a. Make the necessary journal entries for the following transactions:

i. On 1 April 2020, Mr Syed has invested $20,000 cash to set up a restaurant business called Nasi Kandar Penang.

ii. On 2 April 2020 Nasi Kandar restaurant purchased cooking utensils costing $8,000 by signing a 2-month, 12%, $8,000 note payable.

iii. On 8 April the restaurant received $3,000 cash from a client as a down payment for an event that is expected to be held on 15 May 2020.

iv. On 9 April Mr Syed paid rental for the business premise for the month of April, $1,000.

v. On the same day, Mr Syed paid $1,200 for a one-year business insurance policy which will expire on 10 March 2021.

b. Post each of the above entry to the respective accounts in the general=al ledger.

c. Prepare a trial balance at 30 April 2020.

Carla Vista Corp. agreed to lease property from Sunland Corp. effective January 1, 2020, for an annual payment of $25,592, beginning January 1, 2020. The property is made up of land with a fair value of $104,000 and a two-storey office building with a fair value of $170,000 and a useful life of 25 years with no residual value. The implicit interest rate is 9%, the lease term is 25 years, and title to the property is transferred to Carla Vista at the end of the lease term. Prepare the required entries made by Carla Vista Corp. on January 1, 2020, and at its year end of December 31, 2020. Both Carla Vista and Sunland use ASPE.

(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. Round answers to 0 decimal places, e.g. 5,275.)

Recent election cycles have brought new challenges for corporations and their boards of directors. For example, in the 2016 presidential election campaign, candidate Hillary Clinton unveiled a prescription drug plan to lower prescription prices following the Turing Pharmaceutical price gouging scandal. Yet ironically, the pharmaceutical industry was one of the most generous industry donators to her campaign, as well as those of the other candidates.In fact, the health industry overall (including health professionals, hospitals, HMOs, and pharmaceutical companies) donated over $10 million to the presidential candidates by spring of 2016.

In essence, the pharmaceutical companies and health-care professionals spent money to promote policies that went against their own financial interests. This happened in congressional elections as well. In 2010, the pharmaceutical industry’s trade group, PhRMA, donated funds to nonprofit groups that used those funds to help elect 23 representatives who subsequently voted to limit access to contraceptives.

Some of those funds came from firms like Pfizer, Bayer, and Merck —all manufacturers of contraceptives.Political spending is also an issue with individual companies. Target Corporation, a company that had positioned itself as an LGBT-friendly corporation, found itself the target of angry employees and customers when they learned about Target’s political spending. Target, a sponsor of the annual Twin Cities homosexual Pride Festival, donated money to a business group that supported an homosexual rights candidate for Minnesota governor. Angry employees and consumers conducted protests outside Target stores and threatened a boycott.

These examples show how political spending can have dramatic consequences for corporations. Politicians take positions on a range of policies and so the same politician may hold some positions that support and other positions that damage a corporation’s best interests. This problem was exacerbated when the U.S.Supreme Court’s Citizen United decision changed the political spending landscape for corporations. Before that decision, political spending was constrained to political action committees (PACs), and PAC political activity had to be disclosed to the FEC (Federal Election Commission). Now firms can make unlimited contributions directly to candidates or indirectly to 501c4 nonprofits and trade associations, who can then hide both the donors who provided the money and the way the money was spent. Firms are now freer to become politically involved but, as Target and the pharmaceutical companies found out, that freedom comes with risk.Shareholders and other stakeholders are asking firms to be transparent in their political spending. They want to judge those expenditures for themselves to avoid agency problems and other conflicts of interest.

Ira M. Millstein, founder of the Ira M. Millstein Center for Global Markets and Corporate Ownership at Columbia Law School, proposes a new policy for boards of directors to follow in this new landscape. He suggests that:

1.Companies should require trade associations of which they are members to report to them on their political spending,

2.Companies should require trade associations of which they are members to disclose the donors who provide the money for their political spending,and

3.Companies should then disclose the information they receive from their trade associations when they disclose their other spending to shareholders and other stakeholders.

DISCUSSIONQUESTIONS

1.How would you react to the problem of political spending?

2.As the Chief Executive Officer of a pharmaceutical company, what would you do? Would you retain your PhRMA membership? Would you attach any conditions to your membership?

3.How would you react to the Target situation? What would you do as the CEO?

4.What is your reaction to Ira Millstein’s suggestions? Should corporations demand that trade associations disclose this information before they join?

