QUESTION: Prepare fifteen (15) notes to the financial statements according to the relevant accounting standards
Additional Information 1. Craigieburn Ltd uses the periodic inventory system. The stock-take of 30 June shows closing inventory of $220,000 (valued at lower of cost and market value). II Salaries not paid at 30th June amounted to $19,000. III. Insurance expense attributable to current year is 18,000 IV. Unpaid power and electricity account for June totalled $7,000. V. Interest on bank mortgage is 8% per annum and is payable twice yearly on 31st December and 30th June. The amount due at 30 June has not been recognised. VI. Depreciation rates on the straight line basis are as follows: VII. Question 2 60 Marks At the end of its financial year, Craigieburn Ltd. took the following information from its accounting books of record. Craigieburn Ltd Unadjusted Trial Balance as at 30 June, 2020 Debit Credit AUDS AUDS Sales Revenue 1,600,000 Interest Revenue 21.000 Rent Revenue 4,000 Salaries and wages 160,000 Power and Electricity 50.000 Audit Fees 20.000 Interest Expense 12.000 Damage due to fire 67.000 Purchases 720,000 Interim dividend 16,000 Cash at bank 352,000 Inventories 230,000 Accounts Receivable 171.000 Provision for Doubtful Debts 20,000 Term deposit - due 30th September, 2020 332,000 Marketable Securities (long term) 80,000 Insurance paid in advance 45,000 Plant & Machinery 180,000 Furniture & fittings 200,000 Buildings Accounts Payable 120,000 Accumulated Depreciation - Plant & Machinery 90,000 Accumulated Depreciation - Furniture & fittings 60,000 Accumulated Depreciation - Buildings 58,000 Bank Mortgage secured over buildings, due Ist May, 2022 300.000 Share Capital 500,000 General Reserve 80,000 Retained Earnings 64,000 2,925,000 2,925,000 VIII. Plant & Machinery 12.5% Furniture & Fittings 7.5% Buildings 5% The current market value of marketable securities is $100,000. On 14 June 2020, Craigieburn Ltd was notified of an impending legal suit for $25,000 against the company for breach of contract. The case was settled 15 July 2020. Tax expense was calculated to be $138,300, A final dividend of 2.5% of paid-up-capital was declared and approved in 30th June 2020, Paid Up Capital consists of 500,000 ordinary shares of $1 each. Craigieburn Ltd pays income tax at the rate of 30% On 20 September 2020, Craigieburn Ltd issued 100,000 fully paid shares to acquire the net assets of South Morang Pty Ltd. IX X 290,000 XI. XII. XIII Required: 1) Prepare necessary adjusting journal entries for the above events (13 Marks). 2) Prepare a single Statement of Comprehensive Income (13 Marks), a Statement of Financial Position (13 Marks) and a Statement of Changes in Equity (6 Marks) in accordance with applicable accounting standards for financial year end 30 June 2020, 3) Prepare fifteen (15) notes to the financial statements according to the relevant accounting standards (15 Marks). 5
