la Credit 2000 dered on 15 March 2020 QUESTION 2 (30 Marks Watson Limited is a rewed on the NSE Secuiesc X Listing The balance of the company 29 February 2000 shown below Watson Limited Trial Balance at 28 February 2020 NS Ordinary share capital 4.000.000 Revolution surplus 550.000 Retained Gaming 1.250.000 Dividende Buildings Cow Buildings Accumulated depreciation 1280 000 500.000 Equipment Accumulated depreciation 200.000 Long term borrowings 1,100 000 Accounts receivable Inventory Bank Accounts payable 141.000 Sales 10.500.000 Cost of Depreciation Buildings Depreciation Event 100 000 1212.000 Postage of marketing pamphlets Packaging for purpose of transport Telephone 27.000 Elery 5. 18,631,000 The following information is relevant The authorised share capital compres 10 000 000 dinary shores of no para 1 000 000 shares were sued at on 30 November 2013 . The land and buildings are used for these of goods and for administration pupore. The buildings were on Fay 2020 to a value of NS6T20 000. This represented anor 6 180 000 over the previous carrying . Al property, plant and equipment are deprecated in the the method The building is 320 square metres in of which 180 metres are used for the warehouse and the remaining 140 metres i ed as the company head . The equipment consists of soms used in the patch me and office equipment The office equipment accounts for 40% of the decin of ment and the balance relates to depreciation of the gener NSSTO 000 of the stories and wages to the employees hired in the despatch and 5642000 eles to employees in the head office Financial Accounting di Dude 12 October 2000 Postage and packaging for purpose of sale transports purely to the despatch . Telephone expenses of N527 000 were incurred during the year. Of N$15.000 was incurred in the death department and 612 000 as incurred in the head office Electricity of NS 51000 was incurred during the year. Of N$35 000 was incurred in the death department and I 16000 and the head- on Dividends of N5100 000 were declared on March 2013 ned of the year . The tax expense for the year has been correctly called N5353 220 REQUIRED 1) Prepare the statement of comprehensive income of Watson Limited for the year ended 29 February 2020 in conformity with national Financial Reporting Standards (13 marks 2) Prepare the statement of financial position of Won Limited for the year ended 20 February 2020 in conformity with International Financial Reporting Standards 3) in so far as information is available prepare the following notes to the financial statements for the year ended 29 Feb 2000 normily with national Financial Reporting Standards (mars a) Statement of compliance Accounting po c) Property, plantandement QUESTION 2 Watson Limited is tallersted on the NSE Secure change's Arxisting. The trial balance of the company at 23 February 2020 shown below Watsion Limited Trial Balance at 23 February 2020 Debi Credit Ordinary share cap 4.000.000 Reviour 160.000 Red caring 1.250.000 Dividen 100.000 Land 500.000 Buon Cow 8.000.000 Building Accumulated depreciation 1.280.000 Equipment Cost Equipment Accumulated depreciation 200 000 Long tim bonowing 1.100.000 22.000 Inventory 250.000 Bark Accounts payat 141.000 Sales 10.500.000 Cost of 7.500.000 Depreciation Buildings 180.000 Depreciation Equipment 100.000 1212.000 Postio of marketing pamphlets 20.000 Packaging for purpose of watersport 30.000 Telephone 27.000 Electricity 50.000 Interesten 50.000 18,631,000 The following information is relevant The authorised share capital compres 10 000 000 ordinary shares of now value 1 000 000 shares were issued at NS1 on 30 November 2013 . The land and buildings are used for the spy of goods and for administration purposes. The buildings were revue February 2020 fair walue of NS6T20 000. This presented in 10 000 er the previous crying amount. This has been prosed Al property, plant and mentale ing the reine method The buildings 320 metres of which 180 square metres are used for the warehouse and the remaining the company head Thement consists of home in the rich are and afforumet The office equipment accounts for of the depreciation of viment and the balance et depreciation of the counted in the mich are N5570 000 of the salaries and wages relates the employees hired in the despatch wa and 15642 000 relates to employees played in the head office Financial Accounting 18 (2) Individual Art Dude 12 October 2020 Postage and packaging for purpose of sale transport rotates purely to the despatch Telephone expenses of 527 000 were oured during the year of this. N515000 was incurred in the chant and 612 000 was incurred in the head . Electricity of 51000 was incurred during the year of this 35000 was incurred In the despatch department and $300 Incured in the head-on Dividends of N$100 000 were declared on March 2010 in ect of the year ended 28 February 2019. Dividends $150 000 were declared on 15 March 2020 in respect of the year ended 29 February 2000 The tax expense for the year has become $350 220 REQUIRED 1) Prepare the set of comprehensive income of Watson Limited for the year ended 29 February 2020 conformity with International Financial Reporting Standards (13 mars 2) Prepare the statement of financial