The following information relates to the debt investments to Mayor Company on 2020.

1. On January 1, Purchased 100, $1,000 Mirror Corp. 10% bonds for $100,000 (at 100). Interest is payable on July 1 and January 1.

2. On April 1, Purchased 80, $1,000 Bondi Inc 9% bonds for $80,000 (at 100). Interest is payable on April 1 and October 1.

3. On July 1, semiannual interest is received.

4. On October 1, semiannual interest is received.

5. On October 1, Sold 30 Bondi Inc. bonds for $34,000 after receiving the interest due.

6. On December 31, accrued semiannual interest on Mirror Corp. and Bondi Inc bonds.

7. On December 31, the fair value of Mirror Corp. and Bondi Inc bonds are 102 and 101, respectively (102 means fair value=102% of par value). Mayor Company doesn’t have debt investment before 2020.

Instructions

(a) Prepare any journal entries you consider necessary, including year end entries (December 31), assuming these investments are managed to profit from changes in market interest rates (held for trading). Mayor Company doesn’t have debt investment before 2020.

(b) Prepare a partial statement of financial position showing the Investment account at December 31, 2020.

(c) If Mayor Company purchase the debt investment to collect the contractual cash flow (held the debt investment to maturity), explain how the journal entries would differ from those in part (a).

PROBLEM 1

The following information relates to the debt investments to Mayor Company on 2020.

1. On January 1, Purchased 100, $1,000 Mirror Corp. 10% bonds for $100,000 (at 100). Interest is payable on July 1 and January 1.
2. On April 1, Purchased 80, $1,000 Bondi Inc 9% bonds for $80,000 (at 100). Interest is payable on April 1 and October 1.
3. On July 1, semiannual interest is received.
4. On October 1, semiannual interest is received.
5. On October 1, Sold 30 Bondi Inc. bonds for $34,000 after receiving the interest due.
6. On December 31, accrued semiannual interest on Mirror Corp. and Bondi Inc bonds.
7. On December 31, the fair value of Mirror Corp. and Bondi Inc bonds are 102 and 101, respectively (102 means fair value=102% of par value). Mayor Company doesn’t have debt investment before 2020.

Instructions

1. Prepare any journal entries you consider necessary, including year end entries (December 31), assuming these investments are managed to profit from changes in market interest rates (held for trading). Mayor Company doesn’t have debt investment before 2020.
2. Prepare a partial statement of financial position showing the Investment account at December 31, 2020.
3. If Mayor Company purchase the debt investment to collect the contractual cash flow (held the debt investment to maturity), explain how the journal entries would differ from those in part (a).

Cobalt Ceramics, Inc., acquired a manufacturing facility (building) from Nickel Construction Company. Nickel completed construction of the facility on January 1, 2021. In payment for the $6 million lighthouse, Cobalt issued a five-year installment note to be paid in five equal payments at the end of each year. The payments include interest at the rate of 5.4%.

Instructions

1. Prepare the journal entry for Cobalt’s purchase of the facility on January 1, 2021.
2. Prepare the journal entry for the first installment payment on December 31, 2021.
3. Prepare the journal entry for the second installment payment on December 31, 2022.
4. What amount will Cobalt report as Notes Payable on its December 31, 2022 balance sheet?

You are a legal assistant for the attorney of the FUN company. You must conduct research and find three (3) court opinions (i.e. cases that have been previously decided by the court) that are precedent (i.e. have similar facts and issues of law) to the case below. You must provide the case title and citation of each of the three (3) cases you find.

Three months ago the CEO for FUN Company sent a letter to the Pastor for the Church of Stranger Things pledging a $3,000,000.00 donation to the Church. Upon receipt of this news, the Pastor contacted FUN’s CEO who re-assured the Pastor that the Church would be receiving a check for this amount within the ensuing four to six weeks. The Pastor, who for several years had wanted to expand the Church in order to increase its congregation, immediately hired an architect and paid him $400,000.00 to design the new ambitious project. The Pastor was in love with the architect’s design, so he quickly hired a general contractor for $750,000.00 to start the building process. In addition to the $750,000.00 for the labor, the Pastor paid another 1,100,000.00 for the tools and materials needed for the project. Five weeks after receiving the letter and first speaking to FUN’s CEO on the phone, the bishop called FUN because he was nervous about the fact that he had not received the check and he had already incurred such significant expenses. Note that the only reason the Pastor engaged in this ambitious construction project was because of the extra money he was counting on getting from FUN since the Church’s structure did not need it to continue its regular operations. The CEO at that point told the Pastor that soon after committing to donate the money, FUN’s finances started going terribly wrong and as such at this point, they were not able to make a donation to the church. The Pastor is now demanding that FUN still true to its word and give the church the donation.

What are the pros and cons for two acquired company to continue to operate independently?

Which of the following is a characteristic of a cytotoxic T cell?

Which of the following cells can be classified as a professional antigen presenting cell?

Which of the following destroys virus-infected cells?

What type of immunity results from recovery from mumps?

What type of immunity results from vaccination?

Question 10 options:

Maendeleo Ltd. is a manufacturing company operating through a number of branches in Kenya. The following information relates to Maendeleo Ltd.’s operations for the year ending 31 December 2020.

Additional information

1. Details of property, plants and equipment schedule reflected the following details for the assets that existed before the year ending 31^st December 2020:

2. A perimeter wall was constructed at cost of sh.960,000 during the year ending 31^st December 2020 used from 1^st March 2020
3. A go down and drainage system were constructed at cost sh.2,860,000 and sh.1,780,000 respectively put into use on 1^st April 2020.
4. The company constructed a borehole at cost of sh.1,500,000 during the year which was put in use on 1^st July 2020

Required

Capital allowance due to Maendeleo ltd for the year ending 31^st December 2020

Imagine that you work at a local department store in a midlevel management position. You learn that your company is being acquired by Big Box, a much larger, non-union retailer. The sale and purchase of your store is intended to bring more product, logistical efficiency, and employee efficiencies to your particular market. Describe three significant HR issues that you and your people will likely face after your company is acquired.

For each of the following questions, (1) cut and paste the appropriate paragraph(s) from the Accounting Standards Codification to answer the question and (2) give the full citation for each paragraph.

1.      Company A, a calendar-year public company, acquired common shares of Company B in 2018 as an investment. The investment does not give Company A control or significant influence over Company B. Company B is a private company and its shares are rarely bought or sold. How should Company A account for its investment in Company B?

2.      Company A acquired an asset that qualifies for interest capitalization. What interest rate or rates should the company apply to the weighted-average-accumulated expenditures to determine the appropriate amount of interest to capitalize?

3.      Company A is lessee on a lease that qualifies as a capital lease. What interest rate should Company A use to calculate the present value of the minimum lease payments. Company A has not elected to early adopt ASC 842.

4.      Company A holds a financial instrument that is not a derivative financial instrument but contains a separate financial instrument that is a derivative financial instrument. Under what circumstances must Company A account for the two financial instruments separately?

5.      Company A sponsors a defined-benefit pension plan that creates pension gains and/or losses each year. How do these pension gains and/or losses affect the calculation of the net periodic pension cost (pension expense)?