Financial Accounting Essay

Submitted By JohnnyYs
Words: 578
Pages: 3

PART ONE Proforma

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SPECIAL INSTRUCTIONS:

* Part 1 must be completed and submitted on this proforma. * Please ensure that you understand the University rules on plagiarism – it must be your own work. * Include your answer in sections provided (see headings in following sections) but include WORKINGS on the LAST PAGE. * You can create more lines on the journal entry tables etc. by placing the cursor at the and of a row and pressing return. * Insert your name and Student ID in the footer. * You are NOT to submit a hard copy (online submission only). * Upload into in the Part 1 Dropbox. * Due date: Monday 26 August 2013 before 11.59 pm.

Question 1

1. AASB 136 includes some external indicators of impairment of an asset. List three indicators of external impairment.

1. Adverse movements in market interest rates or other market rates of return.
2. Significant changes with an adverse effect on the entity include market, economic or legal environment in which the entity operates
3. An unexpected significant decline in the asset’s market value

Quest. 2(a) FURNITURE:
Journal entries for the year ended 30 June 2012
You are NOT required to record the purchase of the plant or furniture Date | Particulars | Dr | Cr | 2012 | Depreciation expense- furniture | 10,000 | | Jun 30 | Accumulated depreciation - furniture | | 10,000 | | | | | | Impairment loss-Furniture | 6,000 | | | Accumulated impairment losses-Furniture | | 6,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

Quest. 2(a) FURNITURE -
Journal entries for the year ended 30 June 2013 Date | Particulars | Dr | Cr | 2013 | Depreciation expense- furniture | 14,000 | | Jun 30 | Accumulated depreciation- furniture | | 14,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

Quest. 2(b) PLANT:
Journal entries for the year ended 30 June 2012 Date | Particulars | Dr | Cr | 2012 | Depreciation expense -plant | 30,000 | | Jun 30 | Accumulated depreciation- plant | | 30,000 | | | | | | Accumulated depreciation- plant | 30,000 | | | Plant | | 30,000 | | | | | | Plant | 22,000 | | | Revaluation surplus - plant | | 22,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

Quest. 2(b) PLANT:
Journal entries for the year ended 30 June 2013 Date | Particulars | Dr | Cr | 2013 | Depreciation expense -plant | 62,316 | | Jun 30 | Accumulated depreciation…