Flint’s Dance Studios Ltd. is a public company, and accordingly uses IFRS for financial reporting. The corporate charter authorizes the issuance of an unlimited number of common shares and 70,000 preferred shares with a $2 dividend. At the beginning of the December 31, 2020 year, the opening account balances indicated that 30,000 common shares had been issued for $5 per share, and no preferred shares had been issued. Opening retained earnings were $311,000. The transactions during the year were as follows:

Jan. 15 Issued 12,000 common shares at $6 per share.

Feb. 12 Issued 2,300 preferred shares at $56 per share.

Sept. 2 Issued 5,000 common shares in exchange for land valued at $30,000.

Oct. 31 Declared and paid a dividend on preferred shares of $2 per share.

Nov. 1 Declared and paid a dividend on common shares of $1.20 per share.

Nov. 15 Purchased and retired 500 preferred shares at $58 per share.

Dec. 31 After preliminary closing entries, the Income Summary account had a credit balance of $224,000.

a. Prepare journal entries to record the transactions above.
b. Prepare the statement of changes in shareholders’ equity.
c. Prepare the closing entries for the income summary and dividends at December 31, 2020.

On January 2, 2017, Dwyer Corporation granted 10,000 nonqualified stock options each to four of its key executives (40,000 options in total). Under the terms of the option plan, upon exercise, each executive will pay the exercise price of $10 per share of common stock ($1 par value). The options were exercisable after January 1, 2020, and the executives were required to be employees of Dwyer at the date of exercise. The Black–Scholes value of the option on the grant date is $12.50. Three employees exercised options for 30,000 shares of stock on January 2, 2021. Dwyer has a tax rate of 35% in all years. Relevant dates and stock prices are as follows:

Required:

Prepare the compensation expense and related tax journal entries from 2017 to 2019.

Prepare the journal entries required to record the stock option exercise on January 2, 2021. Include the journal entries to record the tax effects.

Prepare a schedule to show how the January 2, 2021, option exercise affects Dwyer’s 2021 income tax expense.

Below are three independent situations.

1. ABC Ltd is a manufacturer of boats and gives warranties at the time of sale to purchasers of its boats. Pursuant to the warranty terms, ABC Ltd undertakes to make good, by repair or replacement, manufacturing defects that become apparent within three years from the date of sale.
2. ABC Ltd has a number of non-current assets, some of which require, in addition to normal ongoing maintenance, substantial expenditure on major refits/refurbishment at certain intervals or on major components that require replacement at regular intervals.
3. XYZ Ltd is a listed company that provides food to functional centres that host events such as wedding and engagement parties. After an engagement party held by one of XYZ Ltd’s customers in May 2020, 50 people became ill, possibly as a results of food poisoning from products sold by XYZ Ltd. Legal proceedings were commenced seeking damages from XYZ Ltd. XYZ Ltd disputed liability by claiming that the functional centre was at fault for handling the food incorrectly. Up to the date of 30 June 2020 (financial year-end), XYZ Ltd’s lawyers advise that it was probable that XYZ Ltd would not be found liable

   REQUIRED:

   Should a liability in the form of a provision be recorded? Briefly justify your decisions.

Below are three independent situations.
1.   ABC Ltd is a manufacturer of boats and gives warranties at the time of sale to purchasers of its boats. Pursuant to the warranty terms, ABC Ltd undertakes to make good, by repair or replacement, manufacturing defects that become apparent within three years from the date of sale.
2.   ABC Ltd has a number of non-current assets, some of which require, in addition to normal ongoing maintenance, substantial expenditure on major refits/refurbishment at certain intervals or on major components that require replacement at regular intervals.
3.   XYZ Ltd is a listed company that provides food to functional centres that host events such as wedding and engagement parties. After an engagement party held by one of XYZ Ltd’s customers in May 2020, 50 people became ill, possibly as a results of food poisoning from products sold by XYZ Ltd. Legal proceedings were commenced seeking damages from XYZ Ltd. XYZ Ltd disputed liability by claiming that the functional centre was at fault for handling the food incorrectly. Up to the date of 30 June 2020 (financial year-end), XYZ Ltd’s lawyers advise that it was probable that XYZ Ltd would not be found liable.
REQUIRED:
Should a liability in the form of a provision be recorded? Briefly justify your decisions.

