Thunderbolt plc raised finance through the issue of shares on 1 April 2018. The company issued convertible bonds at their nominal value of K20 million. Interest is payable annually in arrears at the rate of 5%. The conversion would be done on the following terms: Each K4000 bond is convertible at any time up to maturity into 800 ordinary shares. Alternatively, the bonds would be redeemed at par after 4 years in 2022. The market rate applicable to non-convertible bonds is 9%. (The present value of $1 payable at the end of the year, based on rates of 5% and 9% are given in the table of the Appendix at the end of the question paper.) Required:

a) Explain why recognition of convertible bonds should be split into the liability component and the equity component, and calculate the two amounts Thunderbolt recognised.
b) Prepare an amortisation schedule showing amounts outstanding at the end of each of the four years to 31 March 2022 (Work to the nearest $000)
c) State what amounts would be reported in the statement of profit or loss and other comprehensive income for the year to 31 March 2020 in respect of the bonds, and

Identify a mutual fund that focuses on international equities. It could be a single country fund, a regional fund, or a non-U.S. global fund. It needs to be at least five years old. You may want to go directly to an investment company website such as Fidelity, Vanguard, etc.

Provide a brief introduction to the fund (about a paragraph) indicating its investment objective, size, turnover, and fee structure. Report on its performance during the past five years. (You don't need to compute this return if the information is available.) Determine the actual return for the fund over the 12 months ending December 2019. (This requires you to obtain prices and cash distributions from a source such as Yahoo Finance.) If an investor invested $10,000 at the end of December 2018, how much would his or her investment be worth by the end of December 2019? What is the level of management fees charged by the fund? Is this reflected in your assessment of return? Finally, what is the appropriate benchmark this fund should be compared to? Would this investor have been better off if they had been able to invest in the benchmark?

Laura Leasing Company signs an agreement on January 1, 2017, to lease equipment to Metlock Company. The following information relates to this agreement.

(a) Prepare an amortization schedule that would be suitable for the lessee for the lease term.

(b) Prepare all of the journal entries for the lessee for 2017 and 2018 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee’s annual accounting period ends on December 31

The following facts pertain to a non-cancelable lease agreement between Shamrock Leasing Company and Pharoah Company, a lessee.

The collectibility of the lease payments by Shamrock is probable.

Compute the amount of the lease receivable at commencement of the lease.

Prepare a lease amortization schedule for Shamrock for the 5-year lease term.

Prepare the journal entries to reflect the signing of the lease agreement and to record the receipts and income related to this lease for the years 2017 and 2018. The lessor’s accounting period ends on December 31. Reversing entries are not used by Shamrock.

Suppose the collectibility of the lease payments was not probable for Shamrock. Prepare all necessary journal entries for the company in 2017.

Main questions. Attempt all questions, each one carry 12 marks.

Question: 1

Assume that the following facts pertain to a non-cancelable lease agreement between Coco Inc. and Bubs, Corp, a Lessee.

The lessee assumes responsibility for all executory costs, which are expected to amount to $2,000 per year. The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line depreciation method for all equipment.

Using the spreadsheet, Lease Amort Schedule found in the link below, prepare an amortization schedule that would be suitable for the lessee for the lease term.

Using the spreadsheet Journal Entries, prepare the journal entries for the lessee for 2017 and 2018 to record the lease agreement and all expenses related to the lease. Assume the Lessee’s annual accounting period ends on December 31 and that reversing entries are used when appropriate.

Use the following information to answer Part (a) and (b)

Charlie, a single taxpayer, has gross income of $115,000.

He has following expenses for 2019:

- Rent for his apartment: $14,400

- Advertising and maintenance expenses for a rental property he owns in the amount of $1,800.

- Moving expenses to change jobs (assume Tyler is not reimbursed for his expenses) :

- Cost to move furniture and home furnishings: $3,600

- House-hunting expenses: $800

- Tyler traveled 200 miles to his new residence in his personal vehicle.

- Groceries and utility expenses: $5,500

- Traditional IRA contributions: $2,500

- Alimony payments made to his ex-wife in the amount of $2,500. The divorce decree was executed on February 14, 2018.

- A property settlement paid to his ex-wife in the amount of $3,000.

Part (a)

What is Charlie's adjusted gross income (AGI) for 2019?

A. $107,700

B. $110,700

C. $108,200

D. $113,200

Part (b)

Which of the following expenses are non-deductible?

A. Rent

B. Moving Expenses

C. Groceries and Utilities

D. Property settlement

E. All of the above

6.2.6

Hap Company’s records indicated the following account balances at December 31, 2018:

Retained earnings                                                                                                            $420,000

Unrealized increased in fair value of available for sale securities                  19,000

Paid-in capital in excess of par on preferred stock                                             50,000

Paid-in capital in excess of par on common stock                                               100,000

Paid-in capital in excess of par from stock options (common)                       10,000

Paid-in capital in excess of par from treasury stock                                            8,000

Common stock ($1 par value)                                                                                     10,000

Preferred stock ($20 par value)                                                                                  20,000

Treasury Stock – Common (at Cost)                                                                          7,000

Other information:

Common stock has 100,000 shares authorized, 10,000shares issued & outstanding. Preferred stock pays a 10% dividend, is on non-cumulative on callable at $100 per share and has 10,000 shares authorized, 1,000 shares issued & outstanding. Hap has reacquired & holds 100 shares of its own common stock (treasury)

Required: prepare the stockholder’s equity section of the balance sheet for hap -in proper form, including appropriate parenthetical disclosure & subtotal

(b)    State and explain the Schulze-Hardy rules as they relate to the stability of colloids. Include in your answer a brief explanation of the empirical “sixth-power rule”.

(c)     The critical coagulation concentration (ccc) for the unknown colloidal sols X and Y are given below:

                                                                  X / mmol dm^-3                   Y / mmol dm^-3

                     NaCl                                               59.4                                      88.3

                     MgCl₂                                        0.95                                      44.6                   

(i)     From the ccc values above determine the charge on each colloidal sol X

         and Y, accounting clearly for your choice.

(ii)    Estimate the ccc values one might expect if AlCl₃ was the inert electrolyte added.

Q.-- A 1.0000 g sample of zinc metal is added to a solution containing 1.2500 g of an unknown compound of bismuth and chlorine. The reaction results in the formation of zinc chloride and metallic bismuth. When the reaction is complete, unreacted zinc remains, and this unreacted zinc is consumed by reaction with HCl. After washing and drying, the mass of bismuth metal recovered is 0.6763g

-- Calculate the experimental % of bismuth in the original unknown compound

-- If 2.300g of the unknown bismuth chloride had been used, how many grams of chlorine would you expect it to contain?

-- Determine the empirical formula of the original unknown compound