Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate. Unsupported answers will receive no marks. It is the explanation that is important.
A6-1. An economy with a recessionary gap will never return to long run equilibrium without policy intervention.
A6-2. In a closed economy, investment will equal the sum of private saving and government saving.
A6-3. An increase in private saving for a closed economy implies lower consumption in long-run equilibrium and also leads to lower GDP growth.
A6-4. You have two Canadian dimes. One is from 1962 and contains 25 cents worth of silver; the other is from 2013 and contains no silver. You would clearly use the later coin when paying for a coffee rather than the earlier one.
In: Economics
Include:
all hypothesis tests with all four steps
all Confidence Intervals with all output as well as the CI itself'
all calculator functions used
An experiment was done to see whether open-book tests make a difference. A calculus class of 48 students agreed to be randomly assigned by the draw of cards to take a quiz either by open-notes or closed-notes. The quiz consisted of 30 integration problems of varying difficulty. Students were to do as many as possible in 30 minutes. The 24 students taking the exam closed-notes got an average of 15 problems correct with a standard deviation of 2.5. The open-notes crowd got an average of 12.5 correct with a standard deviation of 3.5. Assume that the populations are approximately normal. At the 5% significance level, does this data suggest that differences exist in the mean scores between the two methods?
In: Statistics and Probability
1) Please define the term closed circulatory system. Which animals have it, and what are its’ evolutionary advantages over open systems (why might a closed system be more efficient)?
(10 points)
2) Describe all the events (steps) that occur during a cardiac cycle for mammals (organisms with a
double circulation), as well as the opening and
closing of all heart valves, and the signals arising from the SA and AV nodes. How does this cycle contribute to metabolic homeostasis for our cells, and what is the purpose of the valves?
3) Using information discussed during our lectures thus far, propose 2 physical ways that a human may develop hypertension
(abnormally elevated blood pressure). [One of these mechanisms should
stem from the blood vessels, and the other at the level of the nervous system]. What are the long-
term consequences of elevated hypertension?
In: Biology
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 K 4000 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 Page 8 of 8 d) State what amounts would be reported in the statement of financial position as at 31 March 2020 in respect of the bonds.
In: Accounting
On February 1, 2018, Arrow Construction Company entered into a
three-year construction contract to build a bridge for a price of
$8,150,000. During 2018, costs of $2,050,000 were incurred with
estimated costs of $4,050,000 yet to be incurred. Billings of
$2,550,000 were sent, and cash collected was $2,300,000.
In 2019, costs incurred were $2,550,000 with remaining costs
estimated to be $3,675,000. 2019 billings were $2,800,000 and
$2,525,000 cash was collected. The project was completed in 2020
after additional costs of $3,850,000 were incurred. The company’s
fiscal year-end is December 31. Arrow recognizes revenue over time
according to percentage of completion.
Required:
1. Compute the amount of revenue and gross profit
or loss to be recognized in 2018, 2019, and 2020 using the
percentage of completion method?
2a. Prepare journal entries for 2018 to record the
transactions described (credit "various accounts" for construction
costs incurred).
2b. Prepare journal entries for 2019 to record the
transactions described (credit "various accounts" for construction
costs incurred).
3a. Prepare a partial balance sheet to show the
presentation of the project as of December 31, 2018.
3b. Prepare a partial balance sheet to show the
presentation of the project as of December 31, 2019.
In: Accounting
Peppermint Ltd went into voluntary liquidation on 30 June 2020. A statement of financial position prepared at that date was as follows:
------------------------------------------------------------------------------------------------------------------------
Peppermint Ltd
Statement of Financial Position as at 30 June 2020
Current Assets
Cash $11,000
Inventories 85,700
Total Current Assets 96,700
Non-current Assets
Equipment 142,800
Land and Buildings 70,000
Total Non-current Assets 212,800
Total Assets 309,500
Current Liabilities
Accounts Payable 40,000
Total Current Liabilities 40,000
Non-current Liabilities
Mortgage (secured over Land and Buildings) 80,000
Total Non-current Liabilities 80,000
Total Liabilities 120,000
Net Assets $189,500
Equity
300,000 ordinary shares issued for $1 each, fully paid 300,000
Accumulated Losses (110,500)
Total Equity $189,500
------------------------------------------------------------------------------------------------------------------------
Additional information:
(a) The sale proceeds of assets realised the following amounts in cash:
Inventories $70,000
Equipment 80,000
(b) The mortgage holder took possession of the land and buildings and sold them for $90,000 and after settlement of the debt paid any excess funds to the liquidator.
