Questions
High school seniors with strong academic records apply to the nation's most selective colleges in greater...

High school seniors with strong academic records apply to the nation's most selective colleges in greater numbers each year. Because the number of slots remains relatively stable, some colleges reject more early applicants. Suppose that for a recent admissions class, an Ivy League college received 2851 applications for early admission. Of this group, it admitted 1033 students early, rejected 854 outright, and deferred 964 to the regular admission pool for further consideration. In the past, this school has admitted 18% of the deferred early admisiion applicants during the regular admission process. Counting the students admitted early and the students admitted during the regular admission process, the total class size was 2375. Let E, R, and D represent the events that a student who applies for early admissions is admitted early, rejected outright, or deferred to the regular admissions pool. A) Use data to estimate P(E), P(R), and P(D). B) Are events E and D mutually exclusive? Find P(EUD). C) For the 2375 students who were admitted, what is the probability that a randomly selected student was accepted during early admission? D) SUppose a student applies for early admission. What is the probability that the students will be admitted for early admission or be deferred and later admitted during the regular admission process?

In: Statistics and Probability

Clinton Summerhayes is CFO for a newly formed golf club manufacturing company. Below is the anticipated...

Clinton Summerhayes is CFO for a newly formed golf club manufacturing company. Below is the anticipated monthly production for the first year of operation, and beyond. Clinton is interested in learning which of the first twelve months will require cash outlays of more than $20,000 toward the purchase of composite shafts. Each unit requires 4 board feet of composite material at $16.55 per board foot. All composite material is purchased in the month prior to its expected use. Composite shaft purchases are paid for 20% in the month of purchase, 70% in the month following the month of purchase, and 10% in the second month following the month of purchase.

Month

Units

January

0

February

400

March

200

April

375

May

520

June

220

July

400

August

350

September

320

October

220

November

160

December

300

January

240

Which months will require cash outlays in excess of the $20,000 amount? Does the production in any given month necessarily correspond to the cash flow for that same month? What are the business implications of your observation?

Worksheet 4

Anticipated cash payments

Units

Purchasing Activity

Total Board Feet
(4 per unit)

Total Cost of Composite Shafts
($15.70 per foot)

Paid in Month
(15%)

Paid in Month Relating to Prior
(80%)Month

Paid in Month Relating to Two Months Prior
(5%)

Total

January

February

March

April

May

June

July

August

September

October

November

December

January

In: Accounting

In its published SEC 10-K Balance Sheet for the FY 2015, Alpha Company, had the following...

In its published SEC 10-K Balance Sheet for the FY 2015, Alpha Company, had the following balances (all balances are normal):

Accounts

Amount

Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 8,000 shares issued and outstanding)

$800,000

Common Stock ($10 par value, 200,000 shares authorized, 120,000 shares issued and outstanding)

$1,200,000

Paid-in Capital in Excess of par, Common

150,000

Retained Earnings

700,000

The following are related events that occurred during 2016:

January 2, Alpha declared a 10% stock dividend on its common stock when Alpha's common stock was trading for $15 per share on that day. Stock dividends were distributed on January 31 to shareholders as of January 25.

February 29, Alpha reacquired 1,000 shares of common stock for $22 each.

March 31, Alpha reissued 350 shares of treasury stock for $25 each.

July 1, Alpha reissued 400 shares of treasury stock for $19 each.

October 1, Alpha declared full year cash dividends for preferred stock and $1.50 cash dividends for outstanding shares and paid shareholders on October 15.

December 1, issued 10,000 shares of common stock for equipment with a sticker price of $210,000. Alpha's common stock was trading at $20 per share that day.

Net Income for 2016 was $250,000

Use this information to prepare General Journal entries, without explanations, for the 2016 noted transactions

In: Accounting

In its published SEC 10-K Balance Sheet for the FY 2015, Alpha Company, had the following...

In its published SEC 10-K Balance Sheet for the FY 2015, Alpha Company, had the following balances (all balances are normal):

Accounts

Amount

Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 8,000 shares issued and outstanding)

$800,000

Common Stock ($10 par value, 200,000 shares authorized, 120,000 shares issued and outstanding)

$1,200,000

Paid-in Capital in Excess of par, Common

150,000

Retained Earnings

700,000

The following are related events that occurred during 2016:

January 2, Alpha declared a 10% stock dividend on its common stock when Alpha's common stock was trading for $15 per share on that day. Stock dividends were distributed on January 31 to shareholders as of January 25.

