# Accounting Assignment.docx - Assignment of Accounting...

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Assignment of Accounting theory and Current issues 1 Assignment of Accounting By [Name of Student] [Name of Instructor] [University] [Name of Course] [Date] Exam of Behavioral Finance 2 “WEEK 6” PART A Calculation of the leave-benefit total amount Total Years of S-L Current Salary Total Employees Net Salary Rate of Inflation Total years to Maturity Expected Salary Entitlement Three 1,200,000 dollars Twelve 14,400,000 dollars One percent Seven 15,438,749 dollars 1,157,906 dollars One 8 lac dollars Ten 8,000,000 dollars One percent Nine 8,749,482 dollars 218,737 dollars Calculation of accumulated (total) long-service leaves benefit as on June 30, 2020 Total Years of S-L Total years to Maturity Entitlement Corporate Rate of Bond Present Value Possibility or Probability Long- service leaf benefit Three Seven 1,157,906 dollars 0.06 770,074 dollars 40% or 0.4 308,029 dollars One Nine 218,737 dollars 0.08 109,423 dollars 20% or 0.2 21,885 dollars The formula used to calculate the present value: Exam of Behavioral Finance 3 The amount of total long-service leave benefit is 329,914 dollars. PART B 329,914 dollars is the amount that should be recorded as the provision for L-S (long-service) leave. PART C Debit: Cost of Employee Benefits A/c \$133,969 Credit: Long-service leave provision \$133,969 (To record the provision for long-service) PART D The long-term benefits, which are also called benefits related to annual leaves, are needed to be discounted as per AASB 119 (revised edition). The discount on such benefits allows achieving the levels of salary that are expected in the coming years when it is projected that the leaves will be taken. “WEEK 7” PART A The method used to calculate the gross profit is “percentage of completion method” Big Construction Company Statement of Income Exam of Behavioral Finance 4 For the year ended December 2021 2019 2020 2021 Total Revenue Recognized \$3.125 million \$5 million \$1.875 million Total cost incurred \$2.5 million \$4 million \$1.5 million Net Gross Profit \$0.625 million \$1 million \$0.375 million For the recognition of revenue, the following formula is used: Sales Recognized = Cost of goods completed and delivered / total COG to be delivered x Total revenue that is expected Calculation of Recognized Revenue The year 2019 = 2.5 million dollars / 8 million dollars x 10 million dollars = 0.3125 million dollars x 10 million dollars = 3.125 million dollars The year 2020 = 4 million dollars / 8 million dollars x 10 million dollars = 0.5 million dollars x 10 million dollars = 5 million dollars The year 2021 = 1.5 million dollars / 8 million dollars x 10 million dollars = 0.1875 million dollars x 10 million dollars = 1.875 million dollars PART B Exam of Behavioral Finance 5 Big Construction Company General Journal  #### You've reached the end of your free preview.

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