The ledger of Hammond Company, on March 31, 2020, includes these selected accounts before adjusting entries are prepared.

  Debit   Credit

Prepaid Insurance   RM 3,600

Supplies   2,800

Equipment   25,000

Accumulated Depreciation—Equipment   RM5,000

Unearned Service Revenue   9,200

An analysis of the accounts shows the following.

1.Insurance expires at the rate of RM100 per month.

2.Supplies on hand total RM800.

3.The equipment depreciates RM200 a month.

4.During March, services were performed for one-half of the unearned service revenue.

Prepare the adjusting entries for the month of March.

MacDonald Corp. had the following securities outstanding at its year-end 31 December 20X7: Long-term debt: Notes payable, 14% $4,500,000 8% convertible debentures, par value $2,500,000, net of discount 2,410,000 9.5% convertible debentures, par value $2,500,000, net of discount 2,452,000 Equity: Preferred shares, $5 dividend, payable as $1.25 per quarter, no-par, cumulative convertible shares; authorized, 100,000 shares; issued, 30,000 shares 4,700,000 Common shares, no-par; authorized, 5,000,000 shares; issued, 600,000 shares 2,000,000 Common share conversion rights 189,000

Additional information: a. 20X7 net earnings were $790,000. There were no discontinued operations.

b. Interest expense was $216,000 on the 8% debentures, and $250,000 on the 9.5% debentures.

c. Options to purchase 200,000 common shares at $11 per share beginning in 20X5 were outstanding throughout the year.

d. Additional options were issued on 1 May 20X7 to purchase 50,000 common shares at $27 per share in 20X9. The price per share becomes $27 in 20X0 and $25 in 20X1. These options expire at the end of 20X1.

e. The preferred shares are convertible into common shares at a rate of 9-for-1. They were issued on 1 October 20X7.

f. The 8% convertible debentures are convertible at the rate of seven shares for each $100 bond. The 9.5% convertible debentures are convertible at the rate of six shares for each $100 bond.

g. The tax rate is 30%; common shares traded for an average of $40 during the year. h. No common shares were issued or retired during the year.

Required: Calculate all EPS disclosures. Please show all calculations

Alpha and Beta are divisions within the same company. The managers of both divisions are evaluated based on their own division’s return on investment (ROI). Assume the following information relative to the two divisions:

*Before any purchase discount.

Managers are free to decide if they will participate in any internal transfers. All transfer prices are negotiated.

Required:

1. Refer to case 1 shown above. Alpha Division can avoid $5 per unit in commissions on any sales to Beta Division.

a. What is the lowest acceptable transfer price from the perspective of the Alpha Division?

b. What is the highest acceptable transfer price from the perspective of the Beta Division?

c. What is the range of acceptable transfer prices (if any) between the two divisions? Will the managers probably agree to a transfer?

2. Refer to case 2 shown above. A study indicates that Alpha Division can avoid $4 per unit in shipping costs on any sales to Beta Division.

a. What is the lowest acceptable transfer price from the perspective of the Alpha Division?

b. What is the highest acceptable transfer price from the perspective of the Beta Division?

c. What is the range of acceptable transfer prices (if any) between the two divisions? Would you expect any disagreement between the two divisional managers over what the exact transfer price should be?

d. Assume Alpha Division offers to sell 72,000 units to Beta Division for $43 per unit and that Beta Division refuses this price. What will be the loss in potential profits for the company as a whole?

3. Refer to case 3 shown above. Assume that Beta Division is now receiving an 6% price discount from the outside supplier.

a. What is the lowest acceptable transfer price from the perspective of the Alpha Division?

b. What is the highest acceptable transfer price from the perspective of the Beta Division?

c. What is the range of acceptable transfer prices (if any) between the two divisions? Will the managers probably agree to a transfer?

d. Assume Beta Division offers to purchase 20,000 units from Alpha Division at $59.86 per unit. If Alpha Division accepts this price, would you expect its ROI to increase, decrease, or remain unchanged?

4. Refer to case 4 shown above. Assume that Beta Division wants Alpha Division to provide it with 66,000 units of a different product from the one Alpha Division is producing now. The new product would require $27 per unit in variable costs and would require that Alpha Division cut back production of its present product by 33,000 units annually. What is the lowest acceptable transfer price from Alpha Division’s perspective?

Alpha and Beta are divisions within the same company. The managers of both divisions are evaluated based on their own division’s return on investment (ROI). Assume the following information relative to the two divisions:

*Before any purchase discount.

Managers are free to decide if they will participate in any internal transfers. All transfer prices are negotiated.

Required:

1. Refer to case 1 shown above. Alpha Division can avoid $6 per unit in commissions on any sales to Beta Division.

a. What is the lowest acceptable transfer price from the perspective of the Alpha Division?

b. What is the highest acceptable transfer price from the perspective of the Beta Division?

c. What is the range of acceptable transfer prices (if any) between the two divisions? Will the managers probably agree to a transfer?

