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

Assignmentan economist was interested in modeling the

Assignment An economist was interested in modeling the relationship among annual income, level of education, and work experience. The level of education is the number of years of education beyond eighth grade, so 1 repre ...

Assignmenti a comparing three depreciation methods obj

Assignment I. A Comparing three depreciation methods ObJ. 2 Waldum Company purchased packaging equipment on January 5, 2012, for $135,000. The equipment was expected to have a useful life of three years, or 18,000 operat ...

Assignmentbullpreparationfor this problem you will need to

Assignment • Preparation For this problem, you will need to select two publicly traded companies. For comparison purposes, the two companies should be competitors within the same industry. Once you have selected two publ ...

Assignment exxon versus chevronaccording to the textbook

Assignment: Exxon versus Chevron According to the textbook, the income statement measures the success of a company's operations for a given period. The income statement is important to investors and creditors, because it ...

Bulllocate 1-2 articles from a news source that discusses

• Locate 1-2 articles from a news source that discusses the Federal Intelligence Surveillance Court (FISA Court) and write a 1-2 page paper that answers the following questions: 1. How and why was this court created? 2. ...

Cnsider the following optimization problemmax x1

Consider the following optimization problem: Max: X1 + X2 Subject to: -4 X1 + 4 X2 -8 X1 + 10 X2 >= 15 X1, X2 > 0 Part a: What is the optimal solution to the problem? Part b: Now suppose that X1 and X2 must be integers. ...

Assignmentscenarioyou are a first year staff person working

Assignment Scenario You are a first year staff person working with a multidiscipline team to report on a potential company your firm is considering to invest in. The president of your company will review your team's writ ...

Assignmentintroductionannual report analysis projectis

Assignment INTRODUCTION Annual Report Analysis Projectis designed to get you familiar with a real company's financial statements and disclosures. The purpose of the project is for student to be able to identify the discl ...

Assignmenta manufacturing company is thinking of launching

Assignment A manufacturing company is thinking of launching a new product. The company expects to sell $950,000 of the new product in the first year and $1,500,000 each year thereafter. Direct costs including labor and m ...

Application calculating variances and analyzing the

Application: Calculating Variances and Analyzing the Results While many organizational costs can be planned for, the actual results may vary from the initial projections. Assessing how these variances impact the bottom l ...

  • 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