DATA:

QUESTIONS:

1) Donnelly's Business Statistics has a data set concerning the revenue from a set of Nigerian cell phone customers. Use that data which is here to answer this question. What is the average revenue per customer? Answer to at least two decimal places.

2)Donnelly's Business Statistics has a data set concerning the revenue from a set of Nigerian cell phone customers. Use that data which is here to answer this question; the data set values are the revenue from the customers. What is the test statistic for the hypothesis that average revenue per customer is $11? Answer to at least two decimal places.

3) Donnelly's Business Statistics has a data set concerning the revenue from a set of Nigerian cell phone customers. Use that data which is here to answer this question; the data set values are the revenue from the customers. What is the positive version of the critical value for the hypothesis that average revenue per customer is $11 at the .05 level of significance? Answer to at least two decimal places.

Credit Card Sales Valderi’s Gallery sells quality art work, with prices for individual pieces ranging from $400 to $25,000. Sales are infrequent, typically only three to five pieces per week. The following transactions occurred during the first week of June 2015. Perpetual inventory is used.

On June 1, sold an $800 framed print ($500 cost) to Kerwin Antiques on account, with 2/10, n/30 credit terms.

On June 2, sold three framed etchings totaling $2,400 ($1,500 cost) to Maria Alvado, who used the United Merchants Card to charge the cost of the etchings. Valderi mailed the credit card sales slip to United Merchants the same day. United Merchants will send a check within seven days after deducting a one percent fee.

On June 4, sold a $1,900 oil painting ($1,000 cost) to Shaun Chandler, who paid with a personal check.

On June 5, sold a $2,000 watercolor ($1,500 cost) to Julie and John Malbie, who used their Great American Bank Card to charge the purchase of the painting. Valderi deposited the credit card sales slip the same day and received immediate credit in the company’s checking account. The bank charged a one percent fee.

On June 6, received payment from Kerwin Antiques for its June 1 purchase.

On June 7, received a check from United Merchants for the June 2 sale.

Required
Prepare journal entries to record the Valderi Gallery transactions.

During March, the Meade Consulting Corporation provides $23,000 in consulting services of which $12,000 is collected immediately and $11,000 is on account. The effects of this transaction on Meade Consulting Corporation’s accounts are:

a. Cash increases by $12,000; Accounts Receivable increases by $11,000; Revenue increases by $23,000.

b. Cash increases by $12,000; Unearned Revenue increases by $11,000; Revenue increases by $23,000

c. Accounts Receivable increases by $11,000; Revenue increases by $12,000; Contributed capital increases by $1,000

d. Accounts Receivable increases by $12,000; Accounts Payable increases by $11,000; Revenue increases by $1,000

A company has an asset account, Prepaid Insurance, with a balance of $4,000 at the beginning of the month. The company used $500 of insurance during the month. Which of the following statements is true about the month-end financial statements?  The company will have Insurance Expense of ______ and a balance in Prepaid Insurance of ______.

a.  $500; $500.

b. $500; $3,500.

c. $3,500; $500

d. $3,500; $4,000

Vernon Company has an opportunity to purchase a forklift to use in its heavy equipment rental business. The forklift would be leased on an annual basis during its first two years of operation. Thereafter, it would be leased to the general public on demand. Vernon would sell it at the end of the fifth year of its useful life. The expected cash inflows and outflows follow:

Required

1. a.&b. Determine the payback period using the accumulated and average cash flows approaches. (Round your answers to 1 decimal place.)

a. Payback period (accumulated cash flows) = ? years

b. Payback period (average cash flows) = ? years

a) Harris News receives payments on 3-month newspaper subscriptions of $9,000 on December 1. On December 1, Harris debits Cash $9,000 and credits Revenue $9,000. Adjusting entries are prepared monthly. At December 31, Harris will _______ Revenue for__________. **Show all steps/work in determining revenue amount.

b) Total Fitness Inc. sells $6,000 worth of 1-year club memberships on August 1, Year 1.Total Fitness's fiscal year ends December 31. The balance in the Unearned Revenue account at December 31, Year 1 is_______? **Show all steps/work in determining Unearned Revenue amount.

1.Revenue and profit are the same thing.

a.True

b.False

2.In the short run for a particular market, there are 300 firms. Each firm has a marginal cost of $30 when it produces 200 units of output. $30 is above every firm's average variable cost. One point on the market supply curve is

3.Profit maximizing quantity is the level of quantity where

4.Most of the firms in today's world are perfectly competitive.

a.True

b.False

5.For firms operating in a perfectly competitive market, price must always be greater than marginal revenue.

a.True

b.False

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

2. Suppose a video game company sells the following two products separately: console and headset. Through a consumer survey group, it has estimated that the following individuals value the two products at the following prices: Consumer Console Valuation Headset Valuation Louis $400 $45 Lois $300 $40 a) If the company prices the console at $400 each and the headset at $45 each, how much revenue will the firm receive? (2 points) b) If the company prices the console at $400 each and the headset at $40 each, how much revenue will the firm receive? (3 points) c) Suppose the company bundles the console and the headset together for a package price of $445 each. What would be the total revenue in this case? (2 points) d) Is there a bundle price at which both consumers will purchase the package that yields the highest revenue other than seen in a), b), or c)? If so, what will it be (bundle price and revenue)? If not, why not? (4 points)

Dudley Transport Company divides its operations into four divisions. A recent income statement for its West Division follows:

Required

By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eliminated?

Assume that West Division is able to increase its revenue to $324,000 by raising its prices. Determine the amount of the increase or decrease that would occur in companywide net income. Should West Division be eliminated if revenue were $324,000?

What is the minimum amount of revenue required to justify continuing the operation of West Division?

A: Income would INCREASE by _____?

B: Income would INCREASE by _____?

C: minimum amount of revenue _____?

On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C., for $220 million. The expected completion date is April 1, 2020, just in time for the 2020 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions):

Required:
1. Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements related to this contract assuming Sanderson recognizes revenue over time according to percentage of completion.
2. Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements related to this contract assuming this project does not qualify for revenue recognition over time.
3. Suppose the estimated costs to complete at the end of 2019 are $80 million instead of $60 million. Compute the amount of revenue and gross profit or loss to be recognized in 2019 using the percentage of completion method.

Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements related to this contract assuming Sanderson recognizes revenue over time according to percentage of completion. (Enter your answers in millions. Loss amounts should be indicated with a minus sign. Use percentages as calculated and rounded in the table below to arrive at your final answer.)

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Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements related to this contract assuming this project does not qualify for revenue recognition over time. (Enter your answers in millions. Loss amounts should be indicated with a minus sign.)

Suppose the estimated costs to complete at the end of 2019 are $80 million instead of $60 million. Compute the amount of revenue and gross profit or loss to be recognized in 2019 using the percentage of completion method. (Enter your answers in millions. Use percentages as calculated and rounded in the table below to arrive at your final answer.)