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

Select an organization corporate or nonprofit with which

Select an organization (corporate or nonprofit) with which you are somewhat familiar that uses both online and offline channels. Discuss two or three specific examples of how it is taking advantage of the Internet in gen ...

Assignemntprepare the 2015 federal tax return for mr herb

Assignemnt Prepare the 2015 Federal Tax Return for Mr. Herb Pu (SS# 576-11-0002) address 123 University Ave., Honolulu, HI 96833 With the following information: · Sold 100 shares of W Corp. for $6,250 on 7/1/15, Purchase ...

Assignmentable company issued 690000 of 7 percent first

Assignment Able Company issued $690,000 of 7 percent first mortgage bonds on January 1, 20X1, at 103. The bonds mature in 20 years and pay interest semiannually on January 1 and July 1. Prime Corporation purchased $460,0 ...

Assignmentyou have just been hired as a new management

Assignment You have just been hired as a new management trainee by XYZ Co, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little i ...

Assignment1500-1800 words assignment for paula hogpart 1as

Assignment 1500-1800 words assignment for Paula Hog Part 1 As EEC's corporate business financial analyst, you will need to have a clear understanding of the different types of costs (variable, fixed, and mixed) that the ...

What projects can restore the rights and dignity of people

What Projects can restore the rights and dignity of people and societies who may be, or are forced into motion due to social injustices, politics, economic pressures, climate change and war.

Prior to the financial meltdown that occurred around 2008

Prior to the financial meltdown that occurred around 2008, bond-rating agencies were accused of unethical behavior because they were paid by the organizations that they rated. Many of these companies would shop around fo ...

1 in reviewing a claim under the equal pay act do the

1. In reviewing a claim under the Equal Pay Act, do the courts require that the jobs in question be identical? 2. Why do health professionals view marketing in a different way than their counterparts in other industries? ...

Discussion sustainable income and ratio Discussion: Sustainable Income and Ratio Analysis

Discussion: Sustainable Income and Ratio Analysis • Describe sustainable income and the importance of sustainable income in the evaluation of the income statement. Choose at least two items or events that will affect sus ...

Explain and analyze the external factors on or of

Explain and analyze the external factors on or of international business (e.g., political, legal, economics, culture, etc.) and how these may impact business.

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen