Discuss Community acquired pneumonia, etiology, drug of choice to be prescribed and why, parameters for monitoring success of the medication therapy. If patient has history of hypertension, what would be the choice for a second line therapy.

Imagine an intention locking protocol in which normal locks are acquired in a two phase manner, but intention locks can be released at any time. Would such a protocol be serializable? If so, prove it. If not, show a counterexample.

Question 1

At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000 Deferred tax asset 15,000 Beta Ltd recorded a profit before tax of $80,000 for the year to 30 June 2020, which included the following items: Depreciation expense – plant $7,000 Doubtful debts expense 3,000 Long-service leave expense 4,000 For taxation purposes the following amounts are allowable deductions for the year to 30 June 2020: Tax depreciation – plant $8,000 Bad debts written off 2,000 Depreciation ratesfor taxation purposes are higher than for accounting purposes. A corporate tax rate of 30% applies.

Required:

a) Determine the taxable income and income tax payable for the year to 30 June 2020. (2.5 Marks)

b) Determine by what amount the balances of the deferred liability and deferred tax asset will increase or decrease for the year to 30 June 2020 because of depreciation, doubtful debts and long-service leave.

c) Prepare the necessary journal entries to account for income tax assuming recognition criteria are satisfied. (2.5 marks)

d) What are the balances of the deferred tax liability and deferred tax asset at 30 June 2020?

The adjusted balances at December 31, 2020, for Derlak Enterprises are shown in alphabetical order below:

*The owner, Lee Derlak, made no additional investments during the year.

Required:
Prepare a comparative classified balance sheet at December 31, 2020. (Record the accounts in the given order. Enter all amounts as positive values.)

Analysis Component:
Are Derlak's assets financed mainly by debt or equity in 2019? in 2020? Is the change in how assets were financed from 2019 to 2020 favourable or unfavourable?

The adjusted balances at December 31, 2020, for Derlak Enterprises are shown in alphabetical order below:

*The owner, Lee Derlak, made no additional investments during the year.

Required:
Prepare a comparative classified balance sheet at December 31, 2020. (Record the accounts in the given order. Enter all amounts as positive values.)

Analysis Component:
Are Derlak's assets financed mainly by debt or equity in 2019? in 2020? Is the change in how assets were financed from 2019 to 2020 favourable or unfavourable?

Carla Tool Company’s December 31 year-end financial statements contained the following errors.

An insurance premium of $64,800 was prepaid in 2020 covering the years 2020, 2021, and 2022. The entire amount was charged to expense in 2020. In addition, on December 31, 2021, fully depreciated machinery was sold for $16,300 cash, but the entry was not recorded until 2022. There were no other errors during 2020 or 2021, and no corrections have been made for any of the errors. (Ignore income tax considerations.)

(a) Compute the total effect of the errors on 2021 net income.

(b) Compute the total effect of the errors on the amount of Carla’s working capital at December 31, 2021.

(c) Compute the total effect of the errors on the balance of Carla’s retained earnings at December 31, 2021.

Indigo Tool Company’s December 31 year-end financial statements contained the following errors.

An insurance premium of $63,300 was prepaid in 2020 covering the years 2020, 2021, and 2022. The entire amount was charged to expense in 2020. In addition, on December 31, 2021, fully depreciated machinery was sold for $14,800 cash, but the entry was not recorded until 2022. There were no other errors during 2020 or 2021, and no corrections have been made for any of the errors. (Ignore income tax considerations.)

(a) Compute the total effect of the errors on 2021 net income.

(b) Compute the total effect of the errors on the amount of Indigo’s working capital at December 31, 2021.

(c) Compute the total effect of the errors on the balance of Indigo’s retained earnings at December 31, 2021.

On January 1, 2018, Surreal Manufacturing issued 600 bonds, each with a face value of $1,000, a stated interest rate of 3 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 4 percent, so the total proceeds from the bond issue were $583,352. Surreal uses the simplified effective-interest bond amortization method and adjusts for any rounding errors when recording interest in the final year.

Required:

1. 1. Prepare a bond amortization schedule

2. 2-5. Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 101.

   1. Record the issuance of 600 bonds at face value of $1,000 each for $583,352.
   2. Record the interest payment on December 31, 2018.
   3. Record the interest payment on December 31, 2019.
   4. Record the interest and face value payment on December 31, 2020.
   5. Record the retirement of the bonds at a quoted price of 101, assuming the bonds are retired on January 1, 2020.

Mr. Chai sells various types of toys throughout Malaysia. Three of the accounts in the ledger of Mr. Chai indicated the following;

Balances at 1 January 2020:

(i)           Insurance paid in advance RM562

(ii)      Wages outstanding RM306

(iii)     Rent receivable, received in advance RM36

During 2020, Mr. Chai:

(i)           Paid for insurance RM1,019, by bank standing order

(ii)      Paid RM15,000 wages, in cash

(iii)     Received RM2,600 rent, by cheque, from the tenant

At 31 December 2020:

(i)           Insurance prepaid was RM345

(ii)      Wages accrued amounted to RM419

(iii)     Rent receivable in arrears was RM105

Required;

(a)      Prepare the prepaid insurance, accrued wages and rent receivable accounts for the year ended 31 December 2020.

(b)      Prepare the income statement extract showing clearly the amounts of insurance expense, wages expense and rent revenue for the year ended 31 December 2020.

(c)                 Explain the effects on the financial statements of accounting for:

               (i)           the expenses accrued at year end

               (ii)             the income received in advance at year end

(d)               Explain the purposes of accounting for:

              (i)           the expenses accrued at year end

              (ii)              the income received in advance at year end