In: Economics
How much should the company report as current assets on the December 31, 2020 classified balance sheet?
In: Accounting
Recording and Reporting Equity Investment: FV-NI
Adjust FVA at Year-End
On November 1, 2020, Drucker Co. acquired the following investments in equity securities measured at FV‑NI.
Kelly Corporation—600 shares of common stock (no-par) at $60 per share. Keefe Corporation—360 shares preferred stock ($10 par) at $20 per share. On December 31, 2020, the company’s year-end, the quoted market prices were as follows: Kelly Corporation common stock, $52, and Keefe Corporation preferred stock, $24. Following are the data for 2021.
Mar. 2, 2021 Dividends per share, declared and paid: Kelly
Corp., $1, and Keefe Corp., $0.50.
Oct. 1, 2021 Sold 120 shares of Keefe Corporation preferred stock
at $25 per share.
Dec. 31, 2021 Fair values: Kelly common, $46 per share, Keefe
preferred, $26 per share.
a. Prepare the entry for Drucker Company to record the purchase of the securities.
| Date | Account Name | Dr. | Cr. |
|---|---|---|---|
| Nov. 1, 2020 | AnswerCashInterest ReceivableInvestment in TSFair Value Adjustment--TSInvestment in AFS SecuritiesFair Value Adjustment--AFSInvestment in HTM SecuritiesInvestment in StockFair Value Adjustment--Equity SecuritiesFair Value Adjustment--Fair Value OptionAllowance for Credit LossesAccumulated Other Comprehensive IncomeUnrealized Gain or Loss--OCIUnrealized Gain or Loss--IncomeDividend RevenueInterest RevenueInvestment IncomeLoss on ImpairmentRecovery of Loss on ImpairmentLoss on Sale of InvestmentGain on Sale of InvestmentN/A | Answer | Answer |
| AnswerCashInterest ReceivableInvestment in TSFair Value Adjustment--TSInvestment in AFS SecuritiesFair Value Adjustment--AFSInvestment in HTM SecuritiesInvestment in StockFair Value Adjustment--Equity SecuritiesFair Value Adjustment--Fair Value OptionAllowance for Credit LossesAccumulated Other Comprehensive IncomeUnrealized Gain or Loss--OCIUnrealized Gain or Loss--IncomeDividend RevenueInterest RevenueInvestment IncomeLoss on ImpairmentRecovery of Loss on ImpairmentLoss on Sale of InvestmentGain on Sale of InvestmentN/A | Answer | Answer |
b. Prepare any adjusting entry needed at December 31, 2020.
| Date | Account Name | Dr. | Cr. |
|---|---|---|---|
| Dec. 31, 2020 | AnswerCashInterest ReceivableInvestment in TSFair Value Adjustment--TSInvestment in AFS SecuritiesFair Value Adjustment--AFSInvestment in HTM SecuritiesInvestment in StockFair Value Adjustment--Equity SecuritiesFair Value Adjustment--Fair Value OptionAllowance for Credit LossesAccumulated Other Comprehensive IncomeUnrealized Gain or Loss--OCIUnrealized Gain or Loss--IncomeDividend RevenueInterest RevenueInvestment IncomeLoss on ImpairmentRecovery of Loss on ImpairmentLoss on Sale of InvestmentGain on Sale of InvestmentN/A | Answer | Answer |
| AnswerCashInterest ReceivableInvestment in TSFair Value Adjustment--TSInvestment in AFS SecuritiesFair Value Adjustment--AFSInvestment in HTM SecuritiesInvestment in StockFair Value Adjustment--Equity SecuritiesFair Value Adjustment--Fair Value OptionAllowance for Credit LossesAccumulated Other Comprehensive IncomeUnrealized Gain or Loss--OCIUnrealized Gain or Loss--IncomeDividend RevenueInterest RevenueInvestment IncomeLoss on ImpairmentRecovery of Loss on ImpairmentLoss on Sale of InvestmentGain on Sale of InvestmentN/A | Answer | Answer |
c. Indicate the items and amounts that should be
reported on the 2020 income statement of Drucker and its year-end
balance sheet. Assume that the investments are classified as
current.
