Glenn Grimes is the founder and president of Heartland Construction, a real estate development venture. The business transactions during February while the company was being organized are listed as follows. Feb. 1 Grimes and several others invested $600,000 cash in the business in exchange for 30,000 shares of capital stock. Feb. 10 The company purchased office facilities for $360,000, of which $120,000 was applicable to the land and $240,000 to the building. A cash payment of $72,000 was made and a note payable was issued for the balance of the purchase price. Feb. 16 Computer equipment was purchased from PCWorld for $14,400 cash. Feb. 18 Office furnishings were purchased from Hi-Way Furnishings at a cost of $10,800. A $1,200 cash payment was made at the time of purchase, and an agreement was made to pay the remaining balance in two equal installments due March 1 and April 1. Hi-Way Furnishings did not require that Heartland sign a promissory note. Feb. 22 Office supplies were purchased from Office World for $360 cash. Feb. 23 Heartland discovered that it paid too much for a computer printer purchased on February 16. The unit should have cost only $359, but Heartland was charged $395. PCWorld promised to refund the difference within seven days. Feb. 27 Mailed Hi-Way Furnishings the first installment due on the account payable for office furnishings purchased on February 18. Feb. 28 Received $36 from PCWorld in full settlement of the account receivable created on February 23. Required: a. Prepare journal entries to record the above transactions. Select the appropriate account titles from the following chart of accounts: Cash Land Accounts Receivable Office Building Office Supplies Notes Payable Office Furnishings Accounts Payable Computer Systems Capital Stock b. Indicate the effects of each transaction on the company's assets, liabilities, and owners' equity for the month of February. The Feb. 1 transaction is provided for you.

The founder of Alchemy Products Inc. discovered a way to turn gold into lead and patented this new technology. He then formed a corporation and invested $1,500,000 in setting up a production plant. He believes that he could sell his patent for $72 million.

a. What is the book value of the firm? (Enter your answer in dollars not in millions.)

b. What is the market value of the firm? (Enter your answer in dollars not in millions.)

c. If there are two million shares of stock in the new corporation, what would be the book value per share? (Round your answer to 2 decimal places.)

d. If there are two million shares of stock in the new corporation, what would be the price per share? (Round your answer to 2 decimal places.)

Personally Yours: The negligent Hiring/Retention Case

GeNeral INformatIoN

Personally Yours is a personal assistant rm founded in 1997. After years of struggling to balance work and family, Sarah Winters established this company to address some of the challenges working professionals face in their busy lives. Personally Yours provides a wide range of services, including residential housekeeping, grocery shopping, household organization, home companion, adult day care and even handyperson services.

Sarah Winters started the company in her hometown of Tampa, Florida, with the help of a small business grant, personal savings, and three employees (her mother, sister and cousin). After several rocky years, Winters now has 15 branch offices located throughout central Florida and Miami. Each branch employs a branch manager who is responsible for administrative duties and approximately 15 employees who work either full time or part-time. The rest of her 250 employees are located at the Tampa headquarters. To keep operations lean, Winters has kept central administrative staff to a minimum; she has outsourced services such as payroll, accounts payable and legal services. But as the company grows, Winters has been rethinking this strategy.

role of Gary GarcIa, Hr suPervIsor

Gary Garcia has been the HR supervisor at Personally Yours for the past 9 years. His immediate supervisor is HR Manager Alyssa Williams. After attending a meeting
at the local SHRM chapter, Garcia came away with some great ideas about how their organization could improve HR operations. Overall, things are running pretty efficiently; but Personally Yours is a quickly growing, medium-sized organization, and in many ways, it still operates like the small, family-owned and -operated business it was just a few years ago.

For example, hiring processes are now standardized at headquarters and at the branch offices. Each job applicant completes a standardized application, submits a re?sume? (if appropriate for the position), does pre-employment testing, and undergoes a screening that includes contacting references and former employers and a criminal background check. However, this was not the case when the company first started, and many longtime employees have never gone through a background check. This is extremely troubling to Garcia, in light of the fact that their employees work in clients’ homes and have contact with vulnerable individuals (e.g., children, elderly, infirm).

role of alyssa WIllIams, Hr maNaGer

Alyssa Williams is the HR manager for Personally Yours, Inc. She has been in this position for more than seven years. Williams works in the corporate headquarters located in Tampa, Florida. She has an undergraduate degree in HR and is active in the local SHRM chapter.

Though her title is officially HR manager, her duties are more like a vice president of HR. She reports directly to the president and founder, Sarah Winters, who routinely consults Williams regarding both general and strategic HR management decisions. The company has outsourced some HR functions, such as payroll; however, when it comes to the remaining HR functions that are handled internally, top management takes a hands-off approach and allows Williams to exercise her judgment. (Williams is the highest-ranking human resource management professional in the company.) Williams feels complimented by the faith the senior management has shown in her. For example, all requests to create new positions must be approved by Williams.

role of vIolet jeNNINGs, braNcH maNaGer, tamPa-east

Violet Jennings has been the Tampa-East branch manager of Personally Yours,Inc., for the past 9 years. Jennings has been friends with the president and founder, Sarah Winters, ever since they attended high school together. Jennings was one of the first non–family members hired to work for Personally Yours, and she has been serving as manager of the Tampa-East branch for 6 years now. Before working for Personally Yours, Jennings worked in a number of positions, including housekeeping manager for a major hotel chain and customer service representative for a local utility company. Jennings was also a stay-at-home mother for several years and briefly owned a used-clothing store.