position of Won Limited for the year ended 20 February 2000 in conformity w Interational Financial Reporting Standards 3) in so far as information is prepare the following notes to the financial statements for the year ended 23 February 2020 in conformity with International Financial Reporting Standards (T marks Semento compliance B) Accounting policies Property, plant and equipment Share Capital Part 2 (10 Marks) A recent graduate, Bob, struggled to find work as an accountant. While at home one day, the noticed large trucks with full-grown tree driving past. They were going to a new housing development in his street, where landscapers were developing the gardens and planting mature trees as instant landscape features Because Bob had grown up in a farming area and worked on farms in his vacations, he had some knowledge about growing trees and decided that he would do some research and find a gap in the market for something similar He and his friend Neo, who had some inherited money started a small business selling full grown palm trees. The palm trees were in high demand from municipalities all over South Africa While visiting his university lecturer. Bob asked her advice as to what would be the best way to register the business so that it would benefit both himself and Neo (Bob had no start-up capital of his own and the two friends would have to borrow more money to get the business going). As he left the university area, he noticed a vacant piece of land that had previously been used as a fruitfarm. It looked fertile and suitable for growing young palm trees and also storing sourced (purchased) older palm trees Once Neo had agreed and become involved in this business idea, the two friends decided to put in an offer to purchase the property on 1 July her the registration of their business. A purchase price of N$ 900 000 was paid on 31 July 2010 The property was then registered in the deeds office on 15 August 2020 in the name of Breezy Palms Enterprises. The property was now theirs to do with as they pleased The purchased price was paid from Noes capital of N$ 30 000 and Loan (from One Love Bank). This agreement was entered into on 31 July 2010 at an interest rate of 10% payable monthly with the capital portion of the loan being payable in monthly instalments over a period of 10 years On 1 September, they brought in another company. Trees Planters CC, who would supply and plant the trees that would generate revenue over many years. Trees Planters charged them N$ 10 000 for every hectare of trees planted Bob and Neo then agreed to an additional maintenance contract with Trees Planters CC, stipulating that they would maintain and prune the young trees to ensure that they grow upright over the next 10 years for an annual fee of N$ 15 000 During the current year, Breezy Palms Enterprise incurred N$ 150 000 on the purchase and planting of the trees was well as NS 15 000 on the pruning and maintenance of the trees Bob and Neo took care of the sourcing of mature trees themselves, which cost them N$ 3 000 a month in adverting.labor and transport Bob and Neo employed an expert to do a profitability study. The report from the expert revealed that they could expect a return on investment of 23% over the period of 10 years. The accountants showed every cost incurred as an expense in the current year. The financial director feels that a part of the transactions above may be stated as an asset. Financial Accounting 18 (E3692) Individual Assignment Due date: 12 October 2020 REQUIRED: Provide a well-reasoned argument with reference to the accounting frameworks as to whether the treatment of the above transactions was appropriate. Your answer should distinguish between these transactions 1. The purchase of land 2. Loan from One Love Bank 3. Planting, pruning and maintenance of young trees QUESTION Trial Balance Mary Dinary share Cred 4.000000 180.000 120 000 100.000 1.000.000 120.000 Banos Cos Ement Com Foment Acceder Langborg 200 000 1.100.000 250.000 141.000 0.500.000 Cost of Deprecations Depreciation or Postamine Packaging for profet Terchone Berity 7.500.000 180.500 100.000 12.000 27.000 18.01.000 The following information is relevant - The word shortcom 10 000 000 dinary shares of our value 1000000 The landed y of purposes. The buildings do 23 February 2020 NS 1500 or the previous coming amount. This All property, plant and equipe The buildings 320 mm the warehouse and the remaining resises the company has The equipment com a match and office equipment The office equipment accounts for of the depreciation of equipment and the balance este depreciation de dinheiro $570 000 of the wind to the employees hired area and N5642000 testom som played in the head of Postage and packaging for peoportes purely to the despatch Telephone 27 000 during the you. O, 15000 was incurred in the depth and 12000 was incurred in the head Becicity of 1000 was normed during the NS35 000 in the depth department Dividends of N100 000 were anded 25 February 2018. 