Owen Company forgot to accrue $3,000 of salaries its employees had earned at the end of 2019. It paid and expensed the salaries in 2020. It also, in 2019, recorded $4,000 of sales as an account receivable; however, the sale really did not take place until 2020, and it should have recognized the revenue in 2020. It collected the money from the sale early in 2020.

Provide the impact of the errors on the following:

Assets as of 12/31/19: $_____________ Overstated Understated

Assets as of 12/31/20: $_____________ Overstated Understated

Liabilities as of 12/31/19: $_____________ Overstated Understated

Net income for 2020: $_____________ Overstated Understated

Make sure you include a customized cover message when applying for a position. A cover message should introduce your résumé, highlight your strengths in terms of benefits to the reader, and request an interview. Follow your judgment when deciding whether to write a brief or long cover message. Your message should include an opening that introduces your message and identifies the position, a body that sells you as a candidate and focuses on the employer’s needs, and a closing that requests an interview and motivates action.

1.Which option is the best opening for a cover message for a solicited job?

My finance degree and training in financial advising qualify me for the investment officer position you advertised on ExactEmployee.com.

Because of my education and training, I believe I am qualified for the finance position you advertised.

I am qualified for the position you advertised on ExactEmployee.com because of my employment background.

2.Which is the best opening for an unsolicited job cover message?

Because GenX is a large company, I thought perhaps you need someone that could contribute to your pharmaceutical department. Could you use someone with my sales, research, and teaching experience?

Congratulations on your recent merger with GenX. Because of your rapid growth and success, could you use the services of a practiced researcher with five years of experience in pharmaceutical sales, three years of university teaching experience, and two years of successful research experience?

I hope you are looking for an experienced researcher in the field of pharmaceuticals. Can you use someone like me with my credentials and experience?

3.Which statement is most appropriate for the body of a cover message?

The courses I took in business, finance, and accounting have enhanced my business knowledge.

Courses in business, finance, and accounting have enhanced my knowledge of successful business management and client financial services.

I have successfully completed courses in business, finance, and accounting.

4.Which statement is most appropriate to include in the closing of a cover message?

I hope my accomplishments have convinced you that I am more than qualified for this position. I will expect a call from you to schedule an interview. I can be contacted at (435) 555-7832.

This brief description of my qualifications and my résumé should demonstrate my readiness for this position. Will you hire me for this position? Please call me at (435) 555-7832.

My accomplishments in the finance and accounting field, as well as the skills I learned in my summer internship, have prepared me for this position. I welcome the opportunity to discuss my qualifications more fully in an interview. Please call me at (435) 555-7832 before 11 a.m. or after 5 p.m.

5.When sending your cover message in an e-mail, which of the following should you do? Check all that apply.

Eliminate your mailing address.

Convert your cover message to plain text.

Keep your cover message to one line.

Include your e-mail address and phone number.

Preparing Adjusting Journal Entries

Pacific Company adjusts and closes its books each December 31. It is now December 31, 2020, and the following information is available for preparing accounting adjustments.

1. The Accounts Receivable balance at December 31 is $6,400. The company estimates that 5% of receivables will not be collected. (Assume a zero beginning balance in Allowance for Doubtful Accounts.)
2. Unpaid and unrecorded salaries incurred at December 31 are $960.
3. The company paid a two-year insurance premium in advance on April 1, 2020, for $1,920 cash, which was debited to Prepaid Insurance.
4. Equipment which cost $16,000, is to be depreciated for the full year. The estimated useful life is 10 years, and the equipment will be depreciated evenly over its useful life.
5. Pacific Company leased a warehouse on June 1, 2020, for one year only. The company was required to pay the full amount of rent one year in advance on June 1, for $1,920 cash, which was debited to Lease Expense.
6. The company received from a customer a 9% note with a face amount of $2,400. The note was dated September 1, 2020; the principal plus the interest is payable one year later. Note Receivable was debited, and Sales was credited on September 1, 2020.
7. On December 30, 2020, the property tax bill was received in the amount of $1,000. This amount applied only to 2020 and had not been previously recorded or paid. Taxes are due, and will be paid, on January 15, 2021.
8. On April 1, 2020, the company signed a $12,000, 10% note payable. On that date, Cash was debited and Note Payable credited for $12,000. The note is payable on March 31, 2021, for the face amount plus interest for one year.
9. The company purchased a patent on January 1, 2020, at a cost of $2,380. On that date, the Patent was debited and Cash credited for $2,380. The patent has an estimated useful life of 17 years and no residual value. Hint: Record the estimated consumption of the patent as amortization expense.

Prepare the adjusting entry required on December 31, 2020, for each situation 1 through 9. Assume that no adjusting journal entries were recorded during the year prior to year-end.

You want to invest your $6000 in a financial asset. In 2020, one-year US bonds pay an interest of 3% while one-year Brazilian bonds pay an interest of 7%. Current exchange rate, E₂₀₂₀, is 3.7 ($1 = 3.7 BRL). Calculate the expected return on investing in US and Brazilian bonds and make your investment decision for the following expected exchange rates (20 points):

1. E₂₀₂₁^e = 3.2
2. E₂₀₂₁^e = 4

On March 31, 2020, Wolfson Corporation acquired all of the outstanding common stocks of Barney Corporation for $17,000,000 in cash. The book values and fair values of Barney’s assets and liabilities were as follows:

Required:

1. Calculate the amount of goodwill (2 points).

Acquisition price =

Fair value of net assets acquired =

Goodwill =

2. Prepare Wolfson Corporation’s journal entry to record the acquisition (3 points).

You are the audit senior of Sparrow Ltd (Sparrow) for the year ended 30 June 2020. As is
customary in completing your examination, you request that the chief executive officer (CEO)
of Sparrow, Michal Theobald, furnish you with a management representation letter. Michael
reads the representations that you are requesting that he make, and he refuses to furnish the
letter, stating:
You are asking me to tell you all kinds of things that I hired you to figure out. For
example, you are asking me to say that ‘all known assets of the company at balance
date were recorded in the books of account. I paid you to carry out an audit and you
should know whether or not that’s true yourself.
Required:
If the client does not accept your explanation and continues to refuse to furnish the letter, what
will be the impact on your auditor’s report?

In 2020, Elaine paid $2400 of tuition and $1020 for books for her dependent son to attend State University this past fall as a freshman. Elaine files a joint return with her husband. What is the maximum American opportunity tax credit that Elaine can claim for the tuition payment and books in each of the following alternative situations?

a. Elaine's AGI is $99,750

b. Elaine's AGI is $166,500

c. Elaine's AGI is $213,500

As the CEO of a company, discuss how you can apply the FOUR (4) types of growth strategies.

If you were CEO of your company, would you voluntarily report under the GRI and CDP?

You got an interview for a new job. Explain in 1 page how you would prepare yourself for that interview.