Please provide journal entries for additional information from a-m

Additional Information [Uniess otherwise indicated the foiiowing eventstronsoctions are NOT reected in the unudiusteo' trioi huionce us at 30 June 2015. IIf'ou wiii need to moire appropriate adjustments where required and provide the necessary journoi entries in generoi fonnJ a. During the current nancial year the company continued expanding their operations with the acquisition of another food processing business [Devon Delights Pty Ltd] from a competitor who was moving out of Tasmania. To help fund this acquisition, the company issued new shares. The public offer, which was completed on 31 January, 201?, was fully subscribed, raising $25m from the 25 cent shares. The cost of the share issue was $100,000. b. Do 10 June 201? the Company announced that it had completed the 100% acquisition of Devon Delights Pty Ltd. In exchange for all the assets and liabilities of Devon Delights, DrangeAppIE Ltd paid a cash consideration of $1 million and issued 1,200,000 ordinary shares to the vendors. At the date of issue the fair value of the shares were 0.25 cents. The cost of issuing these shares was $11,000. Legal costs associated with the acquisition amounted to $50,000. The assets and liabilities of Devon Delights Pty Ltd at the date of acquisition were as follows: Ea rryfng amount Fal- value assets 5 5 Accounts resolvable 12,000 12,000 Inventory [Finlshed goods} 54,000 53,000 Land 150,000 130,000 Bulldlng 505,000 500,000 Plant 320,000 232,000 Acmmulated depreclation {95,000} Patents 130,003 200,000 lJahliltlas Amunts payable {15,000} {10,000} Debentures {04.000} {54,000} The plant had an expected remaining useful life of 5 years. The 2% debentures are redeemable on 1 July 2015. The Devon Delights brand name had a fair value of $30,000, but under AMBIEE was nut cunsidered an asset Tn the bucks uf Devan Delights Pty Ltd. Al'thcugh the building was nut being depreciated, since bath the land and buildings were accuunted fur using the revaluatiun mudel, its remaining useful life was estimated tu be EE years. As part uf their strategic plan tc increase future cash uws, Grangehpples Ltd decided tu fccus attentiun in the EDIE year tu upgrading their prc-perty, plant, and equipment. The prccessing plant [PPEDDIL which was acquired an 1 July EDIE, was expected tc be uperatiunal far if years, during which time it was expected tc- run fur ID DDD huurs. During ils rst year cf uperatiun {EDIEIE), the plant was used for 3 DDD huurs. It was decided that in urder tc- maintain this level uf pruductiun fur the full periud, a majur upgrade was required. Gn 1 July, EDIE, the uverhaul, which cust $E34 EDD was cumpleted and paid fur in cash. Management believes that this upgrade will add a further E DDD huurs cf uperating time tn the plant's life. During the year ended 3D June EDIE, the plant was in uperatiun far 4 DDD huurs. Dn E? July, EDIE, Truclc 1 was tradedin fur a new truck [a EDIE Fusul which cbst $34 IDD [excluding GET). A trade-in alluwance of $12 EDD was received and the balance was paid in cash. nruad ccsls pf 51 EDD, which included registratiun and signage custs, were alsc paid in cash. DrangeApples Ltd estimated the new Fusu tru cl: would have a useful life of IE years and residual value cf 51D DDD. Gn 1 January EDIE, DrangeApples Ltd scld their labcratcry freeze dryer [asset number RDIDDE] fur 5E5 DDD cash. [In the same day, the RED department purchased a new industrial freeze dryer for 53D DDD cash. At th at time the new equipment was expected tu have a useful life ufa'l years with nu residual value. On 1? February, EDIE, DrangeApples Ltd made a bunus issue cf 4D DDD shares at $D.EE per share, using $5 DDD frum the general reserve and 5E DDD frurn the asset revaluatiun surplus created as a result cf revaluing HScD's fuud safety Sr. disease analysis system at fair value an SD June EDIE. During March, a decisicn was made tu exchange Truck E [fair value at exchange date: 51E 64D} fur a car that cuuld be used by the sales team. The used car, which was a EDII Hulden Eruze had a fair 1ll'alue uf $11 SEE at exchange date, EB March EDIE. The Hulden Cruxe uriginally ccst $EE EDD and had been depreciated in the previuus uwner's accuunts by $15 EED to date bf exchange. Grangehpples estimated the car's useful life and residual value at 4 years and $3EDD, respectively. On 25 June EDIE the company was advised that one of its customers had gone bankrupt and that it should not expect to recover any of the outstanding debt, which amounted to $5 EDI]. No adjustment has been made for the bankruptcy event, as the company dog not have any provision for doubtful debts. At 3i] June 201?, the RED equipment was assessed as follows: Fair value HDIIIIl REcD equipment 1 Food safety 3: disease analysis system 561 GOD HDIIIIE REcD equipment 3 Industrial freeze dryer I53 SUD Pagel In addition, on 30 June 201?, the estimate of the useful life of the factory building was revised to 15 years. ILilihen it was originally acquired on 1 July 1011, it was estimated the useful life would be 2i] years. No balance date adjustment has yet been made for the prepaid insurance. Insurance is paid in advance on 3D November each year. The premium of $30,\" p.a. has remained unchanged for the past two years. GrangeApples Ltd conducted an impairment test at 30 June EDIT. Indicators suggested that an impairment loss was probable for the Devonport CGU, due to poor summer rainfall levels and as a consequence lower quantities and quality of the available produce. In addition the Bureau of Meteorology is forecasting an El Nino weather pattern will form during the remainder of 201?. DrangeApples calculated the recoverable amount of the Devonport CGLIs as $1.3million. The carrying amounts of the assets and liabilities of the Devonport CGLI are provided above at point {b}. The land held by the Devonport CGU is considered to have a fair value less cost of disposal of $112 EDI]. _ ._.. -_.__ .___ ____ _. _._'____. _. r- _ ____ m. The company tax rate is 30%. Except for revaluation, ignore ta: effect accounting under AASB 112 lncomeTaxes, as this will be dealt with by your manager. You should however include any income tax expense relating to the SPLDEI. Due to expansion strate'es the Company decided not to pay a dividend for me 201? nancial year. 5'.\" 3 a 3 g" in a 5 E? E L illliEEIl a E 3% i 5:5 E a iliililliliiil it] I sum rnnsuu 10mm dai Furl: m: '3; a E E m i g i _ _ _ _ _ _ NIHTm IMFTm INNTm E E i I'l-u-nnl 1