Question (10 marks) For the year ending 30 June 2019, Triabal Group Ltd reports net profit after tax of $500 000. At the beginning of the year, Triabal Group Ltd had 800 000 fully paid ordinary shares. It also had 100 000 $1.00, 10 per cent, cumulative preference shares outstanding. The preference shares were classified as equity. On 1 September 2018 the company issued another 200 000 fully paid ordinary shares by way of a rights issue. The right provided an additional share for each four held, and required the payment of $1.50. The last cum rights share price was $2. The basic EPS for the year ended 30 June 2018 was $1.95 Required Compute the basic EPS amount for 2019, and provide the adjusted comparative EPS for 2018. Question (12 marks) Diamond Ltd acquired an item of polishing equipment on 1 July 2013 for $ 440 000. The equipment is expected to have a useful life of 10 years and the straight-line method of depreciation is to be used. It has salvage value of 40000. On 1 July 2015 the equipment is deemed to have a fair value of $424000 and revaluation is undertaken in accordance with the Diamond Ltd policy of measuring property, plant and equipment at fair value. The asset is still usable for next 8 years but the salvage value is determined to be zero. The asset is sold for $356 000 on 1 July 2017. Required: Provide the journal entries necessary at the following dates to account for the above transactions and events. 01/07/2013 (2 marks) 01/07/2015 (4 marks) 01/07/2017 (6 marks) Question (10 marks) For the year ending 30 June 2019, Triabal Group Ltd reports net profit after tax of $500 000. At the beginning of the year, Triabal Group Ltd had 800 000 fully paid ordinary shares. It also had 100 000 $1.00, 10 per cent, cumulative preference shares outstanding. The preference shares were classified as equity. On 1 September 2018 the company issued another 200 000 fully paid ordinary shares by way of a rights issue. The right provided an additional share for each four held, and required the payment of $1.50. The last cum rights share price was $2. The basic EPS for the year ended 30 June 2018 was $1.95 Required Compute the basic EPS amount for 2019, and provide the adjusted comparative EPS for 2018. Question (12 marks) Diamond Ltd acquired an item of polishing equipment on 1 July 2013 for $ 440 000. The equipment is expected to have a useful life of 10 years and the straight-line method of depreciation is to be used. It has salvage value of 40000. On 1 July 2015 the equipment is deemed to have a fair value of $424000 and revaluation is undertaken in accordance with the Diamond Ltd policy of measuring property, plant and equipment at fair value. The asset is still usable for next 8 years but the salvage value is determined to be zero. The asset is sold for $356 000 on 1 July 2017. Required: Provide the journal entries necessary at the following dates to account for the above transactions and events. 01/07/2013 (2 marks) 01/07/2015 (4 marks) 01/07/2017 (6 marks)
