Wright Corporation had the following permanent accounts and ending balances on December 31, 2020 (before adjusting entries):

There have been no transactions recorded in Allowance for Doubtful Accounts over the year. The company should recognize bad debt expenses for $5,000 at the end of 2020. The company prepaid $20,000 for one-year insurance becoming effective on October 1, 2020. The company purchased the equipment on July 1, 2018, and estimated that the useful life of the equipment is 20 years and there is no residual value of the equipment. The company adopted straight-line method to account for depreciation. On December 31, 2020, the fair values of FV-NI investment and FV-OCI investments were $200,000 and $520,000, respectively. The company used the perpetual inventory system. There were no accrued interest and discount/premium on bonds, and other accrual items. Please do not consider the income tax effect.

Required:

Prepare a statement of financial position as at December 31, 2020, presenting assets and liabilities in order of liquidity.

The Humpty Doo Rare Earths Mining Company started mining operations on 1 July 2019. In the year to the 30^th June 2020 three areas were explored, Europium, Gadolinium, and Terbium. The following costs were incurred:

Rare earths were discovered at Europium on 17^th January 2020. In April 2020 after a review of the prospects for the Gadolinium site it was decided to abandon operations there. Exploration was still a work in progress at the Terbium site, but no decision had been made about the commercial potential of that site. Development of the Europium site had continued during the year and at 30^th June 2020 $36 million had been incurred. These costs are to be written off on a production basis.

This cost relates to the construction of plant and equipment. It is estimated that there are 150,000 tonnes of rare earth which has a current sale price of $3,500 per tonne. By the 30^th June 2020 15,000 tonnes had been extracted at a production cost of $6 million of which 12,000 tonnes were sold.

Required

Record this first year’s transactions by journal entry using the area of interest method.

The Humpty Doo Rare Earths Mining Company started mining operations on 1 July 2019. In the year to the 30^th June 2020 three areas were explored, Europium, Gadolinium, and Terbium. The following costs were incurred:

Rare earths were discovered at Europium on 17^th January 2020. In April 2020 after a review of the prospects for the Gadolinium site it was decided to abandon operations there. Exploration was still a work in progress at the Terbium site, but no decision had been made about the commercial potential of that site. Development of the Europium site had continued during the year and at 30^th June 2020 $36 million had been incurred. These costs are to be written off on a production basis.

This cost relates to the construction of plant and equipment. It is estimated that there are 150,000 tonnes of rare earth which has a current sale price of $3,500 per tonne. By the 30^th June 2020 15,000 tonnes had been extracted at a production cost of $6 million of which 12,000 tonnes were sold.

Required

Record this first year’s transactions by journal entry using the area of interest method.

a. Before, lockdown due to COVID-19, the market for Mobile phones and Headphones in Karachi are at equilibrium with an equilibrium price of Rs. 50,000 and equilibrium quantity of 20,000 in the mobile phone market, and equilibrium price of Rs.1500 and equilibrium quantity of 12,000 in Headphone market. After the reopening the markets, and business in Karachi, the price of cell phones has increased from Rs.50, 000 to Rs. 70,000. What will be the impact of the increase in the price of cell phones in both the markets? Explain by using graphs. Draw the graphs for both the markets separately, labeling everything clearly. (2 Marks, 50-150 words)

Consider a market for ice cream a normal good in Pakistan. You are supposed to analyze and discuss the effect on the equilibrium output and the price in the ice cream market in Pakistan for May, 2020 after the following changes (Other things held constant). In each case, explain your answer using supply and demand diagram. (4 Marks, 50-250 words) There has been a decrease in people’s income and a rise in the price of sugar (an input for making ice cream) in Pakistan during 2020 due to COVID-19 crisis simultaneously. News reports on May 5, 2020 claim that the consumption of ice cream is good for the health of patients with coronavirus. An improvement in technology that allows ice cream to be built at half the cost in Pakistan during 2020. The weather has changed suddenly and the temperature reached 40 °C in May 2020 in Pakistan

Culver Leasing Company agrees to lease equipment to Larkspur Corporation on January 1, 2020. The following information relates to the lease agreement. 1. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years. 2. The cost of the machinery is $575,000, and the fair value of the asset on January 1, 2020, is $755,000. 3. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $50,000. Larkspur estimates that the expected residual value at the end of the lease term will be 50,000. Larkspur amortizes all of its leased equipment on a straight-line basis. 4. The lease agreement requires equal annual rental payments, beginning on January 1, 2020. 5. The collectibility of the lease payments is probable. 6. Culver desires a 9% rate of return on its investments. Larkspur’s incremental borrowing rate is 10%, and the lessor’s implicit rate is unknown. Discuss the nature of this lease for both the lessee and the lessor. Calculate the amount of the annual rental payment required. Compute the value of the lease liability to the lessee. Prepare the journal entries Larkspur would make in 2020 and 2021 related to the lease arrangement. Prepare the journal entries Culver would make in 2020 and 2021 related to the lease arrangement. Suppose Larkspur expects the residual value at the end of the lease term to be $40,000 but still guarantees a residual of $50,000. Compute the value of the lease liability at lease commencement.

The following data were taken from the books of Powell Construction Ltd:

REQUIRED:

Prepare in the general ledger of Powell Construction Ltd for the month of August 2020:

a.       the Sales Ledger Control Account            (15 marks)

b.      Purchases Ledger Control Account            

Total 25 marks

As a health policy analyst for the governor of one of the states that did not expand Medicaid under the Affordable Care Act (ACA), you have been tasked with exploring whether now is a good time for your state to make a policy change. The governor has heard about the impact the Medicaid expansion has had in other states. Many of the uninsured in those states have been brought into coverage. Since the federal government is bearing the majority of the cost of the expansion, this change seems like a no-brainer. In fact, your boss read an article about a candidate for governor in Georgia who asked an audience on the campaign trail “Raise your hand if you would say no to someone who said, ‘Give me a dollar and I’ll give you $9 back’” (Goodnough, 2018, para. 3). Further, this is estimated to be costing states between $6 and $8 million per year. Your boss finds these arguments compelling, needs you to investigate the expansion option further, and has requested input before she makes her decision and a possible recommendation to the legislature. Do some research on the states that have not expanded Medicaid. Pick one to focus on and prepare a proposal for the governor that addresses the following questions:

1. What does the ACA say about the Medicaid expansion in states and how it needs to work? Who and what will the expansion cover?
2. From the experience of states that have expanded, what are the pros and cons of expansion? What are the relevant political, social, and economic concerns?
3. What’s the situation in the state you picked? Why has it not already expanded?
4. What are the political, social, and economic issues for your state that the governor needs to consider? Who will be covered? How much will it cost? Is the legislature likely to go along?
5. What is your recommendation to the governor? Is expansion in your selected state feasible or not?

Over the past 5 years from 2015 to 2020, DL Insulation has paid annual dividends of $0.46, $0.635, $0.71, $1.03 and $1.13 per share. What would you estimate the share price to have been at 30/06/2020? Would you have bought your company’s stock? (a required an actual return of 16%)

what has the European Central Bank been doing since March 2020 to deal with the Covid 19 crises? Do you agree or disagree with their actions and whyPlease put in your paper – what has the European Central Bank been doing since March 2020 to deal with the Covid 19 crises? Do you agree or disagree with their actions and why