David Jones Accounting Essay

1807 Words Mar 6th, 2015 8 Pages
Individual Assignment – David Jones Limited

1. (a) DJS is a public company that issues shares to the general public and is a separate legal entity. (b) The income statement shows tax being deducted directly from company profit. The equity section show contributed equity instead of owners or partners’ equity. Also retained earnings after dividends or allocation to another equity account.

2. (a) Net assets and total equity have the same dollar value of $775,704,000. (b) Equity is the residual interest in the assets of the entity after deducting all its liabilities.

3. The finanical statements include the assets, liabilites and results of its subsidiaries incorporated in Australia.

4. The interest bearing
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(b) Finished goods on hand or in transit are stated at the lower of cost and net realisable value with cost primarily being determined by using the retail inventory method. This method utilises the current selling prices of inventories and reduces prices to cost by the application of average department mark up ratios.

7. (a) DJS’s financial position shows $817,432,000 of property, plant and equipment (PPE). (b) The value of PPE is calcualated a cost less accumulated depreciation and impairmet losses. If parts of a property have different useful life, they are recognized as separate items of PPE. (c) 6 different classed of PPE carried by DJS include: o Land, building and integral plant o Leasehold imporvements o Plant and equipment o Computer equipment o Fixture and fittings and o Work in progress (d) Depreciation of $1,550,000 was recorded for computer equipment in 2012. (e) Total of $27,211,000 accumulated depreciation has been recorded for computer since it was acquired. (f) Depreciation is used for all non-current tangible assets with limited useful live whereas amortization represents all non-physical non-current asset such as intangible and for leased assets.

8. (a) DJS has $16,389,000 of receivables. (b) (i) $11,266,000 is owed by suppliers. (ii) $3,548,000 of doubful

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