Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

Problem: 1 Conceptual Framework

One of the well-known soccer clubs in Australia, Sydney, has made a decision to include its players on the club’s statement of financial position as assets. These players are signed to the club every 3 years and are paid large amounts of money by the club each year under various contracts. The club also insists on a substantial transfer fee being paid if a player wishes to go to another club while under contract.

Required:

Discuss whether the Sydney club is justified in its action of treating players as assets with reference to relevant paragraphs of AASB Framework

Problem: 2 

On 1 July 2006, Goela Ltd was registered and offered 1 000 000 ordinary shares to the public at an issue price of $1.70, payable as follows:
50c on application (due 31 August)
70c on allotment (due 30 September)
Balance on final call

The issue was underwritten at a commission of $5 000, with a maximum uptake of 200 000 shares. During the financial year the following events occurred:

• By 31 August 2006, applications had been received for 1 000 000 ordinary shares of which applicants for 200 000 shares forwarded the full $1.70 per share, the remainder paying only the application money.

• At a directors' meeting on 1 September 2006, as enough shares had been applied for, the full 1 000 000 shares were issued, with excess monies going to allotment and application.

• By 30 September 2006 all outstanding monies has been received. Other share issue costs amounting to $7000 were also paid on 30 September 2006 along with the underpreparer’s commission.

• As the company had done very well in its first six months, on the 3rd of January 2007 the directors declared and paid an interim dividend of 5cents per share.

• The final call was made on 1 March 2007 with money due by 31 March 2007. All money was received on the due date except for the holder of 20 000 shares who failed to meet the final call. On 7 April 2007, as provided for in the constitution, the directors decided to forfeit these shares. They were reissued, on 15 April 2007, as paid to $1.70 for $1.50 cash. The balance of the Forfeited Shares account was returned to the former shareholder on 16 April 2007.

• On the 30th of June 2007, the company directors declared a final dividend of 10c per share, in line with the company’s constitution this does not need to be confirmed at the AGM by the shareholders of the company.

Required:

Prepare general journal entries to record the above data for Goela Ltd

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M91589

Have any Question? 


Related Questions in Financial Accounting

Community budget analysis - government homework helpyou are

Community Budget Analysis - Government Homework Help You are the City Administrator for your community. You received a letter from a community member demanding to know why their tax dollars are being used by the city for ...

Time value of money practical applications in business and

Time Value of Money, Practical Applications in Business and Personal Decisions If you have put money in a savings account, made monthly auto or mortgage payments, or paid down your student loan ahead of time you have inh ...

Assignment reorganizations and consolidated tax

Assignment: Reorganizations and Consolidated Tax Returns Suppose you are a CPA, and you have a corporate client that has been operating for several years. The company is considering expansion through reorganizations. The ...

Research the major risks for businesses that indulge in

Research the major risks for businesses that indulge in commercial applications of social networking. Also, review the readings on page 311 of your textbook about how organizations can respond to social networking proble ...

The market environment heavily influences corporate

The market environment heavily influences corporate decision-making ability. Identify the differences in executive decisions concerning pricing, product design, and advertising between a company in a competitive market a ...

Assignmentsplit-offparentco sells street vending carts and

Assignment Split-Off ParentCo sells street vending carts and has been in business for 10 years. The subsidiary, SubCo, has been in the business of selling refrigerated vending carts for 8 years. You are a 50% partner of ...

Your project is halfway complete and your boss wants more

Your project is halfway complete and your boss wants more data to ensure the project will complete on schedule. You have been tracking EV, SPI and CPI and feel confident the project is on schedule. Your boss's gut feelin ...

John rogers has been hired by a condominium association to

John Rogers has been hired by a condominium association to take over its management. The previous management company had written the contract so that it would be paid a percentage of the unit owner’s monthly common area ...

Assignmentdue to erratic sales of its sole product-a

Assignment Due to erratic sales of its sole product-a high-capacity battery for laptop computers-PEM, Inc., has been experiencing difficulty for some time. The company's contribution format income statement for the most ...

Accounting and financial management assignment-this

Accounting and Financial Management Assignment- This assignment is designed to give you an opportunity: apply management accounting concepts and finance frameworks...to increase the effectiveness of management decision m ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro