Reference no: EM132580664

ACCT6003 Financial Accounting Processes - Laureate International Universities

Learning Outcome 1: Apply accounting principles and standards when accounting for non-current assets, revenue and liabilities and recognise the judgements required in a range of diverse business contexts.

Differentiate between shares and debentures and apply appropriate accounting procedures.

Part A: This assessment is designed to demonstrate your understanding of the accounting process to account for the above topics.

Please use the supplied templates to design your answer in the correct General Journal format and combine all answers into one assessment document covering all tasks. Please follow the submission instructions on Blackboard. Submit the assessment file in a word or Pdf format including cove sheet. JPEG files cannot be opened and will not be marked.

Part B: You will be required to prepare a short video (4-6 mins) addressing the specific questions provided in this assignment. This is designed to access your understanding of the concepts you have applied in Part A and also demonstrate your communication skills to your audience. Please ensure that your presentation includes reference to relevant Australian Accounting Standards (AASB) and the Corporations Act, where relevant.

Instructions:

Part A:
• Using the templates provided. Design your own General Journal templates.
• Type your answers into the General journal, remembering to leave a blank line after each entry and include a narration and date for every entry.
• Where required, please provide clear workings of your calculations in your answers.
• Do not rewrite the question in your assignment.
• Round all amounts to the nearest dollar.

Part B:
Prepare a video presentation to answer the questions in Part B. Upload your file on Blackboard by reading the instructions contained in the attached link.

Part A

Question 1 Accounting for Debentures
On 1 August 2020, Candy Ltd issued a disclosure document inviting applications for 10,000 of $80 debentures at par, payable in full on application.

The debentures carry an 8% annual interest charge and will be redeemed at nominal value in 5 years. The interest payment is made semi-annually on 31 December and 30 June each year.

By 30 September 2020, Candy Ltd received application money for 11,000 debentures.

On 1 October 2020, Courtney Ltd issued 10,000 debentures and refunded monies to 1,000 unsuccessful applicants.

Required:

Prepare a general journal template as per example below based on the information above, for Candy Ltd for the year ended 30 June 2021. Include a narration.

 

General Journal
Date	Accounts	Debit	Credit

Question 2 Accounting for Impairment

Glenelg Bay Ltd has a Cash-Generating Unit (CGU) comprised of assets as follows:

 

Asset	Carrying Amount
Inventory	15,000
Goodwill	30,000
Plant	80,000
Motor Vehicles	40,000

On 30 June 2020, Glenelg Bay performed an impairment test for this CGU and determined that the recoverable amount is $120,000.

Required
a) Calculate the impairment loss as at 30 June 2020

b) Prepare a table as provided below to allocate the above impairment loss:

(c) Prepare a general journal (as per template below) to record the above impairment loss for the year ended 30 June 2020. Include a narration

 

ASSETS	Carrying amount	Proportion	Loss allocated	Adjusted carrying amount
Totals

Question 3 Asset Revaluation

Money Ltd acquired equipment on 1 July 2021 at $105,000. The equipment is depreciated using straight-line method and subsequently measured using the revaluation model.

Money Ltd expects the equipment to have 7 years useful life and a zero residual value. The information below is available regarding the equipment in the following periods.

 

Date	Fair Value	Cost to Sell	Value in Use
30 June 2023	$ 85,000	$ 2,000	$90,000
30 June 2025	$ 45,000	$ 3,000	$40,000

Required

Assuming indications of impairment exist on the dates above, please prepare the general journal entries (as per template below) to account for the equipment on the following dates:

a. 30 June 2023
b. 30 June 2025

Part B Video Presentation

Technical accuracy of your presentation

Prepare a video presentation to address each of the following questions. You will be assessed on your technical understanding of each question and also your presentation skills. Please refer to the marking rubric which details the assessment criteria for the communication and presentation skills.

You may use visual aids to support your presentation, however you must be seen at all times in front of the camera. Marks will not be awarded if you read directly from your notes.

Please introduce yourself and the purpose of your presentation. Speak slowly and clearly to address the following:

Berry Ltd is a public retail company that is currently expanding their operations. In order to do this, the directors need a substantial injection of cash to finance the new development.

Required:
You have been asked as the graduate accountant, to prepare a report to the board of directors summarising the major differences between the company raising funds by a share issue versus the issue of debentures.

Include in your report the different effects each choice would have on the financial statements, what advantages (if any) each choice would provide the company and what financial commitments the company would be liable for under each option.

Attachment:- Financial Accounting Processes.rar