individual who earned an MBA from a US university and founded a company in Finland questions

Questions

At the beginning of 2019, Dr. John opened his medical practice as a personal service corporation....

At the beginning of 2019, Dr. John opened his medical practice as a personal service

corporation. The entity uses a December 31 year-end and the accrual method of

accounting. During the year, the corporation billed patients and insurance companies for

$485,000 for medical services. At the end of the year, $60,000 of this amount had not

been collected. The entity earned $1,500 interest on a money market account held in the

local bank and another $1,500 interest on an investment in bonds.

Dr. John’s salary from his corporation is $14,000 per month. However, he did not cash

his November and December payroll checks until January 2020. To help provide funds to

invest in the new business, Dr. John’s parents loaned him $150,000 and did not charge

him any interest. He also owns stock that has increased in value from $7,000 at the

beginning of the year to more than $30,000 at the end of the year. In 2019, Dr. John’s

wife died unexpectedly. Since Dr. John was the beneficiary of his wife’s life insurance

policy, he received a check for $200,000 from the Insurance Company on December

2019.

Although Dr. John took several accounting classes in college, he would like your help in

calculating the correct amounts of his own gross income and the gross income of the

corporation.

Would the calculations be different if the corporation used a cash method of accounting?

In: Finance

This week we will be studying the mathematics of finance. Most people take out a loan...

This week we will be studying the mathematics of finance. Most people take out a loan for making big purchases like a home or a car. People who have a balance on their credit card are borrowing money. Some investigation is often required to find the “Best Deal”. Please post your solution to one of the following problems: a) Calculate the amount of simple interest earned : $3,500 at 7% for 3 years b) Find the future value : $475 at 3.25% compounded daily for 5 years c) Karen and Wayne need to buy a refrigerator because theirs just broke. Unfortunately, their savings account is depleted, and they will need to borrow money in order to buy a new one. Sears offers them an installment loan at 16 %( add-on rate). If the refrigerator at Sears costs $1,540 plus 5% sales tax, and Karen and Wayne plan to pay for the refrigerator for 3 years, what is the monthly payment?

In: Accounting

Please explain the answer and which laws apply. Thanks Sayre learned that Adams, Boone, and Chase...

Please explain the answer and which laws apply.
Thanks

Sayre learned that Adams, Boone, and Chase were planning to form a corporation for the purpose of manufacturing and marketing a line of novelties to wholesale outlets. Sayre had patented a self-locking gas tank cap but lacked the financial backing to market it profitably. He negotiated with Adams, Boone, and Chase, who agreed to purchase the patent rights for $5,000 in cash and 200 shares of $100 par value preferred stock in a corporation to be formed.

The corporation was formed and Sayre's stock issued to him, but the corporation has refused to make the cash payment. It has also refused to declare dividends, although the business has been very profitable because of Sayre's patent and has a substantial earned surplus with a large cash balance on hand. It is selling the remainder of the originally authorized issue of preferred shares, ignoring Sayre's demand to purchase a proportionate number of these shares. What are Sayre's rights, if any? Please explain.

In: Accounting

Connor is not married and supports Connor's 12 year old child who lives with Connor and...

Connor is not married and supports Connor's 12 year old child who lives with Connor and has gross income of $2,650 (the child's gross income). Connor works as a self-employed realtor and earned commissions of $146,000 during 2019. Connor’s business expenses were $18,900 and the only other income was interest of $7,300. Connor’s other information follows:

Contribution to solo(k) retirement plan $ 5,500

Loss on sale of Alphatech stock held 2 years -3,200

Mortgage interest on primary residence 6,950

State and local property tax on residence 4,350

Property tax included in personal auto registration 960

State sales taxes paid 370

State income taxes paid 3,800

Charitable contributions of cash 3,350

Political contributions 550

All information is for 2019.

Calculate Connor's adjusted gross income and taxable income. Show your work!

AGI = $____________ Taxable Income = $____________

In: Accounting

Carlos Sanchez opened a business called Sanchez Engineering and recorded the following transactions in its first...

Carlos Sanchez opened a business called Sanchez Engineering and recorded the following transactions in its first month of operations.

