Define the following terms:
a) Retained earnings.
b) Redeemable cumulative preference shares.
c) Memorandum of Incorporation (MoI)
d) Limited liability.
e) Authorised share capital.
Part 2
Diraster Ltd (‘Diraster’) is a hedge fund that is listed on the JSE Ltd with a 31 January year end. Diraster researches various investment options on behalf of clients and invests their money according to their preferences. Massief Diraster, the CEO and founder of Diraster, has never been very good at the administration and accounting side of the business and often loses documents. He has approached you for help, but ca only offer you certain information.
Trial balance extract at 31 January 2009
Note
Debit
Credit
Long – term loan
4
4 500 000
Interest payable
4
350 625
Application and allotment
1
5 382 000
Shareholders for ordinary dividend
2
60 000
Shareholder for preference dividend
3
?
Stated capital (2 000 000 ordinary shares)
1
8 000 000
Preference share capital
3
?
Retained earnings – closing balance
25 988 000
Page 17 of 21
Notes
1) 754 000 ordinary shares were issued on 28 February 2009. R120 000 was returned to application due to an oversubscription.
2) The underwriter was paid commission of 2%.
3) Diraster accounting policy with respect to share issue costs is to minimise distributable reserves.
4) Underwriting commission was not accrued in the previous final year.
5) The dividend payable from the previous financial year was settled on 3 February 2009.
6) Diraster declared and paid an ordinary interim dividend of 7 cents per share on 15 February 2009 and declared a final dividend of 5 cents per share on 30 January 2010.
7) The final dividend was paid on 3 February 2010.
8) Diraster had issued 30 000, R3, 6% cumulative preference shares on 1 February2007.
9) Preference shares have never been issued at a premium.
10) If declared, preference dividends are paid on 1 February.
11) The R60 000 ordinary dividend of the prior financial year was the first dividend ever to be declared by Diraster.
12) The long- term bears simple interest at 8, 5% on the outstanding balance.
13) Two capital repayments of R700 000 and R800 000 were made on 31 June 2009 and 31 December 2009 respectively.
14) Interest is payable annually on 28 February.
15) The net profit in the income statement is started at R7 654 000 for the year ended 31 January 2010.
16) This is before any of the above information has been taken into account.
Required
1) Calculate the price at which each ordinary share was issued in the current year.
2) Prepare all the journal entries that should be processed in the 2010 financial year that relate to the share issue.
3) Calculate the dividends paid to ordinary and preference shareholders during the year ended 31 January 2010. If in your opinion any of the dividend in the question should not be included in the calculation, briefly justify your reasoning.
4) Calculate the dividend amount that will be shown in Diraster statement of changes in equity for the year ended 31 January 2010. If in your opinion any of the dividends in the question should not be included in the calculation, briefly justify your reasoning.
5) Calculate the net profit of Diraster for the year ended 31 January 2010.
6) Prepare the equity and liabilities section of Diraster statement of financial position as at 31 January 2010.
7) Calculate the total asset value of Diraster as at 31 January 2010.

What is the relationship between the price of crude oil and the price you pay at the pump for gasoline? The file Oil&Gasoline contains the price ($) for a barrel of crude oil (Cushing, Oklahoma, spot price) and a gallon of gasoline (U.S. average conventional spot price) for 287 weeks, ending June 26, 2015.

1. What is the X (independent Variable)?
2. What is the Y (dependent Variable)?
3. Construct a scatter plot with the price of oil on the horizontal axis and the price of gasoline on the vertical axis.
4. Use the least-squared method to develop a simple regression equation to predict the price of a gallon of gasoline using the price of a barrel of crude oil at $85 a barrel.
5. Interpret the meaning of the slope in this problem.
6. What conclusions can you reach concerning the relationship between the price of a barrel of crude oil and the price of a gallon of gasoline?

