Question 3
The Waterloo Group of Grantly and its investee companies Clo and Donte at 31 May 2020 are shown below:
Draft Income Statements for the year ended 31 May 2020
Grantly Clo Donte
R000 R000 R000
Revenue 1,138 488 149
Cost of sales (576) (214) (59)
_____ _____ _____
Gross profit 562 274 90
Other operating expenses (138) (54) (40)
_____ _____ _____
Profit from operations 424 220 50
Interest payable (38) (44) (14)
_____ _____ _____
Profit before tax 386 176 36
Taxation (54) (24) (6)
_____ _____ _____
Profit for the year 332 152 30
_____ _____ _____
Draft Statements of financial position as at 31 May 2020
Grantly Clo Donte
R000 R000 R000 R000 R000 R000
Non-current
assets
PPE 690 812 712
Investments 1,950 - -
____ ____ ____
2,640 812 712
Current
assets
Inventories 700 594 56
Receivables 1,000 180 130
Cash and
cash
equivalents 375 25 15
____ ____ ____
2,075 799 201
____ ____ ____
4,715 1,611 913
____ ____ ____
Equity
Share capital (R1
ordinary shares) 1,875 600 500
Reserves 1,125 690 160
____ ____ ____
3,000 1,290 660
Non-current
liabilities
7% Loan note 300 200 50
Current
liabilities
Trade
Payables 1,350 101 188
Taxation 65 20 15
____ ____ ____
1,415 121 203
____ ____ ___
4,715 1,611 913
____ ____ ____
Additional information
● During the year Grantly acquired a new asset with a fair value of R100,000 under a finance lease. The
lease agreement states payments of R20,000 must be paid for six years on 31 May each year, starting on 31 May 2020. At the end of the six year period legal title of the asset will pass to Grantly.
● Grantly believes the only accounting entry he must make in relation to this asset is for the R20,000 payment he has made and he has treated this as an operating expense.
● Grantly acquired 600,000 ordinary shares in Clo on 1 June 2016 for R1,550,000 when the reserves of Clo were R200,000.
● At the date of acquisition of Clo, the fair value of its property was R375,000 higher than its book value and considered to have a remaining life of 10 years.
● Grantly acquired 150,000 ordinary shares in Donte on 1 June 2019 for R400,000 when the reserves of Donte were R90,000. The fair values of assets of Donte were the same as their net book value at that date. Depreciation should be treated as an operating expense.
● Grantly manufactures a component used by Clo and Donte. Grantly sells this component at a margin of 25% and sold goods to Clo for R52,000 during the year. None of these goods had been sold by Clo at 31 May 2020. Grantly sold goods to Donte for R80,000 and Donte had sold all of these goods at 31 May 2020.
● The receivables of Grantly include R60,000 in respect of amounts owing by Clo and R35,000 in respect of amounts owing by Donte. The corresponding balances in the payables of Clo and Donte are R40,000 (Clo) and R35,000 (Donte). On 30 May 2020 Clo had sent a cheque to Grantly for R20,000.
● The impairment test on goodwill applied to Clo showed goodwill is being impaired by 10% per annum on a straight line basis. There has been no impairment for Donte.
Requirements:
(a) Prepare the calculations for the adjustments required to be made in the accounts of Grantly for the year ended 31 May 2020, to account for the finance lease in note (i). You should apply the sum of the digits method when calculating the finance cost and prepare all workings to the nearest thousand.
You should assume these calculations will have no effect on taxation.

(b) Prepare the consolidated statement of comprehensive income and consolidated statement of financial position of the Waterloo group at 31 May 2020, incorporating the calculations you have made in requirement (a) above.
Question 4
YZ is a manufacturing entity which produces and sells a range of products. YZ’s trial balance at 30 September 2020 is shown below:
Note R000 R000
Administrative expenses 910
Borrowings @ 7% per year 3,000
Buildings at cost at 30 September 2019 3,400
Cash and cash equivalents 130
Cash received on disposal of machinery (i) 8
Cost of raw materials purchased in year to 30 September 2020 2,220
Direct production labour costs 670
Distribution costs 515
Equity dividend paid 170
Equity shares R1 each, fully paid at 30 September 2020 (xi) 1,700
Income tax (viii) 30
Inventory of finished goods at 30 September 2019 (vii) 190
Inventory of raw materials at 30 September 2019 (vii) 275
Land at valuation at 30 September 2019 (ii) 9,000
Loan interest paid 210
Plant and equipment at cost at 30 September 2019 (i) 3,900
Production overheads (excluding depreciation) 710
Provision for deferred tax at 30 September 2019 (ix) 430
Accumulated depreciation at 30 September 2019:
Buildings (iii) 816
Plant and equipment (iv) 2,255
Patent (v) 526
Retained earnings at 30 September 2019 3,117
Revaluation reserve at 30 September 2019 1,800
Sales revenue 9,820
Share premium 100
Trade payables 940
Trade receivables 1,130 _____
23,986 23,986
Additional information:
i) During the year YZ disposed of obsolete machinery for R8,000. The cash received is included
in the trial balance. The obsolete machinery had originally cost R35,000 and had
accumulated depreciation of R32,000.
ii) On 30 September 2020 YZ revalued its land to R9,500,000.
iii) Buildings are depreciated at 2% per annum on the straight line basis. Buildings depreciation
should be treated as an administrative expense. No buildings were fully depreciated at 30
September 2019.
iv) Plant and equipment is depreciated at 25% per annum using the reducing balance method
and is treated as a production overhead.
v) The patent for one of YZ’s products was purchased on 1 October 2017. The patent had a
useful life of 10 years when it was purchased and is being amortised on a straight line basis
with no residual value anticipated. Amortisation of the patent is treated as cost of sales when
charged to the income statement. Research is carried out on a continuous basis to develop
the patented process and ensure that the product range continues to meet customer
demands. The patent figure in the trial balance is made up as follows:
R000
Original cost of patent 420
less amortisation to 30 September 2019 (84)
336
Research costs incurred in the year to 30 September 2020
Total
190
526
vi) YZ’s accounting policy for amortisation and depreciation is to charge a full year in the year of
acquisition and none in the year of disposal.
vii) Inventory of raw materials at 30 September 2020 was R242,000. Inventory of finished goods
at 30 September 2020 was R180,000.
viii) The directors estimate the income tax charge on the year’s profits at R715,000. The balance
on the income tax account represents the under-provision for the previous year’s tax charge.
ix) The deferred tax provision is to be reduced by R47,000.
x) YZ entered into a non-cancellable 4 year operating lease on 1 October 2019, to acquire
machinery to replace the old machinery sold. Under the terms of the lease YZ will pay no rent
for the first year. R8,000 is payable for each of 3 years commencing on 1 October 2020. The
machine is estimated to have a useful economic life of 10 years.
xi) During the year YZ issued 200,000 R1 equity shares at a premium of 50%. The total
proceeds were received before 30 September 2020 and are reflected in the trial balance
figures.
Required:
Prepare YZ’s statement of comprehensive income and a statement of changes in equity for the year to 30 September 2020 and a statement of financial position at that date, in accordance with the requirements of International Financial Reporting Standards. (All workings should be to the nearest R000).
Notes to the financial statements are not required, but all workings must be clearly shown. Do not prepare a statement of accounting policies. (Total for Question Three = 25 marks)
Total 100 marks

