1. Weka Company Ltd has been considering the criteria that must be met before a capital expenditure proposal can be included in the capital expenditure programme. The screening criteria established by management are as follows:

1. No project should involve a net commitment of funds for more than four years.
2. Accepted proposals must offer a time adjusted or discounted rate of return at least equal to the estimated cost of capital. Present estimates are that cost of capital is 15 percent per annum after tax.
3. Accepted proposals should average over the lifetime, an unadjusted rate of return on assets employed (calculated in the conventional accounting method) at least equal to the average rate of return on total assets shown by the statutory financial statements included in the annual report of the company.

A proposal to purchase a new lathe machine is to be subjected to these initial screening processes. The machine will cost Sh2,200,000 and has an estimated useful life of five year at the end of which the disposal value will be zero.

Sales revenue to be generated by the new machine is estimated as follows:

Additional operating costs are estimated to be Shs700,000 per annum. Tax rates may be assumed to be 30% payable in the year in which revenue is received for taxation purpose the machine is to be written off at a fixed annual rate of 20% on cost.

The financial accounting statement issued by the company in recent years show that profits after tax have averaged 18% on total assets.

Required

Present a report which will indicate to management whether or not the proposal to purchase the lathe machine meets each of the selection criteria.

The Bradford Company issued 10% bonds, dated January 1, with a face amount of $80 million on January 1, 2021 to Saxton-Bose Corporation. The bonds mature on December 31, 2030 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

Required:
1. to 3. Prepare the journal entries to record the purchase of the bonds by Saxton-Bose on January 1, 2021, interest revenue on June 30, 2021 and interest revenue on December 31, 2021 (at the effective rate). (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
  

Please help with preparing the journal entries.

The Bradford Company issued 8% bonds, dated January 1, with a face amount of $50 million on January 1, 2021 to Saxton-Bose Corporation. The bonds mature on December 31, 2030 (10 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:
1. to 3. Prepare the journal entries to record the purchase of the bonds by Saxton-Bose on January 1, 2021, interest revenue on June 30, 2021 and interest revenue on December 31, 2021 (at the effective rate). (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

The Bradford Company issued 8% bonds, dated January 1, with a face amount of $50 million on January 1, 2018 to Saxton-Bose Corporation. The bonds mature on December 31, 2022 (5 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.):

Required:
1. to 3. Prepare the journal entry to record the purchase of the bonds by Saxton-Bose on January 1, 2018, interest revenue on June 30, 2018 and interest revenue on December 31, 2018 (at the effective rate). (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1. The adjusted trial balance of AL Marai Company as of December 31, 2019, contains the following.                                                                                                         [7 Points]   

Instructions:

Prepare an Income Statement, Statement of Retained Earnings and Balance Sheet after taking the following adjustments.

1. Unpaid salaries SR 2,160
2. Accrued service revenue SR 3, 410
3. Prepaid rent SR 260
4. solve in microsoft word

1. Goods in transit which are shipped f.o.b. destination should be
A. included in the inventory of the seller.

B. included in the inventory of the buyer.

C. included in the inventory of the shipping company.

D. none of these answers are correct.

2. What is the primary difference between an ordinary annuity and an annuity due?

A. Annuity due only relates to present values.

B. The timing of the periodic payment.

C. Ordinary annuity only relates to present values.

D. The interest rate.

3. Which of the following properly describes a deferral?

A. Cash is paid in the same time period that an expense is incurred.

B. Cash is paid after expense is incurred.

C. Cash is received after revenue is recognized.

D. Cash is received before revenue is recognized.

4. What is the quality of information that is capable of making a difference in a decision?

A. Materiality

B. Timeliness

C. Faithful representation

D. Relevance

1. Assume that you are the economist for a coal mining company and have estimated the

demand curve facing your firm to be

?????

? = ?, ??? − ?????? + ????+. ???

where Png is the price of natural gas, which is assume to be $3/MMBtu and Pw is the price

of wind power, which is assumed to be $70/MWh.

A. What is the own price elasticity of demand when Pc = $80/ton? Is demand elastic or

inelastic at this price? What would happen to the firm's revenue if it decided to charge a

price below $80?

B. What is the own price elasticity of demand when Pcoal = $160. Is demand elastic or

inelastic at this price? What would happen to your firm’s revenue if it decided to charge a

price above $160?

C. What is the cross-price elasticity of demand between coal and natural gas at the original

prices in part a? Are coal and natural gas complements or substitutes? Answer the same

questions for wind, as well.

2.

Basic Cost-Volume-Profit Concepts

Klamath Company produces a single product. The projected income statement for the coming year is as follows:

Required:

1. Compute the unit contribution margin and the units that must be sold to break even.

2. Suppose 10,000 units are sold above breakeven. What is the operating income?
$

3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue.

Suppose that revenues are $200,000 more than expected for the coming year. What would the total operating income be?
$

The Bradford Company issued 8% bonds, dated January 1, with a face amount of $75 million on January 1, 2018 to Saxton-Bose Corporation. The bonds mature on December 31, 2037 (20 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.):

Required:
1. to 3. Prepare the journal entry to record the purchase of the bonds by Saxton-Bose on January 1, 2018, interest revenue on June 30, 2018 and interest revenue on December 31, 2018 (at the effective rate). (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

The Bradford Company issued 8% bonds, dated January 1, with a face amount of $75 million on January 1, 2018 to Saxton-Bose Corporation. The bonds mature on December 31, 2022 (5 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.): Required: 1. to 3. Prepare the journal entry to record the purchase of the bonds by Saxton-Bose on January 1, 2018, interest revenue on June 30, 2018 and interest revenue on December 31, 2018 (at the effective rate). (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)