Date Gasoline Crude Oil

Jan 01, 2010 2.031 79.07

Jan 08, 2010 2.124 82.34

Jan 15, 2010 2.079 80.06

Jan 22, 2010 2.010 76.62

Jan 29, 2010 1.942 73.94

Feb 05, 2010 1.885 74.57

Feb 12, 2010 1.908 73.88

Feb 19, 2010 2.031 78.25

Feb 26, 2010 2.042 79.22

Mar 05, 2010 2.127 80.19

Mar 12, 2010 2.154 81.76

Mar 19, 2010 2.150 81.44

Mar 26, 2010 2.118 80.65

Apr 02, 2010 2.191 83.01

Apr 09, 2010 2.238 85.66

Apr 16, 2010 2.205 84.34

Apr 23, 2010 2.195 82.90

Apr 30, 2010 2.260 84.22

May 07, 2010 2.155 80.24

May 14, 2010 2.099 74.98

May 21, 2010 1.921 69.14

May 28, 2010 1.900 70.62

Jun 04, 2010 1.945 72.91

Jun 11, 2010 1.969 73.44

Jun 18, 2010 2.080 76.70

Jun 25, 2010 2.054 77.06

Jul 02, 2010 1.969 74.96

Jul 09, 2010 1.970 74.39

Jul 16, 2010 1.988 76.35

Jul 23, 2010 2.025 77.56

Jul 30, 2010 2.024 78.12

Aug 06, 2010 2.098 81.79

Aug 13, 2010 1.949 78.17

Aug 20, 2010 1.882 74.84

Aug 27, 2010 1.859 72.91

Sep 03, 2010 1.919 74.02

Sep 10, 2010 1.968 74.82

Sep 17, 2010 1.978 75.62

Sep 24, 2010 1.951 73.76

Oct 01, 2010 2.034 78.41

Oct 08, 2010 2.193 82.29

Oct 15, 2010 2.202 82.16

Oct 22, 2010 2.146 81.15

Oct 29, 2010 2.122 82.03

Nov 05, 2010 2.174 84.93

Nov 12, 2010 2.242 86.91

Nov 19, 2010 2.287 82.23

Nov 26, 2010 2.258 82.28

Dec 03, 2010 2.359 86.75

Dec 10, 2010 2.349 88.50

Dec 17, 2010 2.329 88.27

Dec 24, 2010 2.452 89.66

Dec 31, 2010 2.430 90.97

Jan 07, 2011 2.442 89.54

Jan 14, 2011 2.474 91.02

Jan 21, 2011 2.464 89.75

Jan 28, 2011 2.411 86.11

Feb 04, 2011 2.466 89.52

Feb 11, 2011 2.471 85.51

Feb 18, 2011 2.511 84.13

Feb 25, 2011 2.731 95.26

Mar 04, 2011 2.864 101.05

Mar 11, 2011 2.832 103.74

Mar 18, 2011 2.734 99.79

Mar 25, 2011 2.846 104.41

Apr 01, 2011 2.972 105.08

Apr 08, 2011 3.117 109.29

Apr 15, 2011 3.133 107.75

Apr 22, 2011 3.192 109.11

Apr 29, 2011 3.290 112.30

May 06, 2011 3.159 105.84

May 13, 2011 3.152 99.87

May 20, 2011 2.865 97.99

May 27, 2011 2.933 99.55

Jun 03, 2011 2.924 100.92

Jun 10, 2011 2.899 100.05

Jun 17, 2011 2.868 95.87

Jun 24, 2011 2.739 92.70

Jul 01, 2011 2.796 93.70

Jul 08, 2011 2.973 97.12

Jul 15, 2011 3.043 96.72

Jul 22, 2011 3.039 98.01

Jul 29, 2011 3.048 97.83

Aug 05, 2011 2.889 90.85

Aug 12, 2011 2.741 82.86

Aug 19, 2011 2.807 85.36

Aug 26, 2011 2.862 85.06

Sep 02, 2011 2.911 88.07

Sep 09, 2011 2.937 87.91

Sep 16, 2011 2.794 88.93

Sep 23, 2011 2.678 83.65

Sep 30, 2011 2.635 81.18

Oct 07, 2011 2.710 79.43

Oct 14, 2011 2.882 85.35

Oct 21, 2011 2.772 86.82

Oct 28, 2011 2.744 92.32

Nov 04, 2011 2.703 93.24