(c) Liquidation costs amounted to $15,000.
(d) The liquidator paid all liabilities.
Required:
In: Accounting
On February 1, 2018, Arrow Construction Company entered into a
three-year construction contract to build a bridge for a price of
$8,540,000. During 2018, costs of $2,180,000 were incurred with
estimated costs of $4,180,000 yet to be incurred. Billings of
$2,680,000 were sent, and cash collected was $2,430,000.
In 2019, costs incurred were $2,680,000 with remaining costs
estimated to be $3,870,000. 2019 billings were $2,930,000 and
$2,655,000 cash was collected. The project was completed in 2020
after additional costs of $3,980,000 were incurred. The company’s
fiscal year-end is December 31. Arrow recognizes revenue over time
according to percentage of completion.
Required:
1. Compute the amount of revenue and gross profit
or loss to be recognized in 2018, 2019, and 2020 using the
percentage of completion method?
2a. Prepare journal entries for 2018 to record the
transactions described (credit "various accounts" for construction
costs incurred).
2b. Prepare journal entries for 2019 to record the
transactions described (credit "various accounts" for construction
costs incurred).
3a. Prepare a partial balance sheet to show the
presentation of the project as of December 31, 2018.
3b. Prepare a partial balance sheet to show the
presentation of the project as of December 31, 2019.
In: Accounting
Q Ltd. bought a new machinery on July 01, 2015 for $72,000. The machinery is expected to have a useful life of 8 years, after which, it will be scrapped for $3,500. On August 01, 2016, the company bought a new machinery and following costs were incurred on it: Purchase price$ 480,000 Non-refundable taxes $ 72,000 Delivery charges $ 25,000 Transporation insurance $ 6,500 Installation charges $ 3,200 Test run charges $ 800 Maintainance contract for further 3 years $ 12,000 The estimated useful life of the machinery is 13 years, and the salvage value is expected to be $18,500. During the year 2019, the company re-estimated the expected life of the machincery bought on July 01, 2015, and the number was revised to 11 years. The company bought a new machinery in the year 2020 for $63,000. The machinery was expected to produce a total of 130,000. The machinery was used to produced 23,000 units during the year 2020, 38,400 units during the year 2021, 58,200 in 2022, and 10,600 in 2023. In the year 2022, the company revised the salvage value of the machinery bought on August 01, 2016 from $18,500 to $21,300. Prepare the depreciation chart from 2015 to 2023 assuming that the company's fiscal year end is December 31.
In: Accounting
On February 1, 2018, Arrow Construction Company entered into a
three-year construction contract to build a bridge for a price of
$8,000,000. During 2018, costs of $2,000,000 were incurred with
estimated costs of $4,000,000 yet to be incurred. Billings of
$2,500,000 were sent, and cash collected was $2,250,000.
In 2019, costs incurred were $2,500,000 with remaining costs
estimated to be $3,600,000. 2019 billings were $2,750,000, and
$2,475,000 cash was collected. The project was completed in 2020
after additional costs of $3,800,000 were incurred. The company’s
fiscal year-end is December 31. Arrow recognizes revenue over time
according to percentage of completion.
Required:
1. Compute the amount of revenue and gross profit
or loss to be recognized in 2018, 2019, and 2020 using the
percentage of completion method?
2a. Prepare journal entries for 2018 to record the
transactions described (credit "various accounts" for construction
costs incurred).
2b. Prepare journal entries for 2019 to record the
transactions described (credit "various accounts" for construction
costs incurred).
3a. Prepare a partial balance sheet to show the
presentation of the project as of December 31, 2018.
3b. Prepare a partial balance sheet to show the
presentation of the project as of December 31, 2019
In: Accounting
On February 1, 2018, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,540,000. During 2018, costs of $2,180,000 were incurred with estimated costs of $4,180,000 yet to be incurred. Billings of $2,680,000 were sent, and cash collected was $2,430,000. In 2019, costs incurred were $2,680,000 with remaining costs estimated to be $3,870,000. 2019 billings were $2,930,000 and $2,655,000 cash was collected. The project was completed in 2020 after additional costs of $3,980,000 were incurred. The company’s fiscal year-end is December 31. Arrow recognizes revenue over time according to percentage of completion. Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2018, 2019, and 2020 using the percentage of completion method? 2a. Prepare journal entries for 2018 to record the transactions described (credit "various accounts" for construction costs incurred). 2b. Prepare journal entries for 2019 to record the transactions described (credit "various accounts" for construction costs incurred). 3a. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2018. 3b. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2019.
In: Accounting