In October 2018, 4 people died from a mystery virus after a cruise holiday on Fun Cruises. Their families started legal action against Fun Cruises in November 2018 for a total of $2,000,000, but the company disputes liability. Up to the date of authorisation of the financial statements for the year to 30 June 2019, the lawyers advise that it is probable that the entity will not be found liable. However, when Fun Cruises prepares the financial statements for the year to 30 June 2020, its lawyers advise that, owing to developments in the case relating to a faulty dishwasher, it is probable that they will be found liable. For the year ended 30 June 2019, how should Fun Cruises account for this item in its accounts?

A futures market is a central financial exchange where people can trade standardized futures contracts. A futures exchange provides physical or electronic trading venues, which can be organized as non-profit member-owned organizations or for-profit organizations. Futures exchanges can also be integrated under other types of exchanges, such as stock markets, options markets and bond markets. Futures contracts are sometimes used by corporations and investors as a hedging strategy. Hedging refers to a range of investment strategies that are meant to decrease the risk experienced by investors and corporations.

After May 2020, what are the prospects of futures contracts as a significant risk management tool for firms? Discuss critically.

On Jan 2, 2018, Sandstone Enterprises purchased equipment for $129,200. The equipment has a useful life of four years or of 13,000 working hours and after the useful life it will have a residual value of $13,500. The machine was used for 1,900 hours in 2018, 2,800 hours in 2019; 3,700 hours in 2020.

Required:

1. Calculate the depreciation expense for 2018 and 2019 under each of the following methods:

1. Straight-line,
2. Double diminishing-balance, and
3. Units-of -production

2. Record the journal entry for depreciation expense for the year ended December 31, 2018 under the straight-line method. (2 marks)
3. Which method results in the lowest profit for the first two years? Why?

Mr. Hilal joined bank Muscat in the IT department on the 20^th of March 2002. As per the agreement with the employer, he is promised a starting basic pay of OMR 650 per month along with other allowances. His gross starting salary adding all allowances amounts to OMR 750. As per the terms and conditions in the contract, he is entitled for an increment (increment added to basic salary) after the completion of one year service. He retired from service on 15^th March 2020 when he was drawing a gross salary of OMR 1850 including all allowances OMR 350.

1)You are required to calculate the gratuity payable to Mr. Hilal.  

1. Bird Song Industries makes a bird seed that sets native song birds singing all day long. Its product has been discovered by the back-to-nature crowd around the world. As a result, Bird Song's executives expect free cash flow (FCF) to grow rapidly over the next 3 years. The forecast FCFs are 25 in 2020 (one year from now), 40 in 2021, with a jump to 80 in 2022. After 2022 Bird Song expects growth to slow to 2.5% per year in perpetuity. Bird Song's weighted average cost-of-capital (WACC) is 11%.   What is Bird Song’s fundamental value?

2. Bird Song Industries makes a bird seed that sets native song birds singing all day long. Its product has been discovered by the back-to-nature crowd around the world. As a result, Bird Song's executives expect free cash flow (FCF) to grow rapidly over the next 3 years. The forecast FCFs are $15 in 2020 (one year from now), $25 in 2021, with a jump to $40 in 2022. After 2022 Bird Song expects growth to slow to 2.0% per year in perpetuity. Bird Song's weighted average cost-of-capital (WACC) is 13%. What is Bird Song’s fundamental value?

UnAdjusted trial balance 31 st May 2020

Office supplies 6,660

June Transaction

05-06-20 Purchased office supplies on credit, due 15 July 2020 $1,045

Additional Information

• A physical count of office supplies on 30th June shows $2940 of unused supplies on hand.

Journal entries for the year ended 30 june 2020 with workings P&L and SOFP Transaction

On January 1, 2020, ABC Company borrowed $200,000 from the bank. The loan is
a 10-year note payable that requires semi-annual payments of $24,000 every
June 30 and December 31, beginning June 30, 2020. Assume the loan has a 20%
interest rate, compounded semi-annually.

Calculate the amount of the note payable at December 31, 2020 that would be
classified as a long-term liability.

Utilizing the equal weighted series calculate the index values for each day for the market below.