USE THE FOLLOWING INFORMATION FOR THE NEXT 3 QUESTIONS

                     Below is an income statement for XYZ Company for 2020:

           37. Calculate breakeven sales dollars for XYZ Company using the Y-formula.

                       A. $220,000

                       B. $320,000

                       C. $350,000

                       D. $270,000

38. The degree of leverage (DOL) for XYZ Company in 2020 is equal to what amount?

            A. 1.0

            B. 2.0

            C. 3.0

            D. 4.0

            E. 5.0

39. Using the degree of leverage (DOL) for 2020 that you just calculated in question #38, if XYZ Company expects sales to increase 10% in 2021, by how much will the net income increase in 2021?

1. $5,000
2. $10,000
3. $15,000
4. $20,000
5. $25,000

Was Robert Eaton a Good Coach?

Robert Eaton was CEO and chairman of Chrysler from 1993 to

1998, replacing Lee Iacocca who retired after serving in this

capacity since 1978. Eaton then served as cochairman of the

newly merged DaimlerChrysler organization from 1998 to 2000.

With 362,100 employees, DaimlerChrysler achieved revenues

of EUR 136.4 billion in 2003. DaimlerChrysler’s passenger car

brands include Maybach, Mercedes-Benz, Chrysler, Jeep,

Dodge, and Smart. Commercial vehicle brands include

Mercedes-Benz, Freightliner, Sterling, Western Star, and Setra.

From the beginning of his tenure as CEO, Eaton communicated

with the people under him. He immediately shared

his plans for the future with his top four executives and then

took the advice of his colleague, Bob Lutz, to look around the

company before making any hasty decisions concerning the

state of affairs at Chrysler. Eaton and Lutz ascertained that

Chrysler was employing the right staff and that they did not

need to hire new people; they just had to lead them in a different

manner, that is, in a more participative style.

Eaton listened to everyone in the organization, including

executives, suppliers, and assembly-line workers, to

determine how to help the company succeed. Eaton also

encouraged the employees at Chrysler to talk with one

another. The atmosphere of collaboration and open-door

communication between Eaton and Lutz (the two men sat

across the hall from one another and never closed their doors)

permeated the entire organization. Eaton and Lutz’s walkaround

management style indicated to employees that they

were committed to and engaged in the organization.

Furthermore, Eaton and Lutz held meetings with their executive

team on a regular basis to exchange ideas and information

from all areas of the organization.

Eaton even reorganized the manner in which Chrysler

designed cars based on a study, previously disregarded by

Iacocca, that indicated that Chrysler needed to be more

flexible and its executives needed to be in constant communication

with the product design team. One employee was

quoted as saying, “Bob Eaton does not shoot the messenger

when he hears something he doesn’t like or understand. He

knows that not every idea is right. But Bob is off-the-wall

himself. . . . He’ll say something, and we’ll tell him that it’s a

crazy idea. . . . He may not change his mind in the end, but

he’ll spend the time explaining to you what is behind

his thought processes. Do you know what kind of confidence

that inspires?” This type of open communication at the top

proved extremely successful, as summed up by one

designer: “It’s a system that recognizes talent early and

rewards it, and that creates a sense of enthusiasm for your

work, and a sense of mission.”

Another program that Eaton describes as empowering

employees at Chrysler includes requiring all employees,

including executives, to participate in the process of building

a new vehicle. Eaton explains that this shows all of the employees

in the plant that executives are concerned about the

proper functioning of new cars, and it gives executives the

opportunity to understand and solve problems at the factory

level. Eaton states, “When we’re done with our discussions,

these guys know where we want to go and how we want to

get there, and they go back and put the action plans together

to do that. This goes for every single thing we do.” He concludes,

“Clearly at a company there has to be a shared

vision, but we try to teach people to be a leader in their own

area, to know where the company wants to go, to know how

that affects their area, to benchmark the best in the world,

and then set goals and programs to go after it. We also

encourage people not only to go after the business plan

objectives but to have stretch goals. And a stretch goal by

definition is a fifty-percent increase . . . . If we go after fifty

percent, something dramatic has to happen. You have to go

outside of the box.”

Based on the above description, please evaluate Bob

Eaton’s coaching skills using the accompanying table. If a

certain coaching behavior or function is missing, please

provide recommendations about what he could have done

more effectively.

Based on Case Study 9-1: Was Robert Eaton a Good Coach on pages 256-257 in the textbook and the Major Functions and Key Behaviors tables on page 257, evaluate Eaton’s coaching skills. In your response address the following elements:

What major functions were missing?

