Metlock Inc., a registered broker, enters into a finder’s fee agreement with HOM Homes Ltd. on June 15, 2020. Metlock will find leads in the form of buyers potentially interested in purchasing HOM’s real estate holdings. Along with finding potential buyers, Metlock helps negotiate the selling price and provides advice on contract details. If and when HOM closes a sale, Metlock will be paid within 30 days of the closing date, based on the following formula: 5% of any transaction value up to and including $1 million, plus 4% of any transaction value greater than $1 million and less than and including $2 million, plus 3% of any transaction value greater than $2 million and less than and including $3 million, plus 2% of any transaction value greater than $3 million and less than and including $4 million, plus 1% of any transaction value in excess of $4 million. If Metlock is represented by another broker and this information is not shared with HOM, the fee is reduced by 50%. On September 1, 2020, HOM paid Metlock $51,000 to provide some needed cash flow for seeking out buyers. On October 15, 2020, an offer was made and accepted for a parcel of real estate at a price of $3.50 million. The transaction closed on November 1, 2020, and Metlock was paid the finder’s fee net of $51,000 on November 30, 2020.

Determine the accounting treatment of the above events for Metlock Inc. and prepare any journal entries needed on: (Credit account titles are automatically indented when the 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.)

List of Accounts

• Accounts Payable
• Accounts Receivable
• Advertising Expense
• Allowance for Doubtful Accounts
• Allowance for Sales Returns and Allowances
• Cash
• Commission Expense
• Commission Revenue
• Compensation Expense
• Consignment Sales
• Construction Expenses
• Contract Asset/Liability
• Cost of Goods Sold
• Estimated Inventory Returns
• Interest Expense
• Interest Income
• Interest Payable
• Interest Receivable
• Inventory
• Inventory on Consignment
• Loss from Long-Term Contracts
• Materials, Cash, Payables
• Miscellaneous Expense
• No Entry
• Notes Receivable
• Office Expense
• Refund Liability
• Rent Revenue
• Returned Inventory
• Revenue from Consignment Sales
• Revenue from Long-Term Contracts
• Sales Discounts
• Sales Discounts Forfeited
• Sales Returns and Allowances
• Sales Revenue
• Service Revenue
• Unearned Rent Revenue
• Unearned Revenue
• Utilities Expense
• Warranty Expense
• Warranty Liability
• Warranty Revenue

QUESTION 1
a) In order to improve health care delivery in Ghana, among other things, the Government of Ghana in 2012
signed a contract with an Israeli construction company - Messrs Engineering and Development Consultant
to build a 650-bed medical facility. Construction began in April 2013 as a turnkey project. In 2015, the
University of Ghana, which had provided a 400-acre land for the construction of the hospital, established a
Special Purpose Vehicle (SPV) that will operate the facility. The name of the company is the University of
Ghana Medical Centre (UGMC) Limited. UGMC was completed in August 2017 and requires about 800
personnel when it is fully operational. The first phase of the project is priced at $217 million. The second
phase of the project requires about $50 million.
i. According to the typical features of project finance, does the project described above fit the
description of project finance? [4 marks]
ii. What is a turnkey contract and who does a Project company sign one with?
[3 marks]
iii. Under what conditions can the procurement of funds for the second phase of the project be termed
as mezzanine debt? [3 marks]
iv. Using probable scenarios, describe how the project may be affected by political and commercial
risks. [5 marks]
b) Assume that during the second phase of UGMC, an equipment that currently costs $950,000 is required. An
alternative will be to lease the equipment for a rental of $320,000 for 5 years. The interest rate is the last
two digits of your Students ID. Which is a better option for UGMC, lease or buy?
[5 marks]
[Total = 20 mark

QUESTION 1
a) In order to improve health care delivery in Ghana, among other things, the Government of Ghana in 2012
signed a contract with an Israeli construction company - Messrs Engineering and Development Consultant
to build a 650-bed medical facility. Construction began in April 2013 as a turnkey project. In 2015, the
University of Ghana, which had provided a 400-acre land for the construction of the hospital, established a
Special Purpose Vehicle (SPV) that will operate the facility. The name of the company is the University of
Ghana Medical Centre (UGMC) Limited. UGMC was completed in August 2017 and requires about 800
personnel when it is fully operational. The first phase of the project is priced at $217 million. The second
phase of the project requires about $50 million.
i. According to the typical features of project finance, does the project described above fit the
description of project finance? [4 marks]
ii. What is a turnkey contract and who does a Project company sign one with?
[3 marks]
iii. Under what conditions can the procurement of funds for the second phase of the project be termed
as mezzanine debt? [3 marks]
iv. Using probable scenarios, describe how the project may be affected by political and commercial
risks. [5 marks]
b) Assume that during the second phase of UGMC, an equipment that currently costs $950,000 is required. An
alternative will be to lease the equipment for a rental of $320,000 for 5 years. The interest rate is the last
two digits of your Students ID. Which is a better option for UGMC, lease or buy?
[5 marks]
[Total = 20 mark

The EXACT sequence or order for your report should be as follows:

1. The Company’s Name
2. The Company’s Logo
3. The Company’s Mission Statement
4. The Company’s three (3) main competitors
5. The name of the Chairman, the President, the CEO, and the CFO
6. The Stock Symbol and Exchange that it is traded on
7. The company’s recent stock price
8. The number of company employees worldwide
9. The location of the company’s corporate headquarters (city/state only)
10. The company’s yearly sales for 2019 in billions of dollars
11. The company’s yearly profit for 2019 in millions/billions of dollars
12.   IMPORTANTLY…what each of you have learned while completing this research project

This is based on Costco Wholesales.

On November 20, 2012, Hewlett-Packard (HP) disclosed that it discovered an accounting fraud and has written down $8.8 billion of the value of Autonomy, the British software company that it bought in 2011 for $11.1 billion, after discovering that Autonomy misrepresented its finances. In May 2012, HP had fired former Autonomy CEO, Dr. Michael Lynch, citing poor performance by his unit.

Provide a brief discussion of the auditor liabilities and the potential defenses.

What duties of care, laws, or responsibilities to clients were violated?

What are the potential defenses available to the accountants and auditors involved in the situation?

In March last year, Goldman Sachs relaxed its dress code, allowing its bankers to swap their bespoke suits for a more casual look. As the CEO of a large financial services company in South Africa, you wonder whether relaxing your existing dress code will result in an improvement in employee morale. To answer your question, you would like to conduct an experiment. Write an essay in which you discuss how you would go about conducting the experiment.

Structure you essay using the following headings:  Design  Participants  Procedure Maximum 600 words.