15 March - . REQUIRED 1) Prepare the men of com anded 29 February 2020 Franc Report Standards 113 mars 2) Prepare the old Were yw ended 29 February 2020 (10 mars her to the force women Franci Reporting and Santome Accounting la Credit 2000 dered on 15 March 2020 QUESTION 2 (30 Marks Watson Limited is a rewed on the NSE Secuiesc X Listing The balance of the company 29 February 2000 shown below Watson Limited Trial Balance at 28 February 2020 NS Ordinary share capital 4.000.000 Revolution surplus 550.000 Retained Gaming 1.250.000 Dividende Buildings Cow Buildings Accumulated depreciation 1280 000 500.000 Equipment Accumulated depreciation 200.000 Long term borrowings 1,100 000 Accounts receivable Inventory Bank Accounts payable 141.000 Sales 10.500.000 Cost of Depreciation Buildings Depreciation Event 100 000 1212.000 Postage of marketing pamphlets Packaging for purpose of transport Telephone 27.000 Elery 5. 18,631,000 The following information is relevant The authorised share capital compres 10 000 000 dinary shores of no para 1 000 000 shares were sued at on 30 November 2013 . The land and buildings are used for these of goods and for administration pupore. The buildings were on Fay 2020 to a value of NS6T20 000. This represented anor 6 180 000 over the previous carrying . Al property, plant and equipment are deprecated in the the method The building is 320 square metres in of which 180 metres are used for the warehouse and the remaining 140 metres i ed as the company head . The equipment consists of soms used in the patch me and office equipment The office equipment accounts for 40% of the decin of ment and the balance relates to depreciation of the gener NSSTO 000 of the stories and wages to the employees hired in the despatch and 5642000 eles to employees in the head office Financial Accounting di Dude 12 October 2000 Postage and packaging for purpose of sale transports purely to the despatch . Telephone expenses of N527 000 were incurred during the year. Of N$15.000 was incurred in the death department and 612 000 as incurred in the head office Electricity of NS 51000 was incurred during the year. Of N$35 000 was incurred in the death department and I 16000 and the head- on Dividends of N5100 000 were declared on March 2013 ned of the year . The tax expense for the year has been correctly called N5353 220 REQUIRED 1) Prepare the statement of comprehensive income of Watson Limited for the year ended 29 February 2020 in conformity with national Financial Reporting Standards (13 marks 2) Prepare the statement of financial position of Won Limited for the year ended 20 February 2020 in conformity with International Financial Reporting Standards 3) in so far as information is available prepare the following notes to the financial statements for the year ended 29 Feb 2000 normily with national Financial Reporting Standards (mars a) Statement of compliance Accounting po c) Property, plantandement QUESTION 2 Watson Limited is tallersted on the NSE Secure change's Arxisting. The trial balance of the company at 23 February 2020 shown below Watsion Limited Trial Balance at 23 February 2020 Debi Credit Ordinary share cap 4.000.000 Reviour 160.000 Red caring 1.250.000 Dividen 100.000 Land 500.000 Buon Cow 8.000.000 Building Accumulated depreciation 1.280.000 Equipment Cost Equipment Accumulated depreciation 200 000 Long tim bonowing 1.100.000 22.000 Inventory 250.000 Bark Accounts payat 141.000 Sales 10.500.000 Cost of 7.500.000 Depreciation Buildings 180.000 Depreciation Equipment 100.000 1212.000 Postio of marketing pamphlets 20.000 Packaging for purpose of watersport 30.000 Telephone 27.000 Electricity 50.000 Interesten 50.000 18,631,000 The following information is relevant The authorised share capital compres 10 000 000 ordinary shares of now value 1 000 000 shares were issued at NS1 on 30 November 2013 . The land and buildings are used for the spy of goods and for administration purposes. The buildings were revue February 2020 fair walue of NS6T20 000. This presented in 10 000 er the previous crying amount. This has been prosed Al property, plant and mentale ing the reine method The buildings 320 metres of which 180 square metres are used for the warehouse and the remaining the company head Thement consists of home in the rich are and afforumet The office equipment accounts for of the depreciation of viment and the balance et depreciation of the counted in the mich are N5570 000 of the salaries and wages relates the employees hired in the despatch wa and 15642 000 relates to employees played in the head office Financial Accounting 18 (2) Individual Art Dude 12 October 2020 Postage and packaging for purpose of sale transport rotates purely to the despatch Telephone expenses of 527 000 were oured during the year of this. N515000 was incurred in the chant and 612 000 was incurred in the head . Electricity of 51000 was incurred during the year of this 35000 was incurred In the despatch department and $300 Incured in the head-on Dividends of N$100 000 were declared on March 2010 in ect of the year ended 28 February 2019. Dividends $150 000 were declared on 15 March 2020 in respect of the year ended 29 February 2000 The tax expense for the year has become $350 220 REQUIRED 1) Prepare the set of comprehensive income of Watson Limited for the year ended 29 February 2020 conformity with International Financial Reporting Standards (13 mars 2) Prepare the statement of financial