Sam Richards Accounting Assingment Help With Solution

Sam Richards Accounting Assingment Help With Solution

Question 1 is about Leasing. It has two parts. You need to do both. Part A: This will be marked out of 115 and converted to a score out of 10 grade points. Please read the following and then follow the instructions: On 1 July 2013, Rogers Ltd acquired a new motor vehicle. The manager of Rogers Ltd, Sam Richards, went to the local car yard called by the name of Dodgy Motors and discussed a price on a new Mercedes vehicle with the manager Rodney Dodgy. Sam and Rodney agreed on a price of $87,000. In discussing the financial arrangements in relation to the car, Sam decided that a lease with a duration of 3 years was the most suitable commercial arrangement. Rodney agreed to arrange for Leasing Experts, a local finance company, to set up a lease agreement. Dodgy Motors then sold the car to Leasing Experts for $87,000.
Leasing Experts then wrote a lease agreement, incurring initial direct costs of $1,812 in the process.
The agreement contained the following terms and conditions and was signed by both Sam and Rodney:  $20,000 initial Payment on 1 July 2013.  $20,000 payment of 1 July 2004 and another on 1 July 2015.  Interest rate implicit in the lease of 7%.  The lease was cancellable by Rogers Ltd at any stage. However, if the lease was cancelled, Rogers Ltd agreed to lease, on similar terms, another car from Leasing Experts.  Rogers Ltd was not required to guarantee the payment of any residual value. At the end of the lease term, 30 June 2016, or if cancelled earlier, the car would automatically revert to the lessor with no payments being required from the lessee. The vehicle had an expected economic life of 12 years. On 1 July 2013 the expected fair value of the vehicle at 30 June 2016 was $40,000. Because of concern over the residual value, Leasing Experts required Sam to sign a side letter which gave Leasing Experts the right to sell the car to Rogers Ltd for $30,000 if the fair value of the car at the end of the lease term was less than $30,000. In addition, the parties agreed that Leasing Experts would pay the insurance and maintenance expenses of the vehicle directly to the service vendors and that a flat fee of $3,000 would be invoiced to Rogers Ltd for each year the vehicle was leased, with the first payment due on 1 July 2013. This amount was to be over and above the $20,000 annual lease payment.


How it Works

How It works ?

Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention product code mentioned in end of every Q&A Page. You can also send us your details through our email id with product code in the email body. Product code is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.

Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to product code . The date is asked to provide deadline.

Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id and must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.

Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.

Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.

Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.


Features for Assignment Help

Zero Plagiarism
We believe in providing no plagiarism work to the students. All are our works are unique and we provide Free Plagiarism report too on requests.


We believe in providing perfect, relevant and 100% accurate solutions to the student as per questions asked. All our experts are perfect in providing that so as to give unique experience to the students.


Three Stage Quality Check
We are the only service providers boasting of providing original, relevant and accurate solutions. Our three stage quality process help students to get perfect solutions.



100% Confidential
All our works are kept as confidential as we respect the integrity and privacy of our clients.

Related Services

The actual expenses for insurance and maintenance turned out to be as follows
 During 2013-14 $2,810
 During 2014-15 $3,020  During 2015-16 $2 750 On 30 June 2016, Sam returned the vehicle to Leasing Experts. The fair value of the car was determined to be $25,000. Leasing Experts invoked the side letter and with the consent of Rogers Ltd sold the car to Dodgy Motors for a price of $25,000 on 5 July 2016. It then invoiced Rogers Ltd $5,000. Rogers Ltd paid this amount on 13 July 2016.

1. Establish a strong case as to why this lease could and should be classified as a Finance Lease
2. As a percentage of the fair value established by Leasing Experts, what percentage of the residual did Rogers Ltd effectively guarantee
3. Calculate Rogers Ltd’s initial lease liability and explain your reasoning in making that calculation. Show all workings
4. Prepare a lease amortization schedule for Rogers Ltd
5. Prepare general journal entries in the records of Rogers Ltd for all the transactions
6. Calculate Leasing Expert’s initial lease receivable and explain your reasonng in making that calculation. Show all workings
7. Prepare a lease amortization schedule for Leasing Experts
8. Prepare general journal entries in the records of Leasing Experts for all the transactions
Additional Information to assist your preparation – Ignore GST (Australian Goods and Services Tax) Part B: This will be marked out of 10 and converted to a score out of 5 grade points. Please read the following statement and then follow the instructions: “Finance leases have adverse effects on a lessee entity’s financial statements. Over the years this has given companies incentive to misclassify leases”.
Express your opinion about this assertion and seek out reasons why in your view abuses may have happened in this area and what management could be trying to achieve or conceal by classifying finance leases as operating leases. Includes in your explanation a robust discussion on the effects accounting for a Finance Lease may have versus accounting for the leasing arrangements as an Operating Lease. In that discussion incorporate appropriate financial ratios. If you are unsure of what ratios could be applicable to this area of discussion, formulate a draft list and take it to your lecturer for an opinion.
Additional Information to assist your preparation – The work is to be 400 words (minimum) and 600 words (maximum) excluding referencing and appendices. – Use the APA referencing system.


Question 2
This is a practical exercise on liabilities, contingent liabilities, contingent assets, provisions and other matters.
Refer to the scanned document on Moodle and then prepare the relevant extracts from the financial statements (including the notes) of ChubbyChocs as at 30 June 2015, in compliance with AASB 137 and other accounting standards. Show all of your workings. Perform your submission in the following order:
(a) Calculate the warranty provision as at 30 June 2014. This should agree with the financial statements provided in the scanned document.
(b) Calculate the warranty provision as at 30 June 2015.
(c) Calculate the movement in the warranty provision for the year.
(d) Calculate the prospective change in depreciation required as a result of the shortened useful life of the conveyer belt.
(e) Determine whether the unpaid amount owing as a result of the peanut allergy case is a liability or a provision.
(f) Determine whether the receipt of damages for the negligent advice meets the definition of an asset or a contingent asset.
(g) Determine whether the bank guarantee meets the definition of a provision or a contingent liability. (Ignore AASB 139 in this regard.)


Product Code :Acc44

To get answer for this question, kindly click here (Note: Don’t forget to write the product code in comment section)

You can also email us at but please mentioned product code in the mail body while sending emails.You can browse more questions to get answer in our Q&A sections here.