Starship enterprises enters into the following transactions during 2016 and 2017: 2016 jan.1: purchased $100,000 face value of northern lights inc. bonds at face value. the newly issued bonds have an interest rate of 8% paid semiannually on june 30 and december 31. the bonds mature in five years. june 30: received interest on the northern lights inc. bonds. dec. 31: received interest on the northern lights inc. bonds. jan 1: sold the northern lights inc. bonds for $102,000. required: 1. prepare all necessary journal entries on starship’s records to account for its investment in the northern lights bonds. 2. why was starship able to sell its northern lights bonds for $102,000?

You are the manager in charge of global operations at bankglobal – a large commercial bank that operates in a number of countries around the world. you must decide whether or not to launch a new advertising campaign in the u. s. market. your accounting department has provided the accompanying statement, which summarizes the financial impact of the advertising campaign on u. s. operations. in addition, you recently received a call from a colleague in charge of foreign operations, and she indicated that her unit would lose $8 million if the u. s. advertising campaign were launched. your goal is to maximize bankglobal’s value. should you launch the new campaign? explain. pre-advertising campaign post-advertising campaign total revenues $18,610,900 $31,980,200 variable cost tv airtime 5,750,350 8,610,400 ad development labor 1,960,580 3,102,450 total variable costs 7,710,930 11,712,850 direct fixed cost depreciation – computer equipment 1,500,000 1,500,000 total direct fixed cost 1,500,000 1,500,000 indirect fixed cost managerial salaries 8,458,100 8,458,100 office supplies 2,003,500 2,003,500 total indirect fixed cost $10,461,600 $10,461,600