Silcon Company issued $500,000 of 6%, 10-year bonds on January 1, 2020 for $431,850 to yield an effective annual rate of 8%. Interest is paid semiannually on January 1 and July 1. Instructions: (a) Prepare the journal entries to record the transactions for 2020 related to this bond issuance assuming the effective interest method of amortization is used. (b) Prepare the journal entries as of January 1, 2021 assuming the interest was paid and then the bond was redeemed at 101.

Sheridan Corporation is preparing the comparative financial statements for the annual report to its shareholders for fiscal years ended May 31, 2020, and May 31, 2021. The income from operations for the fiscal year ended May 31, 2020, was $1,889,000 and income from continuing operations for the fiscal year ended May 31, 2021, was $2,530,000. In both years, the company incurred a 9% interest expense on $2,449,000 of debt, an obligation that requires interest-only payments for 5 years. The company experienced a loss from discontinued operations of $606,000 on February 2021. The company uses a 20% effective tax rate for income taxes.

The capital structure of Sheridan Corporation on June 1, 2019, consisted of 962,000 shares of common stock outstanding and 20,500 shares of $50 par value, 6%, cumulative preferred stock. There were no preferred dividends in arrears, and the company had not issued any convertible securities, options, or warrants.

On October 1, 2019, Sheridan sold an additional 511,000 shares of the common stock at $20 per share. Sheridan distributed a 20% stock dividend on the common shares outstanding on January 1, 2020. On December 1, 2020, Sheridan was able to sell an additional 760,000 shares of the common stock at $22 per share. These were the only common stock transactions that occurred during the two fiscal years.

Part a. Identify whether the capital structure at Sheridan Corporation is a simple or complex capital structure.

Part b. Determine the weighted-average number of shares that Sheridan Corporation would use in calculating earnings per share for the fiscal year ended:

Part c.Prepare, in good form, a comparative income statement, beginning with income from operations, for Sheridan Corporation for the fiscal years ended May 31, 2020, and May 31, 2021. This statement will be included in Sheridan’s annual report and should display the appropriate earnings per share presentations. (Round earnings per share to 2 decimal places, e.g. $1.55.)

Hundar Ltd is a Japanese car manufacturer. On 1 March 2020, Vicpark Ltd, an Australian African company, purchased 50 cars from Hundar Ltd. The terms of the contract are FOB shipping, with the invoice denominated in Japanese Yen. The order was completed on 25 May 2020, shipped from Nagoya Port (the largest port in Japan) on 1 June and received by Vicpark Ltd on 25 June 2020. The total cost of the cars was 70 million Yen. Vicpark Ltd’s reporting date is 30 June. Vicpark Ltd settled the payment on 31 July 2020. Selected exchange rates were:

Required:

Prepare all journal entries required by Vicpark Ltd (the Australian company) to record the above transactions. Narrations are not required but you must show all workings and round figures to the nearest dollar. (5 Marks, 4 marks for correct journal entries, 1 mark for your workings)

The term of the non-cancelable lease is 5 years with no renewal option. The equipment has an estimated economic life of 5 years.

The cost of the asset to the lessor is $320,000. The fair value of the asset at January 1, 2020, is $320,000.

The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $34,000, none of which is guaranteed.

The agreement requires equal annual rental payments, beginning on January 1, 2020.

Collectibility of the lease payments by Sanders is probable.

can you please solve this question as soon as possible. Thank you

Question 11

The following facts pertain to a non-cancelable lease agreement between Carla Vista Leasing Company and Tamarisk Company, a lessee.

The collectibility of the lease payments by Carla Vista is probable.

1. Discuss the nature of this lease to Tamarisk

2. Discuss the nature of this lease to Carla Vista.

3. Prepare the journal entries on the lessee’s books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2020 and 2021. Tamarisk’s annual accounting period ends on December 31. Reversing entries are used by Tamarisk. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 5,275.15. Record journal entries in the order presented in the problem.)

Problem 18-09 Concord Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $606,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $891,000. The following data pertain to the construction period. 2020 2021 2022 Costs to date $260,580 $466,620 $618,000 Estimated costs to complete 345,420 139,380 –0– Progress billings to date 272,000 551,000 891,000 Cash collected to date 242,000 501,000 891,000 (a) Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. (If the answer is 0, please enter 0. Do not leave any fields blank.) Gross profit recognized in 2020 $ Gross profit recognized in 2021 $ Gross profit recognized in 2022 $ (b) Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period. (If the answer is 0, please enter 0. Do not leave any fields blank.) Gross profit recognized in 2020 $ Gross profit recognized in 2021 $ Gross profit recognized in 2022 $ Please show working. Thank you.

