Accounting Statement Analysis Bindi Wildlife

Question: Discuss about the Accounting Statement Analysis for Bindi Wildlife. Answer: The total amount of assets, belonging to Bindi Wildlife, is $25000, as per the following table: Particulars Amount Assets: Cash 3000 Prepaid Rent 2000 Equipment 20000 TOTAL ASSET A 25000 The total amount of liabilities, owed by Bindi Wildlife, is $12000, as per the following table: Particulars Amount Liabilities: Accounts Payable 5000 Wages Payable 5000 Notes Payable 2000 TOTAL LIABILITIES B 12000 The amount of Owners Equity, which should be reported in Bindi Wildlifes balance sheet as per the accounting equation, is $13,000. The calculation is shown below: Balance Sheet for the year ended 30th June,2016 Particulars Amount Assets: Cash 3000 Prepaid Rent 2000 Equipment 20000 TOTAL ASSET A 25000 Liabilities: Accounts Payable 5000 Wages Payable 5000 Notes Payable 2000 TOTAL LIABILITIES B 12000 TOTAL EQUITY C=A-B 13000 The net profit of Bindi Wildlife in the year is computed and shown in the following table : Income Statement for the year ended 30th June,2016 Particulars Amount Revenues 8000 Less: Expenses 4000 Net Profit for the years 4000 In the Books of Toys-4-Kids Balance Sheet for the year ended 30th June,2016 Particulars Amount Current Assets: Inventories 131950 Reindeers 70300 Stock of Special Food for Reindeer 8750 Cash 13026 Prepaid Insurance 1500 TOTAL CURRENT ASSET 225526 Non-Current Assets: Plant Equipment (net) 183000 TOTAL NON-CURRENT ASSETS 183000 TOTAL ASSETS 408526 Current Liabilities: Accounts Payable 8500 Salary Payable 1450 Current Portion of Long-Term Borrowings 46500 TOTAL CURRENT LIABILITIES 56450 Non-Current Assets: Non-Current Portion of Long-Term Borrowings 108500 TOTAL NON-CURRENT LIABILITIES 108500 TOTAL LIABILITIES 164950 Equity: Contributed Capital 198626 Retained Profits 44950 TOTAL EQUITY 243576 TOTAL LIABILITIES EQUITIES 408526 The item reindeer can be considered as living stock. Therefore, it is classified as a form of inventory and is included in the balance sheet as current assets. Case 1: First case is about guilty of conducting derogatory, which was not in the best interest of members of CPA Australia. Using CAP designation, Mr. Samuel X Wen and without conducting the proper enquiries about the financial position, he granted to loan, which later on was defaulted by party. Tribunal imposed the penalty of forfeiting the membership of Mr. Wen. He was ordered to pay a sum of $ 751.2 for Appeal hearing and $ 552.74 for the disciplinary tribunal hearing (Cpaaustralia.com.au 2017). Case 2: This case is about the misappropriation of monies, where any special relationship with the entity is an unacceptable behavior. It is about breaching of trust when the member has access to the banking system and was responsible for payroll function of employees. Monies misappropriation reflects the fitness in practicing accountancy. It also brought the accounting profession into dispute. Member was charged with the act of misconducting in the professional capacity. Penalty was the removing the name of member from the register. This act breached the fundamental principle of integrity (Caanz2017). However, the other members that the conduct was an act of stupidity gave evidence. Therefore, the penalty sought was wrong. Case 3: Mr. Tokley being a director of an organization has dishonestly used his position in order to gain financial advantage. He was charged on the ground of providing information, which was misleading in material particular. Mr. Tokley was imposed with several penalties such as his membership was forfeited. He should obtain CPA Australia Public Practice Certificate if he intends to offer public accounting services. He was ordered to pay cost of $ 865.24 to the CPA Australia. In addition to this, Mr. Tokleywas sentenced to six-month imprisonment wholly suspended for 12 months (Cpaaustralia.com.au 2017). References and Bibliography:- CAANZ. (2017).Decisions register. Available at: https://www.charteredaccountantsanz.com/about-us/complaints/decisions-register [Accessed 1 Jan. 2017]. Cpaaustralia.com.au. (2017).Michael Tokley (South Australia). [online] Available at: https://www.cpaaustralia.com.au/about-us/member-conduct-and-discipline/outcome-of-disciplinary-hearings/outcome-of-disciplinary-hearings-2015/michael-tokley-south-australia [Accessed 1 Jan. 2017]. Cpaaustralia.com.au. (2017).Samuel Wen (Victoria). Available at: https://www.cpaaustralia.com.au/about-us/member-conduct-and-discipline/outcome-of-disciplinary-hearings/outcome-of-disciplinary-hearings-2015/samuel-wen--victoria [Accessed 1 Jan. 2017]. Deegan, C., 2013. Financial accounting theory. McGraw-Hill Education Australia.