A company receives payment from one of its customers on August 5 for services performed on July 21. Which of the following entries would be recorded if the company uses accrual basis accounting?

A  

B

C

D

Which of the following accounts would be used under the accrual basis of accounting, but not under cash basis accounting?

A) Cash

B) Unearned Revenue

C) Service Revenue

D) Salaries Expense

What is the difference between cash basis accounting and accrual basis accounting?

The revenue recognition principle guides accountants in ________.

A) ensuring only revenues received in cash are recorded

B) determining when to record expenses

C) determining when to record revenues

D) ensuring expenses are deducted from revenues

Below is a spreadsheet that has the annual return measured for 12 different stock investments. The spreadsheet shows the average return and standard deviation of the return for the past 15 years. Use this spreadsheet and spreadsheet commands to do the following:

Compute the return for each year on a portfolio that contains an equal investment in all 12 securities.

Compute the 15-year average return and standard deviation of return for the portfolio that consists of all 12 securities with equally weighted investment.

Compute the correlation and covariance between the return on company #12 and the return on the equally-weighted portfolio. Hint: There is a spreadsheet command that does this calculation.

Compute the beta of Company #12 using the information you have collected.

Now using the beta you created for Company #12, compute the required rate of return using the Capital Asset Pricing Model (CAPM), assuming that the average market return is the return of your equally-weighted portfolio and the risk-free rate of return is 2.5%.

If you were told analysts estimate that Company #12 will have a 5% rate of return next year, would you buy the stock? Why or why not?

COMPUTE ALL CALCULATIONS IN AN EXCEL SPREADSHEET AND POST IT HERE, THANK YOU

Job Order Costing and T-accounts

Arnold Company makes cabinets to customer order. Arnold applies overhead at the rate of 20% of direct labor cost. Jobs are marked up at 30% over cost.

On July 1, Finished Goods inventory consisted of Job 68, costing $9,300. Work in Process inventory consisted of three jobs: Job 70 for $3,200, Job 71 for $1,400, and Job 72 for $700.

During the month of July, Arnold worked on six jobs with the following direct materials and direct labor for the month:

Jobs 70, 71, 73 and 74 were completed during July. Jobs 68, 70, 71 and 74 were sold. (All completed jobs are first transferred to Finished Goods, then to Cost of Goods Sold as they are sold.)

Fill in the following job cost sheet and calculate the total cost by July 31 for each job.

Enter the appropriate numbers to the correct T-accounts for Work-in-Process, Finished Goods and Cost of Goods Sold for each of the following: (Hint: when entering amounts for a transaction that includes more than one job, enter them in order of the job number. That is, if a transaction included amounts for Jobs 70 and 72, the amount for Job 70 would be entered before the amount for Job 72.)

Use the Interactive Graph to answer the following questions:

If direct labor added to Job 73 equaled $2,400, the ending balances of each of the following accounts would be affected in what way?

If the overhead rate based on direct labor was 40%, the ending balances of each of the following accounts would be affected in what way?

1. Regarding trade and tariffs:
   1. Draw the supply and demand curves for apples in Denmark using the below demand and supply schedule, and show on the graph the autarky equilibrium price and quantity.

2. If the world price is $2 and Denmark opens up to free trade, how many apples will they produce, how many will they consume, and how many apples will be traded?
3. Describe the effects of allowing free trade by explaining the change in the producer surplus and consumer surplus. Show on the graph. Who are the winners and losers? Is there a net benefit or net loss?
4. If Denmark adds a tariff of 50% on apples, then what is the new price, how many apples will Denmark produce, how many will they consume, and how many apples will be traded?
5. Describe the effects of the tariff by explaining the change in the producer surplus, consumer surplus, government revenue, and deadweight loss. Show on the graph. Who are the winners and losers? Does the tariff create a net benefit or a net loss?

P18.8 (LO 2, 3) (Time Value, Gift Cards, Discounts) Presented below are two independent revenue arrangements for Colbert Company.

Instructions
Respond to the requirements related to each revenue arrangement.

Colbert sells 20 nonrefundable $100 gift cards for 3D printer paper on March 1, 2020. The paper has a standalone selling price of $100 (cost $80). The gift cards expiration date is June 30, 2020. Colbert estimates that customers will not redeem 10% of these gift cards. The pattern of redemption is as follows.

Redemption Total
March 31
50%
April 30
80%
June 30
85%
Prepare the 2020 journal entries related to the gift cards at March 1, March 31, April 30, and June 30.

A national newspaper reported that the state with the longest mean life span is Hawaii, where the population mean life span is 74 years. A random sample of 20 obituary notices in the Honolulu Advertizer gave the following information about life span (in years) of Honolulu residents.

(i) Use a calculator with sample mean and standard deviation keys to find x and s. (Round your answers to two decimal places.)

(ii) Assuming that life span in Honolulu is approximately normally distributed, does this information indicate that the population mean life span for Honolulu residents is less than 74 years? Use a 5% level of significance.

(a) What is the level of significance?


State the null and alternate hypotheses.