What key behaviors were missing?

Based on your evaluation, provide specific recommendations on how he could have been a more effective coach.

the text book is Performance Management (3rd Edition) - Herman Aguinis and the case study is as mentioned above

Record entries from the transaction and event list provided below in proper journal entry format. NOTE: You are recording entries for the fiscal year 2019 (Jan 1 – Dec 31) and make adjusting entries at year-end. This list must be chronologically organized. Make sure that I can easily identify the journal entry or adjusting journal entry with the related transaction/event. Show your work if the entry requires you to make a calculation (i.e. depreciation, interest expense, etc.).

Before booking an entry, remember to evaluate the substance of each transaction/event. Do accounting standards require the event or transaction to be booked into your company’s accounting records? NOTE: All interest rates included in the transaction list are stated at an annual rate

January

1. On January 1st, the company issued 280,000 additional shares (par of $.25) to raise capital for the New Year. Assume no change in price from Dec 31, 2018.

2. Purchased a truck for $140,000 cash on the 1st of January. The truck will be depreciated over an 8 year period. You decide to use the 200% declining-balance depreciation method because it is determined that the truck will be more productive when it is newer. The truck has an estimated salvage value of $8,000. [Adjusting Entry Required]

3. On January 1st, a 5 year, $130,000 long-term note payable was taken from a local bank.

4. On January 5th, you receive payment from interest earned and accrued in 2018.

5. On January 22nd you purchased 8,500 additional units of inventory at a cost of $63.00 per unit. You paid 45% in cash and purchased the remainder on account.

6. On January 25th you pay $112,000 cash toward your accounts payable.

7. Purchased new office equipment for $230,000 with cash from California Furniture on January 1, 2019. The new furniture will be depreciated over a ten-year period on a straightline basis. The cabinet has an estimated salvage value of $15,000. [Adjusting Entry Required]

February

8. Paid cash for $160,000 worth of radio advertising on February 1 st. This gives you radio advertising until January 31st, 2020. [Adjusting Entry Required]

9. February 13th you collect $365,000 of account payments from customers.

March

10. Purchased a parcel of land on March 1, 2019 for $650,000 by paying $425,000 in cash and signing a short-term note payable with the seller for $225,000. You must repay the $225,000 in exactly one year on March 1, 2020. You agree to pay the seller 4.5 percent interest (annual rate) on a quarterly basis (June 1, September 1, December 1, 2019, and March 1, 2020). [Adjusting Entry Required]

11. On March 19th you purchased $33,480 of office supplies from Super Office Supplies with cash.

12. On March 20th you received a payment of $125,000 for 260 hours of service to be performed in the future.

April

13. April 21st , your customers bought 15,000 units of your product for $125 per unit (you decide what your company sells). The cost of this product is determined by the method of inventory valuation used by your company. Customers paid you 55% in cash and the remainder was on account.

14. On April 27nd you purchased 9,250 units at a cost of $67 per unit. You paid 45% in cash and purchased the remainder on account.

15. On April 29th you pay $550,000 cash toward your accounts payable.

May

16. On May 1st you pay all dividends owed to your owners.

June

17. Leased additional warehouse space from Leasing Solutions for two years on June 1st due expiration of the previous rental contract. $92,000 cash was paid for the new contract on this date which covers the rental fee for two years. There is no value left in the previous contract. [Adjusting Entry Required]

18. Wage expenses from January 1 – June 30 $530,000. Pay this in full including your beginning balance in wages payable.

19. On June 19th, $95,000 of prepaid insurance was used.

20. On June 26th a customer that previously bought your product on account has filed for bankruptcy. He owed you $62,500. You expect to collect $0.

July

21. Your company issued 1,000, 3.8% bonds (face value of each bond is $1,000) at 101.8250 on July 1st, 2019. The bonds are due on July 1, 2024, with interest payable each January 1 and July 1. The market rate at the time of the bond issuance was 3.4%. Use the effectiveinterest method to calculate both the interest expense and the amortization of the bond discount when each interest payment is made. [Adjusting Entry Required]

August

22. On August 6th , a piece of land that was originally purchased for $1,250,000 was sold for $1,550,000 cash.

23. August 15th , your customers bought 9,000 units of your product at $116.00 per unit. The cost of this product is determined by the method of inventory valuation used by your company. Customers paid you 50% in cash and the remainder was on account.

