Question one.

SECTION C [25 MARKS] Read the following extract and then answer the question below Suppose you want to start a small business in your village. Consider any business idea and answer the following questions in relation to the business idea of your choice.

i. Provide a brief overview of your business idea. (5 marks)

ii. Consider the four Ps of your marketing approach. Describe your product, price, place and promotion. (10 marks)

iii. Consider your potential value chain. List the people (or other organizations) and processes that are part of your value chain. Identify the strengths and weaknesses in your value chain. (10 marks)

2. Suppose you completed your 12 grade education in Business and accounting with merit scholarship in 2013,

then you completed BS ACCOUNTING AND FINANCE degree with specialization in FORENSIC

ACCOUNTING in year 2017 and secured 3.75 CGPA. You got a chance to study a semester exchange program

in University of GERMANY. You got award of best Researcher there, moreover you won an Accounting quiz

competition and got $1000 prize money in university. You were a brilliant student with fine academic record.

You have been participating in Extra Curricular activities in your college and university as well. You also were

the prefect of your class and head of hiking club at University .You got advanced certificate in English

Communication and Certificate in Tax accounting and fiduciary accounting. You were Ambassador by university

& Gamble in your university for one year. You have also worked in a volunteer organization for provision of

free education to slum areas. Along with Studies you have been working as a CSR in reputed call center. You

have worked as "Assistant Manager accounts" in a multinational company.

Now you have to apply for the job of "Manager forensic Accounting" in Safe& sound Security company

(Specialized in security and Cybercrimes).Write your resume and Cover letter for this job.

You applied for the job in Q2 Manager Forensic Accounting and you were selected. After interview you have

to write a follow up letter for that job. Write the necessary point to write the follow up letter.

3. Prepare journal entries to record the transactions.

Chapter 13: Accounting for Corporation 4, 5,6,7 Comprehensive Stockholders Equity Transactions P7. On December 31, 2014, the stockholders equity section of Delux Corporation RATIO balance sheet appeared as follows: of2 Vivassit LEDGER Contributed capital: Common stock, $8 par value, 400,000 shares authorized, 120,000 shares $,605,600 $ 960,009 issued and outstanding 2,560,090 Additional paid-in capital arustle 1241 $3,520,003 Total contributed capital 1,648,000 Retained earnings $5,168,090 Total stockholders'equity Selected transactions involving stockholders' equity in 2015 follow. Jan. 4 The board of directors obtained authorization for 40,000 shares of $40 pa value noncumulative preferred stock that carried an indicated dividend rate of $4 per share and was callable at $42 per share. 14 The company sold 24,000 shares of the preferred stock at $40 per share and issued another 4,000 in exchange for a building valued at $160,000. Mar. 8 The board of directors declared a 2-for-1 stock split on the common stock. Apr. 20 After the stock split, the company purchased 6,000 shares of common stock for the treasury at a price of $12 per share. May 4 The company sold 2,000 of the shares purchased on April 20, at an average price of $16 per share. July 15 The board of directors declared a cash dividend of $4 per share on the pre- ferred stock and $0.40 per share on the common stock. 25 Date of record. Aug. 15 Paid the cash dividend. Nov. 28 The board of directors declared a 15 percent stock dividend when the com mon stock was selling for $20 per share to be distributed on January 5 to stockholders of record on December 15. Dec. 15 Date of record for the stock dividend. REQUIRED 1. Prepare journal entries to record these transactions. 2. Prepare the stockholders' equity section of Delux's balance sheet as of December transactions.) 31, 2015. Net loss for 2015 was $436,000. ( Hint: Use T accounts to keep track of 1 3. ACCOUNTING CONNECTION Compute the book value per share for preferred and common stock (including common stock distributable) on December 31, 2014 and 2015, using end-of-year shares outstanding. (Round to the nearest cent.) What effect would you expect the change in book value to have on the market price po share of the company's stock?un Hows? wends and Dividend Yield at corporation had both common stock and preferred stock outstanding ed. $820.000 from 2012 through 2014. Information about each stock for the three years follows. Type Par Value Shares Outstanding Other Preferred $100 40,000 7% cumulative Common 20 600,000 The company paid $140,000, $800,000, and $1,100,000 in dividends for 2012 through 2014, respectively. The market price per common share was $15 and $17 per share at the end of years 2013 and 2014, respectively. REQUIRED 1. Determine the dividends per share and total dividends paid to the common and preferred stockholders each year. (Round to the nearest cent.) 2. Assuming that the preferred stock was noncumulative, repeat the computations per- formed in requirement 1. (Round to the nearest cent.) 3. BUSINESS APPLICATION Calculate the 2013 and 2014 dividend yield for com- mon stock using dividends per share computed in requirement 2. (Round to the nearest tenth of a percent.) 4. ACCOUNTING CONNECTION How are cumulative preferred stock and noncumu- lative preferred stock similar to long-term bonds? How do they differ from long term bonds? 8 Comprehensive Stockholders' Equity Transactions and Financial Ratios P10. Gorlin Corporation was chartered in the Commonwealth of Massachusetts. T company was authorized to issue 20,000 shares of $100 par value, 6 percent pr ER ferred stock and 100,000 shares of no-par common stock. The common stock h 100 a $2 stated value. The stock-related transactions for the quarter ended October 2014, follow. Aug. 3 Issued 20,000 shares of common stock at $22 per share. 15 Issued 16,000 shares of common stock for land. Asking price for the was $200,000. Common stock's market value was $12 per share. Man ment wishes to record the land at the market value of the stock. 22 Issued 10,000 shares of preferred stock for $1,000,000. Oct. 4 Issued 10,000 shares of common stock for $120,000. 10 Purchased 5,000 shares of common stock for the treasury for $13,000 15 Declared a quarterly cash dividend on the outstanding preferred sto $0.10 per share on common stock outstanding, payable on October stockholders of record on October 25. 25 Date of record for cash dividends. 31 Paid the cash dividends declared on October 15. (C