Can Anyone Please Help Me With This Assignment Tomorrow

Can Anyone Plz Help Me Do This Assignment Within Tomorrow

Can Anyone Plz Help Me Do This Assignment Within Tomorrowquestion

Can anyone plz help me do this assignment within tomorrow..... Question 1 - 10 Marks The following is the unadjusted trial balance for James Trading Pty Ltd as at the close of the financial year ended 30 June 2011. In addition the following entries had not been applied to the general ledger. 1. Rent had been prepaid to the extent of 3 months on June 1st. The monthly rent is $1,000 2. Interest income on a loan made to J Harris had not been taken to account 3. Expenses of $20,000 for legal fees were estimated to be incurred but had not been invoiced by the solicitor 4. A stock take was undertaken as at the close of June and $8,500 was the value of stock on hand 5. The company received $20,000 for services which will be delivered over the next four months. The first services were provided in the current month of June. On the attached worksheet a. Complete the entries to adjust the trial balance for the closing entries b. Prepare an statement of income and statement of financial position Question2 – 15 Marks The following is the Statement of financial Position and Profit and Loss statement for Luke Incorporated Pty Ltd. You have been retained by your client to review the business and provide a financial analysis of the business for your client. Undertake an analysis of the company and prepare a short report on your findings to a prospective purchaser. Your analysis should cover the liquidity and performance of the company. Your report should clearly indicate the ratios and other methods used to evaluate the business for your client. Your analysis must be in report format. With a suitable explanation of the specific ratios you have applied and why you used them. Provide a recommendation to your client based on your analysis. Question 3 – 15 Marks Part a) - 7 marks Advanced Radio repairs make all sales on account. Cash receipts arrive by mail. James opens the envelopes and separates the cheques from the accompanying remittance advices. James forwards cheques to another employee, who makes the daily bank deposit but has no access to the accounting records. James sends the remittance advices, which show the cash received, to the accounting department for entry into the accounts. James’ other duty is to grant sales allowances to customers ( a sales allowance decreases the amount receivable). When he receives a customer’s cheque for less than the full amount of the invoice, he records the sales allowance and forwards the document to the accounting department. Required You are the new Financial Controller of Advanced Radio repairs. Write a memo to the company Chairperson identifying the internal Control weakness in this situation. State the steps to be taken to correct the weakness. Part b)- 8 marks You are the Financial Controller for Lukes’ Manufacturing and you have been approached by the Chief Executive Officer in relation to the purchase of a new item of equipment. Not having an accounting background, the owner Joe Logs, does not understand the concept of depreciation and is under the impression that depreciation is a process of creating a cash fund to replace an asset. Write a note explaining the concept and using the information regarding the asset below illustrate the difference in various depreciation methods and the effect on the financial performance of the organisation if any. Machine Cost $45,000 Delivery to site $500 Cost of set up ready for production $2,500 Salvage value estimated to be $3,000 Maximum units of production 5,000 in the first year 4,500 in the second year And reducing by 500 units each until the end of its useful life Effective Useful life 5 years Show all calculations and a depreciation schedule in your report to demonstrate fully the impact to Joe Logs. Question 4 - 10 marks Part a) Alpha Ltd had the following equity balance at July 1, the beginning of the year Share capital 10,000 $10 shares $100,000 Reserves $80,000 Retained Earnings $50,000 Alpha Ltd’s profit for the year was $40,000. During the year the following events and transactions occurred; Dec 30 Declared interim cash dividend of $1 per share Jan 15 Paid interim cash dividend Mar 31 4-for 1 share split June 30 declared cash dividend o0f $1 per share June 30 transferred $15,000 to general reserve Required a) Prepare journal entries to record the transactions affecting equity during the period b) Prepare a statement showing the changes in retained earnings during the year c) Prepare the equity section of the balance sheet d) Calculate the dividend payout ratio and return on shareholders’ equity Part b) Investors Ltd Shareholders equity is as follows Share Capital $4,000,000 Retained earnings and reserves $1,000,000 Investor ltd plans to expand its operations by establishing a branch in Singapore. The new branch will cost $2.5million. Expected profits before tax and interest when the new branch is operational are $1.2 million. The tax rate is 30%. Investors Ltd is considering 2 financing options; a) Borrow $2.5million at 8% interest b) Issue 100,000 shares at $25 Required; Which funding alternative yields the higher return on equity. What other factors should be considered. Question 5 – 10 marks CVP Analysis Unique Manufacturing had a bad year in 2007. Having operated at a loss. The income statement showed the following results from selling 60,000: net sales $2,250,000, total costs and expenses $2,835,000; and loss $385,000. Costs and expenses consisted of the following Total variable fixed Cost of Goods sold 2,025,000 1,395,000 $630,000 Selling Expenses 630,000 Administrative expenses 180,000 70,000 $110,000 Total 2,835,000 1,575,000 1,260,000 Management is considering the following independent alternatives for 2008 1. Increase the unit selling price to $52.50 with no change in costs , expenses and sales volume 2. Change in compensation of salespersons from fixed annual salaries totalling $300,000 to total salaries of $75,000 plus 5% commission on net sales 3. Purchase new high tech factory that will change the proportion between variable and fixed cost of goods sold to 50:50 Required a) Calculate the break-even point for the year 2007 b) Calculate the break-even point under each alternative course of action above. PDL Accounting & Business Consultatncy P/L Statement of Financial Position as at 30 June CURRENT ASSET Bank 6.1 33.5 41 A/R .8 210.2 Inventory at Cost .8 Total Current Asset 528.1 574.3 622 NON-CURRENT ASSET Fixtures & Fittings At Costs 107..4 Less Accum Depn -37.4 -64.4 -97.2 FreeHold land & Bldg At Costs 351.2 451.2 451.2 Less Accum Depn - Total Non-Current Assets 356.6 445.8 439.4 TOTAL ASSETS 884.7 1020.1 1061.4 TOTAL LIABILITIES & EQUITY 884.7 1020.1 1061.4 TOTAL LIABILITIES & EQUITY 884.7 1020.1 1061.4 PDL Accounting & Business Consultatncy P/L OTHER INFORMATION 1. THE Company employed 14 staff in 2012 and 18 staff 2012 2. All sales and purchases are made on credit 3. The market price of the shares of the company at the end of each year was $2.50 and 3.50, respectively 4. The issue of equity shares during the year ended 30 June 2013 occurred at the beginning of the year week 7 Sales 320000 Contribution 40% Fixed Cost ($) 80,000 Units Sold(#) per unit Contribution 0 Break Even ( no of units)

Paper For Above instruction

The assignment encompasses multiple aspects of financial accounting, analysis, and management strategies relevant to business operations and decision-making. It involves adjusting trial balances, preparing financial statements, analyzing business performance through ratios, evaluating internal controls, understanding depreciation, recording equity transactions, and conducting cost-volume-profit (CVP) analysis. This comprehensive approach requires integrating theoretical knowledge with practical application to evaluate financial health, internal controls, investment decisions, and operational efficiency of a business.

Question 1: Financial Adjustments, Income Statement, and Balance Sheet Preparation

Introduction

The first question challenges students to adjust an unrecorded trial balance with specific correcting entries, then prepare the financial statements accordingly. These adjustments include prepayments, accrued income, legal fees payable, inventory valuation, and deferred revenue recognition. Correct adjustments are critical to accurately representing the financial position and performance, aligning with accounting principles such as matching and revenue recognition.

Adjusted Trial Balance and Entries

The adjustments on June 30 include prepayment of rent for three months, interest income accrued, legal expenses estimated, stock valuation, and revenue recognition for services to be delivered over four months. These require journal entries such as debit and credit for prepaid expenses, accrued incomes, and unearned revenue.

Financial Statements Preparation

Post adjustments, the income statement reflects revenues earned and expenses incurred within the period, including legal fees, stock valuation, and accrued interest. The balance sheet now correctly shows assets such as inventory, receivables, accrued income, prepaid rent, and liabilities such as accrued expenses and unearned revenue.

Question 2: Business Analysis and Financial Ratios

Introduction

The second task involves analyzing Luke Incorporated's financial statements, focusing on liquidity and performance ratios to evaluate profitability, solvency, and operational efficiency. These ratios include current ratio, quick ratio, return on equity (ROE), return on assets (ROA), profit margin, and asset turnover.

Ratio Calculations and Evaluation

The liquidity ratios assess the company's ability to cover short-term obligations. Profitability ratios like ROE and ROA evaluate efficiency, while asset turnover indicates operational productivity. For example, current ratio = current assets/current liabilities, ROE = net income/shareholders' equity, illustrating the company's capacity to generate profits from shareholders' investments.

Conclusion and Recommendations

Based on the ratios, the company demonstrates growth, strong liquidity, and efficient asset utilization. However, the analysis considers industry benchmarks and trends to offer strategic advice, such as improving asset management or equity funding strategies.

Question 3: Internal Control Weaknesses and Depreciation Explanation

Part a: Internal Control Weakness Identification

The described situation highlights segregation of duties failure, inadequate oversight of sales processing, and lack of authority checks. James' ability to handle multiple sensitive functions—granting allowances, recording receipts, and forwarding documents—without proper oversight exposes the company to fraud risk.

Steps to Correct Control Weaknesses

Implement segregation of duties by assigning different personnel to handle cash receipts, recording transactions, and authorization of allowances. Establish reconciliation procedures whereby cash bank deposits are reviewed against remittance advices. Introduce periodic internal audits and direct oversight by management to detect discrepancies early.

Part b: Explanation of Depreciation and Asset Costing

Depreciation is an accounting method to allocate the cost of tangible assets over their useful lives, reflecting expense recognition and asset utilization rather than a cash reserve. Different methods—straight-line, reducing balance, and units of production—impact financial statements variably. Straight-line spreads costs evenly; reducing balance accelerates expense early; units of production allocates based on usage, impacting profit margins fluctuating with activity levels.

Depreciation Calculation and Schedule

For example, using straight-line depreciation: (Cost - Salvage value)/useful life = annual expense. Applying this method to the machine with a cost of $45,000, salvage value $3,000, and useful life of 5 years results in an annual depreciation of ($45,000 - $3,000)/5 = $8,400. This consistent expense affects profit margins and asset book value annually.

Question 4: Equity Transactions, Retained Earnings, and Investment Analysis

Part a: Equity Transactions Recording

Journal entries include recording share capital issued, dividends paid, share split, and transfers to reserves. For example, declaring dividends involves debiting retained earnings and crediting dividends payable. The share split requires adjusting the number of shares and par value without affecting total equity.

Changes in Retained Earnings and Equity Section

Retained earnings are adjusted for profit and dividends, reflecting retained profits not distributed. The equity section on the balance sheet consolidates share capital, reserves, and retained earnings, illustrating the financial position from owners’ perspective. Calculating the dividend payout ratio involves dividing dividends paid by net profit, providing insight into earnings distribution policy.

Part b: Funding Alternatives and Return on Equity

Calculations compare the return on equity under debt versus equity financing options, considering profits and cost of debt or dilution effect of issuing new shares. The higher return yields more value for shareholders, but other factors such as risk, control, and future funding needs should inform decision-making.

Question 5: Cost-Volume-Profit Analysis and Break-Even Point

Introduction

The CVP analysis assesses how sales volume, costs, and price influence profitability. It calculates the break-even point where total revenues equal total costs, guiding operational decisions.

Break-Even Calculation

Using the given data, the contribution margin per unit = selling price - variable cost per unit. The break-even point in units = total fixed costs / contribution margin per unit. For 2007, this provides the minimum sales required to avoid losses. Adjusting assumptions under each scenario showcases how changes in price or cost structure shift the break-even point.

Conclusion

The comprehensive analysis combines ratios, control assessments, depreciation understanding, equity valuation, and CVP insights, equipping management and investors with the necessary information to make informed financial decisions and strategic plans.

References

• Anthony, R. N., & Govindarajan, V. (2013). Management Control Systems. McGraw-Hill Education.
• Brigham, E. F., & Houston, J. F. (2020). Fundamentals of Financial Management. Cengage Learning.
• Gibson, C. H. (2013). Financial Reporting & Analysis. Cengage Learning.
• Horngren, C. T., Sundem, G. L., & Elliott, J. A. (2019). Introduction to Financial Accounting. Pearson.
• Lightson, J. (2018). Cost Accounting: A Managerial Emphasis. McGraw-Hill Education.
• Penman, S. H. (2012). Financial Statement Analysis and Security Valuation. McGraw-Hill Education.
• Stickney, C. P., Brown, P., & Wahlen, J. (2019). Financial Reporting, Financial Statement Analysis, and Valuation. Cengage Learning.
• Wiley, J. (2017). Principles of Managerial Finance. Wiley.
• Weil, R. L., & Schipper, K. (2013). Financial Accounting. Cengage Learning.
• Zwilling, M., & Bamber, L. S. (2014). Internal Controls and Risk Management. Routledge.