2. Refer to case 2 shown above. A study indicates that Alpha Division can avoid $5 per unit in shipping costs on any sales to Beta Division.

a. What is the lowest acceptable transfer price from the perspective of the Alpha Division?

b. What is the highest acceptable transfer price from the perspective of the Beta Division?

c. What is the range of acceptable transfer prices (if any) between the two divisions? Would you expect any disagreement between the two divisional managers over what the exact transfer price should be?

d. Assume Alpha Division offers to sell 71,000 units to Beta Division for $37 per unit and that Beta Division refuses this price. What will be the loss in potential profits for the company as a whole?

3. Refer to case 3 shown above. Assume that Beta Division is now receiving an 4% price discount from the outside supplier.

a. What is the lowest acceptable transfer price from the perspective of the Alpha Division?

b. What is the highest acceptable transfer price from the perspective of the Beta Division?

c. What is the range of acceptable transfer prices (if any) between the two divisions? Will the managers probably agree to a transfer?

d. Assume Beta Division offers to purchase 19,000 units from Alpha Division at $54.52 per unit. If Alpha Division accepts this price, would you expect its ROI to increase, decrease, or remain unchanged?

4. Refer to case 4 shown above. Assume that Beta Division wants Alpha Division to provide it with 60,000 units of a different product from the one Alpha Division is producing now. The new product would require $27 per unit in variable costs and would require that Alpha Division cut back production of its present product by 30,000 units annually. What is the lowest acceptable transfer price from Alpha Division’s perspective?

Tree Company

The following transactions occurred during the month of October, 2019 at the Tree Company.

The balance sheet for the Tree Company at September 30, 2019 was as follows:

Balance Sheet

Assets                                                                                      Liabilities

Cash                        $ 4,500                         Accounts payable             $             16,000

Accounts receivable 24,000                         Notes payable                         30,000

Supplies on hand          8,000                         Wages & salaries payable        5,000

Equipment                  51,000                         Invested capital                       50,000

Truck                          20,000                         Retained earnings                     6,500

        $107,500                                                                     $107,500

According to the Chart of Accounts at Tree Company, the following accounts besides those

listed in the balance sheet above are available:

Advertising expense

Bonus expense

Bonus payable

Decline in value of equipment (expense)

Decline in value of truck (expense)

Insurance expense

Interest expense

Prepaid insurance

Rent expense

Service revenue

Supplies expense

Utilities expense

Wage and salaries expense

Record the opening balances in the appropriate T-accounts, and then make the entries required to

record the following:

a) Mr. Tree, the owner, invested an additional $20,000 in the business.

b) Rent in the amount of $7000 was paid in cash for the month of October.

Tree Company 2

c) Supplies were purchase on credit at a cost of $3000.

d) Credit customers were sent invoices totaling $23,000 for services rendered during the

month.

e) Cash customers paid $10,000 for services rendered to them during October (Note: Total

of credit and cash sales was $33,000).

f) Cash in the amount of $17,000 was received from customers for services rendered in

previous months.

g) A six-month insurance policy, with coverage beginning on October 1, 2001, was

purchased for $3000 in cash.

h) The invoice from the utility company in the amount of $3800 was received and paid.

i) The accountant for Tree estimated that the truck declined in value by $1000 and that

the equipment declined in value by $2500 during October.

j) Additional equipment to be used in the service activity was purchased on credit at a

price of $7500.

k) Wages and salaries earned by employees for the month totaled $13,000.

l) Total cash payment of wages and salaries during the month was $12,000, including

$5000 that was payable at the beginning of the month.

m) Invoices from suppliers for supplies and equipment received in previous months were

paid in the amount of $14,500.

n) A count and valuation of supplies on hand at the end of the month revealed an end of

month balance of $6500.

o) Tree Company paid $5500 to the bank from which the company was borrowing:

$5000 in principal repayment and $500 interest.

p) Advertising for the month totaled $1750, paid in cash.

q) In return for extra services that the general manager rendered to the company during

October, Mr. Tree agreed that the company would pay a bonus to the general manager

equal to 10 percent of Octobers’ sales; this bonus is to be paid on November 10.

Prepare an income statement for the month of October and a balance sheet as of October 31, 2019.

- make a report on what is margin lending and how does it work?
- how does Exchange Traded Funds works?

The superintendent of a local maintenance company claims that, after their technicians completed a new training program, less than 20 percent of customers were dissatisfied with the services rendered. A customer service consultant evaluated this claim by randomly surveying 80 customers and found that only 10 were dissatisfied. a. Test the GM’s claim at the 5 percent level of significance. b. Construct the 95 percent confidence interval for the proportion of customers that are dissatisfied with the service.

Most successful businesses today actively develop loyal customers who buy their brands again and again. After all, getting current customers to buy more is much easier than constantly seeking new customers. In business, it’s called the 80/20 rule—80% of your business revenues come from the most loyal 20% of your customers.

Think of three brands that you buy on a regular basis. Why do you stick to these products? How could another company dislodge you? Discuss. [approximately 200 words]