The Unadjusted pre-closing 12/31/2020 account balances for the Mahoney Company are listed below:

During your audit, you discover the following four items that have yet to be recorded:

1) No depreciation on the building has been recorded for 2020. Depreciation on the building is based on Double-Declining Balance. It was purchased on 1/1/18 and has an estimated useful life of 40 years. The estimated salvage value is $1,000.

2) Mahoney exhanged a machine for a similar machine on 12/31/2020. The origianl machine cost $3,429 and has a book value of $2,134. The new machine had a fair value of $1,823; Mahoney also received $511 in cash. The exchange lacked commercial substance.

3) Mahoney uses the Income Statement approach to record Bad Debts. Bad Debts in 2020 are estimate to be 4% of Sales.

4) Ending Inventory is to be estimated using the Gross Profit Method. The historic Gross Profit percentage is 20%.

Required

A) Record journal entries for items #1-3 above; show supporting computations. In addition, compute ending inventory per #4 above; show supporting computations. Assume adjusting/closing entries to adjust inventory, closing Purchases, and Record Cost of Goods Sold were properly made.

B) Draft the 2020 Condensed Income Statement and the 12/31/2020 Balance Sheet. Assume no Taxes. Do not include Earnings Per Share.

what role does a CEO play in an organization's cultures? what role do other leaders/managers play?

What would a CEO try to do if his/her performance evaluation is based on net operating income? Why?

