Some accountants are trying to harmonize international accounting standards. What does the term harmonize mean? The one in obtaining better results in the financial reports in the parent companies in the United States, U.S. parent company, which has many foreign investments?

Gonzalez Company acquired $158,400 of Walker Co., 6% bonds on May 1 at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, Gonzalez Company sold $47,400 of the bonds for 95.

Journalize entries to record the following in Year 1 (refer to the Chart of Accounts for exact wording of account titles):

To clarify, GSIS is a social insurance institution that provides a defined benefit scheme under the law. It insures its members against the occurrence of certain contingencies in exchange for their monthly premium contributions.

What would you have done if you were the CEO of Target in 2013, the Director of the Federal Government’s Office of Personnel Management (OPM) in 2015, or the CEO of Equifax in 2017 at the time that their respective data security breaches were discovered (note what all these breaches have in common)? Is it OK for a victimized organization or government agency to “hack back”? What are the dangers?

Answer discussion style.

Pepper Company acquired 80 percent of Salt Company's stock at underlying book value on January 1, 2018. Pepper Company acquired 80 percent of Salt Company's stock at underlying book value on January 1, 2018. At that date, Salt reported common stock outstanding of $1,050,000 and retained earnings of $840,000; the fair value of the noncontrolling interest was equal to 20 percent of the book value of Salt Company. Salt Co. sold equipment to Pepper Co. for a $720,000 on December 31, 2018. Salt Co. had originally purchased the equipment for $800,000 on January 1, 2015, with a useful life of 10 years and no salvage value. At the time of the purchase, Pepper Co. estimated that the equipment still had the same remaining useful life. Both companies use straight-line depreciation.
Pepper sold land costing $132,000 to Salt Company on June 28, 2019, for $178,000.

Textbook: Custom edition of Advanced Financial Accounting,12th Edition, Christensen, Cottrell and Budd; Mc-Graw Hill.

Required:

1. Prepare Pepper’s journal entries related to intercompany sale for 2019 to account for the investment in Salt.
2. Prepare the consolidation entries that related to intercompany sale of land for 2019.
3. Prepare the consolidation entries that related to intercompany sale of equipment for 2019.
4. Assume S reported net income of $35,000 and dividends of $7,000 for each year of 2018 and 2019. Calculate Pepper’s investment account on December 31, 2019.

8) On April 1, the Prakash Corporation issued 20,000 shares of $2 par value common stock at $23 per share. Please write the journal entry:




9) On April 10, a company acquired land in exchange for 1,000 shares of $20 par common stock with a current fair-market price of $66 per share. Please write the journal entry:

21 Equipment acquired on October 1, 2017, at a cost of $600,000 has an estimated useful life of 8 years. The residual value is estimated to be $80,000 at the end of the equipment's useful life. The company has a December 31 year end.

Instructions

Calculate the depreciation expense for December 31, 2017 and 2018 using:

         (a)           the straight-line method.

         (b)          the double diminishing-balance method.

1. On January 2, 2020, Murphy Company purchased land that cost $410,000, a building on the land that cost $1,450,000, and equipment that cost $70,000. The building has an estimated useful life of 29 years. The equipment has an estimated useful life of 7 years.

Required: Prepare the property, plant, and equipment section of the balance sheet as of December 31, 2020. Note: Use straight-line depreciation with no salvage value. Murphy Company Balance Sheet (partial) December 31 Property, Plant, and Equipment Buildings Accumulated Depreciation, Buildings Total Property, Plant, and Equipment

2. On December 31, Perez Company has earned interest revenue of $2,200 on outstanding notes, even though the company will not actually receive the interest until the following year.

Required:
Journalize the adjusting entry on December 31.

3. On January 1, Williams Company purchased a large piece of equipment for $46,200. It has an estimated useful life of 7 years.

Required:
Journalize the adjusting entry on December 31.

Note: Use straight-line depreciation with no salvage value.

Select one of the 5 foreign countries: China, Germany, Japan, Mexico or the UnitedKingdom, and provide a country profile discussing the topics outlined below. In addition, using EDGAR (http://www.sec.gov/edgar.shtml), find the non-U.S. GAAP financial statements for a company from that country. Prepare a 4-5 page analysis of the country you chose discussing the following:

Compare the accounting profession in your selected country including professional conduct rules.

Identify how the accounting standard are set in that country.

Identify two financial reporting standards that differ from those of U.S. GAAP.

Identify national characteristics unique to the country that influence accounting.

For the two financial reporting standards identified in your paper, use Excel to create an applicable supporting schedule that provides an example of the adjustments that would need to be made to your foreign company’s financial statements for it to comply with U.S. GAAP