Jazz Mobile phone is a famous multinational brand producing smart phones. The main aim for Jazz is to satisfy its users with user friendly, innovative and elegant devices that simplify the problems of the customers and enable them to enjoy the product. Jazz mobile have different series with amazing features of large display size, amazing battery time, high definition camera quality and large internal storages. Jazz have a comprehensive portfolio of hardware, software and services that enable the digital transformation of networks to address capacity needs, reduce complexity and leverage network intelligence to create and deliver new services. Operational excellence remains a source of competitive advantage for Jazz and this becomes the foundation of their strategy. According to their vision, Jazz Research is actively conducting research and development (R&D) to identify new future growth areas and secure advanced technologies for its products to create new value and improve people’s lives. Jazz has a global network of R&D centers, each with individual technology and competence specialties. Jazz research promises to continue working hard to become a global top research institute that creates new values for the future through ceaseless innovation and intelligence. Recently Jazz has launched a new phone Book 8. It has the biggest screen and battery, the fastest processor and the largest storage. It’s a phone designed and built for the power user who won’t settle for anything less. The Book 8 gives the most advanced features than any other series. After few days of launching the phone, the customers had a complaint that there is some problem with the phone. Jazz management ordered the inquiry and identify the issues arising out of the battery design and manufacturing process. Jazz had to recall about 1.5 million phones after complaints of manufacturing issues. Research and development along with the management is concerned about the incident and their goodwill across the world. R &D is now working to find out the reasons for the failure of their new Book 8. They wanted to ensure that this problem should not exist for the new model coming in the future.

a. Sometimes a minor negligence can cost the company in terms of their repute, money, time and effort. Based on company’s previous experience of Book 8, what steps are required to be followed by Jazz for comprehensive research for their upcoming model. What suggestions would you recommend to Jazz R&D to make their research successful?

b. Write the analysis report for the causes of failure of Book 8. What were the practices not followed before launch of Book 8?

Use the adjusting journal entry information to prepare the formal adjusting journal entries as of December 31, 2020. Remember to skip a line between each adjusting journal entry and use AJ1, AJ2, AJ3, etc, instead of the actual date.

Information for Year End Adjusting Journal Entries December 31, 2020

1) The building(cost of $180,000)was purchased on January 1, 2019 and it is expected to have a useful life of 30 years with no salvage value. Depreciation expense has been recorded through November 30, 2020.

2) Office equipment(cost of $130,000)as of November 30, 2020 was purchased on January 1, 2015. The office equipment is expected to have a useful life of 10 years with $10,000 salvage value. Depreciation expense has been recorded through November 30, 2020.

3) Insurance in the amount of $4,800 was paid on April 1, 2020 covering the period of April 1, 2020 through March 31, 2021. The insurance expense and prepaid insurance accounts have been properly adjusted through November 30, 2020.

4) A December 31, 2020 count of supplies showed $3,300 of supplies remaining on hand.

5) Salaries earned but unpaid as of December 31, 2020 amount to $31,500.

6) The company has earned one of the three months rent previously received on December 1 from Bullwinkle Inc.

7) Interest at an annual rate of 3¼% is owed for the month of December 2020 on the Mortgage Note Payable due in 5 years (round interest to nearest whole dollar).

8) The savings account was opened on December 31, 2019. It earns interest at an annual rate of 1.5%, compounded monthly. Interest has been received and recorded through November 30, 2019. The bank notified the company that interest for the month of December was deposited in the savings account on December 31, 2020(round interest to the nearest dollar).

9) Uncollectible accounts are expected to be $11,500 based on net sales.

10) Income taxes owed for the year amounted to $15,000.

Consider the information provided for Peak Financial Services

You must use formula to construct the ledger accounts, profit and loss statement, and balance sheet.