24. Received on August 25th a $156,000 cash payment from a customer paying on their account.

25. Purchased a Patent (Intangible Asset) for $165,000 on August 1st. The patent will be amortized over a 10 year period on a straight-line basis. [Adjusting Entry Required]

September

26. $122,000 cash was paid for an investment in Company X's marketable securities on September 3rd .

27. On September 12th, a piece of equipment was sold for $650,000 cash. The equipment was originally purchased for $1,100,000. At the time of the sale, it had been depreciated by $235,000.

28. Purchased and used $3,500 worth of fuel for the delivery truck on September 18th .

October

29. Your top sales officer met with a new customer to discuss a potential future contract. She informs you that the customer is considering signing the $200,000 deal, which would become effective February 2020.

30. On October 1st, you purchased 11,250 units at the decreased price of $61 per unit. The purchase was made on account.

31. On October 10th you paid your supplier $132,000 cash for inventory purchased on account.

November

32. November 1 st, the CEO, in an effort to adjust ratios, ordered the repurchasing of the company’s own stock. The quantity of stock repurchased was 175,000 shares.

33. Purchased a three-year building insurance policy on November 1st for $442,000 cash. [Adjusting Entry Required]

34. On November 17th a customer pays you $450,000 for work that you will finish in January of 2020.

35. November 19th , your customers bought 8,650 units of your product at $110 per unit. The cost of this product is determined by the method of inventory valuation used by your company. Customers paid you 55% in cash and the remainder was on account.

36. An employment contract is signed with a new regional manager. You have offered him $150,000 per year. He will not begin working for the company until March 2020.

December

37. Wages earned from July 1st through December 31st was $480,000. Wages earned between Dec. 15th and Dec 31st amounting to $27,500 was not paid this until Jan 7th.

38. At the end of the year, $42,000 cash was paid to the local bank for the long-term note payable taken out on January 1, 2019. $38,000 of this was applied to the loan principal. The remaining amount was the accumulated interest due for 2019.

39. On December 31st, the marketable (trading) securities you purchased on September 23, 2019 transaction now has a fair market value of $134,000.

40. On December 31st, $480,000 depreciation expense for the year was calculated for equipment purchased before January 1, 2019.

41. On December 31st, you declare dividends of $.32 per share to be paid at a later date.

42. On December 31st, the utility bill was paid for the year. The amount was $66,000 and you paid in cash.

43. On December 31st, you pay in cash recurring interest on the long-term note acquired prior to the year 2017.

HINT: See prior year financial statements.

44. On December 31st, your company earned interest on the average 2019 cash balance which will be paid January 5th, 2020. The average interest rate for the year was 4.0%. Note: Compute the average cash using only the beginning and ending balance.

45. By December 31st, 85 of the prepaid service hours from March 20, 2019 were completed.

46. A count of office supplies indicated that $27,000 of office supplies had been used by December 31st .

47. Since the inception of your company, you have been able to collect 84% of your ending accounts receivable balance from customers that bought your product on account. Based on this information, adjust your allowance for bad debt account. NOTE: Use your 2019 ending accounts receivable balance to make this calculation.

Which CEO has been able to achieved and exemplified positive aspects of strategic leadership? Which characteristics make this CEO a good leader? What is his/her managerial style? What actions does this CEO take that reaffirms an effective strategic leadership? What are the effects of those actions on the firm’s performance?

I need to choose a CEO and write a 2-page paper about him/her.

Frank Pulley was the General Manager of Fred Arnold’s, “Arnold’s Moving and Storage”, a family-owned business. He had been with the company since he got out of high school. He worked summers and vacations to make money during his college years. The company had grown as did Frank. When Frank graduated from college with his degree in business management, he was given the job of Office Accounts Manager. He managed the money for the business. During the evening, Frank went to school and received his MBA in Finance. By then, Arnold’s had expanded to include long distance moving as well as office moves in the Mid-Atlantic area. The company was making over $3,000,000 in sales and was growing at a rate of 8% -10 % a year. Competition was strong in the Mid-Atlantic region so Fred wanted to expand southward. About this time, Fred’s son decided it was time to come back into the business. He had been working in IT in Miami. He liked Miami and felt he could work from there and bring the business down the Eastern Seaboard.

Frank had been with the business for 12 years now and felt that with Fred’s son now back in the business, it might be time to leave. Fred saw Frank at lunch one day shortly after Frank started looking for a new job. “Frank, I just heard that you are looking for a senior management position. In fact, I had to hear it from Janice Jeppy of all people. I ran into her at the bank. She says you applied to Jeppy Movers for a job and was wondering why you would want to switch moving companies. I am wondering too. Don’t you want to stay with us?”

