Reference no: EM133005869

Question - As a long-term investment of 240 million dollars, the Mason Corporation acquired bonds, dated 1 July 2011. The management of the company has the good intentions and right to maintain the obligations until their maturity. For bonds with identical risk and term, the market interest rate (return) was 8 percent. The bond was paid $200 million by Mason. On 30 June and 31 December the corporation will get half-yearly interest. The fair value of the securities at December 31, 2011 was $210 million due to changing market circumstances.

1. Prepare journal entries on 1 July 2011 to record the bond investments of Mason.

2. Prepare Mason journal entries to register interest at the efficient (market) rate on 31 December 2011.

3. How high is Mason going to report on its investment in its balance sheet on 31 December 2011? What is the reason?

4. Assume the bond rating agency Moody's lowered Tanner-investment-sales UNF's risk rating by $190 million on 2 January 2012. To log the sale, prepare the newspaper entry.

The firm has achieved some success in the three years you have worked for your present firm, but it did not go well primarily. The latest business slump has worried you about the company's future. In the previous six months, many individuals working on your department have been laid off owing to job shortages, and you are afraid to be next in the list. It seems that other people feel the same way since the morality of the firm is always poor. Indeed, the general moral of the organization, along with your supervisor's lousy attitude, makes your work unpleasant. You don't know if it's worth trying to stick it out at this stage.

You fear to get up and work every day. Every day. Your supervisor is disappointed that he is trying to work with a sleek workforce, and you feel he is doing it. He continually criticizes you and at times it seems that you do not have enough fault with things. The department will probably be shuttered throughout the year, he indicated multiple times. You know he has a lot of stress in the face of the imminent setbacks, but the situation is becoming intolerable. You're still working and doing your best, but you don't know how long you can. You appear to lose the job inevitably, so now you begin to believe that it may be a better idea to quit.

You know that eventually, regardless of what you do, you'll have to hunt for a new job but it's hard to think of even looking for a job when working in full-time. You believe that maybe leaving your work now may alleviate tension and allow you time to hunt for a job. However, you're dependent on your weekly salary and you don't know what you're going to do to get a new position very long. A former colleague who had been laid off last year informed you that his job insurance paid helped to bridge the gap between the laying off of workers and to locate a new job. He got weekly benefits, which helped him pay his expenses until he found another employment, after a one-week waiting period. Since the work market is unclear, you feel that it is necessary to support the unemployment insurance until you find another work.

If your firm eventually leaves you, you will be very confident that you will be qualified for unemployment insurance. Nevertheless, you're not sure if you can still qualify if you quit to work insurance. If you can collect unemployment insurance, you want to leave quickly so that you may continue searching for a job and do some study to grasp the unemployment benefit insurance.

Should you quit or try and figure out if and when you are being dismissed?