5.Should companies start disclosing the information they gather? If a trade association refuses to give up that information, should the company decline to join?

Recent election cycles have brought new challenges for corporations and their boards of directors. For example, in the 2016 presidential election campaign, candidate Hillary Clinton unveiled a prescription drug plan to lower prescription prices following the Turing Pharmaceutical price gouging scandal. Yet ironically, the pharmaceutical industry was one of the most generous industry donators to her campaign, as well as those of the other candidates. In fact, the health industry overall (including health professionals, hospitals, HMOs, and pharmaceutical companies) donated over $10 million to the presidential candidates by spring of 2016. In essence, the pharmaceutical companies and health-care professionals spent money to promote policies that went against their own financial interests. This happened in congressional elections as well. In 2010, the pharmaceutical industry’s trade group, PhRMA, donated funds to nonprofit groups that used those funds to help elect 23 representatives who subsequently voted to limit access to contraceptives. Some of those funds came from firms like Pfizer, Bayer, and Merck — all manufacturers of contraceptives. Political spending is also an issue with individual companies. Target Corporation, a company that had positioned itself as an LGBT-friendly corporation, found itself the target of angry employees and customers when they learned about Target’s political spending. Target, a sponsor of the annual Twin Cities G4y Pride Festival, donated money to a business group that supported an antig4y rights candidate for Minnesota governor. Angry employees and consumers conducted protests outside Target stores and threatened a boycott. These examples show how political spending can have dramatic consequences for corporations. Politicians take positions on a range of policies and so the same politician may hold some positions that support and other positions that damage a corporation’s best interests. This problem was exacerbated when the U.S. Supreme Court’s Citizen United decision changed the political spending landscape for corporations. Before that decision, political spending was constrained to political action committees (PACs), and PAC political activity had to be disclosed to the FEC (Federal Election Commission). Now firms can make unlimited contributions directly to candidates or indirectly to 501c4 nonprofits and trade associations, who can then hide both the donors who provided the money and the way the money was spent. Firms are now freer to become politically involved but, as Target and the pharmaceutical companies found out, that freedom comes with risk. Shareholders and other stakeholders are asking firms to be transparent in their political spending. They want to judge those expenditures for themselves to avoid agency problems and other conflicts of interest. Ira M. Millstein, founder of the Ira M. Millstein Center for Global Markets and Corporate Ownership at Columbia Law School, proposes a new policy for boards of directors to follow in this new landscape. He suggests that: 1. Companies should require trade associations of which they are members to report to them on their political spending, 2. Companies should require trade associations of which they are members to disclose the donors who provide the money for their political spending, and 3. Companies should then disclose the information they receive from their trade associations when they disclose their other spending to shareholders and other stakeholders.

1. How would you react to the problem of political spending?

2. As the Chief Executive Officer of a pharmaceutical company, what would you do? Would you retain your PhRMA membership? Would you attach any conditions to your membership?

3. How would you react to the Target situation? What would you do as the CEO?

4. What is your reaction to Ira Millstein’s suggestions? Should corporations demand that trade associations disclose this information before they join?

5. Should companies start disclosing the information they gather? If a trade association refuses to give up that information, should the company decline to join?

On January 1, 20x1, Entity acquires 30% of Co. B, for P600,000. Co. B reports profit of P200,000 and also declares
dividends of P50,000 in 20x1. How much is the carrying amount of the investment in associate, Dec 31, 20x1?
a)   P600,000   c)   P645,000
b)   P660,000   d)   P630,000

58   A Company acquired a 30% interest in B Company, for P400,000 on January 1, 2020. During the year, B Company
earned profits of P80,000 and paid no dividends. IN the year 2021, B Company incurred losses of P32,000 and
paid dividends of P10,000. In A Company's consolidated financial statements, at the end of 2021, what would
be the carrying amount of its interest in B Company, according to IAS 28, Investments in Associates ?
       a)   P438,000   c)   P414,400
       b)   P411,400   d)   P400,000

Conceptual Framework/ Accounting Overview/ Standards/Financial Statements…
59   Which of the following is one of the fundamental qualitative characteristics?
       a)   Faithful representation   c)   Reliability
       b)   Comparability   d)   Relevant

60   A concept that states that all the components of a complete set financial statement are interrelated.
       a)   Concept of Entity   c)   Accounting Process Concept
       b)   Concept of Articulation   d) Concept of Fair Presentation

