BUACC5932 CORPORATE ACCOUNTING
Major Assignment
Semester 2 2013
PART A
The trial balance for Commotion Ltd as at 30 June 2012 (before calculation of income tax) is as follows:
Note: this is the first year of operation of Commotion Ltd.
DR CR
$000 $000
Sales Revenue 1235
Cost of Sales 540
Interest revenue 19
Gain on Sale of Equipment 10
Admin and Selling Expenses 153
Auditor Fees 18
Bad Debts Expense 8
Depreciation Plant and Equipment 96
Doubtful Debts Expense 6
Interest Expense 21
Miscellaneous Expense 28
Rent Expense 17
Salaries 187
Proceeds from Insurance Claim 25
Accounts Receivable 118
Allowance for Doubtful Debts 6
Cash on Hand 5
Inventories 145
Deposits 130
Debentures in Ryco Ltd 220
Plant and Equipment 472
Accumulated Depreciation Plant and Equip. 96
Land 50
Accounts Payable 235
Bank Overdraft 13
Bank Loan 175
Share Capital 400
2214 2214
Additional information:
Included in auditor remuneration is $6,000 in fees for various management consulting services.
The gain on sale of plant and equipment amounted to $10,000. The carrying amount of the item sold was $77,000
Directors have declared a final dividend of 5 cents per share) at 30 June…