The Distance Plus partnership has the following capital balances at the beginning of the current year:

Each of the following questions should be viewed independently.

If Sergio invests $100,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used.

1. Record the admission of new partner under bonus method.

If Sergio invests $80,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used.

2. Record the admission of new partner under bonus method.

If Sergio invests $90,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the goodwill method is used.

1. Record the entry for goodwill allocation, during the admission of a new partner.

2. Record the investment made by the new partner in the business.

1. You anticipate that XSensors Co. will pay a constant dividend of $2.3 each year for the next 10 years. After that, the dividend will increase to $4.65 and hold steady for another 10 years. After that, you expect the dividend will start increasing every year at a constant rate of 2 percent per year, forever. Your discount rate for this stock is 12.2 percent. How much are you willing to pay for this stock today?

Scenario you are a 30 year old college student going to school for business and will graduate in a year.

Instructions:

Find a company online where you would like to apply for a job.

Research the company and write a description using the guidelines below.

Answer the question: Why do you want to work for this company?

Do Your Homework

When I say, “homework” I am referring to research and preparation in three key areas:

Know yourself

Know the company

Know the position and the department

Know Yourself

Before you talk to employers, or even network for positions, you need to have a strong grasp of what you can offer them. (What’s the return on investment you provide to the employer?)

You should be able to talk about your strengths and your accomplishments, and to readily give concrete answers to questions such as “What are your greatest strengths?” “Why should we hire you?” and “Tell me about yourself” as well as “What do you know about us? And “Why do you want to work here?

Know the Company

Get to know the companies you will be talking to (or talking about, if networking). When you know details about them, their culture, their goals, their products, and their challenges, you are then able to talk about yourself and your fit into the company.

Google the company and read all you can. Visit their company website to learn more about them.

Know the Position and the Department

In this economy, there is no room for shopping for “any job you find me qualified for.” Instead, you need to know where you would fit into the company, whether there is a current advertised opening or not.

Putting it all Together

Once you have done all your pre-interview homework, you will never again find yourself blundering on critical questions like, “Why do you want to work here?” Instead, you will be prepared to talk knowledgeably about the company and position, why they interest you, and how you will fit in with your skill set, personality and experience.

On January 1st you sold and purchased a capital lease for a 10 year period. The yearly annuity due payments were $100,000 with guaranteed salvage value of $75,000 and bargain purchase options of $100,000. The discount rate s 6%. The title has transferred and the transaction qualifies for capital purchase. Prepare a journal entries for 10 years for both buyer and seller as a sales type lease. Cost of goods sold is 75% of sales price.

The company established a defined benefit plan at the end of last year. Discount rate and expected rate of return is 6%. There are 400 employees that started working with the initial salary of $45000.00. Assume the employees will work 40 years and will benefit for 30 years. The Service costs for the year-employees earned $4000 each to be in retirement. Expect the rate of the return is 6% on the plan assets and valued at $4000000 as of January 1st. The prior year service costs for 20 employees were $300,000, and 2 employees retire yearly and use the service method. The actual loss for the year is $200,000. Compute the project benefit obligation, pension expense, plan asset, and whether the plan is under or over funded for the current year.

Machines J and K have the following investment and operating costs:

Year          0                      1          2          3

J                 10000              1100    1200

K               12000              1100    1200    1300

Which machine is a better buy at a WACC of 10%?

The following information for the past year is available from Thinnews Co., a company that uses machine hours to apply factory overhead:

1. The variable overhead spending variance is:

2. Under a three-variance breakdown (decomposition) of the total factory overhead variance, the total factory overhead spending variance is:

3. Under a two-variance breakdown (decomposition) of the total factory overhead variance, the total flexible-budget variance is:

The Aluminum Association reports that the average American uses 56.8 pounds of aluminum in a year. A random sample of 51 households is monitored for one year to determine aluminum usage. If the population standard deviation of annual usage is 12.1 pounds, what is the probability that the sample mean will be each of the following?


a. More than 60 pounds
b. More than 56 pounds
c. Between 56 and 57 pounds
d. Less than 53 pounds
e. Less than 48 pounds

Online Network Inc. has a net income of $500,000 in the current fiscal year. There are 100,000 shares of common stock outstanding along with convertible bonds, which have a total face value of $1.2 million. The $1.2 million is represented by 1,200 different $1,000 bonds. Each $1,000 bond pays 4 percent interest. The conversion ratio is 20. The firm is in a 20 percent tax bracket.

. Compute basic earnings per share.

Compute diluted earnings per share

A three-year project will cost $150,000 to construct. This will be depreciated straight line to zero over the three-year life. The project is expected to generate sales of $450,000 per year. It has annual variables costs of $200,000 and annual fixed costs of $100,000 per year. The appropriate tax rate is 25 percent and the required rate of return on the project is 16 percent. Assume that a salvage company will pay $60,000 (before taxes) for the assets at the end of year 3. The project also has an initial net working capital requirement of $40,000, which is fully recoverable when the project ends. Note that the project only depreciates the $150,000 initial cost. The salvage value is excluded from depreciation. What is the project’s net present value (NPV)?