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nies agreed to form an joint operation to design specialised tools, which is called SmartTools making of high grade mining instruments It u making of high grade miningg instruments It nor

nies agreed to form an joint operation to design specialised tools, which is called SmartTools making of high grade mining instruments It u making of high grade miningg instruments It nor

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Department of Accounting International accounting course 1,800,000 and fair value of 2400,000, with an expected life of 10 years. The contributions of each company were as i unincorporated joint operation to design specialised tools, which is called SmartTools to be used in the making of high grade mining instruments. It was agreed that the Question one : on the 1.luly 2013, two companies agreed to form an relative joining operation would be: Company name Stafford Ltd Interest 20% Tutbury Ltd follow: Stafford Ltd provided piant to SmartTool with a carrying value of • Tutbury Ltd provided cash of 1600,000. Information from SmartTools financial statement as at 30 June, 2014 is as follows: 95,000 1200,000 (120,000) 1800,000 (200,000) 163,000 160,000 550,000 Cash Equipment Accumulated depreciation - equipment Plant Accumulated depreciation - plant Raw material Work in process Inventory Total assets 3648,000 100,000 248,000 740,000 Account payable Accruals expenses Bank loan 1088,000 2560,000 Total liabilities Net assets Cost of inventory 1990,000 Required: Prepare the necessary entries at the beginning and the end of financial year at the books of the two companies.
Transcribed Image Text:Department of Accounting International accounting course 1,800,000 and fair value of 2400,000, with an expected life of 10 years. The contributions of each company were as i unincorporated joint operation to design specialised tools, which is called SmartTools to be used in the making of high grade mining instruments. It was agreed that the Question one : on the 1.luly 2013, two companies agreed to form an relative joining operation would be: Company name Stafford Ltd Interest 20% Tutbury Ltd follow: Stafford Ltd provided piant to SmartTool with a carrying value of • Tutbury Ltd provided cash of 1600,000. Information from SmartTools financial statement as at 30 June, 2014 is as follows: 95,000 1200,000 (120,000) 1800,000 (200,000) 163,000 160,000 550,000 Cash Equipment Accumulated depreciation - equipment Plant Accumulated depreciation - plant Raw material Work in process Inventory Total assets 3648,000 100,000 248,000 740,000 Account payable Accruals expenses Bank loan 1088,000 2560,000 Total liabilities Net assets Cost of inventory 1990,000 Required: Prepare the necessary entries at the beginning and the end of financial year at the books of the two companies.
Date Stafford Ltd Tutbery 1/07/2013 30/06/2014 30/06/2014 For accumulated depreciation
Transcribed Image Text:Date Stafford Ltd Tutbery 1/07/2013 30/06/2014 30/06/2014 For accumulated depreciation
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