Accounting Assignment

 Essay on Accounting Assignment

Accounting Task #434

Close friends Vet Clinic

Component A

Qantas Airline

Short Report determined by Accounting Point of view

Introduction

Upon November 18, 2012, Qantas applied a capital management measure simply by 1) repaying its 650 dollar million debt earlier than slated and 2) investing up to & 90 million in an on-market talk about buy-back. This was fulfilled to reflect the Board's aim: returning shareholders' value, retaining a strong "balance sheet" while have the flexibility to engage in the present progress proposal. This measure will be funded by 1) Qantas' share in Star Monitor and 2) settlement from Boeing in relation to the group B787 purchases (The Recognized News Room of Qantas Airways Limited, 2012). Financial debt pay-off

Qantas' decision to pay their debt sooner than scheduled is pretty advantageous. The company can save cash from paying monthly interest and release cash flow coming from having to pay again loan each month – specifically if the company contains a lot of expenses to cover (Almeida, 2013). Furthermore it also improves the company's credit standing – the application of historical info and record techniques to assess the credit risk of a potential consumer (Bridges, n. d., s. 2). Together with the improved credit standing, Qantas would find it easier to secure one more loan in the foreseeable future. However , Qantas must be aware that the cash used to pay their debts could be invested onto other more opportunistic and profitable endeavors. Share buy-back

Its decision in reveal buy-back could increase the share cost. In accordance to law of demand and supply, fewer shares about market will certainly lead to larger price (Gans, King & Mankiw, 2012). This leads to enhanced shareholders worth – higher earnings per share because the share is actually split to fewer owners. However , this kind of effect may backfire, as the company is definitely perceived to obtain no different important new opportunities to spend its cash for – meaning their particular growth could no longer increase. Conclusion

In summary, Qantas' measure could business lead the company in to an advantageous situation. Externally, its decision in talk about buy-back may help strengthen worth from stakeholders. Internally, Qantas may open up the possibilities of developing new profile.

Part B

Data of Accounts

Best Friends Animal hospital

Chart of Accounts

Assets| Owners' Equity

1-1100| Bank| 3-1000| Capital -- Dr . Furball Fixer

1-1210| Account Receivable| 3-1100| Images - Dr . Furball Fixer| 1-1400| Office Supplies| |

1-1410| Medical Supplies| Revenue

1-1180| Prepaid Insurance| 4-4020| Desexing Fees

1-1181| Prepaid Rent| 4-4021| Pet Consultation Service fees

1-7120| Medical Equipment| 4-4022| Vaccination Service fees

1-7130| Built up Depreciation - Medical Equipment| | | 1-7160| Motor unit Vehicle| Bills

1-7170| Built up Depreciation -- Motor Vehicle| 6-0020| Advertising and marketing Expense| | | 6-0260| Depreciation Charge - Automobile

Liabilities| 6-0270| Depreciation Price - Medical Equipment| 2-1110| Account Payable| 6-0400| Insurance Expense

2-1120| Accumulated Wages Expense/Wages Payable| 6-0445| Interest Expense| 2-1121| Accumulated Interest Expense/Interest Payable| 6-0500| Motor Vehicle Expense| 2-2230| Bank Loan (due 2013)| 6-0570| Lease Expense

| | 6-0571| Medical Expenditure

Others| 6-0572| Office Price

7-0000| P& L Summary| 6-0600| Income Expense

| | 6-0670| Sundry Expenditure

Opening Balance

Best Friends Animal hospital

Opening Balance

as by 1st 06 2010

Post-ref| Account Name| Debit | Credit

1-1100| Bank| $17, 218 |

1-1210| Account Receivable| $16, 233 |

1-1400| Office Supplies| $620 |

1-1410| Medical Supplies| $1, 692 |

1-7120| Medical Equipment| $36, 334 |

1-7160| Motor Vehicle| $31, 667 |

2-1110| Bank account Payable| | $7, 539

2-2230| Bank Loan (due 2013)| | $26, 631

3-1000| Capital| | $69, 594

| | $103, 764 | $103, 764 |...


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