Boeing Company Essay

1.2) Boeing Company is the largest manufacturer of commercial aircraft in the United States and is a major employer in Seattle, Washington. Explain why each of the following individuals or organizations would be interested in financial information about the company. a. California Public Employees Retirement System. One of the world’s largest pension funds. They would be interested in Boeing’s financials to see how much the company contributes to their employee’s 401K plans. b. Chinese Airlines, a rapidly growing airline serving the Pacific Rim. Seeing the amount of sales that Boeing has, shows the reliability in their product through increased sales numbers. c. Henry James, a real estate investor considering building apartments in the Seattle area. Increased sales would mean the hiring rate would rise to meet workflow demands. This would be valuable because employees would need to relocate and would be looking for housing. d. Boeing’s management Reviewing the company’s financials allows the management to see where their losing or gaining money. It also allows them to assess in what areas they could possibly make investments. e. International Aerospace Machinists, a labor union representing many Boeing employees. This organization would find interest in their financials to make sure that the compensation of the employees is fair. In most cases when a union is involved, there is a percentage of compensation that has been agreed upon. 1.7) Financial accounting (i) Management accounting (h) Financial reporting (g) Financial statements (f) General-purpose assumption (b) Integrity (c ) Internal control (e) Public accounting (d) Bookkeeping (a) 2.3A Goldstar Communications was organized on December 1 of the current year and had the following account balances at December 31, listed in tabular form: Early in January, the following transactions were carried out by Goldstar Communications: 1. Sold capital stock to owners for $35,000. 2. Purchased land and a small office building for a total price of $90,000, of which $35,000 was the value of the land and $55,000 was the value of the building. Paid $22,500 in cash and signed a note payable for the remaining $67,500. 3. Bought several computer systems on credit for $9,500 (30-day open account). 4. Obtained a loan from Capital Bank in the amount of $20,000. Signed a note payable. 5. Paid the $28,250 account payable due as of December 31. Instructions a. List the December 31 balances of assets, liabilities, and owners’ equity in tabular form as shown. b. Record the effects of each of the five transactions in the format illustrated in Exhibit 2–11 . Show the totals for all columns after each transaction.