A billiard ball moving horizontally, labeled 1, strikes another billiard ball at rest, labeled 2. Before impact, ball 1 was moving at a speed of 2.45 m/s, and after impact it is moving at 0.60 m/s at 45° counterclockwise from the direction of the initial velocity. If the two balls have equal masses of 160 g, what is the velocity of ball 2 after the impact? (Assume ball 1 initially moves along the +x-axis. Enter the magnitude in m/s and the direction in degrees counterclockwise from the +x-axis.)

An order to initiate TF was written for a patient in ICU: "Start Jevity 1.2 as tolerated. Goal rate is 50 cc/hr." The nurse should do the following:

Select one:

a. Start the TF via the NG tube at 1.2 ml/hr and check the residuals after 4 hours

b. Start the tube feeding infusion at 50 cc/hr and check the residuals after 2 hours

c. Check the bowel sounds and start TF at 10 cc/hr if +BS

d. Check the residuals before starting the tube feeding

e. none of the above

Consider the titration of 35.0 mL of 0.143-M of KX with 0.165-M HCl. The pKa of HX = 6.83. Give all pH values to 0.01 pH units.

a) What is the pH of the original solution before addition of any acid? pH =

b) How many mL of acid are required to reach the equivalence point? VA = mL

c) What is the pH at the equivalence point? pH =

d) What is the pH of the solution after the addition of 18.8 mL of acid? pH =

e) What is the pH of the solution after the addition of 36.4 mL of acid? pH =

A uniform 1.2kg square plexiglas window, 1.750m on a side hangs vertically from a frictionless hinge along its upper edge. A 1.10kg raven flying horizontally at 6.60 m/s collides with the window 1.25m from the hinge and bounces back at 3.80m/s in the opposite direction.

a)

What is the angular momentum of the raven relative to the hinge before and after the collision?

b)

What is the angular speed of the window just after the collision?

c)

Why is angular momentum conserved and not linear momentum?

d)

Why was the raven so panicked it flew into the window in the first place?

Consider the titration of 40.0 mL of 0.243-M of KX with 0.097-M HCl. The pK_a of HX = 7.09. Give all pH values to 0.01 pH units.

a) What is the pH of the original solution before addition of any acid?

pH =

b) How many mL of acid are required to reach the equivalence point?

V_A =  mL

c) What is the pH at the equivalence point?

pH =

d) What is the pH of the solution after the addition of 68.1 mL of acid?

pH =

e) What is the pH of the solution after the addition of 120.2 mL of acid?

pH =

The mass of a particular eagle is twice that of a hunted pigeon. Suppose the pigeon is flying north at??,2=16.9vi,2=16.9 m/s when the eagle swoops down, grabs the pigeon, and flies off. At the instant right before the attack, the eagle is flying toward the pigeon at an angle ?=49.9θ=49.9°below the horizontal and a speed of ??,1=37.3vi,1=37.3 m/s. What is the speed of the eagle immediately after it catches its prey?What is the magnitude of the angle, measured from horizontal, at which the eagle is flying immediately after the strike?

Consider the titration of 45.0 mL of 0.222-M of KX with 0.127-M HCl. The pKa of HX = 8.88. Give all pH values to 0.01 pH units. a) What is the pH of the original solution before addition of any acid? pH = b) How many mL of acid are required to reach the equivalence point? VA = mL c) What is the pH at the equivalence point? pH = d) What is the pH of the solution after the addition of 27.5 mL of acid? pH = e) What is the pH of the solution after the addition of 94.4 mL of acid? pH =

Suppose Bond A has a face value worth $1000. It pays a coupon on a semi-annual basis, and the annual coupon rate is 8%. The YTM is 10%. The bond will mature 10 years from now. Suppose that you buy Bond A today. After 6 months from the time of buying the bond, you decide to sell the bond (you sell the bond after you receive the first coupon). Right before you sell the bond, the YTM goes up to 12%. What is your six-month holding period return (percentage return)?