Stock Investment Transactions, Equity Method and Available-for-Sale Securities

Glacier Products Inc. is a wholesaler of rock climbing gear. The company began operations on January 1, Year 1. The following transactions relate to securities acquired by Glacier Products Inc., which has a fiscal year ending on December 31:

Required:

1. Journalize the entries to record the preceding transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. In your computations, round per share amounts to two decimal places.

2. Prepare the investment-related asset and stockholders’ equity balance sheet presentation for Glacier Products Inc. on December 31, Year 2, assuming that the Retained Earnings balance on December 31, Year 2, is $431,000.

As we emerge from COVID-19’s lockdowns, there will be many new features to the landscapes of our lives. The most significant will be the shifting economic path from the capitalism of interdependent free trade to the mercantilism of independent economic nationalism.

To those who study the future, the COVID-19 pandemic is a singularity — an event, usually unanticipated, that fundamentally upends the way we live. In other words, it is a major paradigm shift.

One classic example is the mass production of the automobile early in the last century, shifting transportation from organic sources (horses) to mechanical alternatives (cars). A more recent case is the development of the Information Superhighway in the 1980s that ushered in the world of the personal computer in which we now live.

The COVID-19 pandemic originated late last fall in Wuhan, China. Wuhan is a city in Central China with 10 million people and a major transportation hub for domestic rail travel and international air flights. It was also the host of an international athletic meet and a Chinese New Year celebration that attracted tens of thousands of tourists who then unwittingly spread the deadly new virus rapidly across the globe.

For whatever reasons, both the Chinese communist government and the United Nations’ World Health Organization failed to alert the world in sufficient time to stop this spread. As a result, it has now reached literally every country in the world.

At this writing, there are more than 3 million COVID-19 cases and more than 200,000 deaths worldwide. The United States is the world’s leader with in excess of 1 million cases and about 60,000 deaths.

To break the spread of this pandemic, stay-at-home orders have been imposed for individuals and shutdowns for most nonessential businesses (variously defined) for the past six to eight weeks. As we emerge from the wreckage, what we behold are eerily invisible societies and ruined economies.

In the United States, there are nearly 30 million unemployed and a contraction of the economy not seen since the Great Depression of the 1930s.

From these horrendous statistics, there is an automatic compulsion to assign blame. Since President Trump is at the national helm, it is easy to blame him, and his sub-par performance at the daily White House press conferences has not helped. If he was a little slow to recognize the threat of COVID-19, Democrats such as Nancy Pelosi, Charles Schumer and Andrew Cuomo were no faster.

If blame is to be pinned on anyone, it must be on the communist government of China, which withheld information on the pandemic for far too long. And, bluntly, the World Health Organization was complicit in this silence.

In truth, we have much to be proud of in the American response. Under the capable leadership of Vice President Mike Pence, the COVID-19 Task Force has brought before the American public the reassuring medical expertise of Drs. Anthony Fauci and Deborah Birx. For all the bitter partisanship to our politics, a welcome bipartisanship between Republicans and Democrats in both houses of Congress, together with the White House, has enacted several pieces of legislation that has brought some $3 trillion of financial relief to individuals and businesses.

Further, government and private industry are cooperating to achieve massive production shifts — like General Motors’ switch from making cars to manufacturing ventilators in just weeks — at a level of coordination not seen since World War II.

In confronting the COVID-19 singularity, three new features immediately come to mind. One is a migration from crowded, vulnerable cities to the safety of small-town America. Another is a dramatic increase in the reliance on the internet for employment, retail spending, education and even health care, and away from the brick-and-mortar settings of person-to-person interactions.

The most far-reaching of this paradigm shift, however, will be the rise of mercantilism at the expense of free trade liberalism. Since much of our pre-COVID-19 prosperity came from this interdependence of resources, labor and capital to the least costly place of production, this may seem strange.

The beneficiary of this “free” trade was the global consumer who enjoyed the reasonable prices that came from cheap imports. The flaw to this “prosperous” system was that most of the global supply chains, and especially that of medical supplies and equipment, led to China. Indeed, by 2020, fully half of all global manufacturing is “made in China.” The flaw lies in the loss of independence, both economic and political, to the winner of such interdependence.

The father of mercantilism, Friedrich List (1789-1846), contended that an industrial economy was the bedrock of national power, and that the goal of any economy was to achieve trade surpluses to preserve the nation’s economic independence and political sovereignty. Indeed, such mercantilism has been the guiding light to China’s massive growth and trade surpluses all over the world. Hopefully, rising from the invisible devastation of COVID-19 will be a visible counteracting forest of signs saying “made in the USA.”

• Summarize the article
• How do this relate to the 16^th century theory of mercantilism?

