The following trial balance relates to Quincy as at 30 September 2012:
The following notes are relevant:
(i) On 1 October 2011, Quincy sold one of its products for $10 million (included in revenue in the trial balance). As part of the sale agreement, Quincy is committed to the ongoing servicing of this product until 30 September 2014 (i.e. three years from the date of sale). The value of this service has been included in the selling price of $10 million. The estimated cost to Quincy of the servicing is $600,000 per annum and Quincy’s normal gross profit margin on this type of servicing is 25%. Ignore discounting.
(ii) Quincy issued a $25 million 6% loan note on 1 October 2011. Issue costs were $1 million and these have been charged to administrative expenses. The loan will be redeemed on 30 September 2014 at a premium which gives an effective interest rate on the loan of 8%.
(iii) Quincy paid an equity dividend of 8 cents per share during the year ended 30 September 2012.
(iv) Non-current assets:
Quincy had been carrying land and buildings at depreciated cost, but due to a recent rise in property prices, it decided to revalue its property on 1 October 2011 to market value. An independent valuer confirmed the value of the property at $60 million (land element $12 million) as at that date and the directors accepted this valuation. The property had a remaining life of 16 years at the date of its revaluation. Quincy will make a transfer from the revaluation reserve to retained earnings in respect of the realisation of the revaluation reserve. Ignore deferred tax on the revaluation.
Plant and equipment is depreciated at 15% per annum using the reducing balance method.
No depreciation has yet been charged on any non-current asset for the year ended 30 September 2012. All depreciation is charged to cost of sales.
(v) The investments had a fair value of $15·7 million as at 30 September 2012. There were no acquisitions or disposals of these investments during the year ended 30 September 2012.
(vi) The balance on current tax represents the under/over provision of the tax liability for the year ended 30 September 2011. A provision for income tax for the year ended 30 September 2012 of $7·4 million is required. At 30 September 2012, Quincy had taxable temporary differences of $5 million, requiring a provision for deferred tax. Any deferred tax adjustment should be reported in the income statement. The income tax rate of Quincy is 20%.
Required:
(a) Prepare the statement of comprehensive income for Quincy for the year ended 30 September 2012.
(b) Prepare the statement of changes in equity for Quincy for the year ended 30 September 2012.
(c) Prepare the statement of financial position for Quincy as at 30 September 2012. Notes to the financial statements are not required.
The following mark allocation is provided as guidance for this question:
(a) 11 marks
(b) 4 marks
(c) 10 marks
Property at cost (useful life 15 years) $45 million
Accumulated depreciation $6 million
On 1 April 2014, Dune decided to sell the property. The property is being marketed by a property agent at a price of $42 million, which was considered a reasonably achievable price at that date. The expected costs to sell have been agreed at $1 million. Recent market transactions suggest that actual selling prices achieved for this type of property in the current market conditions are 10% less than the price at which they are marketed.At 30 September 2014 the property has not been sold.
At what amount should the property be reported in Dune’s statement of financial position as at 30 September 2014?
A、$36 million
B、$37·5 million
C、$36·8 million
D、$42 million
an immediate payment of $4 per share on 1 October 2010; and
a further amount deferred until 1 October 2011 of $5·4 million.
The immediate payment has been recorded in Paladin’s financial statements, but the deferred payment has not been recorded. Paladin’s cost of capital is 8% per annum.
On 1 February 2011, Paladin also acquired 25% of the equity shares of Augusta paying $10 million in cash. The summarised statements of financial position of the three companies at 30 September 2011 are:
The following information is relevant:
(i) Paladin’s policy is to value the non-controlling interest at fair value at the date of acquisition. For this purpose the directors of Paladin considered a share price for Saracen of $3·50 per share to be appropriate.
(ii) At the date of acquisition, the fair values of Saracen’s property, plant and equipment was equal to its carrying amount with the exception of Saracen’s plant which had a fair value of $4 million above its carrying amount. At that date the plant had a remaining life of four years. Saracen uses straight-line depreciation for plant assuming a nil residual value. Also at the date of acquisition, Paladin valued Saracen’s customer relationships as a customer base intangible asset at fair value of $3 million. Saracen has not accounted for this asset. Trading relationships with Saracen’s customers last on average for six years.
(iii) At 30 September 2011, Saracen’s inventory included goods bought from Paladin (at cost to Saracen) of $2·6 million. Paladin had marked up these goods by 30% on cost. Paladin’s agreed current account balance owed by Saracen at 30 September 2011 was $1·3 million.
(iv) Impairment tests were carried out on 30 September 2011 which concluded that consolidated goodwill was not impaired, but, due to disappointing earnings, the value of the investment in Augusta was impaired by $2·5 million.
(v) Assume all profits accrue evenly through the year.
Required:
Prepare the consolidated statement of financial position for Paladin as at 30 September 2011.
Bad news for bankers
There was great uncertainty today about the future for employees of Lancet Bank following publication of (29) ...company's yearly financial results. Losses reached £8.5m, (30) ... this year's financial figures the worst (31) ... almost 20 years. Lancet Bank, (32) .,. was founded over a century ago (33) ...Jamie McCIoud, currently employs more (34) ... 5,000 staff at 200 branches, mainly in Wales and the north of England. Many people believe stories that the bank is planning to close most of (35) ... branches in Wales. However, the bank has refused to comment on (36) ... rumours. Gary Tooley, a spokesman for Lancet, warned that (37) ... some redundancies would be unavoidable, he could give no further details (38) ... September at the earliest. Union officials are currently involved. (39) ... talks with management and are trying to find an acceptable solution for (40) ... parties.
(29)
A.the
B.a
C.any
Questions 36 to 45 are based on the following passage.
One in six. Believe it or not, that’s the number of Americans who struggle with hunger.
To make tomorrow a little better, Feeding America, the nation’s largest 36 hunger-
relief organization, has chosen September as Hunger Action Month. As part of its 30 Ways in
30 Days program, it’s asking 37 across the country to help the more than 200 food
banks and 61,000 agencies in its network provide low-income individuals and families with
the fuel they need to 38 .
It’s the kind of work that’s done every day at St. Andrew’s Episcopal Church in San
Antonio. People who 39 at its front door on the first and third Thursdays of each
month aren’t looking for God – they’re there for something to eat. St. Andrew’s runs a
food pantry (食品室)that 40 the city and several of the 41 towns. Janet Drane
is its manager.
In the wake of the 42 , the number of families in need of food assistance began to
grow. It is 43 that 49 million Americans are unsure of where they will find their next
meal. What’s most surprising is that 36% of them live in 44 where at least one adult
is working. “It used to be that one job was all you needed,” says St. Andrew’s Drane. “
The people we see now have three or four part-time jobs and they’re still right on the
edge 45 .” 注意:此部分试题请在答题卡 2 上作答。
A.accumulate I.households
B.circling J.recession
C.communities K.reported
D.competition L.reviewed
E.domestic M.serves
F.financially N.surrounding
G.formally O.survive
H.gather
A、Should not be recorded in the accounting records until October
B、Causes a decrease in assets and in owners' equity in October when the bill is paid
C、Should be recorded as an expense of September, regardless of the payment date
D、Is recorded as a liability in September, but is not considered an expense until paid.