A nutritionist wants to know if there is a difference in blood pressure if a person follows a Mediterranean diet. The nutritionist obtains participants’ blood pressure before and after the diet program. What would be the most appropriate statistical test to determine whether there is a significant reduction in blood pressure?

Use the Lewis two sector model. Assume a country is in early stages of development and the you want to help develop the country using the Lewis two sector model. What would you predict about the production function before and after development of the country?

Before 2008, the International Monetary Fund was focused on developing countries with balance of payment problems. However, after 2008, it has completely change its policy. Describe and discuss this new policy. Is it effective? Give at least 5 examples. 200 words minimum

What is the single best type of statistical analysis to use to answer?

1. Are depression scores lower after therapy than before therapy?
2. Do people own more pairs of workout shoes than dress shoes?
3. Is gender related to college major selection?

Mergers and acquisitions are one of the most important trends in banking in the last generation. Please find one example of a major merger in the last twenty years. Give a brief description of each bank before the merger, the motivation for the merger, and the final product after the merger.

I am calculating the expected cash flow for a project. However, I am not sure that I should use the net cash flow (after tax) or cash flows (before tax) to identify the payback period and the discounted payback period? Thank you

A corporation recently purchased some preferred stock that has a before-tax yield of 8.5%. The company has a tax rate of 40%. What is the after-tax return on the preferred stock? A. 7.48% B. 6.65% C. 7.04% D. 7.74% E. 7.28%

a) Tom Goodly Ltd guarantees the bank overdraft of Pete Smith Ltd during 2018. Tom Goodly Ltd’s reporting period ends on 30 June each year. At the time of

providing the guarantee, Pete Smith Ltd was in a sound financial position. During late 2019, due to the outbreak of the COVID-19 pandemic, international

trading conditions deteriorated to such an extent that Pete Smith Ltd incurred substantial losses. Finally, on 25 July 2020, Pete Smith Ltd was forced to file for

protection from its creditors.

Required:

Explain how Tom Goodly Ltd would report the guarantee provided to Pete Smith Ltd in its financial statements ending

i) 30 June 2019

ii) 30 June 2020 3

b) As at 30 June 2018, T&P Ltd’s equity accounts are as follow: 400  000 ‘A’ ordinary shares, issued at $2.50 each, fully paid $ 1 000 000

75  000  6% cumulative preference shares, issued at $3 and paid to $2 150  000

Accumulated losses (12 750)

As the company had incurred a loss for the year ended 30 June 2018, no dividends were declared for that year. The following transactions and events occurred during the year ended 30 June 2020.

2019 July 25 The directors made the final call of $1 on the preference shares. Aug 31 All call monies were received except those owing on 5000 preference shares.

Sept 7 The directors resolved to forfeit 5000 preference shares for non-payment of the call. The constitution of the company directs that forfeited amounts are not to be refunded to shareholders. The shares will not be reissued.

Nov 1 The company issued a prospectus offering 40  000 ‘B’ ordinary shares payable in two instalments: $3 on application and $2 on 30 November 2022. The offer closed on 30 November.

Nov 30 Applications for 50  000 ‘B’ ordinary shares were received.

Dec 1 The directors resolved to allot the ‘B’ ordinary shares pro rata with all

applicants receiving 80% of the shares applied for. Excess application

monies were allowed to be held. The shares were duly allotted.

Dec 5 Share issue costs of $8600 were paid.

Required:

Prepare general journal entries to record the above transactions.

EMICYEAR2019-2020
Question No 3:
Five Star enterprises is a multinational company situated in Muscat and is operating in more than
26 different countries. Majority of multinational companies are facing a problem that accounting
rules are different around the world. Same is the case with Five Star enterprises. While preparing
their statements, they often have to prepare them twice, once in their home country in accordance
with the home country rules and once abroad in accordance with the foreign rules. Additionally,
every region has different historical backgrounds, norms and political systems. They also have
different patterns of financial accounting practices.
Due to all these factors and practices, businesses are under high risk by treating same problems
differently all over. Likewise others, Five Star enterprises also faces difficulties while preparing
their financial results. The management finds it risky, when same company operating in different
countries follows different pattern of reporting. To consider these different accounting rules, now
throughout the world, there is strong need of international harmonisation, and nearly all the
countries in the world now support to develop a set of international accounting standards.
It focuses on narrowing the areas of difference and to eradicate undesirable alternative practices
in financial reporting. It is process of merging and combining various practices into an organized
structure, which produces collaborative result. It is believed some companies have a public
accountability to a great variety of interest groups. These differences which are in the mind of
accountants lead to different views on what is suitable accounting treatment.
a. You are the country manager of Five Star enterprises Oman. Your head office in Italy, is
receiving collective feedback from all the branches. Being the representative of Five Star
enterprises, what would be your feedback in support of harmonisation?
b. In your opinion, what were the challenges faced by Five Star enterprises while preparing their
annual report and explain how it can be avoided in future?
Your answer should be around 400 words for each question.