Note: Use a negative sign to indicate a loss.
| Income Statement | 2020 |
|---|---|
| Other Revenues and Gains | |
| Net gain (loss) on equity securities | Answer |
| Balance Sheet, December 31 | 2020 |
|---|---|
| Assets | |
| Investment in equity securities | Answer |
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In: Accounting
SCENARIO
Textbooks R Us is a small business that was set up 20 years ago to facilitate the physical sale of second-hand textbooks for University students. They would now like to change their business model to an e-business model where they only sell their books online. Its business will run entirely on the Internet and students will be able to sell and purchase books via their website. This will allow the business to increase their market as they will not be restricted to selling books at the one University campus. Textbooks R Us has tasked your team to come up with the requirements for their new system.
Sellers must have an account with Textbooks R Us to sell any books via their website. To create an account, sellers must register and provide various details when setting up their account. These details include their physical address, postal address, name, telephone number, a current email address and banking details for the receipt of money after their books have been sold.
Buyers must also open an account if they wish to purchase a textbook, however they can search for books on the website without having an account. To create an account, buyers must register and provide various details when setting up their account. These details include their physical address, postal address, name, telephone number, a current email address and credit card details. Buyers can purchase as many books as desired in the same transaction or through separate transactions. Books can be purchased via credit card or PayPal.
A seller can list books on the system through completing an online form. The details which must be provided on the form include information on the book to be sold such as: its category, title, author, year of publication, condition and the asking price. An option to upload a photo of the books is also available for buyers to see the condition of the book. A seller may list as many books as desired. A seller may also remove books for sale if they wish or amend the sale price.
The system will maintain a list of all books for buyers to use a search engine to search for books of interest by title, author, category, and keyword.
The system will provide secure access for all users and information is to be maintained on secure servers. Sensitive financial information and private user details are not to be disclosed to other users of the system.
When a purchase is made, Textbooks R Us will send an e-mail notice and/or a text message to the seller of the book that was chosen as well as payment information. The seller will have the option of choosing which method of notification they prefer when setting up their account, i.e. via email and/or via text message to their mobile phone. The system will also mark the book as sold and maintain an open order status until it receives notice that the book has been shipped by the seller.
Once the seller has received the notification that the book has been sold, they must notify the buyer via their chosen notification method (email and/or text message) within 48 hours that the purchase has been accepted and they must ship the order within 48 hours of sending the notification to the buyer. The seller will then send a notification to the buyer (again via their preferred method) and to Textbooks R Us when the shipment is made.
Upon receiving notice that the shipment has been made,Textbooks R Us will change the status of the book order to a shipped status. Buyers will have a 30-day period to receive a refund from Textbooks R Us if the book does not arrive, or to return the book if it does not meet the advertised criteria. Once this 30-day period has lapsed, i.e. the book has been in a shipped status for 30 days, the money received for the book will be transferred to the seller’s nominated account by Textbooks R Us and the book’s order status will be changed to sold.
After receiving an ordered book, buyers will have the option of entering a rating for the seller to indicate a measure on several factors regarding their transaction with the seller. Some sellers have been very active using the current business model and this feature will provide them with an important indicator to other potential buyers.
USE CASES
Identify all the actors who will be using the system.
Prepare a table containing all use cases and a brief use case description (1-2 sentences) for each use case.
Draw a use case diagram for the system representing the actors and use cases identified.
In: Operations Management
Interview:
In total this assignment should be 350 to 500 words in length.