Question 12

A comparative balance sheet for Rocker Company appears below:

*Prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

CASE: Building a magical organization at Johnson and Johnson

The typical pharmaceutical MNE emphasizes global integration, given its steep product development costs and potential scale economies. However, it must respond to local market conditions, obtaining government approval for its product in various countries and establishing local sales, support, and distribution systems. Consequently, headquarters and subsidiaries jointly implement the company’s strategy. Building an organization that can meet this mission is tough. One standout that does is Johnson & Johnson (J&J).
Since the start of its U.S. operations in 1886, J&J has evolved into the most broadly-based health-care company in the world. international activity began in 1919 with J&J Canada. Headquartered in New Brunswick, New Jersey, J&J now lists some 275 operating units in 60 countries. Approximately 55 percent of its $75 billion in sales occurs outside of the United States. Its diversified portfolio of anti—infective, cardiovascular, dermatology, immunology, and oncology products rests on more than 55,000 U.S. and foreign patents. Some, though, believe the intricacy of the company’s organization, in terms of its decentralized structure, sophisticated coordination and control systems, and Credo-based culture, anchors its superior performance.

The “Magic of Decentralization”

Decentralized management is the heart of J&J’s organization. It allows managers who are closest to customers and competitors to make decisions. As the company says,
‘it aims to be big and small all at once, building its global reach from the integration of many small units. By design, each of its 275 units operates with substantial autonomy. commanding the authority to act as it believes best given its read of local conditions. Each performs as its own business, entrepreneurial in character, and aware that success depends on anticipating local customers’ needs and delivering solutions.
Decentralization, explains Ralph Larsen, former CEO, “gives people a sense of ownership and control—and the freedom to act more rapidly.”‘ His successor, William Weldon, concurs, adding that reducing bureaucracy, liberating initiative, and rewarding enterprise—the hallmarks of a decentralized organization—is the wellspring of the “magic around J&J.” Moving decision-making from headquarters to the front lines helps a large, globe-spanning MNE capture the qualities typically found in smaller companies. Certainly, a top-down hierarchy delivers benefits. Still, J&J reasoned that centralization reduces the magic cast by entrepreneurial drive, close customer contact, and agile decision-making. Shortening chains of command, increasing spans of responsibilities, and breaking down boundaries in a decentralized organization gives everyone a strong sense of ownership of action and accountability for outcomes.
These outlooks, Larsen explains, make the managers running J&J’ s 275 operating units intensely competitive, both with each other as well as rivals. Furthermore, managers that directly shape their future are driven to innovate, translating ideas into new products and insights into better processes. Backstopping their efforts are the deep Pools of resources and capabilities that one finds in a large, successful MNE.

J&J’s successful decentralization attracted talented, bright, and motivated people. The authority to make decisions, Weldon noted, encouraged them to dream big dreams, keen to test new ideas that improved their While often found in small companies, these entrepreneurial outlooks and orientations are seldom seen in large MNEs. As such, senior leadership believes the company's ability to simultaneously achieve local effectiveness and global efficiencies sustained its competitiveness.

The Dilemma of Decentralization

local autonomy and global integration, spurs tightening coordination and control systems. Communication channels cut across the organization, thereby helping far-flung units share ideas. Self-directed councils— for research, engineering, and operations, among others-meet regularly to swap ideas. Headquarters negotiates planning formats, scheduled mandatory reports, and formally reviewed budgets and interim results. Senior executives push a global perspective into local decision-making. Likewise, local objectives influence global discussions.

Pressures to integrate operations due to market trends, competitors' moves, and shifting technologies push J&J to centralize some activities. These changes, while understood, are not entirely welcome. Some local units resist integration, arguing that global standards poorly fit their unique circumstances. Senior executives acknowledge these concerns and reiterates their commitment to decentralize decision-making. They argue, however, that leveraging core competencies, as well as capturing location and scale effects, means that when J&J rolls out a key product or process, country operations worldwide roll with it.

J&J has recentralized some activities from operating units. Senior executives set standards for issues common to all operating units, such as finance, science and technology, government affairs, and quality management. It has installed centralized reporting processes for key business functions, including manufacturing and quality control. Centrally managing common support activities, senior executives reason, frees operating units to focus on their day-to-day performance.

Culture and the Credo

J&J's philosophy held that people who understand how the company creates value, are familiar with the company's Competencies, and are culturally and physically close to the market ought to run the local business. Thus, for example, baby oil managers in Italy decide how big a bottle to use, even if that bottle differs from the one sold in Germany, Japan, or Mexico, given their sense of the local marketplace.