Nov 11, 2011 2.719 96.97

Nov 18, 2011 2.577 99.32

Nov 25, 2011 2.548 96.89

Dec 02, 2011 2.602 99.91

Dec 09, 2011 2.636 100.08

Dec 16, 2011 2.568 96.06

Dec 23, 2011 2.639 97.74

Dec 30, 2011 2.698 99.81

Jan 06, 2012 2.778 102.39

Jan 13, 2012 2.774 100.43

Jan 20, 2012 2.831 99.95

Jan 27, 2012 2.867 99.35

Feb 03, 2012 2.910 97.80

Feb 10, 2012 2.988 98.56

Feb 17, 2012 3.025 101.73

Feb 24, 2012 3.113 107.18

Mar 02, 2012 3.174 107.52

Mar 09, 2012 3.043 106.32

Mar 16, 2012 3.117 106.15

Mar 23, 2012 3.219 106.41

Mar 30, 2012 3.307 105.12

Apr 06, 2012 3.361 103.52

Apr 13, 2012 3.278 102.55

Apr 20, 2012 3.154 103.15

Apr 27, 2012 3.090 103.78

May 04, 2012 2.986 103.47

May 11, 2012 2.933 96.98

May 18, 2012 2.875 93.11

May 25, 2012 2.827 90.88

Jun 01, 2012 2.714 87.06

Jun 08, 2012 2.683 84.43

Jun 15, 2012 2.672 83.27

Jun 22, 2012 2.535 81.11

Jun 29, 2012 2.515 80.23

Jul 06, 2012 2.664 85.74

Jul 13, 2012 2.769 85.78

Jul 20, 2012 2.820 90.34

Jul 27, 2012 2.711 88.88

Aug 03, 2012 2.837 89.10

Aug 10, 2012 2.987 93.14

Aug 17, 2012 3.002 94.43

Aug 24, 2012 3.041 96.22

Aug 31, 2012 3.146 95.68

Sep 07, 2012 3.244 95.68

Sep 14, 2012 3.335 97.56

Sep 21, 2012 3.134 93.70

Sep 28, 2012 3.363 91.35

Oct 05, 2012 3.234 90.81

Oct 12, 2012 3.163 91.42

Oct 19, 2012 2.897 91.59

Oct 26, 2012 2.717 86.35

Nov 02, 2012 2.730 85.87

Nov 09, 2012 2.810 85.98

Nov 16, 2012 2.921 85.87

Nov 23, 2012 2.818 87.40

Nov 30, 2012 2.789 87.27

Dec 07, 2012 2.681 87.00

Dec 14, 2012 2.645 85.71

Dec 21, 2012 2.755 88.24

Dec 28, 2012 2.827 90.14

Jan 04, 2013 2.814 92.77

Jan 11, 2013 2.809 93.38

Jan 18, 2013 2.770 94.58

Jan 25, 2013 2.880 95.41

Feb 01, 2013 3.032 97.33

Feb 08, 2013 3.057 96.18

Feb 15, 2013 3.088 96.95

Feb 22, 2013 3.092 94.38

Mar 01, 2013 2.992 92.19

Mar 08, 2013 2.913 91.00

Mar 15, 2013 2.909 92.70

Mar 22, 2013 2.875 93.05

Mar 29, 2013 2.911 96.08

Apr 05, 2013 2.758 95.07

Apr 12, 2013 2.677 93.36

Apr 19, 2013 2.691 88.00

Apr 26, 2013 2.691 91.00

May 03, 2013 2.699 93.40

May 10, 2013 2.767 95.84

May 17, 2013 2.777 94.65

May 24, 2013 2.747 94.76

May 31, 2013 2.707 93.32

Jun 07, 2013 2.752 94.25

Jun 14, 2013 2.786 96.36

Jun 21, 2013 2.769 96.65

Jun 28, 2013 2.655 95.83

Jul 05, 2013 2.747 100.65

Jul 12, 2013 2.935 104.7

Jul 19, 2013 3.015 106.88

Jul 26, 2013 2.935 105.88

Aug 02, 2013 2.963 105.54

Aug 09, 2013 2.866 105.17

Aug 16, 2013 2.927 106.97

Aug 23, 2013 2.947 105.48

Aug 30, 2013 2.982 108.33

Sep 06, 2013 2.933 108.77

Sep 13, 2013 2.824 108.36

