Define the three functions of money: medium of exchange, unit of account, and store of value. Which is most important for maintaining faith in our current monetary system? Explain.

What is not true about the Chinese communist government’s policies during the early years of its rule (1950s)? 

In his numerous books, D. T. Suzuki (1870–1966) mostly focused on this Buddhist tradition: 

Which famous American singer is best-known for his/her practice of Buddhism?

Describe what happened to Buddhism in China during the Cultural Revolution (roughly 1966 to 1976). What do you think about it?  (One paragraph, about five sentences, will suffice). 

ABC Corporation’s charter allows it to issue 25,000,000 shares of $50 par preferred stock and 5,000,000 shares of $10 par common stock. The company had the following stock transactions during the year: Issued 5,000 shares of common stock to the corporate founders in exchange for a building valued at $200,000 and equipment valued at $75,000. Sold 1,000 shares of preferred stock at $75 per share and 500 shares of common stock at par to an investor. Sold 4,000 shares of common stock for $25 per share. Issued 3,000 shares of common stock with a market value of $35 per share, and 500 shares of preferred stock with a market value of $75 per share, for a lump sum of $250,000. Purchased at $15 per share, 3,000 shares of ABC Corporation common stock. Sold 1,500 shares of treasury stock at $20 per share. Sold 1,500 shares of treasury stock at $8 per share. Required: Prepare journal entries for each transaction. No other transactions affected the stock accounts. Record all lump sum transactions using the proportional method and all treasury stock transactions using the cost method.

Hayes Corp. (lessor) is a manufacturer of truck trailers. On January 1, 2025, Hayes Corp. leases ten trailers to Lester Company (lessee) under a five-year noncancelable lease agreement. The following information about the lease and the trailers is provided: Equal annual payments that are due on January 1 each year (annuity due), with the first payment due at inception, provide Hayes Corp. with a 6% return on investment. The trailers revert to Hayes Corp. at the end of the lease. The fair value of each trailer is $50,000. The cost of each trailer to Hayes Corp. is $44,000. Each trailer has an expected useful life of nine years. There is an guaranteed residual value of $5,000 on each trailer. Collectibility of the lease payments is probable. Required: Calculate the annual lease payment. You may use Excel, a financial calculator, or the present value tables below to calculate the appropriate values. (Round to nearest dollar.) What type of lease is this for Hayes Corp.? Explain how you made the determination. Prepare a lease amortization schedule for Hayes Corp. covering the entire lease term. (Round to nearest dollar.) Prepare all journal entries for Hayes Corp. to record the lease activity for 2025.

ABC Corporation has the following information available concerning its defined-benefit pension plan for 2025. Service cost $45,000 Prior service cost in 2025 due to plan changes 100,000 Annual contribution to the plan 60,000 Amortization of prior service cost – OCI 40,000 Interest cost 57,000 Actual return on plan assets 28,000 Expected return on plan assets 26,000 Amortization of asset gains and losses – OCI 5,000 Actuarial loss in 2025 due to changes in assumptions 50,000 Benefits paid to retirees 120,000 Required: Compute ABC’s 2025 pension expense.

The following data were taken from the balance sheet accounts of ABC Company on December 31, 2024. Current assets $8,000,000 Debt investments (trading) 624,000 Common stock, $10 par, 500,000 shares issued and outstanding 5,000,000 Paid-in capital in excess of par – Common 1,200,000 Retained earnings 5,600,000 Shares of ABC Company stock are currently selling for $35. Required: Prepare the appropriate journal entries on the date of declaration only for each of the following: A stock dividend of 10% is declared. A stock dividend of 100% is declared. A 2-for-1 stock split is declared. A property dividend of bonds held as an investment with a book value of $100,000 and a fair value of $135,000 is declared.

Krause Company (lessee), on January 1, 2025, entered into an eight-year noncancelable lease for equipment having an estimated useful life of 10 years and a fair value of $4,000,000 at the inception of the lease. Daly Corp. (lessor) calculated the annual rental payments to yield a 10% return and Krause is aware of that rate. Krause’s incremental borrowing rate is 8%. Krause uses the straight-line method to depreciate its assets. The lease contains the following provisions: Annual rental payments of $665,716 are payable on the anniversary date of the lease (annuity due), with the first payment due at inception. A guarantee by Krause Company that Daly Corp. will realize $200,000 from selling the asset at the expiration of the lease. Krause estimates the residual value will be $125,000 at expiration. Required: What type of lease is this for Krause Company? Explain how you made the determination. What is the present value of the lease payments (a) for classification of the lease as either a finance or operating lease, and (b) for measurement of the lease liability? You may use Excel, a financial calculator, or the present value tables below to calculate the appropriate values. (Round to nearest dollar.) Prepare a lease amortization schedule for Krause Company covering the entire lease term. (Round to nearest dollar.) Prepare all journal entries for Krause Company to record the lease activity for 2025.