Caso noresia

MACQUARIE UNIVERSITY

DEPARTMENT OF ACCOUNTING AND FINANCE

ACCG835 INTERNATIONAL ACCOUNTING

NORESIA LIMITED CASE STUDY
(Updated January 2008)

PREPARING AND ADJUSTING FINANCIAL STATEMENTS

PART A

1

Trial Balance as at 30 June 2002 for Noresia Limited Debit Accounts payable Accounts receivable Accumulated depreciation – buildings Accumulated depreciation – delivery trucks Bankoverdraft Buildings (at cost) Cost of goods sold Debentures (5yrs, interest 9% pa) Delivery trucks (at cost) Doubtful debt expense Energy expense Formation costs Future risk expense General reserve Land Legal Reserve Interest expense Insurance expense Insurance payable Inventory on hand (at cost) Investments (short term, at cost) Marketing expenses Office expenses Office salaries Paid up capitalProvision (Allowance) for doubtful debts Provision for future risks Retained profits 1/7/2001 Research and development expense Sales revenue Salespersons’ salaries Credit 45,820 62,240 16,450 5,130 10,000 85,600 338,570 40,000 18,330 7,780 2,420 4,000 1,800 9,000 20,000 5,000 3,000 3,000 560 112,250 3,570 10,000 9,610 27,430 100,000 5,590 1,800 11,860 9,520 504,480 36,570 ______ ______

755,690755,690 Adjustments to trial balance for additional information: ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ____________________________________________________________________________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________

2

Additional information: The following information relating to the year ended 30 June 2002 has not been incorporated in the trial balance: 1. Two months intereston debentures is owing to debenture holders - $600. 2. The marketing expense includes an amount of $2,000 which has been paid in advance and which relates to next year. 3. Depreciation is to be charged at 5% per annum on the cost of the buildings and 20% per annum on net book value (cost less accumulated depreciation) of delivery trucks. 4. Formation costs are to be written down by $2,000. 5.Final dividends of 10% on paid-up capital have been proposed by the directors. After the dividends have been approved by the shareholders at the annual general meeting on 30 September 2002, cheques will be mailed out to shareholders. The tax expense and tax payable for the year ended 30 June 2002 has been estimated at $14,260. Required: Noresia Limited is a relatively new company located in theRepublic of South Coconut, a country with strong links to Australia and an accounting system based on Australian accounting of the 1990s. Unlike Australia, South Coconut has not changed to international accounting standards. Noresia sells a range of fruit and herbal soft drinks. It develops a number of its own products and hence has an active research and development department. The accountant forNoresia has left the company at short notice. You have been called in to finalise the trial balance and prepare the financial statements for Noresia Limited. Specifically you have been asked to do the following: 1. Adjust the trial balance to reflect the additional information shown above. 2. Prepare a Profit and Loss Statement for Noresia Limited for the year ended 30 June 2002, and a RetainedProfits Statement as at 30 June 2002. In preparing the profit and loss statement you may like to use the following expense classifications: sales and marketing, administration, finance, other expenses. Also show gross profit, net profit before tax, and net profit after tax. You may assume that half of the insurance expense and energy expense relate to administration, and half to the marketing/sales...