Comm 293v Final Mathematics & Economics Math Problem

Do it in google docs
1. Title page is required
2. Show calculation and formula the solution
3. There should be dollar sign,%
One answer and one page.

Page 1 of 7 COMM 293_Winter_2020 AC Final_Part_II Instructions

 You have 48 hours to complete and submit this part of your final exam

 There is 6 questions for 70% of your final exam

 The title page is a requirement

 You are supposed to answer the questions on your own

 Any reference to any kind of open sources will trigger the academic consequences

 For all questions please show all your calculation, starting with the formula, then – calculation, then - solution

 In calculations the signs as $, %, etc. should accompany the figures, e.g. $40, 15%, 3.5 times

 Neither, Excel skills, nor writing style (APA or Chicago) will be awarded any marks

 Please make sure that the submitted material fit into the pages  Start answering each question from the new page

 Fit only ONE ANSWER –the table - to ONE PAGE

 No bonus marks will be awarded for the early submission READ THE QUESTION CAREFULLY AND ANSWER WHAT IS ASKED Page 2 of 7 Question I {15 marks}

Balloon production Corp. purchased equipment on March 1, 2018 for $70,000. The company estimated the equipment would have a useful life of three years and produce 12,000 units in three years, with a salvage value of $10,000. During 2018, the equipment produced 4,900 units. On November 30, 2019, the equipment was sold for $18,000 after producing 5,600 units that year. Required a. Record all the necessary transactions for the year ended December 2018 and 2019, using the following depreciation methods: i. Straight line, ii. Double-declining balance, and iii. Units-of-production. b. Complete the following schedule for each method of depreciation. Round to the whole month. Page 3 of 7 Question II {15 marks}

The December 31, 2020 equity section of Team Inc.`s balance sheet appears below: Team Inc. Equity section of the balance sheet December 31, 2020 Contributed capital Preferred shares, $3.75 cumulative, 40,000 shares authorized and issued $ 1,660,000 Preferred shares, $10 non-cumulative, 8,000 shares authorized and issued 670,000 Common shares, 400,000 authorised and issued 1,750,000 Total contributed capital $ 4,080,000 Retained earnings 741,600 Total equity $ 4,821,600 All the shares were issued on January 01, 2018, when the corporation began operations. No dividends had been declared during the first two years of operations, 2018 and 2019. During 2020, the cash dividends declared and paid totaled $613,300. Required 1. In a table form calculate the amount of cash dividends paid during 2020 to each of three classes of shares.

2. Assuming profit earned during 2020 was $1,250,000, determine the December 31, 2019 balance in retaining earnings.

3. Prepare a statement of changes in equity for the year ended December 31, 2020. Page 4 of 7 Question III {10 marks}

Trolley Corp. reported $1,445,710 of profit for 2020. On November 02, 2020 it declared and paid the annual preferred dividends of $155,000. On January 01, 2020 Trolley had 80,000 and 240,000 outstanding preferred and common shares, respectively. The following transactions changed the number of shares outstanding during the year: Feb. 01 Declared and issued a 20% common share dividend Apr. 30 Sold 135,000 common shares for cash May 01 Sold 50,000 preferred shares for cash Oct. 31 Sold 30,000 common shares for cash Required a. Calculate the amount of profit available for distribution to the common shareholders b. In a table calculate the weighted-average number of common shares for the year c. Calculate the earnings per share for the year Page 5 of 7 Question IV {10 marks}

Kitten Investment corp. issued $700,000 of 6%, six-year bonds for $735,902 on July 01, 2020, the day the bonds were dated. The market interest rate was 5%. Interest is paid semiannually beginning December 31, 2020. Kitten uses the effective interest method to amortise bond discounts and premiums. Required Record: a. The issuance of the bonds, b. The first interest payment. Page 6 of 7 Question V {10 marks}

Mount Corp. was organized on January 02, 2020. And issued 50,000 common shares for $250,000 on that date. The following investment transactions and events subsequently occurred: 2020 Jan. 12 Mount Corp. acquired 12,000 shares of Hill Ltd. At a cost of $250,000. The investment represented 24% of Hill`s outstanding shares Mar. 31 Hill Ltd. declared and paid a cash dividend of $1.00 per share Dec. 31 Hill Ltd. announced that it`s profit for 2020 was $125,000 2021 Aud. 15 Hill Ltd. declared and paid a cash dividend of $.80 per share Dec. 31 Hill Ltd. announced that it`s loss for 2021 was $95,000 2022 Jan. 06 Mount Corp. sold all of its investment in Hill Ltd. for $230,000 Assume that Mount Corp. has significant influence over Hill Ltd. with its 24% share. Required 1. Present the entries to record the preceding transactions in Mount Corp.`s books 2. Calculate the carrying value per share of Mount Corp.`s investment as reflected in the investment account on January 01, 2022 Page 7 of 7 Question VI {10 marks}

Required Use the following income statement and information about changes in non-cash current assets and current liabilities to present the cash flows from operating activities using the indirect method: Earring Co. Income statement For year ended May 31, 2020 Sales $2,810 Cost of goods sold 1,419 Gross profit $1,391 Operating expenses Depreciation expense $223 Other expenses 1,100 Total operating expenses $1,323 Loss on sale of long-term investment 89 Net income (Net loss) from operation $(21) Income tax expense 0 Net income (Net loss) $(21) Changes in current assets and current liability accounts during the year were as follows: Accounts receivable $63 decrease Inventory 25 increase Prepaid insurance 3 increase Accounts payable 15 increase Accrued liabilities 8 decrease The end of the exam