Corporate and Financial Accounting Tutorial Questions Assignment 1

This document provides a comprehensive solution to a corporate and financial accounting assignment. It covers key topics such as the advantages of listed companies in stock exchanges, journal entries related to dividend payments, retained profit general accounts, journal entries of share issues and interest payments, ledger entries, the importance and role of notes in financial statements, and various journal entries. The solution includes detailed explanations, journal entries with debit and credit entries, and ledger accounts. The assignment addresses the application of accounting principles and techniques to real-world financial scenarios, offering insights into financial reporting and analysis.

Corporate and Financial
Accounting

Contents
WEEK 1......................................................................................................................................................3
Advantages of listed companies in stock exchanges................................................................................3
WEEK 2......................................................................................................................................................3
Journal entries of dividend payments......................................................................................................3
Retained profit general accounts..............................................................................................................4
WEEK 3......................................................................................................................................................4
(a) Journal entries of issue of shares........................................................................................................4
(b) Journal entries of payments of interest...............................................................................................4
(c) Ledger entries.....................................................................................................................................4
WEEK 4......................................................................................................................................................5
Importance and role of notes in financial statements...............................................................................5
WEEK 5......................................................................................................................................................6
Journal entries..........................................................................................................................................6
REFERENCES............................................................................................................................................7

WEEK 1
Advantages of listed companies in stock exchanges
By selling more equity to the shareholders, almost all of the businesses listed on the stock
market will generate more accessible investment and wealth management. They will be using the
money they collect to expand their companies and to pay for operational costs via the issue of
shares. There are several benefits of a corporation being listed on the Australian Stock Exchange
(ASX). Listing will: enable the company to increase profits from a broader market to include:-
expand established market-acquire or set up new businesses-acquire fund transactions. There are
discussed various benefits that get by the companies when listed into Australian stock exchange
such as:
 Require current shareholders to appreciate the importance of their investments and sell
their securities in the marketplace, enabling greater stability and investor base expansion
 To help to increase the number and complexity of protection stakeholders
 Include de facto a business evaluation of the product by third parties
 Increase the public reputation and competitive situation of the company and boost the
shareholder name of the organization
 Make it easier for management team to understand importance through exposure to
existing or new workers sharing / option scheme.
 Growing a research performance to retail and qualified shareholders
 Allow corporations to be mentioned on the one of the 20 largest stock markets (world in
terms of market capital structure) with a credibility public image and
 Drawing on foreign investors
 Include a realistic escape route for major corporations, early-stage investors as well as
other current shareholders.
 Fees and expenses related to the IPO and a catalog
 Decreased company power by nation's group partners and area created
 Increased managerial and represent the company
 Standards for transparency and coverage, and enhanced media attention
WEEK 2
Journal entries of dividend payments
Date Particular Debit Credit
7 April.
20X1
Interim Dividend a/c
To Bank a/c
(Being interim dividend paid
by the directors)
100,000
100,000

14
September,
20X1
Final Dividend a/c
To Bank a/c
(Being final dividend paid to
shareholders)
250,000
250,000
Retained profit general accounts
Retained earnings at the beginning 000
Add - net income 500,000
500,000
Less: Dividends 350,000
Retained earnings at the ending 150,000
WEEK 3
(a) Journal entries of issue of shares
Date Particulars Debit Credit
30 June,
20X1
Cash a/c
To Debenture a/c
(Being debenture share by the
company)
6,000,000
6,000,000
Working notes:
Issue of shares = 2000*3000 = 6,000,000
(b) Journal entries of payments of interest
Date Particular Debit Credit
30 June, 20X1 Interest a/c
To Bank a/c
(Being payment of interest on issue of
debentures in 6%)
720,000
720,000
30 June, 20X1 Debenture a/c
To cash a/c
(Being repayment of principal amount
of debenture in cash)
6,000,000
6,000,000
(c) Ledger entries

Interest a/c
Date Particular Amount Date Particular Amount
To bank a/c 720,000
Cash a/c
Date Particular Amount Date Particular Amount
30 June,
20X1
To Debenture a/c 6,000,00 By Debenture a/c 6,000,00
Debenture a/c
Date Particular Amount Date Particular Amount
30 June,
20X1
To cash 6,000,00 30 June,
20X1
By cash 6,000,00
Bank a/c
Date Particular Amount Date Particular Amount
30 June,
20X1
By interest
a/c
720,000
WEEK 4
Importance and role of notes in financial statements
The main aim of the financial report notes is therefore to explain the accounting
processes used with a corporation, and to reveal details that happened before and subsequently
after the going to make money has been closed. Reporting components of financial statements
and accountants help to clarify financial reporting. It accounts for discrepancies and inaccuracies
seen in documents. It includes extra information about how an entity came up with a number,
reporting specifics and detailed information left out of a major financial statement. It also
contains important information regarding financial myths and legends used to monitor and record
money transfers.
Footnotes to the financial reports relate to supplementary material that clarifies things
how well an organization achieves estimates for the financial statements. These also help to
clarify any anomalies or perceived differences in account methods from year to year. It acts as a
complement, offering clarification to those who need it without the details being inserted in the

original comment's head. The notes also include economic position which is not coated by the
financial reports (Yermack, 2017). They clarify the balance sheet anomalies, if any. The
statements also contain the Income Statement and financial statement. The reports are produced
individually, since otherwise they would've been very lengthy and blinded the financial reports
results. Financial statements include significant aspects of the company's financial position not
recorded in the regular income statement, such as financial reporting descriptions or capital
expenditure definitions. The auditor's report introduces an impartial view on the corporation's
consolidated financial statements. This data is produced in that it guarantees that perhaps the
income accounts of the organization are accurate and compiled in compliance with commonly
revenue is recognized.
WEEK 5
Journal entries
Date Particular Debit Credit
30 June,
20X1
Plant a/c
Land a/c
Vehicle a/c
Accounts receivable a/c
Good will a/c
To accounts payable
To Cost acquisition
50000
80000
40000
10000
36000 16000
200000
30 June,
20X1
Plant a/c
Land a/c
Vehicle a/c
Accounts receivable a/c
To accounts payable
To Cost acquisition
To other liabilities
50000
80000
40000
10000 16000
144000
2000

REFERENCES
Books and Journal
Mokhtar, N., Jusoh, R. and Zulkifli, N., 2016. Corporate characteristics and environmental
management accounting (EMA) implementation: evidence from Malaysian public listed
companies (PLCs). Journal of Cleaner Production. 136. pp.111-122.
Davidson, R. H., Dey, A. and Smith, A. J., 2019. CEO materialism and corporate social
responsibility. The Accounting Review. 94(1). pp.101-126.
Yermack, D., 2017. Corporate governance and blockchains. Review of Finance, 21(1), pp.7-31.
Appelbaum, D., Kogan, A., Vasarhelyi, M. and Yan, Z., 2017. Impact of business analytics and
enterprise systems on managerial accounting. International Journal of Accounting
Information Systems. 25. pp.29-44.
Giannakopoulou, E. N., Thalassinos, E. I. and Stamatopoulos, T. V., 2016. Corporate governance
in shipping: An overview. Maritime Policy & Management 43(1). pp.19-38.
Chen, J., Cumming, D., Hou, W. and Lee, E., 2016. Does the external monitoring effect of
financial analysts deter corporate fraud in China?. Journal of Business Ethics. 134(4).
pp.727-742.