Violet Ltd owns all the share capital of Indigo Ltd. The following transactions are independent:

1. Indigo Ltd gives $55 000 as an interest-free loan to Violet Ltd on 1 July 2019. Violet Ltd made a $20 000 repayment by 30 June 2020.
2. Indigo Ltd rented a spare warehouse to Violet Ltd starting from 1 July 2019 for 1 year. The total charge for the rental was $3 500, and Violet Ltd paid half of this amount to Indigo Ltd on 1 January 2020 and the rest on 1 July 2020.
3. During March 2020, Indigo Ltd declared a $5000 dividend. The dividend was paid in August 2020.

Required

In relation to the above intragroup transactions:

1.     Prepare adjusting journal entries for the consolidation worksheet at 30 June 2020.

2.     Explain in detail why you made each adjusting journal entry.

The following information relates to R-U Ready Company, a publicly traded company:

1. R. U. Ready acquired Machine B on 1/1/13 by signing a 9% installment note to be paid in 5 equal installments of $65,000. Each payment is due on 12/31, with the first payment due 12/31/13. The useful life of Machine B is 8 years with no residual value. Assume double declining balance depreciation.

Requirement:

Present the accounts and dollar amounts that would appear on comparative balance sheets and income statements for the years ending 12/31/16 and 12/31/15.

List all accounts and dollar amounts. Round dollar amounts to the nearest dollar. You do not need to include cash.  

• For the Classification (Class) column of the Balance Sheet use:
• A for Asset
• L for Liability
• E for Equity

For the Classification (Class) column of the Income Statement use:

• R for Revenue
• E for Expense

1. Given the following scenario and facts, compute the subject’s funds from unknown sources using the net worth method of proof.

Scenario Richard Ross operates a flower shop downtown. It is alleged that this business is a front for his bookmaking and loan sharking activities.

Facts:

a. You find a financial statement signed by Ross and dated December 31, 1998. The statement indicates that Ross had $1,000 cash on hand.

b. Ross has a checking account that he opened on June 1, 1998. His balance as of December 31, 1998, was $4,000. During 1999, Ross made total cash deposits of $30,000 and withdrawals of $25,000. His balance as of December 31, 1999 was $9,000. During 2000, Ross made total cash deposits of $25,000 and withdrawals of $32,000. His balance as December 31, 2000 was $2,000.

c. A search of your county real estate records shows that Ross purchased his present home in 1998 for $130,000 and that he obtained a $100,000 mortgage. Real estate taxes on the property amounted to $1,500 for each of the years 1999 and 2000. Contact with the lending institution shows that Ross made monthly payments of $1,000 to the lending institution during the subject years. The mortgage balances are as follows: 12/31/98 $98,000 12/31/99 $96,500 12/31/00 $94,500 Interest payments are as follows: 1999 $10,500 2000 $10,000

d. Ross bought a new car in April 1998. He paid $25,000 cash.

e. City records indicate that Ross applied for a building permit in 1999 for the construction of a swimming pool in his backyard. Contact with the pool construction company reveals that Ross paid $20,000 for the pool. He made a $10,000 cash downpayment and received an interest-free loan from the pool company for the remaining $10,000. The pool was completed in June 1999. Ross made monthly payments of $500 to the pool company. The loan balance on December 31, 1999 was $7,000 and December 31, 2000 the loan balance was $1,000.

f. An informant stated that since 1998, Ross had maintained a $1,500 a month apartment for his girlfriend, Mary Perry. The informant’s information was verified as being accurate.

g. During your investigation, you find that on February 28, 1999 Ross purchased a Rolex watch for $25,100 cash and on December 23, 2000 he paid $15,000 cash for a ring.

h. During an interview with Ms. Perry, she told you that in addition to the apartment, Ross provided her with a new car that he leased on January 1, 1999. Contact with the auto leading company revealed that Ross made lease payments of $300 per month during 1999 and 2000.

i. Information obtained from a local boat company shows that Ross purchased a boat on June 4, 2000 for $24,000.

j. The county judgment index shows that Ross borrowed $5,000 from a local finance company in 1997. He has never made any repayments.

k. Records of the local travel agency disclosed that Ross took Mary Perry on a vacation to the Orient in 2000. It cost $12,000.

l. You interviewed Ross and he showed you the books and records for his flower shop that indicated that he had a net profit of $40,000 in 1999 and $45,000 in 2000.During the interview Ross stated cash on hand in 1999 and 2000 was zero.

2. Given the scenario and facts listed in problem 1, compute the subject’s funds from unknown sources using the expenditures method.

3. Given the scenario and facts listed in problem 1, compute the subject’s funds from unknown sources using the bank deposit method.