Frank was surprised. The thought had never occurred to him. He assumed that Mr. Arnold’s son and daughter would take over the business. Both of Fred’s children had been working in the business since they were in high school. “I don’t want to leave Mr. Arnold,” Frank replied, “but I assumed that with Frank back in the business, he would take over. I just couldn’t see where there was room for advancement.” Fred was afraid this is what the boy would say. His son was bright and showed promise, but Fred knew they needed experienced people like Frank to keep the company moving forward. Frank was great support for the business and would be the best support that he and his son could have. Fred wondered how he could keep Frank in the business. “Come see me tomorrow at 10 a.m., Frank and we will talk. I can’t let you go to Jeppy Movers, can I”?

What Can Fred Arnold do to keep Frank now and in the future? Include in the discussion how the growth of the company will affect Fred’s ideas.

Also, address succession and Frank’s role in the business going forward.

Julianna Lilian is a realtor. She buys and sells properties on her own and also earns a commission as an agent for buyers and sellers. She organized a business in early 2020 where she contributed $60,000 in cash in return for common shares. Consider the following facts as of March 31, 2020:

• Office supplies of $500 were purchased and used during in the period.
• Julianna spent $20,000 for the right to use the Royal Lepage franchise, which allows her to represent herself as an agent. The franchise right is considered an asset.
• The business owes $150,000 as a loan payable for a plot of land that is currently undeveloped. The land cost Julianna $170,000 and she paid the remaining amount using cash. The loan has an interest rate of 8% / year.
• Julianna sold 5 houses and earned a commission of $42,000. As of March 31, all commission has been collected in cash and deposited into Julianna’s business bank account.
• Julianna owes $300,000 on a personal mortgage for her private residence. She acquired the home in 2018 for $450,000. The mortgage has an interest rate of 3% / year.
• In January 2020, Julianna acquired furniture for her office totalling $18,000. The furniture has a useful life of 9 years.
• Julianna paid $22,000 in upfront expenses (insurance and rent). Both expenses will cover the 2020 calendar year (January – December)
• Julianna paid $5,000 is other expenses relating to the business during the period.
• Julianna has $4,000 in her personal bank account and $19,500 in a business bank account.

Questions

1. Identify and explain why some of the data included above are not relevant to preparing the Company’s financial statements

2. Explain 2 relevant users for the financial statements. Explain the decisions that each user may make using the financial statements information

3. Prepare the journal entries and period end adjusting entries for the above transactions

Use the following format:

Dr. Account Name (Asset) $ XXX

Cr. Account Name (Liability) $ XXX

4. List the company’s total assets, total liabilities and total shareholders, as they would appear on the balance sheet as of March 31, 2020

Use the following format:

Cash $X,XXX

Asset 2 $X,XXX

Asset 3 $X,XXX

Asset 4 $X,XXX

Etc.

Total Assets: $X,XXX

Liability 1 $X,XXX

Liability 2 $ X,XXX

Total Liabilities: $X,XXX

Shareholders Equity: $X,XXX

that is all the information

what information do you prime think is missing? that is all that is given

On 1 November 2018, ACP imported a new multi-colour printing machine (No-10) for $68,300 cash. In addition, ACP paid $6,500 of import duties and $1,200 of transport costs for the machine on 3 November 2018. The useful life of the machine and the residual value were estimated to be 8 years and $7,000 respectively. ACP decides to depreciate the machine using a straight-line basis. The company’s financial year-end is 30 June.

On 30 June 2019, Auckland City Printers revalued the machine to $73,000 following a review by an independent valuer.

On 1 July 2019, due to the changes in technology caused the company to revise the estimated useful life of the printing machine from 8 years to 6 years. On the same day, it was also determined that the residual value of the machine is nil.

On 30 June 2020, the printing machine has been revalued at a fair value of $55,200.

On 30 September 2020, the accountant believes that the value of the printing machine has declined substantially. The value in use is nil, but it is estimated that the company may be able to sell the printing machine for $35,000 to a purchaser and the costs associated with making the sale would be $2,000.

On 1 October 2020, Auckland City Printers sold the printing machine for $32,000 cash.

Required:

(a)   Prepare relevant journal entries to record the depreciation expense for the year ended 30 June 2019 and revaluation entries on 30 June 2019.

(b)   Prepare relevant journal entries to record the depreciation the year ended 30 June 2020 and revaluation entries on 30 June 2020.

(c) Explain the accounting treatment for the transaction on 30 September 2020 in respect of the printing machine with reference to the relevant accounting standards. Prepare the journal entry required.  

