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svet-max [94.6K]
3 years ago
9

The Japan-based multinational Sony engaged in _________ when it partnered with Shanghai Oriental Pearl Group. Together, the two

companies would make and market PlayStation consoles and games in China.
Business
1 answer:
KengaRu [80]3 years ago
6 0

The Japan-based multinational Sony engaged in a joint venture when it partnered with Shanghai Oriental Pearl Group.

<h3><u>Explanation:</u></h3>

A strategic alliance in which two or more firms enters into partnership refers to a Joint Venture. These enter into partnership mainly to share markets, assets, knowledge, assets and profits. There will not be any transfer of ownership in JV.

In this JV the companies that partners with each other just shares the resources for the purpose of the accomplishment of any tasks. These partners are usually responsible for the profits, losses and all the costs associated with the JV. The Japan-based multinational Sony engaged in a joint venture when it partnered with Shanghai Oriental Pearl Group.

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Date      Account titles and explanation      Debit          Credit

Jan 1, 2020 Unearned compensation       $565,000  

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Dec 31, 2020  Compensation    expenses      $113,000  

   To    Unearned compensation                                             $113,000

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Compensation expenses =$565,000 ÷ 5 years=   $113,000

To record the forfeiture

Date             Account titles and explanation          Debit                Credit

July 25, 2021   Common stock                               $113,000

Paid in capital in excess of par - common stock    $452,000

To Compensation expenses                                                             $113,000  

To Unearned compensation                                                            $452,000

Calculation:

Common stock ( 11,300 shares × $10)= $113,000

To Compensation expenses  $113,000  ($113,000 × 1 year) January 1, 2020-July 25, 2021,

Unearned compensation =fair value of $565,000 --Compensation expenses  of $113,000   =  $452,000

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