The before-tax income for Nash Co. for 2020 was $101,000 and $81,800 for 2021. However, the accountant noted that the following errors had been made:

Prepare a schedule showing the determination of corrected income before taxes for 2020 and 2021. (Enter negative amounts using either a negative sign preceding the number e.g. -15,000 or parentheses e.g. (15,000). Round answers to 0 decimal places, e.g. 125.)

Founded in April 1996, Antheus Tecnologia develops and distributes Automated Fingerprint Identification Systems (AFIS), automated fingerprinting, and other systems such as iris recognition devices. Antheus Tecnologia also claims that it is the first Brazilian company to be certified by the US Federal Bureau of Investigation (FBI) and develops biometric solutions for domestic and overseas clients. In March 2020, the security research team at SafetyDetectives discovered a significant data leak in addition to other security flaws (such as lack of password protection) relating to fingerprint data on an Antheus log server in Brazil. The research team discovered almost 2.3 million data points in total and estimated that 76,000 unique fingerprints were found on the database. Approximately 16 gigabytes of data were found on the Elasticsearch server including highly sensitive information related to identification and biometric details. The Antheus server investigated by the security team is an identity server, which means it gives users access to the system or the ability to register as a new user. It also had fingerprint information in at least two “indices” from a total of 91. The Antheus server stored server and API access logs but also contained fingerprint data comprising of Ridge Bifurcation and Ridge ending – essential components for identifying and verifying fingerprints. In addition to fingerprint information, there were also instances of biometric data vulnerabilities, such as face recognition data being accessible and retrievable from the database. In parallel to the biometric data breach, Antheus Tecnologia also had another related vulnerability which was noticed during the investigation. The company provides services to a national Civil Identification System in Brazil used to issue driving licenses although the access portal used for on-boarding new users was also not secure because of the lack of password protection. Furthermore, user data, administrator login information, several employee email addresses and phone numbers were also found. According to the SafetyDetectives research team, the practice of allowing access to server data in such a way is rather unusual. This methodology generally leaves the server MN502 - Overview of Network Security - Final Assessment Trimester 2, 2020 Page 8 of 15 exposed, but this could have been done purposefully. If so, it’s a rather strange option to take when it comes to ensuring security. SafetyDetectives security team found two indices, potentially referring to two different companies using the Antheus server to store personal information including fingerprint data. Moreover, the investigation team found data logs relating to precise fingerprint scans that could be reconstructed from the index numbers stored on the Antheus server. Moreover, it could be possible to recreate (or reverse-engineer) a biometric image map for a particular fingerprint from strings of data found on the server. According to the research finding of the SafetyDetectives security team, nefarious users can access the Antheus server and after extracting the available data, could use the data stream of ones and zeros to recreate the full biometric image of someone’s fingerprint.

Using draw.io diagram tool, design a database schema for an application that tracks and manages students’ applications for a university. Make sure to create proper primary key for each entity. Add relations and specify cardinalities.

• All entities and attributes must be named using the underscore convention. Highlight primary keys in red
• List any assumptions you have made

• Use diamonds and the association on the arrow.

• THINGS TO KEEP IN MIND :

• The university needs to keep track of students’ application. The application contains information about student: name, address, phone number, DOB, SSN, and generate a unique ID for each student.
• Education records has to be submitted as well. The education records contain information about previous degrees, GPA, name of school attended and dates ( from – to dates)
• Test scores are also submitted along with applications. The student can submit more than one test score. The test score consist of test type, date and score.
• The student should also specify which major they are applying to, for what term
• The university assign one employee from the admission office to process the application. The employee will handle multiple application at the same time.
• Applications can be submitted to different departments.

Case Study 10.1: Publicized Conflict at Yahoo In the Age of Information, many big companies will eventually suffer a publicly aired scandal, but it seems that Yahoo has had more than its share in recent years. To name a few: the public, bitter ousting of CEO Carol Bartz in 2011; the unpopular moves by current CEO Marissa Mayer to halt work-from-home privileges and her decision to rate employees on a bell curve. The most recent commotion came in January 2014 when Mayer ousted Henrique De Castro from his position as COO.

De Castro was brought on as her second in command, and he walked out with a much-talked-about $58 million severance—after just 15 months on the job. De Castro was a former vice president of Google’s Partner Business Solutions group, and Mayer, also an ex-Google exec, lured him from Google with a hefty pay bump and more powerful title. His job: to turn around declining ad revenue as Yahoo’s de facto top ad man and liaison to marketers on Madison Avenue as the company continued to lose bids to rivals Facebook and Google. There are indications, however, that Mayer did not know quite what she was getting into by hiring De Castro. “Interestingly, despite giving off the impression they did, the pair actually did not work closely at Google, according to dozens of sources there,” wrote Kara Swisher in Re/Code. “Therefore, Mayer did not seem to grok the many signals that De Castro had a troubled time there near the end of his tenure.” Moreover, De Castro’s performance reviews by Google peers were mixed; he “was a polarizing figure at Google, where Mayer had hired him from [and] quickly became the same polarizing figure at Yahoo,” Swisher added.

