Serial Problem Business Solutions LO P3

Santana Rey receives the March bank statement for Business Solutions on April 11, 2020. The March 31 bank statement shows an ending cash balance of $68,266. The general ledger Cash account, No. 101, shows an ending cash balance per books of $68,825 as of March 31 (prior to any reconciliation). A comparison of the bank statement with the general ledger Cash account, No. 101, reveals the following.

1. The bank erroneously cleared a $580 check against the company account in March that S.Rey did not issue. The check was actually issued by Business Systems.
2. On March 25, the bank statement lists a $43 charge for the safety deposit box. Santana has not yet recorded this expense.
3. On March 26, the bank statement lists a $105 charge for printed checks that Business Solutions ordered from the bank. Santana has not yet recorded this expense.
4. On March 31, the bank statement lists $35 interest earned on Business Solutions’s checking account for the month of March. Santana has not yet recorded this revenue.
5. S. Rey notices that the check she issued for $134 on March 31, 2020, has not yet cleared the bank.
6. S. Rey verifies that all deposits made in March do appear on the March bank statement.

Required:

1. Prepare a bank reconciliation for Business Solutions for the month ended March 31, 2020.

At the end of 2019, the balances in the accounts related to the defined benefit pension plan of the Mansfield Company were as follows:

            Projected benefit obligation                                                                           $1,470,000

            Unrecognized prior service cost (remainder to be amortized over 12 years)             108,000

            Unrecognized net loss                                                                                         192,000

            Plan assets (at fair value)                                                                                  1,087,500

            Pension liability                                                                                                 382,500

On 1/1/20, Mansfield amended the plan to provide an increased amount of pension benefits; the prior service cost resulting from this amendment was $60,000. At 1/1/20, the average remaining service life of employees expected to receive benefits was 12 years.

The following information relates to the year 2020:

                   Service Cost                                                          $184,500

                   Settlement rate                                                                8%

                   Expected rate of return on plan assets                              7%

                   Plan contribution (at year-end)                                 135,000

                   Benefit payments to retirees (at year-end)                 120,000

In 2020, Mansfield’s actual return on plan assets was $80,000. Mansfield follows a policy of recognizing gains/losses on a delayed basis using the "corridor approach". In 2020, there was one change in the estimates and assumptions relating to computation of the projected benefit obligation, resulting in an increase in the PBO of $48,000.

Required:

1.    Prepare Mansfield’s pension worksheet, and prepare the journal entry that Mansfield would make to record the expense calculated.
2. Prepare the pension note required for the 12/31/20 financial statements.

In early January 2020, Novak Inc., a private enterprise that applies ASPE, purchased 40% of the common shares of Washi Corp. for $402,000. Novak was now able to exercise considerable influence in decisions made by Washi’s management. Washi Corp.’s statement of financial position reported the following information at the date of acquisition:

Additional information:

Prepare the journal entry to record Novak’s investment in Washi Corp. Assume that any unexplained payment is goodwill.

Assuming Novak applies the equity method to account for its investment in Washi, prepare the journal entries to record Novak’s equity in the net income and the receipt of dividends from Washi Corp. in 2020.

1.

Short and long reflexes in the gastrointestinal track get their names due to the fact that short reflexes activate their downstream effectors for shorter periods of time.

Select one:

True

False

2.

Which of the following examples of applied immunology are correctly matched? Select all that apply.

Select one or more:

A. Receiving plasma from a COVID-19 survivor :: artificially acquired passive immunity

B. Receiving a vaccine :: artifically aquired active immunity

C. Surviving infection with chicken pox :: naturally acquired passive immunity

D. A baby nursing from their mother :: naturally acquired active immunity

3.

Which of the following glands is not involved in semen production?

Select one:

A. Greater vestibular gland

B. Seminal gland

C. Prostate gland

D. Bulbo-urethral gland

4.

Order the following processes of respiration in the correct sequence:

1) Transport of respiratory gases
2) External Respiration
3) Internal Respiration
4) Pulmonary Ventilation

Select one:

A. 4, 2, 1, 3

B. 1, 2, 4, 3

C. 2, 4, 1, 3

D. 2, 4, 3, 1

E. 1, 4, 3, 2

F. 4, 1, 2, 3

Question 1

The following statement of financial position relates to XYZ Ltd for the years ending 30 June 2019 and 30 June 2020.

