If you want to get customized help regarding any assignment from our experts, Please contact us @ www.assignmentconsultancy.com or mail us to support@assignmentconsultancy.com WE provide services for all the assignments such as Portfolio Management Assignment, Valuation Analysis, DCF Valuation, Discounted Cash Flow, Time value of money, capital formation, equity valuation, dividend discount model, cash flow analysis, valuation of the firm through free cash flow, bond valuation, techniques of project evaluation, like net present value and internal rate of return, Short rate model, Financial capital, Financial modeling, Financial Analysis, Financial Accounting, financial forecasting, understanding of company and its future

1. accountingassignment-150713115759-lva1-app6892 Page 1
Corporate Accounting (BBAC401)
Assignment (Group of Two)
(Total Marks 25) Due Date: Session 5.2
Problem# 1 (Marks 17)
ABC Tradingoperatesina verycompetitivefield.Tomaintainitsmarketposition,itpurchasedtwo
newmachinesforcash on1 January2012. It had previouslyrenteditsmachines.Machine A cost
$40,000 andMachine B cost $100,000. Each machine wasexpectedtohave auseful life of 10years,
and residual valueswere estimatedat$2000 for Machine A and $5000 for Machine B.
On 30 June 2013, ABC Tradingadoptedthe revaluationmodeltoaccountfor the classof machinery.
The fair valuesof Machine A and Machine B were determinedtobe $32 000 and $90 000
respectivelyonthatdate.The useful lifeandresidual valueof Machine A were reassessedto8 years
and $1500. The useful life andresidualvalue of Machine Bwere reassessedto8 yearsand $4000.
On 1st
January 2014, extensiverepairswerecarriedoutonMachine B for $66,000 cash.ABC Trading
expectedtheserepairstoextendMachine B’suseful life by3.5 yearsandit revisedMachine B’s
estimatedresidual valueto$9,450.
Owingtotechnological advances,ABCTradingdecidedtoreplace Machine A.Ittradedin Machine A
on 31st
March 2014 fornewMachine C, whichcost $64,000. A $28,000 trade-inwasallowedfor
Machine A, andthe balance of Machine C’s cost waspaidin cash.Transport and installationcostof
$950 were incurredinrespecttoMachine C. Machine C wasexpectedtohave a useful lifeof 8 years
and a residual value of $8,000.
ABC Tradingusesthe straight-linedepreciationmethodandrecordingdepreciationtothe nearest
dollar.The endof its reportingperiodis30 June.
On 30 June,2014 fair valueswere determinedtobe $140 000 and $65 000 forMachine B and C
respectively.
Required:
Prepare general journal entriesto record the above transactions and the depreciationjournal
entriesrequiredat the endof each reportingperiod up to June 2014 (Narrations are not required
but show all workings)

2. accountingassignment-150713115759-lva1-app6892 Page 2
Problem# 2 (Marks 4+4=8)
a) ABC Ltd has incurredexpenditure,the treatmentof whichisnotprescribedbyanyexisting
accountingstandard.The board of directors has requestedthe financial accountanttorecordthe
expenditure asanassetso as not to impactthe currentyear’sprofit.The accountant isconcerned
withthe requestandrequiresyourassistance indetermininganaccountingpolicyforthis
expenditure.
Required:
Provide the accountantwithtwoaccountingpoliciesortreatmentsthatthe companycouldadoptto
account forthis expenditure. Alsowhatassistance doesAASBprovide tohelpthe accountantchoose
betweenthe policiesprovidedinthe above case.
b) BlackBoats buildsocean-goingyachtswhichgenerallytake upto3 yearsto constructand are
worth$50 millioneach.The companynormallytakesoutaloanto finance the initial construction
phase foreach yacht. Interestonthese loanshasbeentreatedasanexpense with$750 000 written
off overthe last 5 years.In the current yearended30 June 2012, the companychangedits
accountingpolicywithrespecttointerestandnow capitalisesthe interestagainstthe costof each
yacht as allowedbyAASB 123 BorrowingCosts.Amountsof $40,000 and $22,000 were capitalised
againsttwoyachts on whichconstructionstartedthisyearbutno adjustmentshave beenmade for
yachts underconstructionatthe beginningof the year.The new accountingpolicyandits impact
have beendisclosedinthe notestothe financial statementsforthe yearended30 June 2012.
Required:
Criticallyevaluate the company’sadoptionof the new accountingpolicywithrespecttothe
requirementsof AASB108.
Source:
 Leo, K., Hoggett, J., Sweeting, J. & Radford, J. (2008) Company Accounting in Australia, 8th
Edition, Wiley and Sons, Brisbane
AssignmentMarking Criteria
The followingassignmentcriteriaare designedtogive the studentaguide asto what
markersare lookingforinthe assignment:
Question#1:
Evidence of analytical skillsof identifying,
calculating,presentingand organizingdata
inthe journal
17 All data are presented&calculated
successfullyinthe Journal asperrequiredby
GAAP.
15 Most data are presented&calculated
successfullyinthe Journal asperrequiredby
GAAP.
13 Most data are presented&calculated
successfullyinthe Journal asperrequiredby
GAAP.

3. accountingassignment-150713115759-lva1-app6892 Page 3
10 Some data are presented&calculated
successfullyinthe Journal asperrequiredby
GAAP.
8 Few data are presented&calculated
successfullyinthe Journal asperrequiredby
GAAP
6 Veryfew dataare presented&calculated
successfullyinthe Journal asperrequiredby
GAAP
4 Veryfew dataare presented&calculated
unsuccessfullyinthe Journal asperrequired
by GAAP.
0.0 No attemptwasmade to present&
calculatedsuccessfullyinthe Journal asper
requiredbyGAAP.
Problem2: RequirementsI& II are worth 4 marks each
Requirementsa & b
Applyanalytical skillsof initiatingand
conductingresearch;thinking;identifying
and managinginformation and
presentation.
4.0 Thisassessmentshowsagoodunderstanding
of the materialsresearchedanddisplays
excellence inwritingstyle andpresentation
3.0 Thisassessmentshowssome evidence of
understandingthe materialsresearchedand
adequatelypresented
2.0 Thisassessmentshowssome evidence of
understandingthe materialsresearchedandhas
some problemswithpresentationstyle
1.0 Little evidence of understandingandmajor
problemsin presentationstyle
0.0 No evidenceof anyresearchof
understandingthe concepts.