Jun.	1	Carlos Sanchez, the owner, invested $134,000 cash, office equipment with a value of $13,500, and $77,000 of drafting equipment to launch the company.
Jun.	2	The company purchased land worth $57,500 for an office by paying $18,200 cash and signing a long-term note payable for $39,300.
Jun.	2	The company purchased a portable building with $46,500 cash and moved it onto the land acquired on June 2.
Jun.	2	The company paid $8,100 cash for the premium on a 15-month insurance policy.
Jun.	7	The company completed and delivered a set of plans for a client and collected $13,000 cash.
Jun.	12	The company purchased $30,200 of additional drafting equipment by paying $18,000 cash and signing a long-term note payable for $12,200.
Jun.	14	The company completed $27,600 of engineering services for a client. This amount is to be received in 30 days.
Jun.	15	The company purchased $2,000 of additional office equipment on credit.
Jun.	17	The company completed engineering services for $25,400 on credit.
Jun.	18	The company received a bill for rent of equipment that was used on a recently completed job. The $2,150 rent cost must be paid within 30 days.
Jun.	20	The company collected $13,800 cash in partial payment from the client billed on June 14.
Jun.	21	The company paid $1,600 cash for wages to a drafting assistant.
Jun.	23	The company paid $2,000 cash to settle the account payable created on June 15.
Jun.	24	The company paid $1,350 cash for minor maintenance of its drafting equipment.
Jun.	26	Carlos Sanchez withdrew $9,820 cash from the company for personal use.
Jun.	28	The company paid $1,600 cash for wages to a drafting assistant.
Jun.	30	The company paid $3,180 cash for advertisements on the web during June.

For transactions a-g, review the unadjusted balance and prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. Descriptions of items that require adjusting entries on June 30, 2017, follow.

a) The company has completed, but not yet billed, $12,800 of engineering services for a client.

b) Straight-line depreciation on the office equipment, assuming a 5-year life and a $2,900 salvage value, is $210 per month.

c) Straight-line depreciation on the drafting equipment, assuming a 5-year life and a $11,200 salvage value, is $1,600 per month.

d) Straight-line depreciation on the building, assuming a 25-year life and a $7,500 salvage value, is $130 per month.

e) The balance in prepaid insurance represents a 15-month policy that went into effect on June 1.

f) Accrued interest on the long-term note payable is $140.

g) The drafting assistant is paid $1,600 for a 5-day work week. 2 days' wages have been incurred but are unpaid as of month-end.

In: Accounting

Please read the following made up story and come up with 1 1/2-2 page resolution to...

Please read the following made up story and come up with 1 1/2-2 page resolution to the story

Keeping organizations properly succeeding is vital in our mission at OTC (Organizational Theory Consultants). We pride ourselves in being able to upright the most complex of situations involving various organizations needing a turn around to keep from failing in their specific industry. Organizations need to have their culture running like a well oiled machine to avoid any hiccups which can have a negative impact. Culture is one of the most important theories we at OTC focus on. Culture involves a variety of different aspects that reside in the organizations we are called into help. Culture can have many different variable that need to be addressed such as the ethics, morals, values, synergy, relationships, etc.

The culture within organizations is highly regarded in terms of success within the organization; a lack of culture can ultimately cripple an organization from the inside. “There are many definitions of organizational culture yet all pointing to the idea that culture represents a shared understanding of “How we do things around here.” It is comprised of written and unwritten, norms, beliefs, values, attitudes, and feelings that are expressed in the stories, rituals, ceremonies, behaviors, and the workplace’s physical setting. These different attributes contribute to the whole picture of the organization, creating essentially a personality based on how the company ticks internally. Culture within an organization is the most vital aspect that can be researched in depth in regards to success and failure within organizations.

We have been summoned to a semi large retailer in the D.C area whom provides a variety of services and the sale of goods, an overall general store. The morale among the store is quite well between associates and supervisors, with a clear and concise company goal of customer service. The associates of this retailer abide by this overall goal and respectfully the customers admire their attitude. The associates among themselves have formed a tight knit family like atmosphere, but with any organization there are a few bad apples that appear to want to go against the grain of the organization. From an outside picture this retailer has all the positive cultural aspects to remain a top competitor in their industry; but, the store owner has noticed the statistical sales are on in a dive bomb towards becoming bankrupt. The owner has called us to peel back the various layers of his organizations to identify the potentially fatal underlying issues.

Our team has been called into this retailer for a reason so we can take a thorough look into the underlying aspects as to why this retailer is beginning a downward spiral to failure. Once we identify the problematic organizational culture issues that present themselves then we can help turn this organizations into a positive trending successful retail store.

Prestige apparel has been in business for almost 10 years. Known by both their employees and customers to high moral and very little turnover it is surprising to many that they are currently facing the issues they are today and receiving such negative media attention. Almost two weeks ago a female employee reported a sexual harassment incident to HR and her immediate manager. Their response was that they saw no reason to take extreme measures and that having a sit-down with him should be enough. For years Prestige apparel has made it their business to ensure their employees of the fact that they have a work environment where they feel safe above all else. This situation changed things for some employees, they no longer felt safe and protected. A system that once made them feel safe by providing the ability to report incidents as such and know that they would be thoroughly investigated failed them. In this situation HR failed to take extreme measures because they did not want to lose a manager who has been employed for years with the company and produces great numbers. Not only is this unethical but their lack of holding this individual accountable for their actions have caused a huge uproar in a once safe workplace. Employees no longer come to work with the same work ethic they once did. The moral has completely shifted, and the tension can be felt amongst the customers every time they enter the store.