Additional Information:

1. Gross profit for the year ended 30 June 2020 was $110,500, and consisted of:

Sales Revenue                 $393,500

Cost of Sales                     283,000

2. All purchases and sales of inventory were on credit.
3. Loss for the year ended 30 June 2020 was $18,750, after deducting expenses of $129,250 from the gross profit figure.
4. Expenses of $129,250 comprise of depreciation on Buildings and on Plant & Equipment, a loss on sale of land, $5,000 in interest expense, and other expenses (other expenses relate to Accrued Employee Expenses in the statement of financial position).
5. During the year ended 30 June 2020, cash dividends were paid.
6. The increase in Buildings was due to building extensions which were paid for during the year, and a block of land costing $37,500 was sold for $31,250 cash.
7. No Plant & Equipment was purchased or sold during the year.
8. The revaluation increment on land of $20,000 does not have any effect on profit or loss.

Required:

Prepare the statement of cash flows of XYZ Ltd for the year ended 30 June 2020 based on the direct method of presentation. Ignore tax effects. Notes are not required.

(Total = 16 marks)

Your answers:

Provide your answers from here

Workings:

Provide your workings from here. Please use the blank T-account format (if necessary).

Account name

Copy & pate the T-account above and use them more (if necessary)

You need to order US $100,000 worth of reams of paper from China to complete an order from an important commercial customer in 30 days. The current rate of exchange is USD/CNY = 6.5766.

• Ignoring other transaction expenses associated with the order, how many Yuan would you need to pay the Chinese supplier?
• Define the meaning of foreign exchange. Assuming that you have the choice to pay immediately or in 30 days, define, describe, and provide examples of how you may use each of the following to complete the transaction:
  • Definition and use of foreign currency derivatives
  • Spot, forward, and futures currency contracts
  • Bid/ask spreads
  • Definition and use of currency options

Purchase of Health Insurance

1) As one looks at historical data in the US from 1950 forward, describe the medical services that have been most commonly covered by health insurance (for the most people, and earliest in history), and those that have been covered less commonly (for fewer people, and later in history).

2) Discuss two economic aspects of the demand for these various services that will help understand the historic trends you described in part 1).

3) Related to question 1) and 2), would you expect more people to purchase insurance against losses associated with dental care or with hospital care? Why?

Trefor, a US firm, has a sterling (£) receivable of £300,000 from a UK customer due one year from now. Trefor has no use for sterling currency and will exchange the receipt into US dollars ($). The spot exchange rate now is £1=$1.34 and the one- year forward exchange rate is £1=$1.31. Assume the forecasted spot rate in one year’s time is £1=$1.28 or £1=$1.38, with equal probability. The discount rate is zero.

0. (a) What is the expected dollar value of Trefor’s receivable if it chooses:

   1. (i) not to hedge the receipt?

   2. (ii) to use a forward hedge?

1. (b) One year sterling put options and sterling call options are available at a cost of

   $0.03 per £ with an exercise price of £1.32.

   1. (i) How could Trefor make use of an option hedge for its sterling receivable?

   2. (ii) What will be the expected value in dollars of the outcome of the option hedge?

2. (c) If Trefor is concerned only about downside risk, is it better to choose the forward hedge or the option hedge? Explain. (60 words)

3. (d) An alternative hedging strategy for Trefor is to use futures contracts. Are there any advantages to using futures instead of a forward exchange extract? Explain. (60 words)

4. (e) Briefly discuss the implications of the Capital Asset Pricing Model for the relationship between the current spot price of an asset and the discount offered by the seller of a futures contract.

I'll give good rating please help.

what are the market growth rates for the Retail pharmaceutical industry from 2015-2019 in the US? Please describe whether they are positive or negative.

3. Trefor, a US firm, has a sterling (£) receivable of £300,000 from a UK customer due one year from now. Trefor has no use for sterling currency and will exchange the receipt into US dollars ($). The spot exchange rate now is £1=$1.34 and the oneyear forward exchange rate is £1=$1.31. Assume the forecasted spot rate in one UL20/0419 Page 5 of 8 year’s time is £1=$1.28 or £1=$1.38, with equal probability. The discount rate is zero. (a) What is the expected dollar value of Trefor’s receivable if it chooses: (i) not to hedge the receipt? (ii) to use a forward hedge? (b) One year sterling put options and sterling call options are available at a cost of $0.03 per £ with an exercise price of £1.32. (i) How could Trefor make use of an option hedge for its sterling receivable? (ii) What will be the expected value in dollars of the outcome of the option hedge? (c) If Trefor is concerned only about downside risk, is it better to choose the forward hedge or the option hedge? Explain. (60 words) (d) An alternative hedging strategy for Trefor is to use futures contracts. Are there any advantages to using futures instead of a forward exchange extract? Explain. (60 words) (e) Briefly discuss the implications of the Capital Asset Pricing Model for the relationship between the current spot price of an asset and the discount offered by the seller of a futures contract. (100 words)