Sep 20, 2013 2.769 106.22

Sep 27, 2013 2.712 103.1

Oct 04, 2013 2.67 103.14

Oct 11, 2013 2.706 102.7

Oct 18, 2013 2.722 101.51

Oct 25, 2013 2.657 97.57

Nov 01, 2013 2.654 96.94

Nov 08, 2013 2.588 94.31

Nov 15, 2013 2.695 93.94

Nov 22, 2013 2.725 93.92

Nov 29, 2013 2.707 92.97

Dec 06, 2013 2.727 96.21

Dec 13, 2013 2.665 97.23

Dec 20, 2013 2.714 97.85

Dec 27, 2013 2.823 99.15

Jan 03, 2014 2.753 96.47

Jan 10, 2014 2.685 92.42

Jan 17, 2014 2.636 92.98

Jan 24, 2014 2.687 96.19

Jan 31, 2014 2.675 97.29

Feb 07, 2014 2.691 97.78

Feb 14, 2014 2.798 100.21

Feb 21, 2014 2.879 102.93

Feb 28, 2014 2.831 102.77

Mar 07, 2014 2.809 103.07

Mar 14, 2014 2.791 99.55

Mar 21, 2014 2.722 99.77

Mar 28, 2014 2.699 100.66

Apr 04, 2014 2.709 100.46

Apr 11, 2014 2.886 102.72

Apr 18, 2014 2.971 103.95

Apr 25, 2014 3.001 102.11

May 02, 2014 2.883 100.51

May 09, 2014 2.832 100.29

May 16, 2014 2.864 101.92

May 23, 2014 2.896 103.82

May 30, 2014 2.853 103.95

Jun 06, 2014 2.819 103.23

Jun 13, 2014 2.882 105.97

Jun 20, 2014 2.952 107.23

Jun 27, 2014 2.932 106.69

Jul 04, 2014 2.887 105.52

Jul 11, 2014 2.829 103.25

Jul 18, 2014 2.786 102.37

Jul 25, 2014 2.782 104.35

Aug 01, 2014 2.735 102.19

Aug 08, 2014 2.688 97.5

Aug 15, 2014 2.685 97.17

Aug 22, 2014 2.704 94.95

Aug 29, 2014 2.75 96.25

Sep 05, 2014 2.748 94.06

Sep 12, 2014 2.691 92.43

Sep 19, 2014 2.677 93.52

Sep 26, 2014 2.762 93.15

Oct 03, 2014 2.667 91.44

Oct 10, 2014 2.483 87.63

Oct 17, 2014 2.331 82.88

Oct 24, 2014 2.347 82.12

Oct 31, 2014 2.302 81.29

Nov 07, 2014 2.213 78.24

Nov 14, 2014 2.183 76.5

Nov 21, 2014 2.151 75.38

Nov 28, 2014 2.102 72.36

Dec 05, 2014 1.902 67.18

Dec 12, 2014 1.712 61.14

Dec 19, 2014 1.607 55.89

Dec 26, 2014 1.59 55.58

Jan 02, 2015 1.514 53.44

Jan 09, 2015 1.376 48.77

Jan 16, 2015 1.325 47.07

Jan 23, 2015 1.35 46.46

Jan 30, 2015 1.377 45.32

Feb 06, 2015 1.531 50.58

Feb 13, 2015 1.575 51.14

Feb 20, 2015 1.604 51.69

Feb 27, 2015 1.718 49.16

Mar 06, 2015 1.726 50.38

Mar 13, 2015 1.628 47.69

Mar 20, 2015 1.575 44.39

Mar 27, 2015 1.654 48.68

Apr 03, 2015 1.633 48.91

Apr 10, 2015 1.716 51.78

Apr 17, 2015 1.777 54.78

Apr 24, 2015 1.847 56.14

May 01, 2015 1.924 57.98

May 08, 2015 1.922 59.73

May 15, 2015 1.937 60.01

May 22, 2015 1.96 58.95

May 29, 2015 1.93 58.19

Jun 05, 2015 1.975 59.66

Jun 12, 2015 2.041 60.07

Jun 19, 2015 2.049 59.89

Jun 26, 2015 1.976 60.01

Which of the following statements are true concerning electromagnetic induction? Check all that apply? 

