FNSACC504 - Preparing Corporate Financial Reports: Share Issuance Task

This assignment solution for FNSACC504, 'Prepare Financial Reports for a Corporate Entity,' includes detailed answers to questions regarding general-purpose financial records, Wesfarmers Limited's financial sustainability plans, corporate governance, and financial statement analysis. It covers topics such as income statements, balance sheets, cash flow statements, equity capital, working capital, and share issuance. The solution also provides calculations and journal entries related to share issuance, along with explanations of key financial concepts. The largest shareholder of the Wesfarmers Limited is The Vanguard Group Inc by holding 2.48% of equity holding of company.

FNSACC504 - PREPARE
FINANCIAL REPORTS
FOR A CORPORATE
ENTITY

Table of Contents
Question 1...................................................................................................................................3
Question 2...................................................................................................................................3
Question 3...................................................................................................................................4
Question 4...................................................................................................................................4
Question 5...................................................................................................................................5
Question 6...................................................................................................................................5
Question 7...................................................................................................................................6
REFERENCES................................................................................................................................6

Question 1
General purpose financial records are the records like credit analysis and stock valuation.
These are the financial records that is issued for the investment purpose in the organisation.
Investment community and lenders are generally adopted these statements and records. The
entity that is coducted this reporting is known as the reporting entity. The main purpose is to
evaluate the investing option.
Question 2
a) The article is written on the Wesfarmers Limited on its diverse group plan to achieve the
financial sustainability. This article talk about the substantiality of the business operation in
context to the organisation. The product development and the ways services should be allocated
are a part of this article.
b) The financial implication is like every plan require strong support with the financial resources
of the organisation. The financial implication is about to analysis the financial resources of the
organisation and make plan to implement the same (Featherstone, 2018). Financial implication
directly influence over the business operation of Wesfarmers Limited that will further impact on
the short term and long term profitability of organisation.
c)

Question 3
The full name of the company is Wesfarmers Limited. The organisation is associated
with the conglomerate sector or industry. The company engaged selling blackwood, NZ Safety,
Greencap, Bullivants and such like products. The purpose of the corporate governance statement
in company's report is to provide an overview about the governance policy of the organisation
and the respective aim or objective behind the same. The audit statement purpose is to
communicate with the stakeholder about the authenticity of the financial records of the
organisation. The largest shareholder of the Wesfarmers Limited is The Vanguard Group Inc by
holding 2.48% of equity holding of company. The all its business houses such as NZ Safety is a
controlled entity of the company.
Question 4
a) The financial account in company financial statement is the income statement, balance sheet,
cash flow statement and such like accounts.
b) Each statement reflect about the financial position of the organisation and the profitability
entertain in against to deliver the business operations of company.
c) The net profit earning before tax of company is $2.1 billion.
d) In the current financial year company paid a dividend worth of $ .5 billion.
e) Total current assets of company $25.4 billion.
f) Total non current liability of company is $7.82 billion.
g) Total shareholder equity of company is $8.25 billion.
h) The total issues capital of company is $6 billion. This is belong to the equity capital of
company.
I) Micheal Chaney and Rob Scott are the people look after all different functional areas.
Question 5
The further product development planning of company require funds. This can be
approached in the form of bank finance. Crowd funding option is also available with the
company. General ledger can be the right integrated accounting statement that can be used by
company (Verma, 2018). The software project would allow the company to make profitable

outcome against the project selection. Also, the demand in market is also a key reason behind the
selection of the project.
Question 6
a) Equity capital is the capital raise out of the equity share issue by the company. Working
capital is the net value or the difference between the current asset of company and current
liability of organisation.
b) Right issue is a right of the shareholder against investing in the organisation. This is denoted
as a prior right of the shareholder in against to do the investment in the company.
c) The current share price of company is $.5.
d) 170000 shares will be issued by company.
e) The issue price will be $.125.
f) The number of investing option must be the key factors that could affect the price of shares.
g) The company will raise the $85000.
h)
Bank a/c Dr 42500
To share application 42500
Share application a/c dr 42500
To equity share capital 42500
Bank a/c Dr 42500
To share first call 42500
Share first call a/c DR 42500
To equity share capital 42500
Question 7
a) Total debt in present time = $1000 / 50%

= $2000.
b) Company wishes to raise= 1000 / 120%
= $833
c) Company actual receive is $1000
d) The company retaining= 1000 – 833
= $ 167
REFERENCES
Books and Journals
Featherstone, T., 2018. Rise of the active investor. Company Director. 34(3). pp.56-61.
Verma, A., 2018. The competitive dynamics of MNE market entry on host country incumbents:
word/action responses to Amazon’s retail entry into the Australian retail
sector (Doctoral dissertation, Auckland University of Technology).