The eardrum, which transmits vibrations to the sensory organs of your ear, lies at the end of the ear canal. In adults, that ear canal is about

2.5 cm in length. We can treat the ear canal as a tube, closed by the eardrum at one end, and open to the atmosphere at the external end. Consider a fluctuating air column in the canal: similar to a vibrating†string with one fixed end. Its fundamental frequency becomes half that of a string of the same length with both ends fixed. (You can convince yourself of this by imagining a tube with one end closed and the other end open. Sketch the node and antinode of the possible fundamental mode in the tube!)

f_n = nv/4L

Use the above equation to find what frequency standing waves can occur within the ear canal that are within the range of human hearing. The speed of sound in the warm air of the ear canal is 350 m/s. The audible range is 20 Hz to 20 KHz.

a. all Hypothesis Tests must include all four steps, clearly labeled;

b. all Confidence Intervals must include all output as well as the CI itself

c. include which calculator function you used for each problem.

2. 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?

A portfolio manager controls $10 million in common stock. In anticipation of a stock market decline, the decision is made to hedge the portfolio using the S&P 500 futures contract. The portfolio's beta is 1.1 and the dividend yield on this portfolio is 3% annually. One S&P 500 futures contract with 90 days to settlement date is traded at 1164.50. The S&P 500 index itself is at 1150.  (Use 365 days a year)

1. Calculate the number of futures contracts that should be bought or sold. Indicate whether you should buy or sell.
2. Suppose that when the contracts are closed out, the S&P 500 index has increased to 1380. Calculate the gain or loss on the combined positions (stock portfolio and futures contracts).
3. Suppose that when the contracts are closed out, the S&P 500 index has decreased to 1035. Calculate the gain or loss on the combined positions (stock portfolio and futures contracts).

2a)Which of the following is not a type of financial inflow?

b)

If imports exceed exports, then there is a balance of trade _________, resulting in a financial _________.

c)If net taxes exceed government purchases, then the government may __________, causing interest rates to __________.

d)In the closed nation of Zeeland, government spending exceeds net taxes. We would expect interest rates to __________ and economic growth to _________.

e)

The S&P 500 and the Dow Jones Industrial Average indices are proxies for the broader US stock market. You notice one day that the S&P 500 closed UP by 0.20%, while the DJIA closed DOWN by 0.20%.  

Explain how it is possible for one proxy (S&P 500) to have a positive return while the other (DJIA) has a negative return on any given day. Include in your explanation some names that could have caused this discrepancy. Which return (S&P 500 or DJIA) is more indicative of the 'true market return'?

To facilitate your analysis, please refer to the link below that shows the components of the S&P 500 and DJIA.  Hint: Recall the S&P 500 contains the largest 500 US companies where the weight of each name is proportional to its market value. The DJIA is a price-weighted index comprised of select 30 names representing certain industries.

The S&P 500 and the Dow Jones Industrial Average indices are proxies for the broader US stock market. You notice one day that the S&P 500 closed UP by 0.20%, while the DJIA closed DOWN by 0.20%.

Explain how it is possible for one proxy (S&P 500) to have a positive return while the other (DJIA) has a negative return on any given day. Include in your explanation some names that could have caused this discrepancy. Which return (S&P 500 or DJIA) is more indicative of the 'true market return'?

To facilitate your analysis, please refer to the link below that shows the components of the S&P 500 and DJIA.  Hint: Recall the S&P 500 contains the largest 500 US companies where the weight of each name is proportional to its market value. The DJIA is a price-weighted index comprised of select 30 names representing certain industries.