 A. It is possible to induce a current in a closed loop of wire located in a uniform magnetic field by either increasing or decreasing the area enclosed by the loop. 

 B. It is possible to induce a current in a closed loop of wire by change the orientation of a magnetic field enclosed by the wire. 

 C. It is possible to induce a current in a closed loop of wire by changing the strength of a magnetic field enclosed by the wire. 

 D. It is possible to induce a current in a closed loop of wire without the aid of a power supply or battery. 

 E. It is possible to induce a current in a closed loop of wire located in a uniform magnetic field.

Adams, Inc., acquires Clay Corporation on January 1, 2020, in exchange for $663,000 cash. Immediately after the acquisition, the two companies have the following account balances. Clay’s equipment (with a five-year remaining life) is actually worth $611,300. Credit balances are indicated by parentheses.

	Adams			Clay
Current assets	$	408,000		$	259,000
Investment in Clay		663,000			0
Equipment		822,300			554,000
Liabilities		(211,000	)		(225,000	)
Common stock		(350,000	)		(150,000	)
Retained earnings, 1/1/20		(1,332,300	)		(438,000	)

In 2020, Clay earns a net income of $50,700 and declares and pays a $5,000 cash dividend. In 2020, Adams reports net income from its own operations (exclusive of any income from Clay) of $189,000 and declares no dividends. At the end of 2021, selected account balances for the two companies are as follows:

  

	Adams			Clay
Revenues	$	(572,000	)	$	(382,000	)
Expenses		414,700			286,500
Investment income		Not given			0
Retained earnings, 1/1/21		Not given			(483,700	)
Dividends declared		0			8,000
Common stock		(350,000	)		(150,000	)
Current assets		712,000			305,200
Investment in Clay		Not given			0
Equipment		725,800			610,400
Liabilities		(144,700	)		(192,000	)

  

1. What are the December 31, 2021, Investment Income and Investment in Clay account balances assuming Adams uses the:

• Equity method.
• Initial value method.

1. What is the amount of Consolidated Expenses in its December 31, 2021, consolidated income statement under each of the following methods?

2. What is the amount of Consolidated Equipment in its December 31, 2021, consolidated balance sheet under each of the following methods?

3. What is Adams’s January 1, 2021, Retained Earnings account balance assuming Adams accounts for its investment in Clay using the:

• Equity value method.
• Initial value method.

1. What worksheet adjustment to Adams’s January 1, 2021, Retained Earnings account balance is required if Adams accounts for its investment in Clay using the initial value method?

2. Prepare the worksheet entry to eliminate Clay’s stockholders’ equity.

3. What is consolidated net income for 2021?

Shamrock Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown, who owns 15% of the common stock, was one of the organizers of Shamrock and is its current president. The company has been successful, but it currently is experiencing a shortage of funds. On June 10, 2021, Daniel Brown approached the Topeka National Bank, asking for a 24-month extension on two $35,170 notes, which are due on June 30, 2021, and September 30, 2021. Another note of $6,020 is due on March 31, 2022, but he expects no difficulty in paying this note on its due date. Brown explained that Shamrock’s cash flow problems are due primarily to the company’s desire to finance a $300,530 plant expansion over the next 2 fiscal years through internally generated funds.

The commercial loan officer of Topeka National Bank requested the following financial reports for the last 2 fiscal years.

Shamrock Corporation Balance Sheet March 31
Assets		2021		2020
Cash		$18,020		$12,390
Notes receivable		147,950		130,690
Accounts receivable (net)		131,350		126,370
Inventories (at cost)		105,470		50,320
Plant & equipment (net of depreciation)		1,461,990		1,428,660
Total assets		$1,864,780		$1,748,430
Liabilities and Owners’ Equity
Accounts payable		$78,460		$91,360
Notes payable		76,360		61,490
Accrued liabilities		18,000		14,420
Common stock (130,000 shares, $10 par)		1,307,650		1,299,180
Retained earningsa		384,310		281,980
Total liabilities and stockholders’ equity		$1,864,780		$1,748,430
aCash dividends were paid at the rate of $1 per share in fiscal year 2020 and $2 per share in fiscal year 2021.