AGE and TRAINS Andrew Gilbert Edwards (AGE) a Native-American employed-at-will had been a commuter train operator for Pond Pacific Railway (PPR). The company began with a steam locomotive during President Warren Harding’s administration. He logged over 12 hours per shift and received every award and commendation the employer had to offer for being ahead of time, on time but never behind time. In the past year, his supervisor was looking to hire some female conductors. As train designs improved, AGE used his keen sense of touch to become the only train operator in the fleet who could operate a train blindfolded, telling by the feel of the controls where he was, where he was going, and when he would arrive there. His long experience on every one of PPR’s routes and his memory let him win dozens of wagers by performing the controls with one hand behind his back flawlessly. The train’s motto was (“We are never late.”) was a goal AGE had successfully accomplished for over 42 years. For the last three years, AGE had noted (but kept to himself) that his reflexes were beginning to fail, but his legendary sense of touch and memory more than compensated for the problem. He would require that his co-train operator periodically guide his hands to work the controls, thereby AGE was able to hide his deteriorating reflexes. When AGE had his annual safety check the company safety director gave him a passing grade (because he passed all the tests), but he became worried about AGE's tendency for his hands to shake. The director suspected some medical (or, worse, controlled substance) problem. So, he ordered a battery of tests by the company doctor, but did not what it to appear as if he was retaliating against him. AGE agreed to the tests. The doctor discovered the problem with his reflexes. The safety director confronted AGE but he would not accept a transfer to any position which did not have him operate a train. He did take a brief medical leave of absence. However, the co-train operators unanimously trusted AGE, with all of his problems, more than any other senior train operator. Upset with attempts to stop him from operating a train, he climbed into the engine compartment of a newly loaded electric train powered by wind energy with 20 cars and 150 people in each car. He left against orders and crashed during morning rush hour into a train terminal because the train was speeding. Thankfully, everyone survived. However, the co-conductor sued PPR for personal injury damages based on injuries rendering him a paraplegic. A band of musicians on their way to a $1000 per night, all expenses paid gig at the Pineapple Hilton was also on the train; they sued PPR for injuries preventing them from performing because they had all been struck speechless by the sight of the train terminal quickly approaching realizing they were about to crash into it. Identify at least 10 possible employment law legal issues “not railway regulations, polices or procedures” and explain how they should be resolved.

Employment Discrimination Practice Sheet

Instructions:

1. Match the employment law term with the correct employment situation. Use each term only once. Also, answer the question in the situation.

Employment Law Terms

1. Age Discrimination in Employment Act of 1967
2. Americans with Disabilities Act of 1990
3. Bona fide occupational qualification
4. Disparate impact
5. Disparate treatment
6. Employment at-will
7. Equal Pay Act of 1963
8. Retaliation
9. Sexual harassment: Hostile Work Environment
10. Sexual harassment: Quid Pro Quo

6. ______________________________ The Duke Power Company adopted a requirement that applicants for hire or transfer to any department but the labor department had to have a high school diploma or receive a satisfactory score on two IQ tests. As a result of these requirements, African American employees were denied jobs and promotions. (Griggs v. Duke Power Co., 401 U.S. 424 (1971)) Are these requirements discriminatory if they are not related to job performance? If so, under what theory could an employee or applicant file a complaint?

7. ______________________________ Your employer states that upon turning 65, all traveling sales employees must turn over their territories to younger workers and begin handling in-office file work only. If you can show that at age 65 or above you are just as capable and competitive out on the road as your younger counterparts, can you bring a claim stating that this practice will adversely impact your income or other benefits? If so, under what law?

8. ______________________________ Malia, a hard worker who is praised by her coworkers and clients alike, is looking forward to receiving her first annual bonus after working for the company for more than three years. When she does not receive the bonus and finds out that a co-worker, who has only been at the company for four months, does, Malia is upset. When she questions her supervisor, she is told that she could not be given the bonus because she did not have a college degree. She then discovers that the newly-promoted Walter does not have a degree either. Does Malia have a discrimination claim? If so, under what law?

9. ______________________________ A trucking company conducts job interviews in a second floor office where there is no elevator. The company calls Tanya to arrange for an interview for a secretarial position. She requests a reasonable accommodation because she uses a wheelchair. Installing an elevator would be an undue hardship, so what could the company do to provide a reasonable accommodation? What law is relevant here?

10. ______________________________ Samuel was uncomfortable with the sexual jokes his co-workers regularly posted in the break room. He told his manager who did not address the issue. He then went to Human Resources to see what options he had in this situation. When his manager heard that Samuel when to HR, his manager told Samuel to suck it up and took away the extra overtime shift Samuel had been working. The manager’s actions are an example of what?

On October 1, 2021, Sarasota Corp. issued $888,000, 5%, 10-year bonds at face value. The bonds were dated October 1, 2021, and pay interest annually on October 1. Financial statements are prepared annually on December 31.

Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

eTextbook and Media

List of Accounts

Prepare the adjusting entry to record the accrual of interest on December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

eTextbook and Media

List of Accounts

Show the balance sheet presentation of bonds payable and bond interest payable on December 31, 2021.

eTextbook and Media

List of Accounts

Prepare the journal entry to record the payment of interest on October 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

eTextbook and Media

List of Accounts

Prepare the adjusting entry to record the accrual of interest on December 31, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

eTextbook and Media

List of Accounts

Assume that on January 1, 2023, Sarasota pays the accrued bond interest and calls the bonds. The call price is 104. Record the payment of interest and redemption of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

On October 1, 2021, Ayayai Corp. issued $720,000, 5%, 10-year bonds at face value. The bonds were dated October 1, 2021, and pay interest annually on October 1. Financial statements are prepared annually on December 31.

Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

eTextbook and Media

List of Accounts

Prepare the adjusting entry to record the accrual of interest on December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

eTextbook and Media

List of Accounts

Show the balance sheet presentation of bonds payable and bond interest payable on December 31, 2021.

eTextbook and Media

List of Accounts

Prepare the journal entry to record the payment of interest on October 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

eTextbook and Media

List of Accounts

Prepare the adjusting entry to record the accrual of interest on December 31, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

eTextbook and Media

List of Accounts

Assume that on January 1, 2023, Ayayai pays the accrued bond interest and calls the bonds. The call price is 102. Record the payment of interest and redemption of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

1. Native American [8.50, 9.48, 8.65]

2. Caucasian [8.27, 8.20, 8.25, 8.14]

alpha = 0.10

Test the difference between the two groups using a two sample t-test, using p value approach, with detailed formulas and conclude

A survey found that the American family generates an average of 17.2 pounds of glass garbage each year. Assume population is normally distributed with standard deviation of 2.5 pounds. Find the probability that the mean of a sample of 55 families will generate between 17 and 18 pounds.