H₀: μ = 74 yr; H₁: μ > 74 yrH₀: μ = 74 yr; H₁: μ < 74 yr    H₀: μ = 74 yr; H₁: μ ≠ 74 yrH₀: μ > 74 yr; H₁: μ = 74 yrH₀: μ < 74 yr; H₁: μ = 74 yr

(b) What sampling distribution will you use? Explain the rationale for your choice of sampling distribution.

The Student's t, since we assume that x has a normal distribution and σ is unknown.The standard normal, since we assume that x has a normal distribution and σ is known.    The standard normal, since we assume that x has a normal distribution and σ is unknown.The Student's t, since we assume that x has a normal distribution and σ is known.

What is the value of the sample test statistic? (Round your answer to three decimal places.)


(c) Estimate the P-value.

P-value > 0.2500.100 < P-value < 0.250    0.050 < P-value < 0.1000.010 < P-value < 0.050P-value < 0.010

Sketch the sampling distribution and show the area corresponding to the P-value.

(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level α?

At the α = 0.05 level, we reject the null hypothesis and conclude the data are statistically significant.At the α = 0.05 level, we reject the null hypothesis and conclude the data are not statistically significant.    At the α = 0.05 level, we fail to reject the null hypothesis and conclude the data are statistically significant.At the α = 0.05 level, we fail to reject the null hypothesis and conclude the data are not statistically significant.

(e) Interpret your conclusion in the context of the application.

There is sufficient evidence at the 0.05 level to conclude that the population mean life span of Honolulu residents is less than 74 years.There is insufficient evidence at the 0.05 level to conclude that the population mean life span of Honolulu residents is less than 74 years.    

Suppose overall health care spending rose from $7000 per person in 2006 to $7700 per person in 2007. [1] Calculate both the absolute change and percentage change in health care spending per person from 2006 to 2007. [2] Using 2006 as your starting year (2006 = year 0), determine an exponential equation that calculates the amount of health care spending over time assuming the annual percentage change stays the same. Clearly identify the variable names and symbols in your equation. [3] Using 2006 as your starting year (2006 = year 0), determine a linear equation that calculates the amount of health care spending over time assuming the annual absolute change stays the same. Clearly identify the variable names and symbols in your equation. [4] Create an Excel spreadsheet to compare the two growth models’ predictions for health care spending through the year 2021. Include a chart showing both models. Please clearly indicate the question number on your excel file and attach it to the test. [5] Which model first predicts that U.S. health care spending will reach a level of $10,000 per person? In what year will that occur?

Question 7
Carna Ltd is a listed diversified retail company. Its stores are located mainly in Australia. It
has three main types of stores: general department stores, liquor stores, and specialist toy
stores. Each of these stores has different products, customer types, and distribution processes.
In accordance with AASB 8/IFRS 8, Carna Ltd has identified three operating segments:
general stores, liquor stores, and toy stores.

All three business units earn most of their revenue from external customers. Total
The consolidated revenue of Carna Ltd is $400 million.

General Liquor   Toy   All segments
$m $m $m   $m

Revenue 250 110 40    400
Segment result (profit) 14 5 3 21
Assets 400 170 75 650

Required:
Identify Carna Ltd’s reportable segments in accordance with AASB 8/IFRS 8. Explain
your answer.

Cost Flow Methods

The following three identical units of Item PX2T are purchased during April:

Assume that one unit is sold on April 27 for $91. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost method.

Lower-of-Cost-or-Market Method

On the basis of the following data, determine the value of the inventory at the lower-of-cost-or-market by applying lower-of-cost-or-market to each inventory item, as shown in Exhibit 10.

$ ANSWER HERE

Download data for Namibia, Nigeria and Germany from the World Bank’s Global Financial Development database (codes are given below) for the period 2010 to 2014. Also download data for the three countries on real GDP per capita (current US$) for the same period from the World Development Indicators database, and present the all data in a table. Use the data to analyze the whether the three financial systems are bank-based or market-based. (Your write up should not exceed one and half typed pages). Financial system structure in terms of: Structure-Activity: 1) Total value traded ratio, which equals the value of domestic equities traded on domestic exchanges divided by GDP (%). (code: gfdddm02) 2) Bank credit ratio, which equals private credit by deposit money banks and other financial institutions to GDP (%). (code: gfdddi12) Structure-Size: 1) Stock market capitalization ratio, which equals the value of domestic equities listed on domestic exchanges divided by GDP (%). (code: gfdddm01) 2) Bank credit ratio, which equals private credit by deposit money banks and other financial institutions to GDP (%). (code: gfdddi12) Structure-Efficiency: 1) Total value traded ratio, which equals the value of domestic equities traded on domestic exchanges divided by GDP (%).(code: gfdddm02) 2) Bank interest margins, measured as the value of banks’ net interest revenue as a share of average interest earning assets (%). (code:gfddei01) Required: 2 1) Calculate averages for all your variables for each country. 2) Calculate the ratio of total value traded ratio to bank credit ratio for each country, and interpret your answers. 3) Calculate the ratio of stock market capitalization ratio to bank credit ratio for each country, and interpret your answers. 4) Calculate the ratio of total value traded ratio to bank interest margins for each country, and interpret them. 5) Explain what happens to the structure of the financial system as countries become richer. Are there any observable patterns?