Shamrock Corporation Income Statement For the Fiscal Years Ended March 31
		2021		2020
Sales revenue		$3,008,300		$2,686,200
Cost of goods solda		1,536,610		1,416,800
Gross margin		1,471,690		1,269,400
Operating expenses		857,560		784,330
Income before income taxes		614,130		485,070
Income taxes (40%)		245,652		194,028
Net income		$368,478		$291,042
aDepreciation charges on the plant and equipment of $100,450 and $103,230 for fiscal years ended March 31, 2020 and 2021, respectively, are included in cost of goods sold.

(a)

Compute the following items for Shamrock Corporation. (Round answers to 2 decimal places, e.g. 2.25 or 2.25%.)

1.		Current ratio for fiscal years 2020 and 2021.
2.		Acid-test (quick) ratio for fiscal years 2020 and 2021.
3.		Inventory turnover for fiscal year 2021.
4.		Return on assets for fiscal years 2020 and 2021. (Assume total assets were $1,705,100 at 3/31/19.)
5.		Percentage change in sales, cost of goods sold, gross margin, and net income after taxes from fiscal year 2020 to 2021.

				2020			2021
1.		Current ratio			:1			:1
2.		Acid-test (quick) ratio			:1			:1
3.		Inventory turnover					enter the inventory turnover rounded to 2 decimal places	times
4.		Return on assets		enter the return on assets in percentages rounded to 2 decimal places	%		enter the return on assets in percentages rounded to 2 decimal places	%

5.		Percent Changes		Percent Increase
		Sales revenue			%
		Cost of goods sold			%
		Gross margin			%
		Net income after taxes		enter percentages rounded to 2 decimal places	%

At 22°C, Kp = 0.070 for the equilibrium:

NH4HS (s) NH3 (g) + H2S (g)

a) A sample of solid NH4HS is placed in a closed vessel and allowed to equilibrate. Calculate the equilibrium partial pressure (atm) of ammonia, assuming that some solid NH4HS remains.

b) After the equilibrium in part a) was established, the reaction flask is then charged with an additional 0.59 atm of NH3. When the system has equilibrated, what is the partial pressure of hydrogen sulfide?

You have one hour. The system does not accept any file after the deadline. The accuracy of your ideas and the way you structure them will be given more weight than your language proficiency. Use your own ideas and sentences. This is a closed-book exam. Format of the script: handwritten.

QUESTION:

What is the main difference between strict liability and negligence liability in tort? Explain with the help of some examples.

a dead body was found within a closed room of a house where the temperature was at 21°C. at the time of discovery the core temperature of the body was determined to be 28°C. One hour later the second measurement show that the core temperature of the body was 25°C. assume that the time of death corresponds to t = 0 and that the core temperature at the time was 37°C. determine how many hours elapsed before the body was found. [ Hint: Let t1 > 0 denote the time that the body was discovered.] (Round your answer to one decimal place.)

_____ hr

A dead body was found within a closed room of a house where the temperature was a constant 70° F. At the time of discovery the core temperature of the body was determined to be 80° F. One hour later a second measurement showed that the core temperature of the body was 75° F. Assume that the time of death corresponds to t = 0 and that the core temperature at that time was 98.6° F. Determine how many hours elapsed before the body was found. [Hint: Let  t₁ > 0 denote the time that the body was discovered.] (Round your answer to one decimal place.)

The following data are from the accounts of Color Corp. at December 31, 2020

Retained earnings, beginning balance--------------------------------------------------------- $900,000

Common stock, $____ par, 100,000 shares authorized, 50,000 shares issued -----------------1,000,000

Treasury stock, 1,000 shares --------------------------------------------------------------------20,000

Paid-in capital in excess of par – Common stock ---------------------------------------------400,000

Bonds Payable ----------------------------------------------------------------------------------200,000

Net income for 2020 (not included in retained earnings above)-----------------------------190,000

Dividends declared and paid during 2020 (not included in retained earnings above)-------80,000

Required:

1. Determine the value of the following items. Type/write your response after each item where indicated.
   1. Total retained earnings at end of 2020
   2. Total stockholders’ equity
   3. Average original selling price per share
   4. Par value per share of common stock   
   5. Cost per share of treasury stock
   6. Number of shares of common stock outstanding

2. Prepare the stockholders’ equity section of the balance sheet at December 31, 2020