On January 1, 2020, Pearl Company makes the two following
acquisitions.
| 1. | Purchases land having a fair value of $360,000 by issuing a 4-year, zero-interest-bearing promissory note in the face amount of $566,467. | |
| 2. | Purchases equipment by issuing a 7%, 9-year promissory note having a maturity value of $520,000 (interest payable annually). |
The company has to pay 12% interest for funds from its
bank.
| (a) | Record the two journal entries that should be recorded by Pearl Company for the two purchases on January 1, 2020. | |
| (b) | Record the interest at the end of the first year on both notes using the effective-interest method. |
(Round present value factor calculations to 5 decimal
places, e.g. 1.25124 and the final answer to 0 decimal places e.g.
58,971. If no entry is required, select "No Entry" for the account
titles and enter 0 for the amounts. Credit account titles are
automatically indented when amount is entered. Do not indent
manually.)
|
No. |
Date |
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|---|---|
| (a) 1. |
January 1, 2020 |
enter an account title to record the first purchase on January 1, 2017 |
enter a debit amount |
enter a credit amount |
|
enter an account title to record the first purchase on January 1, 2017 |
enter a debit amount |
enter a credit amount |
||
|
enter an account title to record the first purchase on January 1, 2017 |
enter a debit amount |
enter a credit amount |
||
| 2. |
January 1, 2020 |
enter an account title to record the second purchase on January 1, 2017 |
enter a debit amount |
enter a credit amount |
|
enter an account title to record the second purchase on January 1, 2017 |
enter a debit amount |
enter a credit amount |
||
|
enter an account title to record the second purchase on January 1, 2017 |
enter a debit amount |
enter a credit amount |
||
| (b) 1. |
December 31, 2020 |
to record the interest on the first note using the effective-interest method on December 31, 2017 |
enter a debit amount |
enter a credit amount |
|
to record the interest on the first note using the effective-interest method on December 31, 2017 |
enter a debit amount |
enter a credit amount |
||
| 2. |
December 31, 2020 |
to record the interest on the second note using the effective-interest method on December 31, 2017 |
enter a debit amount |
enter a credit amount |
|
to record the interest on the second note using the effective-interest method on December 31, 2017 |
enter a debit amount |
enter a credit amount |
||
|
to record the interest on the second note using the effective-interest method on December 31, 2017 |
enter a debit amount |
enter a credit amount |
In: Accounting
In: Operations Management
Exercise 2
The following data represent the mutual fund prices reported at the end of the week for selected 42 nationally sold funds.
10 17 15 18 22 19 10 17 18 25 11 13 35 28
27 29 39 31 35 33 22 24 28 35 45 50 47 38
41 31 21 11 49 38 35 25 33 42 27 15 28 34
Exercise 3
Twenty MBA students have got the following marks out of 100 in three courses in the first semester.
|
Course |
Marks out of 100 |
|||||||||
|
Marketing |
79 |
85 |
92 |
95 |
77 |
82 |
85 |
88 |
90 |
92 |
|
82 |
92 |
93 |
84 |
80 |
90 |
88 |
87 |
80 |
75 |
|
|
Quantitative Methods |
91 |
80 |
75 |
64 |
50 |
83 |
75 |
91 |
88 |
79 |
|
92 |
73 |
78 |
81 |
82 |
76 |
85 |
80 |
75 |
90 |
|
|
International Business |
90 |
88 |
87 |
80 |
75 |
83 |
75 |
91 |
88 |
79 |
|
88 |
91 |
90 |
77 |
76 |
82 |
92 |
93 |
84 |
80 |
|
Exercise 4
A random sample of 8 MBA students from two sections of same batch are selected from of a B-School. The marks scored by these students are given below;
|
Section A |
60 |
50 |
76 |
87 |
90 |
57 |
68 |
77 |
|
Section B |
50 |
78 |
84 |
62 |
75 |
53 |
73 |
90 |
On the basis of sample statistic find out (show working),
In: Statistics and Probability
The incomes of a population of lawyers have a normal distribution with mean US$88,000 and standard deviation US$60,000. Forty-nine lawyers are selected at random from the above population to serve as a sample in a research project. Use the z for a sample mean formula and determine the probability that the one sample of 49 lawyers drawn at random will have a mean salary of US$90,000 or greater.
a. .03
b. .23
c. -.03
d.-.23
e. .5120
f..4880
g. .5910
h. .4090
In: Statistics and Probability
What is a multinational firm? Please describe the theory of international trade that you can only consume what you can produce without trade and you can consume more than you produce with trade? What happens to the US dollar value of the UK pound if the US$/UK£ rises? The US dollar price of the euro rose from $1.15 to $1.30 - please explain using the demand and supply graph for a foreign currency and explain what is the main cause of changes in D and S.
In: Economics
1. What is assimilation according to sociologists?
2. Identify two advantages of assimilation to the USA. Explain why these are advantageous t US society
3. Identify two disadvantages of assimilation to US society. Explain why these are disadvantageous t US society
4. In what way is the Internal Colonialism Theory applicable to Native Americans? Explain fully drawing examples from Native Americans.
5. Summarize the Caste Theory. In what way is it applicable to the experiences of African Americans?
In: Psychology
Litapi Fisheries has just finished registering with Patents and Company Registration Authority (PACRA) as a Supplier of Fish to Hotels, Boarding Schools, Colleges and Universities amongst other intended clients. The Supplying Company has been organized into Marketing, Procurement, Accounts, sales, Human Resource and IT Departments. The Chief Executive Officer (CEO) of the company has decided to start with rented office premises in the town center of Mongu town, his single light truck as the only start up transport. The IT department is supposed to maintain the IT infrastructure on which all the other departments store their information and also provide the electronic marketing support for the marketing department. In the last five years, the region which is their major source of fish has experienced droughts and floods. The fish storage facilities which have been gotten by loan from the local Radian Stores are new and use AC power which is often loadshaded, at times for longer periods.
a) The human Resource department has just hired you as their inaugural Business Continuity Manger and tasked you to come up with Business Continuity Management System specific to this company. Discuss the said Business Continuity Management System, clearly highlighting the Mitigation and Continuity Strategies.
b) Use PDCA process approach to show how this fishing company can improve its management operations.
In: Economics
Suppose that you are a dealer in sugar. On 26th March 2020 you hold 200,000 pounds of sugar in inventory that is worth $0.0379 per pound. The current price of a futures contract expiring 3 months later in June is $0.0450 per pound. Each futures contract is written on 100,000 pounds of sugar. You have decided to sell two June 2020 futures contract to hedge your planned sale of sugar later. Assume a zero interest rate so that you can ignore the cost of any initial margin or variation margins. The futures contract is cash settled.
Required:
In: Finance
Illustration Capsule 5.1 discusses Amazon’s low-cost position in the electronic commerce industry. Based on information provided in the capsule, explain how Amazon has built its low-cost advantage in the industry and why a low-cost provider strategy is well suited to the industry.
MBA class. Business Strategy and policy class MB 695.
Book: Crafting and Executive Strategy: The Quest for Competitive advantage: conept and cases, 21st edition by Arthur Thompson
In: Accounting
Celestila Moonn, an UMB MBA student selected Google stock for Capital Market/Portfolio construction project. Last week, Moonn realized that the stock lost 10% of its value since the stock was purchased. Moonn also noticed that Google pays no dividends yet investors are willing to buy shares in this firm.
In your initial post, briefly justify: How is this possible? Does this violate the basic principle of stock valuation? Do you support Moonn’s concerns?
In: Finance