Salvatore Ltd is an existing company that previously issued 200,000 ordinary shares of $10 each. Balances in accounts as at 30 June 2019 are: retained earnings $150,000, general reserve of $10,000 and tax payable $105,000.

On 1 July 2019 Salvatore Ltd decided to raise additional capital of 40,000 shares of $11 each. A total of 40,000 ordinary shares are to be offered at $10 each and the remainder in one call when required.

Applications for 44,000 shares were received by the closing date of 31^st August, 2019.

On 15^th September 2019 shares were issued and money paid to those unsuccessful applicants.

On 20^th February 2020, the remaining call on the shares was made, and all cash was received on the call by 31st March, except for the holder of 6,000 shares.

Directors announced on 30^th June 2020 a profit before tax of $500,000, of which $150,000 related to income tax.

On 5th July 2020, the board of directors during the Annual General Meeting announced that the company will pay ordinary dividends of 4.6 cents per fully paid equivalent share from retained earnings and $100,000 was transferred from retained earnings to the general reserve.

REQUIRED:

1. Prepare properly formatted general journal entries to record the above transactions. Narrations are NOT required.                                      

Luther Company’s selected transactions during 2017, 2018, 2019 and 2020 are as follows:

Required: Record the transactions and adjusting entries in general journal form.

Bolan Engineering limited produces Camp shaft for Millat Tractors limited. The standard production is 40 units per hour with a Base wage of Rs. 300 per hour for the payment of wages to their workers for their Camp shaft plant. The company employs 5 workers in Camp shaft plant.
Each worker worked 25 days @8 hours per day in the month of March, 2020.
The each worker produced the following actual production during the month of March, 2020:

Name of workers Actual Outputs
of each worker
“Units”
Muhammad Hassan 8,800
Muhammad Tayab 8,600
Zafar Junaid 9,000
Muhammad Ayuab 8,000
Marium khalid 7,500



Required:
i). A schedule showing total labor cost for each worker, labor cost per unit for each worker, and total labor cost for Camp shaft Plant in the month of March, 2020 , if Company uses 80% Time saved., i.e., 80% Bonus Plan.
                                                                                                                                                                 
ii).From the three popular methods of labor remunerations. i.e., time rate system, pieces rate system and incentive schemes, which system would you recommend to management of Bolan engineering limited as a Cost and Management accountant? Give in support of recommended system with proper justifications and advantages to management.  

Bolan Engineering limited produces Camp shaft for Millat Tractorslimited. The standard production is 40 units per hour with a Base wage of Rs. 300 per hour for the payment of wages to their workers for their Camp shaft plant. The company employs 5 workers in Camp shaft plant.

Each worker worked 25 days @8 hours per day in the month of March, 2020.

The each worker produced the following actual production during the month of March, 2020:

Required:

i). A schedule showing total labor cost for each worker, labor cost per unit for each worker, and total labor cost for Camp shaft Plant in the month of March, 2020 , if Company uses 80% Time saved., i.e., 80% Bonus Plan.

ii).From the three popular methods of labor remunerations. i.e., time rate system, pieces rate system and incentive schemes, which system would you recommend to management of Bolan engineering limited as a Cost and Management accountant? Give in support of recommended system with proper justifications and advantages to management.

On November 1, 2017, Tamarisk Company adopted a stock-option plan that granted options to key executives to purchase 24,900 shares of the company’s $9 par value common stock. The options were granted on January 2, 2018, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $30, and the fair value option-pricing model determines the total compensation expense to be $373,500.

All of the options were exercised during the year 2020: 16,600 on January 3 when the market price was $66, and 8,300 on May 1 when the market price was $77 a share.

Prepare journal entries relating to the stock option plan for the years 2018, 2019, and 2020. Assume that the employee performs services equally in 2018 and 2019. (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. Round intermediate calculations to 5 decimal places, e.g. 1.24687 and final answers to 0 decimal places, e.g. 5,125.)

An investor offers you $706,274 in exchange for shares of your start-up company. The investor demands an annual rate of return of 64%, and expect that your IPO will be in 6 years. At that time you expect your firm to have annual income of around $1,812,034 dollars. A similar firm was recently acquired for $18,052,305 dollars. At the time of acquisition, their income was $1,836,685 million dollars per year.

What percentage of your equity should you give to the investor?

Foxrun Company has three equal shareholders, Thomas, Kimberly, and Jennifer. Kimberly and Jennifer are Thomas’s daughters. On September 2 Foxrun redeemed all of Thomas’s stock in return for $250,000. Thomas had acquired the stock six years ago for $190,000. Foxrun’s current E&P was $325,000. Thomas would like to minimize his federal income tax liability. Explain the alternative available to him and how they would impact his taxable income.

Week 12

1. Explain 2 reasons for the formation of corporate subsidiaries.

2. Identify four reasons for the formation of foreign subsidiaries.

3. Why is Amazon considering foreign subsidiaries in Europe as a management strategy?  

4. Explain two reasons why Vodafone and Verizon talked about an acquisition. Which company was acquired and what was the cost? Was this strategy of acquisition positive or negative?

5. Why did Google acquire Android? Explain why it was a good acquisition for Google.

Last week, a small company based in Texas won its patent infringement lawsuit against Nintendo of America. The jury awarded iLife Technologies $10 million in damages when it decided that Nintendo's Wii controllers infringe on iLife's six patents on motion-sensing technology. iLife filed the federal patent lawsuit against Nintendo in 2013, asking for $144 million. The suit stated that Nintendo's Wii and Wii U controllers use accelerometers to track how a player is moving their hands relative to their environment, which is a system iLife says it invented and patented for use in medical monitors that would automatically call an ambulance if an elderly person fell or if a baby was at risk of dying from sudden infant death syndrome. Nintendo, in a statement during the court proceeding, said the patent was not written correctly to cover the way the company used motion-sensing technology in its controllers. In a statement to the BBC, the company said it would appeal the judgment. "Nintendo disagrees with the decision, as Nintendo does not infringe iLife's patent and the patent is invalid," Nintendo said in a statement. "Nintendo looks forward to raising those issues with the district court and with the court of appeals." iLife's lawsuit sought a $4 royalty on each Wii console sold in the six years before iLife launched legal action, totaling 36 million units. iLife also sued Fitbit and Under Armour in similar lawsuits, both of which were dismissed and settled out of court, according to court filings. Back in 2013, an attorney for iLife's CEO Michael Lehrman denounced claims that Lehrman was a "patent troll." "iLife and its CEO Michael Lehrman are the original inventors of this technology, and the company does not enforce any patents that it did not develop," Wallace Dunwoody, an attorney and partner at Munck Wilson Mandala, told the Dallas Observer. "Unlike so-called patent trolls, iLife also has a history of developing and bringing to market products using their technology." PUBLISHED ON: SEP 5, 2017

give me a summary to this article

USD/RUB 75.70 in nominal currency exchange rate terms. The same Dell computer costs $1,350.00 in the U.S. and 102,900.00 Rubles in Russia, Please select the best answer choice below.