interview questions
what steps do you follow to study a problem before making a decision?
what strategic challege would you set as an outreach specialist ?

On January 1, 2020, Bristol Corporation issued one 3-year, 10% (stated rate), $20,000 bond at a price which would yield the purchaser an 9% return. Payment of interest is made on December 31. The year end is December 31. The company uses the ‘effective interest’ method to account for bond interest.

1. Prepare the entry to record the sale of the bond on January 1, 2020.
2. Prepare a bond amortization schedule in good form for the bond.
3. Prepare the entry on December 31, 2020.
4. Assume that Bristol used the ‘straight-line’ method to account for bond interest. Record the journal entry for 2022 to account for interest.
5. Assume that Bristol repurchased the bond for $20,600 on January 1, 2021. Prepare the journal entry to record the repurchase. (Company had used the ‘effective interest’ method.)
6. Calculate the price of the bond if the bond had been issued on Oct. 1, 2020. Prepare the entry on that date for the issue of the bond. (Assume same rates as per information above.)

Exercise 21-10 (Part Level Submission)

The following facts pertain to a non-cancelable lease agreement between Sandhill Leasing Company and Teal Mountain Company, a lessee.

The collectibility of the lease payments by Sandhill is probable.

c.  Prepare a lease amortization schedule for Rode for the 5-year lease term.

d.  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. Rode's annual accounting period ends on December 31. Reversing entries are used by Rode.

On January 1, 2020, Flounder Company purchased 11% bonds, having a maturity value of $320,000 for $344,893.28. The bonds provide the bondholders with a 9% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Flounder Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows.

(Round answers to 2 decimal places, e.g. 2,525.25. 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.)

Teal 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 $597,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $908,000. The following data pertain to the construction period.

(a) Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period.

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

Gross profit recognized in 2021

Gross profit recognized in 2022

Presented below is an income statement for Crane Company for the year ended December 31, 2020.

Additional information:

Using the single-step format, prepare a corrected income statement, including the appropriate per share disclosures.

6. About 46% of all US debt is owed to foreign governments.

a. List what you think would be two advantages to borrowing money from foreign governments by the US.

b. List what you think would be two disadvantages to borrowing money from foreign governments by the US.

c. In your own opinion, how could the fact that we owe foreign countries money we’ve borrowed from them be a possible preventive measure against the war (technological, economic, or military)?

On January 1, 2020, Parent Company purchased 80% of the common stock of Subsidiary Company for $320,000.

• On this date, Subsidiary had common stock, other paid-in capital, and retained earnings of $40,000, $120,000, and $190,000, respectively.
• Net income and dividends for Subsidiary Company were $50,000 and $10,000, respectively.
• Parent Company has used the simple equity method for recording the Subsidiary income and dividends.
• On January 1, 2020, the only tangible assets of Subsidiary that were undervalued were inventory and equipment. Inventory was worth $5,000 more than cost. Equipment, which was worth $15,000 more than book value, has a remaining life of 5 years, and straight-line depreciation is used. Any remaining excess is goodwill.

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The following trial balances of the two companies are prepared on December 31, 2020.

Required:

d. Prepare the consolidated worksheet.

e. Prepare the 2020 consolidated income statement and balance sheet.

Management of Johnson & Johnson desperately needs a strategic plan to save its Tylenol[1]business, but first some background. According to Johnson & Johnson,

Johnson & Johnson has been a part of people's lives for 128 years and a valuable part of their investments for approximately 70 years. Founded in 1886, we listed our shares on the New York Stock Exchange for public investors in 1944.

During our history, we have built the most comprehensive base of healthcare businesses in the world, generating approximately 70 percent of our revenues from No. 1 or No. 2 global leadership positions in our respective markets.

Our consistent performance has enabled us to deliver an exceptional track record of growth that few, if any, companies can claim: 30 consecutive years of adjusted earnings increases; and 52 consecutive years of dividend increases.[2]

In 2013, the company had revenue of $71.3 billion[3]mostly from healthcare, such as skin-care products, nutritional products, over-the-counter and prescription pharmaceuticals, medical devices, and diagnostic tools.  Johnson & Johnson products are found in virtually every home, hospital, operating room and doctor’s office in 188 countries worldwide.

In 1955, McNeil Laboratories introduced Tylenol, the first pain reliever without aspirin.  The product was so successful regionally that Johnson & Johnson acquired the company in 1959 to expand the business globally.

This morning, Amazon announced the acquisition of a small pharmaceutical company which had secretly developed and patented a pain reviver which is much more effective than Tylenol.  Although Tylenol has an excellent reputation, Johnson & Johnson cannot reformulate it.  Management needs a new strategy to combat Amazon and save the Tylenol business. Help them by answering the 13 questions starting on the following page.

1.     Describe two (no more!) important opportunities and two (no more!) important threats facing Johnson & Johnson’s Tylenol business, including the individual combination of strengths/weaknesses and external factors creating each.  (10 points)​