In the spring of 2019, Patrick Egbunonu retired as the tennis pro of the Cataraqui Tennis Club, an exclusive indoor/outdoor club in Kingston, Ontario. A special committee of the board of directors was formed to find a replacement for the combined job of tennis pro and owner of the pro shop and bar lounge. Nine candidates had applied for the position, but the board’s first choice was John “The Racquet” Conrad. His qualifications and experience were excellent, and the committee believed his reputation as the two-time Canadian amateur tennis champion would enhance the status and prestige of the club.

After learning of the job offer, Conrad accepted immediately. He was excited about the opportunity to invest his hard-earned savings into a business he knew and loved. On July 1, 2019, Conrad incorporated the pro shop and bar lounge area and deposited $100,000 into the corporation’s bank account in exchange for common shares. Also, on that day, Conrad purchased an inventory of racquets, balls, clothes, shoes, and accessories (i.e. the pro shop inventory) valued at $16,340, liquor inventory valued at $13,660, $11,000 worth of fixtures and $4,000 of glassware. The business was to receive all sales from the pro shop and bar lounge and would pay part-time help to sell goods and serve drinks. The business uses a perpetual inventory system.

Conrad was an immediate success. He was readily accepted by all the members and was regarded as an asset to the club. Much of his time was spent instructing individuals while the better players anxiously awaited an opportunity to strike up a match with Conrad. Given his busy schedule, Conrad did not keep a close watch on his accounting records. He did, however, attempt to keep an accurate cash record and decided not to worry about the rest until fiscal year-end.

On June 30, 2020, Conrad began to examine his records and notes. His cash records revealed the following:

Cash Records Continued:

1 Conrad was required to pay rent to the club in the amount of $1,500 per month for use of the space.

2 Does not include payment made on July 1, 2019, for initial pro shop inventory

3 Does not include payment made on July 1, 2019, for initial liquor inventory

Conrad was sure his bank account was correct, but he did not know what else he should record. He went to Michelle Paquin, a local chartered professional accountant (CPA) and club member, to ask for help.

Paquin began by examining the chequebook, invoices, and other records Conrad had accumulated in a shoe box. She found two outstanding bills: one for additional lounge fixtures of $4,200 (purchased on June 1, 2020) and a $2,000 invoice for the purchase of pro shop goods for resale (purchased on June 18, 2020), due in 30 days. (These items are not included in the above payments list)

On June 30, 2020, Conrad had 11 racquets in the shop, waiting to be restrung. Although he had done no work on the racquets and had not collected any money from customers, his normal rate for restringing was $175 per racquet, including materials.

The members purchased liquor “chit books” or vouchers in the pro shop for use in the bar lounge. Although the chit book cash receipts of $64,550 were noted, $650 of the chits had not been used as of June 30. These amounts could be carried over to the following year.

The fixtures purchased on July 1, 2019, had an estimated useful life of five years, whereas the new fixtures would last an estimated eight years. Due to frequent breakage, glassware had a much shorter useful life of two years. These assets would be depreciated using the straight-line method with no residual value.

During the year, Conrad instructed 606 sets of lessons for $100 per set. He had also played 155 matches with members, charging $150 per match. Conrad had not yet received payment for four of those matches. Davis felt that the social pressures among the club’s memberships would ensure full payment for all debts owed.

On June 30, 2020, Davis helped Conrad take a physical inventory count and found that there was $17,880 worth of pro shop inventory and $11,920 worth of liquor inventory.

Income taxes are calculated at a rate of 30 per cent of net income before tax.

REQUIRED:

1. Journalize all transactions and year-end adjusting entries for the year ending June 30, 2020. Explanations and dates are not required, but please show calculations where applicable and leave two lines between each journal entry. You can number each journal entry instead of dating them – just to keep it simple!

Organize your entries as follows (as a suggestion): • Transactions that occurred during the year (number these as T1, T2, etc....) • Year-end adjusting entries (number these as YE1, YE2, etc...)

2. Post the entries from requirement (1) to the applicable General Ledger accounts.

3. Prepare a worksheet to verify the accuracy of the net income. Check figure: net income before tax should be $35,419. Do not forget to record the income tax expense and income tax payable @ 30% of this amount, thereby resulting in a net income after tax in the amount of $24,793.

4. Prepare an income statement and a statement of retained earnings for the year ended June 30, 2020.

5. Prepare a classified balance sheet as at June 30, 2020.

6. Journalize and post the year-end closing entries to the applicable General Ledger accounts. Explanations and dates are not required, but please show calculations where applicable and leave two lines between each journal entry. You can number each journal entry instead of dating them – just to keep it simple! Organize your entries as follows (as a suggestion): • Closing entries (number these as C1, C2, etc...)