Prestige’s decision to turn a blind eye on a situation this serious has resulted in the employee feeling as if their only choices were to quit or stay and deal with the possibility that it could possibly occur again and be sweep under the rug. The employee decided to take matters into her own had and go public with her story which is now drawing negative media attention to the company. What once made this company unique were their company values; employees were always encouraged to be themselves, to work as a team to accomplish/meet goals, to protect and treat one another with respect has suddenly fallen to the waist side. As time passed they ultimately forgot to keep the pace of a once family-oriented work environment and some managers became more obsessed with company gains and meeting their sales in order to receive their bonuses at the end of each quarter. Once money became the main goal all ethical standards went out of the window. Upper management turned a blind eye to important issues taking place under their noses in order to keep their highest earners in que. Now that the media has caught wind of this situation loyal customers and investors are demanding the company take action. Failure to do so can greatly impact the future of the company.

In: Operations Management

In November 24, 2014, Netflix filed a lawsuit against its former vice president of IT operations,...

In November 24, 2014, Netflix filed a lawsuit against its former vice president of IT operations, Mike Kail, alleging fraud, breach of fiduciary duties, and other charges. Here is an excerpt from the lawsuit filing in Superior Court of the State of California, Santa Clara County:.

“…During his tenure at Netflix, including as Netflix’s Vice President of Information Technology Operations, Kail was a trusted senior-level Netflix employee. Kail’s job responsibilities at Netflixincluded negotiating and executing contracts on behalf of Netflix to acquire IT-related products and services…approving invoices for payments that third parties would request related to IT products and services purchased by Netflix….after Kail approved such invoices, Netflix would pay the third parties for these approved invoices. Kail was a trusted, senior-level Netflix employee, with authority to enter into appropriate contracts and approve appropriate invoices.” (See entire legal document at http://www.scribd.com/doc/248259590/Netflix-v-Kail.)

Netflix is suing Mr. Kail for fraud, breach of fiduciary duties, and other actions. Mr. Kail was in charge of entering into and authorizing contracts for Netflix’s tech vendors, which included two companies, Vistara IT and Netenrich (both founded/owned by Mr. Raju Chekuri.) At the same time, Mr. Kail had his own company on the side called Unix Mercenary, which he did not disclose to Netflix.

Mr. Kail’s company Unix Mercenary received 12 – 15% commissions on all contract invoices paid by Netflix to Vistara IT and Netenrich. Part of the evidence that Netflix outlines in its lawsuit are emails between Mr. Kail and employees of Netenrich which refer to “referral fees” from Netenrich to Unix. Here is an excerpt from an email from Netenrich to Kail (from the above-mentioned lawsuit filing):

…”[We] discussed getting you paid and I just need to ensure the payments from Netflix are in Netenrich’s bank account…I suggest we employ the following process to ensure you receive your referral fees on a timely basis…”

Over a three year period, Netflix paid approximately $3.7 million to Vistara IT and Netenrich, which would translate into commission payments of between $440,000 - $550,000 to Unix Mercenary. The lawsuit only mentions specific payments of $76,000 to Unix Mercenary.

Incidentally, Mike Kail left Netflix in August 2014 to become Yahoo’s Chief Information Officer (CIO).

Respond to the following questions in the MODULE 6 Discussion Forum

What internal control principle(s) does it appear was (were) violated at Netflix?

How might Netflix have designed its internal processes differently to avoid the situation that arose with Mr. Kail?

Should Mr. Kail be held totally liable for this situation? Does Netflix have any degree of responsibility in this situation?

Specifications

In: Accounting

Complete the Module 6 Discussion Forum In November 24, 2014, Netflix filed a lawsuit against its...

Complete the Module 6 Discussion Forum

In November 24, 2014, Netflix filed a lawsuit against its former vice president of IT operations, Mike Kail, alleging fraud, breach of fiduciary duties, and other charges. Here is an excerpt from the lawsuit filing in Superior Court of the State of California, Santa Clara County:.

“…During his tenure at Netflix, including as Netflix’s Vice President of Information Technology Operations, Kail was a trusted senior-level Netflix employee. Kail’s job responsibilities at Netflix included negotiating and executing contracts on behalf of Netflix to acquire IT-related products and services…approving invoices for payments that third parties would request related to IT products and services purchased by Netflix….after Kail approved such invoices, Netflix would pay the third parties for these approved invoices. Kail was a trusted, senior-level Netflix employee, with authority to enter into appropriate contracts and approve appropriate invoices.” (See entire legal document at http://www.scribd.com/doc/248259590/Netflix-v-Kail.)