New York (CNN Business)President Donald Trump has long cast OPEC as an evil force ripping Americans off by not pumping enough oil. Now he's pleading with Saudi Arabia and Russia to stop pumping so much oil. In the past, Trump has called OPEC a "monopoly" (it's not) that must be broken up. "They are robbing our country blind," he tweeted in November 2012. Since winning the presidency, Trump has repeatedly hammered OPEC for engineering higher oil prices to hurt American drivers. Donald Trump cannot win reelection without Texas. It's as simple as that." GREG VALLIERE, CHIEF US POLICY STRATEGIST AT AGF INVESTMENTS "OPEC, please relax and take it easy. World cannot take a price hike -- fragile!" the president tweeted in February 2019. Flash forward to 2020: Instead of slamming OPEC for artificially restraining production, Trump is urging the cartel to do just that. And rather than calling for OPEC to be broken up, Trump is elevating the group's status by encouraging it to stop the oil crash one that threatens to set off a surge of bankruptcies and job losses in Texas and throughout America's oil industry. Trump is even attempting to broker an agreement between Saudi Arabia and Russia to end their devastating price war by massively cutting production. The president's tweets on the subject Thursday helped US oil prices to spike 25% -- their biggest one-day gain in history. "It's amazing to have Trump get in the middle of this," Helima Croft, head of global commodity strategy at RBC Capital Markets, told CNN Business. "Think about the 180: For years, Trump hated collusion among the producers and wanted to get rid of OPEC." Texas is a huge prize in 2020 That reversal reflects shifting political realities. The coronavirus pandemic is causing millions of job losses ahead of the November presidential election. A prolonged downturn in the US oil industry would only amplify the economic pain, especially in Republican-leaning states. "What has changed is the political equation: Donald Trump cannot win reelection without Texas. It's as simple as that," said Greg Valliere, chief US policy strategist at AGF Investments. Oil prices spike by a record 25% as Trump talks up huge production cuts and Saudi Arabia calls for OPEC meeting Not only is Texas the second-biggest electoral prize (after California), it's also by far the nation's largest oil producer. In fact, Texas pumps more oil than every OPEC nation not named Saudi Arabia. But Texas is getting crushed by cheap oil. Russia, seeking to blunt the rise of US shale oil producers, refused last month to cut oil production. Saudi Arabia responded by surging output and slashing prices. Reflecting the urgency of the moment, Trump is meeting with the CEOs of ExxonMobil (XOM), Chevron and other leading US oil companies Friday to discuss the crisis facing the industry. Navigating this situation is a delicate balance. The White House doesn't want oil bankruptcies and job losses on its hands. But Trump doesn't want to be seen helping oil CEOs and Saudi Arabia at the expense of average Americans who want cheap gas prices. 'I would always raise hell with OPEC' The president has acknowledged his evolving views. "You always get a little torn," Trump said on March 20. "Until we became the leading producer, I was always for the person driving the car and filling up the tank of gas...If (prices were too high, I would always raise hell with OPEC." Now the oil crash is setting off real turmoil in the energy industry. Whiting Petroleum (WLL), a former rising star in the shale industry, this week became the first of what will surely be a wave of US oil companies to file for bankruptcy during this crisis. Nearly 100 US oil and gas producers could file for Chapter 11 over the next year, Buddy Clark, co-chair of the energy practice at Houston law firm Haynes and Boone, told CNN Business. And that may be the optimistic view. Rystad Energy warned this week that 140 US oil producers could file for bankruptcy this year if oil stays at $20 a barrel, followed by another 400 in 2021. Even the largest oil companies are cutting back. Debt-ridden Occidental Petroleum (OXY) slashed its dividend by 86% and announced pay cuts across the entire company. Chevron (CVX) is cutting production and spending in hopes of avoiding its first dividend cut since the Great Depression. "We have a great oil industry, and the oil industry is being ravaged," Trump said Wednesday during a press briefing. "We don't want to lose our great oil companies." Will Texas cap output? Now there is a debate playing out over whether and even how the United States should intervene in the oil war. Some independent oil producers are pushing Texas to -- for the first time in more than 40 years -- limit the state's output. A wave of oil bankruptcies is on the way Ryan Sitton, a commissioner on the Railroad Commission of Texas, the state's energy regulator, even held a call Thursday with Russia's energy minister to discuss options. "While we normally compete," Sitton said in a tweet, "we agreed that #COVID19 requires unprecedented levels of int'l cooperation." He added that he will speak to Saudi Arabia's energy minister soon. Shale pioneer Harold Hamm and others are pushing for Trump, the self-proclaimed "Tariff Man," to sanction OPEC by enacting tariffs that would punish Russia and Saudi Arabia for their ruinous oil war. But the American Petroleum Institute, the nation's largest oil lobby, is urging Trump to avoid intervening in free markets. Trump has so far taken modest steps, including instructing the Energy Department to take advantage of cheap prices by filling up the nation's emergency stockpile of crude. Debate over free markets OPEC has signaled it isn't willing to keep cutting production -- unless other countries join in and do so, too. The cartel will meet via video conference Monday with Russia and other countries outside the alliance, two sources at the OPEC secretariat told CNN Business. Although the final list of invitees has not yet been set, the United States, Canada and Mexico could reportedly be invited. But it's not clear how the United States would enact its own production cuts. US output is controlled by thousands of different companies across the nation who all have their own competing interests. The irony calling on OPEC to come to the rescue is that Trump and others for years have complained that OPEC distorts free markets. And Now that Saudi Arabia and Russia have stopped artificially restraining their production, they're being urged to step back in to calm markets. "This is the free market. We are living in the world of NOPEC right now," RBC's Croft said. "OPEC's cuts gave US producers a vital lifeline. Now that the lifeline has been withdrawn, you have figures in Washington wanting sanctions against OPEC." The above article was published on April 3, 2020 on CNN Business News. Read the article carefully and answer the questions below. (Do it by yourself). Q1. What are the major points in this article. Q2. How do you see the role of OPEC from the above article.

EXERCISE 4‐2 Workpaper Eliminating Entries, Cost Method LO 5 Park Company purchased 90% of the stock of Salt Company on January 1, 2019, for $465,000, an amount equal to $15,000 in excess of the book value of equity acquired. This excess payment relates to an undervaluation of Salt Company's land. On the date of purchase, Salt Company's retained earnings balance was $50,000. The remainder of the stockholders' equity consists of no‐par common stock. During 2023, Salt Company declared dividends in the amount of $10,000, and reported net income of $40,000. The retained earnings balance of Salt Company on December 31, 2022, was $160,000. Park Company uses the cost method to record its investment. Required: Prepare in general journal form the workpaper entries that would be made in the preparation of a consolidated statements workpaper on December 31, 2023.

