Question 35

Part A

On 28 February 2021, Esoda Ltd invested $650,000 in a 2-year fixed term deposit earning 2% p.a. Interest is paid quarterly and Esoda Ltd received the interest it was due on 31 May 2021.

Calculate, to the nearest whole dollar, the amount of accrued revenue Esoda Ltd would recognise at 30 June 2021.

Part B

Daneistis Limited provides the following loan schedule in relation to its borrowings:

Date	Payment ($)	Interest ($)	Principal ($)	Balance ($)
30 June 2020				749,950
30 June 2021	113,700	33,748	79,952	669,998
30 June 2022	113,700	30,150	83,550	586,448
30 June 2023	113,700	26,390	87,310	499,138
30 June 2024	113,700	22,461	91,239	407,899
30 June 2025	113,700	18,355	95,345	312,554
30 June 2026	113,700	14,065	99,635	212,919
30 June 2027	113,700	9,581	104,119	108,801
30 June 2028	113,700	4,899	108,801	0

State the amount Daneistis Limited would report as an expense for the year ended 30 June 2022.

Part C

Which of the following events would NOT be classified as an investing activity in a Statement of Cash Flows?

A. All of these would be classified as investing activities.

B. The proceeds from the realisation of shares in another company.

C. The proceeds from the maturity of a long-term cash deposit.

D. A payment to acquire another business.

E. The gain on sale of a non-current asset.

Part D

Which of the following would be recognised within Receipts from customers for the current period?

A. Cash received in the current period from customers who purchased their goods on credit in the current period.

B. Cash received in the current period from customers whose goods were delivered in the previous period.

C. Cash received in the current period from customers whose goods will be delivered in the following period.

D. Cash received in the current period from customers whose goods were delivered in the current period.

E. All of these would be recognised within Receipts from customers in the current period.

Part E

During the current period, Polisi Ltd sold a retail property for $34 million. The property was acquired for $27 million 15 years ago and at the time of the sale it had a carrying amount of $16 million.

State, in dollar millions, the cash inflow arising from this event.