(d) Prepare the journal entry required on 1 October 2020 to reflect the disposal of the printing machine. Show all workings.  

On 1 November 2018, Auckland City Printers (ACP) imported a new multi-colour printing machine (No-10) for $68,300 cash. In addition, ACP paid $6,500 of import duties and $1,200 of transport costs for the machine on 3 November 2018. The useful life of the machine and the residual value were estimated to be 8 years and $7,000 respectively. ACP decides to depreciate the machine using straight-line basis. The company’s financial year-end is 30 June.

On 30 June 2019, Auckland City Printers revalued the machine to $73,000 following a review by an independent valuer. On 1 July 2019, due to the changes in technology caused the company to revise the estimated useful life of the printing machine from 8 years to 6 years. On the same day, it was also determined that the residual value of the machine is nil.

On 30 June 2020, the printing machine has been revalued at a fair value of $55,200.

On 30 September 2020, the accountant believes that the value of the printing machine has declined substantially. The value in use is nil, but it is estimated that the company may be able to sell the printing machine for $35,000 to a purchaser and the costs associated with making the sale would be $2,000.

On 1 October 2020, Auckland City Printers sold the printing machine for $32,000 cash.

Required:

(a)Prepare relevant journal entries to record the depreciation expense for the year ended 30 June 2019 and revaluation entries on 30 June 2019.

(b)Prepare relevant journal entries to record the depreciation the year ended 30 June 2020 and revaluation entries on 30 June 2020.

(c) Explain the accounting treatment for the transaction on 30 September 2020 in respect of the printing machine with reference to the relevant accounting standards. Prepare the journal entry required.

(d) Prepare the journal entry required on 1 October 2020 to reflect the disposal of the printing machine. Show all workings.

On 1 November 2018, Auckland City Printers (ACP) imported a new multi-colour printing machine (No-10) for $68,300 cash. In addition, ACP paid $6,500 of import duties and $1,200 of transport costs for the machine on 3 November 2018. The useful life of the machine and the residual value were estimated to be 8 years and $7,000 respectively. ACP decides to depreciate the machine using straight-line basis. The company’s financial year-end is 30 June.

On 30 June 2019, Auckland City Printers revalued the machine to $73,000 following a review by an independent valuer.

On 1 July 2019, due to the changes in technology caused the company to revise the estimated useful life of the printing machine from 8 years to 6 years. On the same day, it was also determined that the residual value of the machine is nil. On 30 June 2020, the printing machine has been revalued at a fair value of $55,200.

On 30 September 2020, the accountant believes that the value of the printing machine has declined substantially. The value in use is nil, but it is estimated that the company may be able to sell the printing machine for $35,000 to a purchaser and the costs associated with making the sale would be $2,000.

On 1 October 2020, Auckland City Printers sold the printing machine for $32,000 cash.

Required: (a)Prepare relevant journal entries to record the depreciation expense for the year ended 30 June 2019 and revaluation entries on 30 June 2019.

(b)Prepare relevant journal entries to record the depreciation the year ended 30 June 2020 and revaluation entries on 30 June 2020.

(c) Explain the accounting treatment for the transaction on 30 September 2020 in respect of the printing machine with reference to the relevant accounting standards. Prepare the journal entry required.

(d) Prepare the journal entry required on 1 October 2020 to reflect the disposal of the printing machine. Show all workings.

agree or not?

Hard data is a verifiable fact that is acquired from reliable sources. It implies data that is directly measurable, factual and indisputable. Some of the benefits of hard data are reliability, value add, prediction, and accuracy. Hard research is the gathering of numerical and demographic data which helps determine who the customers are and what they want, when they want it and how they want the product or service. Hard data describes the types of data that are generated from devices and applications such as phones, computers, smart meters, traffic monitoring systems and bank transactions. These things and this information can be measured, traced and validated. Hard data is for companies that only depend on analytics and they are used by technical savy companies. An example of hard data would be a medical study on the results of testing. Soft data is based on qualitative information such as a rating, survey or poll. It implies that the data has been collected from qualitative observations and quantified. Sometimes one might think that soft data is not reliable, but it really is. In many cases, the best data available is soft data such as customer satisfaction and product reviews. Some of the benefits of using soft data are, direct response, saves cost and time, genuine feed backs are possible, and data can not be manipulated and is reliable. Soft data is usually preferred for small business cases and projects while hard data's are required for huge businesses. An example of soft data would be to get the patients to rate their symptoms.