                                        PEAK FINANCIAL SERVICES

                             UNADJUSTED TRIAL BALANCE AS AT 31^st MAY 2020

ACCOUNT                                                      DR                            CR

CASH AT BANK                                                                          88,300 –

ACCOUNTS RECEIVABLE 48,300 –

GST RECEIVABLE                                                                     4,380    -

PREPAID RENT                                                                          9,000    -

PREPAID INSURANCE                                                               8,000    -

OFFICE SUPPLIES                                                                     4,700 -

OFFICE EQUIPMENT                                                                 92,400 -

ACCUMULATED DEPRECIATION – OFFICE EQUIPMENT     -                       25,000

ACCOUNTS PAYABLE –                       26,800

UNEARNED FEES –                      12,200

LOAN PAYABLE – DUE 31 DECEMBER 2019                                 –                      25,000

GST PAYABLE    –                       5,980

CAPITAL (A, PEAK) –                      32,000

DRAWINGS (A, PEAK) 12,500 –

FEES REVENUE                                                                          –                         213,700

GAS EXPENSE                                                                             750 -

FUEL EXPENSE                                                                           6,400 -

RENT EXPENSE                                                             30,000 -

SLALARIES EXPENSE    32,800 -

PHONE AND INTERNET EXPENSE 3,150    -

TOTALS                                                                            3,40,680 3,40,680

June transactions

Date                               transaction                                               amount

1/06/2020   cash receipts from customers for money owed $19,800

2/06/2020     purchased a work van paying a 20% cash deposits and taking out a 4-year 6% loan to cover the balance $67,100

5/06/2020 purchased office supplies on credit, due 15 July $2,200

9/06/2020 received a cash deposit upfront from a customer for financial advisory work to be completed during July 2020 $4730

12/06/2020 cash receipts from customers for moneys owed $22,185

15/06/2020 paid all outstanding accounts payable from previous month

22/06/2020 received gas bill $330

24/06/2020 paid June salaries to this date $2,400

26/06/2020 received and paid mobile phone and internet bill for month of June $374

28/06/2020 settled previous month GST with ATO

29/06/2020 cash receipts from customers for moneys owed $3,250

30/06/2020 record all June sales on credit $21,340

30/06/2020    received bank interest $230

30/06/2020 one customer was declared bankrupt during June. Their debt is judged to be non-recoverable (a bad debt). $2,310

Additional Information:

• All sales are credit sales (30 days).
• Unless stated all amounts are GST inclusive or GST exempt.
• Interest expense of $227 has accrued in June on the loans payable
• A physical count of office supplies on 30 June shows $2400 of unused supplies on hand
• Depreciation of the office equipment this year is estimated to be $9,400.
• Depreciation of the motor vehicle will be determined using the straight-line method. The business estimates the useful life of the van to be 5 years, and the residual value to be $16,000. Based on these values, the business estimates annual depreciation on the van to be $9,000 per year.
• Prepaid insurance was paid on the 1st of April 2020 and covered a period of 6 months.
• Prepaid rent balance as at 1 July 2020 should be $2,800.
• Of the unearned fees balance as at 31st May, 60% were refunded to a customer as the business was unable to complete the work prior to 30 June as previously agreed, the remainder of the unearned fees were earned during June.
• Salaries expense accrued for the last week in June amounts to $2,800. Ignore PAYG related to salaries.
• The fuel expense for June of approximately $800 has not been recorded or paid.
• At the end of the month A, Peak withdrew $4,500 for his own use

Consider the information provided for Peak Financial Services

You must use formula to construct the ledger accounts, profit and loss statement, and balance sheet.

                                        PEAK FINANCIAL SERVICES

                             UNADJUSTED TRIAL BALANCE AS AT 31^st MAY 2020

ACCOUNT                                                      DR                            CR

CASH AT BANK                                                                          88,300 –

ACCOUNTS RECEIVABLE 48,300 –

GST RECEIVABLE                                                                     4,380    -

PREPAID RENT                                                                          9,000    -

PREPAID INSURANCE                                                               8,000    -

OFFICE SUPPLIES                                                                     4,700 -

OFFICE EQUIPMENT                                                                 92,400 -

ACCUMULATED DEPRECIATION – OFFICE EQUIPMENT     -                       25,000

ACCOUNTS PAYABLE –                       26,800

UNEARNED FEES –                      12,200

LOAN PAYABLE – DUE 31 DECEMBER 2019                                 –                      25,000

GST PAYABLE    –                       5,980

CAPITAL (A, PEAK) –                      32,000

DRAWINGS (A, PEAK) 12,500 –

FEES REVENUE                                                                          –                         213,700

GAS EXPENSE                                                                             750 -

FUEL EXPENSE                                                                           6,400 -

RENT EXPENSE                                                             30,000 -

SLALARIES EXPENSE    32,800 -

PHONE AND INTERNET EXPENSE 3,150    -

TOTALS                                                                            3,40,680 3,40,680

June transactions

Date                               transaction                                               amount

