206 Accounting: Business Reporting for Decision Making
5.19 LO8, 9
From the following account balances of Graduant as at 31 December 2016, prepare a balance
sheet in both the T-format and the narrative classified format. Note: You will need to determine the
balance of the retained earnings.Cash at bank
Accounts receivable (net)
Inventory
Other current assets
Land and buildings
Intangible assets
Other financial assets (term deposits)
Accounts payable
Borrowings
Provisions
Share capital
Retained earnings$ 12 000
56 000
88 000
16 000
359 000
275 000
78 500
25 000
200 000
56 000
500 000
?5.20 LO8
Solve for the missing financial numbers as they would appear on the balance sheet.
Current
assetsNon-
current
assetsTotal
assetsCurrent
liabilitiesNon-
current
liabilitiesTotal
liabilitiesShare
capitalRetained
earningsTotal
equity
$ 35 000
d.
159 000
j.
46 941$ 46 000
84 000
g.
24 000
m.$a.
e.
295 000
k.
129 127$b.
29 000
55 000
6 900
n.$ 28 000
f.
102 000
16 000
40 500$ 37 000
81 000
157 000
22 900
68 755$ 30 000
53 000
h.
l.
48 750$c.
7 000
16 000
2 200
o.$ 44 000
60 000
i.
17 000
60 3725.21 LO9
Identify whether the following assets would be classified as current or non-current as at the end of
the reporting period, justifying your classification decision.
a. Raw materials to use in the production of goods
b. Goodwill
c. Property, plant and equipment
d. GST refund due from the Australian Taxation Office
e. Bank deposits
f. Inventory of partly finished products that will take a further two years to manufacture5.22 LO9
Identify whether the following liabilities would be classified as current or non-current as at the end
of the reporting period, justifying your classification decision.
a. Accrued expenses
b. Bank loan with a clause in the contract that the loan was repayable on demand
c. Provision for employee long service leave
d. Trade payables
e. Term loan with 10 monthly repayments remaining
f. Gift cards that have not been redeemed5.23 LO5
Virgin Australia has been ranked amongst the top six airlines of global carriers when it comes to the
availability of frequent flyer reward seats based on the sixth annual Switchfly Reward Seat Availability
Survey, which attempts to book award redemptions on carriers. The survey looks at 280 paired city
flights, giving each airline a percentage for the time reward seats are successfully booked, then assigning
points up or down to show where the airlines have moved on the table since last year. Virgin’s Velocity
program, which has 3.5 million members, was ranked second with a score of 96.4 per cent, reflecting
the fact that 270 of 280 outbound and inbound date queries provided a minimum of one flight in each