The Tampa-East branch is the largest branch office, with 17 full-time housekeepers, 11 full-time nurses, 19 part-time nurses, 10 part-time home health aides, and 6 full-time handymen. Jennings’ official job title is branch manager, but because of the close relationship she has with the Winters’ and her long tenure with the company, Jennings is frequently consulted by headquarters when they are making policy decisions.

Currently, hiring processes at Personally Yours are standardized at headquarters and at the branch offices. Each job applicant completes a standardized application, submits a re?sume? (if appropriate for the position), does pre-employment testing, and goes through a screening that includes contacting references and former employers and a criminal background check. However, this was not the case when the organization was first started, and many longtime employees have never gone through a background check. Because their employees work in clients’ homes and have contact with vulnerable individuals (e.g., children, elderly, infirm), HR supervisor Gary Garcia would like to reevaluate the company’s screening policies.

Assignment:

- You and the HR supervisor, along with suggestions from the branch manager, must determine if background checks on all employees (new and existing) are necessary. If so, you must develop a protocol to conduct them (e.g., which employees; how thorough).

- It has come to Branch Manager Violet Jennings’s attention that one of her longtime employees, Jackson Tibbits, a handyman, is on the Florida Sexual Offender list. After doing more research, they learn that 17 years ago, when Tibbits was 24, he was convicted of having unlawful sexual contact with a 15-year-old female. As a registered sexual offender, Tibbits cannot live within 1,000 yards of a school and must register with the state any time he moves. Also, he is prohibited by law from holding positions such as schoolteacher and healthcare professional. You, Garcia and Jennings must decide whether you should terminate Tibbits based on this newly discovered information.

company accounting question:

Violet Ltd owns all the share capital of Indigo Ltd. The following transactions are independent:

1. Indigo Ltd gives $55 000 as an interest-free loan to Violet Ltd on 1 July 2019. Violet Ltd made a $20 000 repayment by 30 June 2020.
2. Indigo Ltd rented a spare warehouse to Violet Ltd starting from 1 July 2019 for 1 year. The total charge for the rental was $3 500, and Violet Ltd paid half of this amount to Indigo Ltd on 1 January 2020 and the rest on 1 July 2020.
3. During March 2020, Indigo Ltd declared a $5000 dividend. The dividend was paid in August 2020.

Required

In relation to the above intragroup transactions:

1.      Prepare adjusting journal entries for the consolidation worksheet at 30 June 2020.

2.     Explain in detail why you made each adjusting journal entry.

Question 10

Sheridan Company provides the following information about its defined benefit pension plan for the year 2020.

1. Prepare a pension worksheet inserting January 1, 2020, balances, showing December 31, 2020. (Enter all amounts as positive.)

2. Prepare the journal entry recording pension expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Metals Corporation reports pretax financial income of $260,000 for 2020. The following items cause taxable income to be different than pretax financial income: 1. Rental income on the income statement is less than rent collected on the tax return by $65,000. 2. Depreciation on the tax return is greater than depreciation on the income statement by $40,000. 3. Interest on an investment in a municipal bond of $6,500 on the income statement. Metal’s tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020.

Compute taxable income and income taxes payable for 2020. (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (c) Prepare the income tax expense section of the income statement for 2020, beginning with the line “Income before income taxes.” (d) Compute the effective income tax rate for 2020.

The following facts relate to Oriole Corporation.

(b)

Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

1. ABC Company is planning for 2021 financial performance. 2020 total sales were $6,000,000. Monthly fixed costs for the firm for 2020 averaged $260,000 and are expected to increase by 8% for 2021. The variable cost ratio for 2020 averaged 40% and is expected to increase to 42% for 2021. The firm's average tax rate for 2020 was 30% and is expected to remain the same for 2021. The firm incurs no interest expense.

Required: (show your work below and write your final answer for each question on the line provided)

1. Calculate annual breakeven sales (revenue) for 2020 and 2021

2. Calculate the actual net operating income (NOI) and the after tax income for 2020 and 2021 assuming there is no change in sales for 2021.

3. It is management's goal to have operations produce a NOI / Sales ratio of 12% for 2021. Given the data above what level of 2021 sales are needed to reach the 12% NOI / Sales ratio?

What are the appropriate descriptive statistics to summarize the Company-Z daily sales in Pre- and Post- COVID-19 Y1 & Y2?   Can you visualize both random variables separately using the graphing technique? Explain why you used these descriptive statistics and this graphing technique?               
Given;

Flint Company in its first year of operations provides the following information related to one of its available-for-sale debt securities at December 31, 2020.

Amortized cost $51,500

Fair value 43,000

Expected credit losses 12,800

1) What is the amount of the credit loss that Flint should report on this available-for-sale security at December 31, 2020?

Amount of the credit loss $ _____________

2) Prepare the journal entry to record the credit loss, if any (and any other adjustment needed), at December 31, 2020.

3) Assume that the fair value of the available-for-sale security is $56,000 at December 31, 2020, instead of $43,000. What is the amount of the credit loss that Flint should report at December 31, 2020?

Amount of the credit loss $ ___________

4) Assume the same information as for part (c). Prepare the journal entry to record the credit loss, if necessary (and any other adjustment needed), at December 31, 2020.