J&J entered markets by adding subsidiaries through investment, alliance, or acquisition. New units do not fear being overrun by legions of expatriates directed by headquarters-based generals because, with few exceptions, host-country citizens direct local subsidiaries –indeed, a common view holds that “companies love to be acquired by J&J because they don't mess with you."130 Granted, headquarters installs coordination and control systems and negotiates performance targets. But, then it steps aside, supporting subsidiaries as needed, patiently awaiting superior results, yet always prepared to intervene in the event of shortfalls.

High degrees of autonomy created dilemmas for local management. At one point, the centralization decentralization balance had tipped so unevenly that the directors of J&J's foreign subsidiaries acted as kings of their own countries. For example, J&J launched Tylenol in 1960 as an over-the-counter pain reliever in the United States. Although it was available to local operating units shortly thereafter, the Japanese unit did not begin local sales until 2000.131

This sort of situation no longer exists. Yes, the company's commitment to decentralization endorses delegating authority to local managers. Headquarters however, increasingly relies on coordination and control systems to ensure that subsidiaries optimize local activities while supporting global performance.

Inconsistent market development and duplicated efforts fan friction between headquarters and subsidiaries. Tempting as it was to adopt a policy of benevolent tyranny J&J's proud legacy encourages otherwise. It relies on its organizational culture to add a global orientation to local entrepreneurialism. From the CEO to the employees of the smallest unit, management believes that the people and their values are the firm's greatest assets.

Senior executives note that rank-and-file workers have created product breakthroughs, process innovations, and customer insights. In and of itself, such praise is not terribly unusual. Many companies-perhaps even some that you have worked for-have likely expressed similar sentiments. Separating J&J from the pack is the primacy of its organizational culture, as embodied in “Our Credo." Crafted in 1943 by Robert Wood Johnson, company chair from 1932 to 1963, this one-page ethical code of conduct states how J&J fulfills its responsibilities. Former CEO Larsen called it the "glue that binds this company together."

The Credo specifies who and what to care about and in what order. J&J's "first responsibility is to the doctors, nurses, patients, mothers, and fathers who use our products

Herding 275 SBUs Decentralization enables J&J to respond to local needs but slows the global diffusion of products and programs. Preserving the magic of decentralization, given the contest between and services." It addresses the communities where J&J operates and the roles and duties of employees. Notably, shareholders come last, long after customers, suppliers, and distributors. It declares that shareholders will get a reasonable return if other stakeholders are treated fairly. Collectively, the "Credo underscores J&J's personal responsibility to put the needs...of the people we serve first. It liberates our passion and deepens our commitment to delivering meaningful health innovations."133 J&J steadfastly maintains that the Credo is more than just a moral compass; it anchors its long-running success.

Despite its direct message, executives worry that differing outlooks in different markets might blur its interpretation. Consequently, J&J periodically surveys employees on how well the Credo fits their world. Where there are shortcomings, senior management steps in. They have modernized aspects of the Credo given rising environmental concerns and work/family balance tensions. Despite occasional revisions, though, management believes the founding spirit of the Credo transcends time and place.

The Power of Organization

J&J's long list of accomplishments, earned by developing, adjusting, and improving its structure, systems, and culture, has built an organization that confidently leverages bright ideas, no matter if global executives or local subsidiary leaders champion them. Ultimately, the power of decentralization, the balance of coordination and control systems, and the clarity of the Credo anchors a magical organization that lets employees capitalize on their initiative, develop their capabilities, enrich their perspectives, and quite possibly change the game.

question:

What alternative solutions to the problems are available and evaluate each alternative using international business concepts/theories.

-explain in details

A wholesale business with December 31 year-end purchased new equipment on November 25, 2018, for 40,000. Before 2018, the business owned no other equipment.

Required:

1. Complete the table below to show the tax consequences. If the business sells the equipment in 2020 for (a)$15000 (b) $23000 (c) $46000.

2018 purchase:

2018 CCA:

2018 UCC:

2019 CCA:

2019 UCC:

SITUATION A:

Less: Disposal Proceeds:

Interim UCC:

Terminal Loss/ Recapture:

Ending UCC:

Situation B

Less: Disposal Proceeds:

Interim UCC:

Terminal Loss/ Recapture

Ending UCC:

Situation C

Less: Disposal proceeds:

Interim UCC balance

Terminal Loss/ Recapture

Ending UCC:

Capital Gain:

Taxable Capital Gain:

2) How would your answer change if on December 31, 2020. the business acquired new equipment costing $1000? ( Enter minus sign when the amount is reducing the CCA

SITUATION A:

Less: Disposal Proceeds:

Interim UCC:

Terminal Loss/ Recapture:

Ending UCC:

Situation B

Less: Disposal Proceeds:

Interim UCC:

Terminal Loss/ Recapture

Ending UCC:

Situation C

Less: Disposal proceeds:

Interim UCC balance

Terminal Loss/ Recapture

Ending UCC:

Capital Gain:

Taxable Capital Gain: