Assignment
QUESTION 1
Jackaroo Ltd was incorporated on 1 July 2014. On 5 August 2014, the company issued a prospectus offering 250,000 ordinary shares at an issue price of $10, payable on the following terms;
• $3 on application
• $3 on allotment
• $2 on call one
• $2 on call two.
Call one was made one month after the date of allotment, and call two was made three months after the date of allotment.
When applications closed on 30 August 2014, applications had been received for 300,000 shares, including one applicant for 25,000 shares who had paid in full.
On 12 September 2014, the directors allotted the shares as follows;
1. 25,000 shares were allotted to the applicant who paid for the shares in full.
2. Applicants for 35,000 shares were refunded their application money in full.
3. The remaining applicants were allotted the remaining shares. The excess application money on these shares was to be offset against the amount payable on allotment.
All allotment money was received by 25 September 2014.
The two calls were made on the dates stated in the prospectus, and a month after, each call monies were received, except that the holders of 15,000 shares did not pay either call. In addition a holder of another 10,000 shares did not pay the second call.
Required:
Prepare journal entries in general journal form to record the above transactions up to the end of October 2014 (show workings).
QUESTION 2
The listing of the ledger accounts (unadjusted) of Mooney Manufacturing Limited at 30 June 2013 is presented below. All ledger balances are normal balances.
|
Account Name
|
Balance ($)
|
|
Sales
|
4,500,000
|
|
Prepaid insurance
|
18,000
|
|
Factory Rent
|
96,000
|
|
Office salaries
|
1,125,000
|
|
Direct Labour
|
650,000
|
|
Raw Materials Purchases
|
1,030,000
|
|
Factory Supplies
|
50,000
|
|
Finished Goods-1 July 2012
|
165,000
|
|
Work in Process-1 July 2012
|
25,000
|
|
Raw Materials1- July 2012
|
35,000
|
|
Plant energy costs
|
140,000
|
|
Indirect Labour
|
85,000
|
|
Selling & Distribution Expenses
|
115,000
|
|
Interest and other operating expenses
|
135,000
|
|
Machinery and equipment
|
250,000
|
|
Accumulated depreciation-Machinery and equipment
|
100,000
|
The following additional information is available: 1. The inventories as of 30 June 2013 were:
|
Raw materials
|
$65,000
|
|
Work in process
|
$82,000
|
|
Finished goods
|
$15,000
|
2. On 1 March 2013 the company paid $18,000 for 12 months insurance cover on the factory. Prepaid insurance was debited at the time of the transaction.
3. Office salaries of $5,000 are unpaid at 30 June 2013.
4. The Machinery and Equipment account comprises $150,000 of factory machinery and the balance office equipment. All machinery and equipment is depreciated using the straight line method over a 5 year life. There were no machinery and equipment acquisitions or disposals during 2012-2013.
Required:
(a) Prepare a cost of goods manufactured statement for the year ended 30 June 2013.
(b) Prepare an income statement for the year ended 30 June 2013.