position of Won Limited for the year ended 20 February 2000 in conformity w Interational Financial Reporting Standards 3) in so far as information is prepare the following notes to the financial statements for the year ended 23 February 2020 in conformity with International Financial Reporting Standards (T marks Semento compliance B) Accounting policies Property, plant and equipment Share Capital Part 2 (10 Marks) A recent graduate, Bob, struggled to find work as an accountant. While at home one day, the noticed large trucks with full-grown tree driving past. They were going to a new housing development in his street, where landscapers were developing the gardens and planting mature trees as instant landscape features Because Bob had grown up in a farming area and worked on farms in his vacations, he had some knowledge about growing trees and decided that he would do some research and find a gap in the market for something similar He and his friend Neo, who had some inherited money started a small business selling full grown palm trees. The palm trees were in high demand from municipalities all over South Africa While visiting his university lecturer. Bob asked her advice as to what would be the best way to register the business so that it would benefit both himself and Neo (Bob had no start-up capital of his own and the two friends would have to borrow more money to get the business going). As he left the university area, he noticed a vacant piece of land that had previously been used as a fruitfarm. It looked fertile and suitable for growing young palm trees and also storing sourced (purchased) older palm trees Once Neo had agreed and become involved in this business idea, the two friends decided to put in an offer to purchase the property on 1 July her the registration of their business. A purchase price of N$ 900 000 was paid on 31 July 2010 The property was then registered in the deeds office on 15 August 2020 in the name of Breezy Palms Enterprises. The property was now theirs to do with as they pleased The purchased price was paid from Noes capital of N$ 30 000 and Loan (from One Love Bank). This agreement was entered into on 31 July 2010 at an interest rate of 10% payable monthly with the capital portion of the loan being payable in monthly instalments over a period of 10 years On 1 September, they brought in another company. Trees Planters CC, who would supply and plant the trees that would generate revenue over many years. Trees Planters charged them N$ 10 000 for every hectare of trees planted Bob and Neo then agreed to an additional maintenance contract with Trees Planters CC, stipulating that they would maintain and prune the young trees to ensure that they grow upright over the next 10 years for an annual fee of N$ 15 000 During the current year, Breezy Palms Enterprise incurred N$ 150 000 on the purchase and planting of the trees was well as NS 15 000 on the pruning and maintenance of the trees Bob and Neo took care of the sourcing of mature trees themselves, which cost them N$ 3 000 a month in adverting.labor and transport Bob and Neo employed an expert to do a profitability study. The report from the expert revealed that they could expect a return on investment of 23% over the period of 10 years. The accountants showed every cost incurred as an expense in the current year. The financial director feels that a part of the transactions above may be stated as an asset. Financial Accounting 18 (E3692) Individual Assignment Due date: 12 October 2020 REQUIRED: Provide a well-reasoned argument with reference to the accounting frameworks as to whether the treatment of the above transactions was appropriate. Your answer should distinguish between these transactions 1. The purchase of land 2. Loan from One Love Bank 3. Planting, pruning and maintenance of young trees QUESTION Trial Balance Mary Dinary share Cred 4.000000 180.000 120 000 100.000 1.000.000 120.000 Banos Cos Ement Com Foment Acceder Langborg 200 000 1.100.000 250.000 141.000 0.500.000 Cost of Deprecations Depreciation or Postamine Packaging for profet Terchone Berity 7.500.000 180.500 100.000 12.000 27.000 18.01.000 The following information is relevant - The word shortcom 10 000 000 dinary shares of our value 1000000 The landed y of purposes. The buildings do 23 February 2020 NS 1500 or the previous coming amount. This All property, plant and equipe The buildings 320 mm the warehouse and the remaining resises the company has The equipment com a match and office equipment The office equipment accounts for of the depreciation of equipment and the balance este depreciation de dinheiro $570 000 of the wind to the employees hired area and N5642000 testom som played in the head of Postage and packaging for peoportes purely to the despatch Telephone 27 000 during the you. O, 15000 was incurred in the depth and 12000 was incurred in the head Becicity of 1000 was normed during the NS35 000 in the depth department Dividends of N100 000 were anded 25 February 2018. 15 March - . REQUIRED 1) Prepare the men of com anded 29 February 2020 Franc Report Standards 113 mars 2) Prepare the old Were yw ended 29 February 2020 (10 mars her to the force women Franci Reporting and Santome Accounting