In: Operations Management
Glacier Products Inc. is a wholesaler of rock climbing gear. The company began operations on January 1, Year 1. The following transactions relate to securities acquired by Glacier Products Inc., which has a fiscal year ending on December 31:
| Year 1 | |
| Jan. 18. | Purchased 8,300 shares of Malmo Inc. as an available-for-sale security at $42 per share, including the brokerage commission. |
| July 22. | A cash dividend of $0.55 per share was received on the Malmo stock. |
| Oct. 5. | Sold 3,700 shares of Malmo Inc. stock at $46 per share, less a brokerage commission of $45. |
| Dec. 18. | Received a regular cash dividend of $0.55 per share on Malmo Inc. stock. |
| Dec. 31 | Malmo Inc. is classified as an available-for-sale investment
and is adjusted to a fair value of $40 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment. |
| Year 2 | |
| Jan. 25. | Purchased an influential interest in Helsi Co. for $610,000 by
purchasing 49,000 shares directly from the estate of the founder of Helsi Co. There are 140,000 shares of Helsi Co. stock outstanding. |
| July 16. | Received a cash dividend of $0.65 per share on Malmo Inc. stock. |
| Dec. 16. | Received a cash dividend of $0.65 per share plus an extra dividend of $0.15 per share on Malmo Inc. stock. |
| Dec. 31 | Received $18,000 of cash dividends on Helsi Co. stock. Helsi
Co. reported net income of $74,000 in Year 2. Glacier Products uses the equity method of accounting for its investment in Helsi Co. |
| Dec. 31 | Malmo Inc. is classified as an available-for-sale investment and is adjusted to a fair value of $45 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment for the increase in fair value from $40 to $45 per share. |
Required:
1. Journalize the entries to record the preceding transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. In your computations, round per share amounts to two decimal places.
2. Prepare the investment-related asset and
stockholders’ equity balance sheet presentation for Glacier
Products Inc. on December 31, Year 2, assuming that the Retained
Earnings balance on December 31, Year 2, is $445,000.
In: Accounting
Q = A university is hiring new construction company and need to come with a blueprint. They are debating on how much distance/km belonging to a forested park can be preserved. Within this region, there are 250 residents and each have an identical inverse dmnd function where P = 20 - Q. Here, Q represents the amount of distance/km preserved. P is the representing per distance cost; that an individual is willing to pay for the amount of distance (Q).
Note: Margnal cost value is $800 per distnce/km
1. To support this question, Incorporate the marginal cost curve/, marginal benefit curve and write aggregate demand and plot these into graph
2.How much km is required fro be preserve in the context of efficient allocation,
In: Economics
A company is planning to build an engineering lab at a nearby university through a grant. The building should initially cost $50,000,000 and maintenance cost(end of year) are expected to be $200,000 per year for the first 3 years, $300,000 per year for the next 4 years, and then $400,000 per year after. If the grant will be invested at 10%, how large a donation must the company make? (assume the term is unlimited and lab lasts forever)
In: Finance
Question 6 Gunther Plc provides the following information on its acquisitions of non-current assets:
(1) A non-current asset (asset a) was acquired on 1 January 2016 for £100,000. It had no residual value and a useful economic life of 10 years. On 1 January 2019, the useful economic life was revised to 6 years. The company depreciates similar assets using the straight line method.
(2) A non-current asset (asset b) was acquired for £12,500 at the beginning of 2017. It had a useful economic life of 5 years and no residual value. On 1 January 2019 the asset was revalued to £15,000. The useful economic life remains unchanged. The company depreciates similar assets using the straight line method.
(3) A non-current asset (asset c) was acquired for £25,000 at the beginning of 2017. It had a useful economic life of 5 years and no residual value. On 1 January 2019 the asset was revalued to £30,000. The useful economic life remains unchanged. Asset c was sold on 31 December 2019 for £16,000. The company depreciates similar assets using the straight line method.
Required:
(a) How would each of the transactions (1) to (3) be accounted for in 2019?
(b) Compare and contrast accounting for tangible assets with that for intangible assets. Your answer to this part of the question should not be more than 200 words.
In: Accounting
consider an employment interview:
If it is legal to ask if the person was ever convicted of a crime,
why is it illegal to ask if he/ she has ever been arrested?
explain
In: Nursing