1/06/2020   cash receipts from customers for money owed $19,800

2/06/2020     purchased a work van paying a 20% cash deposits and taking out a 4-year 6% loan to cover the balance $67,100

5/06/2020 purchased office supplies on credit, due 15 July $2,200

9/06/2020 received a cash deposit upfront from a customer for financial advisory work to be completed during July 2020 $4730

12/06/2020 cash receipts from customers for moneys owed $22,185

15/06/2020 paid all outstanding accounts payable from previous month

22/06/2020 received gas bill $330

24/06/2020 paid June salaries to this date $2,400

26/06/2020 received and paid mobile phone and internet bill for month of June $374

28/06/2020 settled previous month GST with ATO

29/06/2020 cash receipts from customers for moneys owed $3,250

30/06/2020 record all June sales on credit $21,340

30/06/2020    received bank interest $230

30/06/2020 one customer was declared bankrupt during June. Their debt is judged to be non-recoverable (a bad debt). $2,310

Additional Information:

• All sales are credit sales (30 days).
• Unless stated all amounts are GST inclusive or GST exempt.
• Interest expense of $227 has accrued in June on the loans payable
• A physical count of office supplies on 30 June shows $2400 of unused supplies on hand
• Depreciation of the office equipment this year is estimated to be $9,400.
• Depreciation of the motor vehicle will be determined using the straight-line method. The business estimates the useful life of the van to be 5 years, and the residual value to be $16,000. Based on these values, the business estimates annual depreciation on the van to be $9,000 per year.
• Prepaid insurance was paid on the 1st of April 2020 and covered a period of 6 months.
• Prepaid rent balance as at 1 July 2020 should be $2,800.
• Of the unearned fees balance as at 31st May, 60% were refunded to a customer as the business was unable to complete the work prior to 30 June as previously agreed, the remainder of the unearned fees were earned during June.
• Salaries expense accrued for the last week in June amounts to $2,800. Ignore PAYG related to salaries.
• The fuel expense for June of approximately $800 has not been recorded or paid.
• At the end of the month A, Peak withdrew $4,500 for his own use

Earnings per share Bass Ltd, a leading producer of construction, mining and electrical equipment, suffered a significant drop in the demand of the company’s products due to COVID-19 in 2020 that significantly threatens the financial stability of the company. Bass in order to survive in this critical situation decides to restructure its strategy for forthcoming years. Changes in company strategies and accounting policies have a significant impact on reported profit. The basic earnings per share and diluted earnings per share presented in the company’s current year financial statements in accordance with “AASB 133 Earnings per Share” were comparatively higher than that of the last year. In contrast, company share prices have dropped by 20% at the reporting date, according to Yahoo finance.

While most shareholders seem unhappy to own company shares for the meagre dividend attached to them the question of whether Bass Ltd are fully valued at their current share prices continues to linger.

The directors of Bass Ltd are not sure how to calculate and include basic and diluted earnings per share in the company’s financial statements in accordance with AASB 133, and called for a report from the Finance Manager of the company.

On 30 June 2020, Bass Ltd had the following equity:

Preference shares (issued at $ 2 each) 500 000 shares Ordinary shares (issued at $ 3 each) $ 3 000 000 Retained earnings $1 250 000 Reserves $ 520 000 Total equity $ 5 770 000 During the year ended 30 June 2020, the company earned after tax profit of $1 240 000 from ordinary activities. The additional information is available.

i. On 20 November 2019, the company made a one-for-five bonus issue, and on 30 March 2020, the company made a rights issue of 400 000 ordinary shares.

ii. On 20 July 2017, the company issued $ 750 000 of 8% convertible notes. Each $ 100 note was convertible into 50 ordinary shares. There was no conversion during the year ended 30 June 2020.

iii. On 28 February 2019, the company issued options to purchase 10 000 shares at $ 3.50 each. No options were exercised during the year ended 30 June 2020.

iv. The company income tax rate is $ 0.30 in the dollar and the company’s ordinary shares are trading at $ 5 per share on 30 June 2020.

v. The company paid preference dividends of $ 40 000.  