Question 4

The Government Schools Board is inviting tenders for a contract to provide IT services to schools. A panel of senior managers from the Schools Board will assess the tenders and recommend a preferred tenderer to the Head of the Education Department.

Part a)

Suppose there are two tenders received with the following data:

Tender 1 (Whatis) Tender 2 (Hacker)

Costs Year 1 $250,000 $350,000

Costs year 2 $250,000 $250,000

Costs year 3 $250,000 $150,000

Government departments use a cost of capital of 7%

Required

1) What methods could be used to assess the tenders? Which method would you recommend?

2) Which tender would you accept? Why? (Remember, this is a contract for the total amount the schools board needs to pay to the successful company)

4+6 = 10 marks

Part b)

The Hacker Company submits tender 2 to the Schools Board. In order to gain the special knowledge needed to run this contract, Hacker’s CEO offers a job to one of the managers from the Schools Board. The job will commence if Hacker wins the tender. If Hacker does not win the tender the job offer will not go ahead. The salary to be paid for this job is around double what the manager is currently earning. The manager does not tell the other panel managers from the Schools Board about his job offer.

Required: Discuss the ethical issues for Hacker and for the School’s Board manager who will get a new highly paid job if Hacker wins the tender.

Other data:

1.  Accrued but unrecorded and uncollected consulting fees earned at December 31 amount to: $27500.

2. The company determined that $16500 of previously unearned consulting fees had been earned at December 31.

3.  Office supplies on hand at December 31 total $330

4.  The company purchased all of its equipment when it first began business. At that time, the estimated useful life of the equipment was six years.

5. The company prepaid its nine-month rent agreement on June 1, 2020.

6. The company prepaid its six-month insurance policy on December 1, 2020

7.  Accrued but unpaid salaries total $13200 at December 31,2020.

8. On September 1, 2020, the company borrowed $66000 by signing an eight-month, 4 percent note payable. The entire amount, plus interest, is due March 31, 2021.

Account                                                                                 Debit                             Credit

Cash                                                                                       304,150

Accounts Receivable                                                             99,000

Office supplies                                                                            880

Prepaid rent.                                                                            3,960

Unexpired insurance                                                              1,650

Office equipment                                                                  79,200

Accumulated depreciation: office equipment                                                          26,400

Accounts payable                                                                                                              4,400

Notes payable (due 3/1/12)                                                                                          66,000

Interest payable                                                                                                                    660

Income taxes payable                                                                                                       9,900

Dividends payable                                                                                                             3,500

Unearned consulting fees                                                                                              24,200

Capital stock                                                                                                                   220,000

Retained earnings                                                                                                           44,000

Dividends                                                                              3,500

Consulting fees earned                                                                                               550,000

Rent expense                                                                        16,170

Insurance expense                                                                 2,420

Office supplies expense                                                        4,950

Depreciation expense: office equipment                        12,100

Salaries expense                                                                363,000

Utilities expense                                                                    5,280

Interest expense                                                                    3,300

Income taxes expense                                                        49,500

Totals                                                                                   949,060                      949,060

1. Prepare the necessary year-end closing entries.

For the scenarios discussed below, use supply and demand curves and a graph to analyze what will happen to both price and quantity in equilibrium given the information available below

1.You are the CEO of Coca-cola. The FDA introduces a $2 per meal tax on fast-food (but not on drinks). Analyze the market for your products. It is the fast food sellers who are obliged to pay the tax to the state.

2. You are the CEO of Coca-cola. The price of sugar increases. Analyze the results in both the regular Coke and Diet-Coke markets.