You work for a large accounting firm KMPG as a Senior Accountant. Your client Bear plc acquired shares in Wolf plc several years back and you are responsible for the preparation of the year end work.

The following are the Statements of financial position for Bear plc and Wolf plc as at 31 March 2020, together with the additional information provided below.

Notes to the above financial statements:

1. Wolf Plc acquired 84,000 ordinary shares in Wolf on 31 March 2017. They also acquired 15% of the preference shares.

2. At the date of acquisition, the retained earnings of Wolf plc were £205,000.

3. During the year, Bear sold goods to Wolf for £10,400 which included a mark-up on cost of 30%. At the end of the year, 50% of this stock was still held by Wolf plc.

4. At the date of acquisition, the land and buildings of Wolf plc had a fair value of £50,000 more than their book value. This fair value increase has not been incorporated into the statement of financial position for Wolf plc. Land accounts for 20% of this amount. Wolf acquired the building on 1 April 2012. The group policy is to depreciate buildings over a period of 50 years.

4. Wolf spent £42,000 on developing a new and innovative product. Wolf’s policy is to expense development costs, however, it is Bear’s policy to capitalise development costs (i.e. treat it as an asset). The following provides a breakdown of expenditure by Wolf:

Development costs up to 31 March 2017     £32,000

Development costs after 31 March 2017     £10,000

6. On the 31March 2020, an impairment test was carried out on the goodwill arising from the acquisition of Wolf plc. The report indicated that the goodwill needs to be written down by £10,000.

7. Wolf declared a dividend to its ordinary shareholders on 15 March 2020 which remained unpaid by 31 March 2020. Bear has not accounted for this income in their financial statements.

1. Prepare the consolidation schedule for Wolf plc at 31 March 2020.

2. Calculate the equity and non-controlling interest that will appear in the consolidated statement of financial position for the Bear Group plc at 31 March 2020.

c. Prepare a memorandum for the attention of the financial director of Bear Plc explaining why consolidated accounts are necessary and what are the criteria regarding exemption and exclusion from preparing consolidated accounts.

d. Prepare a memorandum for the financial director of Bear plc explaining the limitations of group accounts.

With the outbreak of COVID-19, many people in Hong Kong choose cooking at home instead of dining out to reduce the chance of contacting Coronavirus. At the same time, it is observed that many restaurants have closed down. Given that many restaurants cut their menu prices in this period, explain, with the aid of a supply-and-demand diagram, how the above changes affect the market for dining out meals in restaurants.

A chemist started to carry out column chromatography on a Friday afternoon, got to the point at which the two compounds being separated were about three-fourths of the way down the column. The stopcock was closed and the column capped so that no solvent was lost. On Monday, when she returns to continue the elution, do you think she can separate the two compounds? Explain your answer

1) Consider a situation where 5 grams of chemical A, with Kaw=0.5 and Kd=15.5 (LW/kg Soil), is spilled into a closed 30-liter flask containing 15-liter of water and 15-liter of air and 150 grams of soil. Calculate the equilibrium concentration of chemical A in water, air and soil media ( ). Also calculate the final mass of chemical A in air, water, and soil media.

Benzene and toluene form an ideal solution. At 25 oC, the vapor pressure of pure benzene is 100 torr, and the vapor pressure of pure toluene is 30.0 torr. A solution is prepared of 1.0 mol benzene and 2.0 mol toluene. Some of the solution evaporates in a closed system. What is the mole fraction of benzene in the vapor?

A. 0.33

B. 0.43

C. 0.53

D. 0.63

E. 0.73

A closed, rigid tank contains a two-phase liquid–vapor mixture of Refrigerant 22 initially at -20°C with a quality of 47.50%. Energy transfer by heat into the tank occurs until the refrigerant is at a final pressure of 6 bar.

a) Determine the final temperature, in °C.

b) If the final state is in the superheated vapor region, at what temperature, in °C, does the tank contain only saturated vapor?

Question 1

1. Distinguish between private saving, public saving, and national saving. ( 3 marks)
2. Explain the impact of an increase in the government budget surplus on private saving, public saving, and national saving.
3. Suppose that in a closed economy the GDP is equal to $11,000, Taxes are equal to $2,500, Consumption equals $7,000, and Government purchases equal $3,000. Calculate private saving, public saving, and national saving?

Suppose the investment is very sensitive to the interest rate.That is, the function I(r), used to derive the IS curve, is very steep.

1. Graphically derive the IS curve in the closed economy. What can you say about the steepness IS curve?

2. In this context, which policy do you think is likely to be more effective? Fiscal policy or monetary policy? (Hint: make use of your answer to question 1)

Topic: Animal Internal Transport Systems

1. Compare a plant: would you describe the overall vascular tissue as an open or closed system? Xylem and Phloem?

2. What molecules are moved in an animal’s circulatory system? Compare and contrast animals and plants for molecules transported internally.

3. Describe the different types of force used to move fluids in plant internal transport systems and animal internal transport systems.