Required 1. Briefly describe the requirements of AASB 133 ‘earnings per share’ for the calculation of earnings per share.

2. Distinguish between basic and diluted earnings per share.

Following the requirements of AASB 133:

3. Calculate basic earnings per share.

4. Calculate diluted earnings per share.

An LC circuit like the one in the figure below contains an 85.0 mH inductor and a 24.0 µF capacitor that initially carries a 175 µC charge. The switch is open for t < 0 and is then thrown closed at t = 0. A rectangular loop forms an L C circuit. The left side of the loop contains a capacitor C carrying a charge Qmax, with the positively charged plate above the negatively charged plate. The right side of the loop contains an inductor L. The bottom side of the loop contains an open switch S. (a) Find the frequency (in hertz) of the resulting oscillations. . Hz (b) At t = 1.00 ms, find the charge on the capacitor. µC (c) At t = 1.00 ms, find the current in the circuit. mA (d) What If? What are the first three times (in ms), after t = 0, when the capacitor is fully charged again? smallest value ms ms largest value ms

Short answer: Answer each of the questions in Section B. Answers should typically be no more than 2-3 sentences in length.

1. In the Mundell-Fleming model, what are the two endogenous variables that appear in the goods-market equilibrium condition (after substituting in all relevant functions, e.g., C = C(Y ? T), etc.)? How does this compare to the case in the (closed economy) IS-LM model? Be sure to explain the reason for any differences

2. Briefly describe how “debt deflation” works; that is, how this mechanism might cause an unexpected fall in the price level to produce a large fall in output (e.g., in the Great Depression).

3. Consider the IS-LM model, and suppose G increases by ?G units. In general equilibrium, does output increase by more, less, or the same amount as µG × ?G (where µG is the government spending multiplier)? Be sure to explain why this is the answer.

A portfolio manager has a $33m position in an equity portfolio which tracks the YAL100 index. The manager is concerned about the possibility of a short term fall in the index and consequent decrease in the value of his portfolio. The fund manager decides to hedge using futures written on the YAL100 index. The current value of the index is 7,500 points with a continuously compounded dividend yield of 3.8%. The portfolio has a beta of 1.1 with respect to the index. The relevant futures contract has 6 months to maturity and has a contract multiple of $25 per full index point. The risk-free rate of interest is 4.5%.

(a) Calculate the futures position required to hedge the portfolio using a beta hedge.

(b) After 3 months the spot price of the index falls to 7,200 points and the futures position is closed out. What will be the new quoted futures price and what will be the gain or loss on the futures and spot positions and the return on the hedged portfolio?

Larry, Moe, and Curly who share in income and losses in the ratio of 2:3:5, decided to discontinue operations as of April 30, 2013, and liquidate their partnership. After the accounts were closed on April 30, 2013, the following trial balance was prepared:

Larry, Moe, and Curly Post-Closing Trial Balance April 30, 2013

DEBIT

Cash 8,000 Noncash Assets 107,800

CREDIT

Liabilities 35,700 Larry, Capital 13,140 Moe, Capital 25,110 Curly, Capital 41,850

Totals: $115,800 $115,800

Between May 1 and May 18, the noncash assets were sold for $36,800, and the liabilities were paid. INSTRUCTIONS: 1. Assuming that the partner with the capital deficiency pays the entire amount owed to the partnership, prepare a statement of partnership liquidation. 2. Journalize the entries to record: a). the sale of assets. b). the division of loss on the sale of assets. c). the payment of liabilities. d). the receipt of the deficiency e). the distribution of cash to the partners.

Optimum Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on November 30, 2019, the end of the fiscal year, the balances of selected accounts from the ledger of Optimum Weight Loss Co. are as follows: Accounts Payable $37,200 Accounts Receivable 118,550 Accumulated Depreciation-Equipment 187,000 Cash ? Equipment 477,200 Land 300,000 Prepaid Insurance 6,200 Prepaid Rent 21,900 Salaries Payable 9,300 Cheryl Viers, Capital 714,600 Supplies 4,500 Unearned Fees 17,300 Prepare a classified balance sheet that includes the correct balance for Cash. Fixed assets must be entered in order according to account number. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) or the word "Less" on the balance sheet; they will automatically insert where necessary.