paid In relation to this issue $8,000 share issue costs were incurred, and these were paid by the company in May 2019 700,000 ordinary shares at an issue price of $6 00 were issued in September 2020 These are fully paid In relation to this issue $32,000 share issue costs were incurred, and these were paid by the company in October 2020 800,000 ordinary shares at an issue price of $7 00 were issued in January 2022 These are called and paid to $4 80 as at 30 June 2022 In relation to this issue $26,000 share issue costs were incurred, and these were paid by the company in February 2023 On 1 September 2023, the company made a first and final call for the remaining uncalled unpaid portion of the share issue price for the shares issued in January 2022 All call money was received by the 1 June 2024 Hence these shares are now fully paid c) On 1 March 2024, an employee of the company is suing the company for negligence and requesting damages of $220,000 The employee was involved in an accident whilst working for the company in May 2023 and as a result suffered a back injury Legal advice has indicated that if the case went to court there is only a 20 likelihood that the company would be found liable and if this was the case, then the damages payable would amount to $85,000 The first court hearing is scheduled on 15 August 2024 Note Contingent liability

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on May 18, 2024

for the following scenarios make notes and disclose them in accordance with AASB 101, AASB 108, AASB 110. make notes and explain while considering and

for the following scenarios make notes and disclose them in accordance with AASB 101, AASB 108, AASB 110. make notes and explain while considering and referring back to Accounting standards.

the notes should be for a report and explain in detail.

a) Revenue received in advance relates to deposits received for special orders. Where customers order goods that are not items that the company usually supplies, it requires a 20% deposit to be paid. Accrued revenue relates to service revenues where work has been completed but not yet invoiced. Receivables, note within note, material 101, para 97,

b) Prior to 1 July 2023 the company had 3 issues of shares. These were: in share capital note,

300,000 ordinary shares at an issue price of $4.50 were issued in March 2019. These are fully paid. In relation to this issue $8,000 share issue costs were incurred, and these were paid by the company in May 2019.
700,000 ordinary shares at an issue price of $6.00 were issued in September 2020. These are fully paid. In relation to this issue $32,000 share issue costs were incurred, and these were paid by the company in October 2020.
800,000 ordinary shares at an issue price of $7.00 were issued in January 2022. These are called and paid to $4.80 as at 30 June 2022. In relation to this issue $26,000 share issue costs were incurred, and these were paid by the company in February 2023.
On 1 September 2023, the company made a first and final call for the remaining uncalled/unpaid portion of the share issue price for the shares issued in January 2022. All call money was received by the 1 June 2024. Hence these shares are now fully paid.

c) On 1 March 2024, an employee of the company is suing the company for negligence and requesting damages of $220,000. The employee was involved in an accident whilst working for the company in May 2023 and as a result suffered a back injury. Legal advice has indicated that if the case went to court there is only a 20% likelihood that the company would be found liable and if this was the case, then the damages payable would amount to $85,000. The first court hearing is scheduled on 15 August 2024. Note Contingent liability