PAS 29 - Financial Reporting in Hyperinflationary economies
61   Under constant peso accounting…
       a)   all items in the statement of profit or loss and other comprehensive income are restated.
       b)   some items in the statement of profit or loss and other comprehensive income are restated.
       c)   items in the statement of profit or loss and other comprehensive income are not restated.
       d)   items in the statement of profit or loss are restated but not in other comprehensive income

The gain or loss on net monetary position is computed as,
a)   the difference between the "net monetary items, end - historical" and "net monetary items, end - restated'.
   This amount is recognized in profit or loss.
b)   the difference between the "net monetary items, end - historical" and "net monetary items, end - restated'.
   This amount is recognized in equity.
c)   the difference between the "net monetary items, beg. - historical" and "net monetary items, end - restated'.
   This amount is recognized in profit or loss.
d)   the difference between the "net monetary items, beg. - historical" and "net monetary items, end - restated'.
   This amount is recognized in equity.

DLW Corporation acquired and placed in service the following assets during the year:

Assuming DLW does not elect S179 expensing or bonus depreciation, answer the following question:

1. What is DLW's year 3 cost recovery for each asset if DLW sells all of these assets on 2/22 of year 3?

A US multinational corporation has operations in Bolivia through which it plans to sell a new product of 500,000 cans of beans per year for the next 3 years, at a price of BOB 4 per can after incurring a variable cost of BOB 2.50 per can. The company will also incur a fixed cost of BOB 120,000 per year. The company has invested BOB 900,000 today in manufacturing equipment for its Bolivian operations, which will be depreciated to $0 at the end of its 3-year life. The corporation’s required rate of return is 20% and has a tax rate of 25%. The spot rate was BOB 6.91/$ before it unexpectedly changed to BOB 7.25/$.

a.) What is the value of the Bolivian operations prior to the unexpected change in the spot rate assuming the operations have a 3-year life only? (round to the nearest dollar)

b.)What is the value of the Bolivian operations after the unexpected change in the spot rate assuming the operations have a 3-year life only? (round to the nearest dollar)

c.) What is the foreign exchange operating gain/loss resulting from the unexpected change in the spot rate? (round to the nearest dollar)

d.)What is the impact on the value of the Bolivian operations if the US multinational decided to increase the domestic price to BOB 4.90, which will likely cause a decline in the number of units sold by 75,000?

e.) What is the impact on the value of the Bolivian operations if the US multinational decided to increase the number of units sold by 75,000, which will likely cause an increase in the direct cost per until to BOB 2.55? (round to the nearest dollar)

f.) What percent increase in Bolivian Bolivianao (BOB) (selling) price would be necessary to minimize the effect of the unexpected change in spot on the value of the Bolivian operation, assuming all else remains unchanged? (round your answer)

This year ABC Company reported net property, plant, and equipment (PP&E) of $17,607 after having reported net PP&E of $11,825 last year. During the year the company sold PP&E with a net book value of $1,428 for $1,112. ABC also charged $7,851 in depreciation expenses against its earnings. How much did ABC spend to acquire PP&E during the year? Assume that all new PP&E was acquired for cash. Note that your answer will represent a cash outflow for purchasing new PP&E, but you should present your result as a positive value.

Working from home (or WFH) has an undeservedly bad reputation, says Stanford economist Bloom. Based on research comparing the productivity of those who are “home working on their couches or in their pajamas” with those commuting and sitting in a cubicle 8 hours a day, Bloom says no one should be afraid to tell their boss they are working at home. Here is the evidence you need to convince your supervisor to let you give it a try. Nicholas (Nick) Bloom is the William Eberle Professor of Economics at Stanford University, a Senior Fellow of SIEPR, and a Co-Director of the Productivity, Innovation and Entrepreneurship program at the National Bureau of Economic Research. His research focuses on management practices and uncertainty. He previously worked at the UK Treasury and McKinsey & Company. He is a Fellow of the American Academy of Arts and Sciences, and the recipient of awards including an Alfred Sloan Fellowship, the Bernacer Prize, the European Investment Bank prize, the Frisch Medal, the Kauffman Medal and a National Science Foundation Career Award. He has a BA from Cambridge, an MPhil from Oxford, and a PhD from UCLA.

So what do you think? Do you want to work from home? Why or Why not? If you are the boss, how would you manage employees working from home?