Selected accounts included in the property, plant, and equipment section of Sheffield Corporation’s balance sheet at December 31, 2019, had the following balances.

During 2020, the following transactions occurred.

(a)

Calculate the balance at December 31, 2020 in each of the following balance sheet accounts. (Hint: Disregard the related accumulated depreciation accounts.)

Balance at December 31, 2020

Land

Land Improvements

Buildings

Equipment

1. The following table represents unemployment compensation claims US starting from May 07, 2020.  Further, a record 20.5 million American jobs lost in April 2020. Unemployment rate increased to 14.7%.

1. Discuss the above numbers in terms of cyclical, frictional, and structural unemployment (10 points)
2. What does it mean to the US economy in the short run and long run? (10 points)

During a weekly meeting the CEO of company made an statement that he heard from a friend that “There is general agreement that, before it can be regarded as useful in satisfying the needs of various user groups, accounting information should satisfy certain criteria.”

You as a chief account of the company is required to explain the to the CEO the key characteristics of Accounting Information with clearly providing example(s) wherever queried for each characteristic.

You will then find one human to interview. This can be anyone you know or a stranger.

The interview should be conducted in-person or through skype or FaceTime.

The interview should be informal and should focus on any information that you want to learn about your subject. More will be discussed in class about generating interview questions.

Try to think of roughly 10 questions to ask your subject. Focus on aspects of the subject’s life, career, family, future aspirations etc.…

You do not need to record the interview but may take notes.

During the interview you want to pay attention to your subject’s behavior, word choice, and nonverbal messages.

You will then compile all your information and compose an essay that:

Discusses your interview experience from an interpersonal perspective.

You may discuss things such as Self-disclosure, equivocation, conflict, verbal, non-verbal messages etc…

The idea is to give me a sense of how you felt before, during, and after the interview.

Were there any verbal or non-verbal messages that confused you or made you feel relaxed?

Did you or the interview subject use self-disclosure and if so how did it help or hurt the experience?

You may discuss any term, theory, or concept that relates to interpersonal communication.

You do not need to provide direct quotes from the interview or any specific content from the experience. Instead you want to focus the essay on discussing your experience through an interpersonal perspective. Try to work-in/discuss as many terms and concepts from your textbook that relate to interpersonal communication as possible.

1. a)            From the following sets of figures (i) Calculate the bank discount rate on each T-bill and

(ii) Convert that rate to the appropriate investment (or coupon equivalent) yield.

                                – A new three-month T-bill sells for US98.25 on a US$100 basis.

                                – The investor can buy a new 12-month T-bill for US$96 on a US$100 basis.

– A 30 – day bill is available from a government securities dealer at a price of US$97.50

    (per US$100).

2.             Calculate the holding – period yield for the following situations:
3. The investor buys a new 12 – month T-bill at a discount rate of 7½ percent. Sixty days later, the bill is sold at a price that results in a discount rate of 7 percent.
4. A large manufacturing corporation acquired a T-bill in the secondary market 30 days from its maturity but is forced to sell the bill 15 days later. At time of purchase, the bill carried a discount rate of 8 percent, but was sold at Discount Rate of 7¾ percent.

Max Flyer is the founder and sole owner of the Go for broke Company. The company develops oil wells in unproven territories. His company has purchased a tract of land that larger oil companies have spurned as unpromising even though it is near some large oil fields. Max has provided you the following information:

• Drilling for oil on the tract would cost $100,000 (his investment). If the drilling is successful, and the well produces oil, his revenue would be $800,000. If the well turns out to be a dry hole he loses the entire $100,000. The chance of hitting oil on the tract of land is 1 in 4, or 25%.

• Max does have the option of selling the tract of land. Another oil company, after hearing a geologist’s report, would like to purchase the land for an amount that would provide him a profit of $90,000.

• A friend of Max has told him about a company that does seismic studies. The cost of a study is $30,000. If the study is performed there is a 70% chance that the results will be unfavorable. If the study results are unfavorable, and Max decides to drill for oil anyway, there is an 85.7% chance that he will have a dry well. If the results are favorable, and Max decides to drill, there is a 50% chance that he will have a dry well.

• These are the only alternatives Mr. Flyer has. The alternatives are mutually exclusive.

You have been asked to help Mr. Flyer.  Since you are familiar with how to use decision trees to solve problems, prepare a report that will help Mr. Flyer make his decision in this situation.  Your report should be addressed to Mr. Flyer.

The intangible assets section of Larkspur, Inc. at December 31, 2020, is presented below.

The patent was acquired in January 2020 and has a useful life of 10 years. The franchise was acquired in January 2017 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2021.

Instructions

Prepare journal entries to record the transactions above.

Prepare journal entries to record the 2021 amortization expense.

Prepare the intangible assets section of the balance sheet at December 31, 2021.

EXERCISE 4‐1

Parent Company Entries, Liquidating Dividend LO 2

Percy Company purchased 80% of the outstanding voting shares of Song Company at the beginning of 2019 for $387,000. At the time of purchase, Song Company's total stockholders' equity amounted to $475,000. Income and dividend distributions for Song Company from 2019 through 2021 are as follows:

Required:

Prepare journal entries on the books of Percy Company from the date of purchase through 2021 to account for its investment in Song Company under each of the following assumptions:

1. Percy Company uses the cost method to record its investment.
2. Percy Company uses the partial equity method to record its investment.
3. Percy Company uses the complete equity method to record its investment. The difference between book value of equity acquired and the value implied by the purchase price was attributed solely to an excess of market over book values of depreciable assets, with a remaining life of 10 years.