As COO with Yahoo, De Castro was charged with nurturing clients, fixing broken relationships with them, and building business. Yet according to Google ex-colleagues quoted by Business Insider, De Castro was known as smart and effective but was “not well-liked by people under him” (a sentiment later echoed by his fellow Yahoo-ers). His enemies were many, it seems, and he made a number of incautious public statements—not good characteristics in someone charged with smoothing over troubled relationships. Moreover, he wasn’t bringing in the dollars his under-the-gun CEO needed, and pressure was mounting. Within the first couple of months, “he and Mayer had developed a tense relationship that many in meetings with the pair found it hard not to notice,” wrote Swisher, quoting a Yahoo insider as saying “They just did not get along and did not hide it at all,” adding that “it was really awkward.’” De Castro had also reportedly been fighting for power with Ned Brody, the new sales head, M&A head Jackie Reses, and marketing head Kathy Savitt. “In other words, everyone inside the Mayer inner circle.”

Although De Castro’s performance reviews by Google peers were mixed, his time at Yahoo was decidedly disappointing. He achieved little in terms of boosting ad revenue, and his time was marked by tensions, including with Mayer herself. No top Yahoo-er earned a full bonus given the company’s financial troubles that year, but others among the top brass were granted between 83 percent and 92 percent of their target bonuses. De Castro, however, was left out in the cold. Industry watchers began to openly speculate that De Castro was on his way out with his conspicuous absence from the Consumer Electronics Show in early January 2014, where giants like Yahoo typically tout their latest and greatest and court new advertisers. In a company memo announcing De Castro’s departure later the same month, Mayer wrote, “Overall, I am confident that the leadership team, our direction, and these changes will enable even more successful execution.” Conspicuously absent was any praise for De Castro’s brief tenure.

Why did Mayer hire De Castro? According to sources who spoke to Business Insider, the reasons were twofold: she believed he was responsible for building Google’s advertising business from zero to billions, and she thought he was the driving force behind the brand advertising success of YouTube. Others saw De Castro as having little to do directly with Google’s growth, mainly sailing in on the coattails of others and being in the right place at the right time. Did Mayer’s reputation suffer for her decision? Many saw De Castro’s departure as a smart and necessary move, but Mayer had hand-selected him and paid him well. Some called for Mayer herself to resign, while others were willing to give her more time in the job to turn the company around. Mayer has taken some responsibility for the mess, saying, ““I think it was the right time for us to go our separate ways. . . . There were issues there that I potentially created, and it was important to me to fix them.” And though Mayer may have made a mistake in hiring De Castro, she’s certainly done a lot right in her two years as CEO: she oversaw the acquisition of 37 companies including Tumblr; she launched a tidal wave of new, critically acclaimed products; and she added to Yahoo’s brand cachet and credibility by hiring celebrity journalists like Katie Couric and David Pogue, former tech writer for the New York Times. On Mayer’s watch, Yahoo’s stock has more than doubled. Her leadership has not been without controversy, but it hasn’t been without achievement, either. As the Motley Fool suggested, “Time to move on and focus on what matters: winning back some of Google’s industry-leading $14.9 billion in quarterly online revenues, most of which are related to advertising.”

“Conflict among team members, in and of itself, is not the enemy,” wrote Ilan Mochari in Inc. “The enemy is when conflicts become personal. One of the signs of a healthy organization is when members of the top team can openly disagree with each other without their relationships becoming tense.” With De Castro and Mayer, that became impossible, and when paired with De Castro’s disappointing sales performance, it resulted in one of the most expensive—and embarrassing—executive partings in Silicon Valley history.

Case Questions

1. Explain whether the ousting of former CEO and COO, as well as the employee standards reform, have been functional or dysfunctional conflict for Yahoo.

2. Explain what type of conflict made DeCastro less than suitable for the position of COO at Yahoo.

3. Describe why trust will be an important factor for Yahoo as a company.

1. As at 31 March 2018, DuckTales Ltd has another financial instrument which is shares in another company. These shares were purchased for the purposes of making a gain on the investment. Explain to Scrooge McDuck, the CEO of Ducktakes Ltd, how the financial instrument should be accounted for at the end of each financial year. In your answer you should outline how new values for the financial instrument could and should be determined and how any change would affect the financial statements.   

ABC Corporation is an American company that wishes to do business with Rimonter, a corporation located in Asia. Rimonter has the standard practice of requiring an undocumented payment of $50,000 to a charitable organization headed by Rimonter's CEO. This payment is required in exchange for securing a manufacturing contract with Rimonter Corporation.

In response to Rimonter's demand, what should ABC do?

Evaluate the various forms of bribery and factors that foster them, the ethical problems with bribery, and the diverse means and strategies for combating bribery.