February 29, Alpha reacquired 1,000 shares of common stock for $22 each.

March 31, Alpha reissued 350 shares of treasury stock for $25 each

July 1, Alpha reissued 400 shares of treasury stock for $19 each.

October 1, Alpha declared full year cash dividends for preferred stock and $1.50 cash dividends for outstanding shares and paid shareholders on October 15.

December 1, issued 10,000 shares of common stock for equipment with a sticker price of $210,000. Alpha's common stock was trading at $20 per share that day.

Net Income for 2016 was $250,000

Use this information to prepare General Journal entries, without explanations, for the 2016 noted transactions.

In: Accounting

After the success of the company’s first two months, Santana Rey continues to operate Business Solutions....

After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2019, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2019) follows.

No. Account Title Debit Credit
101 Cash $ 38,264
106 Accounts receivable 12,618
126 Computer supplies 2,545
128 Prepaid insurance 2,220
131 Prepaid rent 3,300
163 Office equipment 8,000
164 Accumulated depreciation—Office equipment $ 0
167 Computer equipment 20,000
168 Accumulated depreciation—Computer equipment 0
201 Accounts payable 0
210 Wages payable 0
236 Unearned computer services revenue 0
307 Common stock 73,000
318 Retained earnings 0
319 Dividends 5,600
403 Computer services revenue 25,659
612 Depreciation expense—Office equipment 0
613 Depreciation expense—Computer equipment 0
623 Wages expense 2,625
637 Insurance expense 0
640 Rent expense 0
652 Computer supplies expense 0
655 Advertising expense 1,728
676 Mileage expense 704
677 Miscellaneous expenses 250
684 Repairs expense—Computer 805
Totals $ 98,659 $ 98,659


Business Solutions had the following transactions and events in December 2019.

Dec. 2 Paid $1,025 cash to Hillside Mall for Business Solutions’ share of mall advertising costs.
3 Paid $500 cash for minor repairs to the company’s computer.
4 Received $3,950 cash from Alex’s Engineering Co. for the receivable from November.
10 Paid cash to Lyn Addie for six days of work at the rate of $125 per day.
14 Notified by Alex’s Engineering Co. that Business Solutions’ bid of $7,000 on a proposed project has been accepted. Alex’s paid a $1,500 cash advance to Business Solutions.
15 Purchased $1,100 of computer supplies on credit from Harris Office Products.
16 Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8.
20 Completed a project for Liu Corporation and received $5,625 cash.
22–26 Took the week off for the holidays.
28 Received $3,000 cash from Gomez Co. on its receivable.
29 Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 per mile).
31 The company paid $1,500 cash in dividends.


The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company’s first three months.

  1. The December 31 inventory count of computer supplies shows $580 still available.
  2. Three months have expired since the 12-month insurance premium was paid in advance.
  3. As of December 31, Lyn Addie has not been paid for four days of work at $125 per day.
  4. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
  5. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
  6. Three of the four months' prepaid rent have expired.


Required:

1. Prepare journal entries to record each of the December transactions and events for Business Solutions.
2-a. Prepare adjusting entries to reflect a through f.
2-b.Post the journal entries to record each of the December transactions from Requirement 1 and adjusting entries from Requirement 2A.  

In: Accounting

After the success of the company’s first two months, Santana Rey continues to operate Business Solutions....

After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2017, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2017) follows.

No. Account Title Debit Credit
101 Cash $ 38,764
106 Accounts receivable 13,418
126 Computer supplies 2,545
128 Prepaid insurance 2,040
131 Prepaid rent 3,140
163 Office equipment 8,000
164 Accumulated depreciation—Office equipment $ 0
167 Computer equipment 21,600
168 Accumulated depreciation—Computer equipment 0
201 Accounts payable 0
210 Wages payable 0
236 Unearned computer services revenue 0
307 Common stock 71,000
318 Retained earnings 0
319 Dividends 5,900
403 Computer services revenue 29,989
612 Depreciation expense—Office equipment 0
613 Depreciation expense—Computer equipment 0
623 Wages expense 2,275
637 Insurance expense 0
640 Rent expense 0
652 Computer supplies expense 0
655 Advertising expense 1,718
676 Mileage expense 654
677 Miscellaneous expenses 230
684 Repairs expense—Computer 705
Totals $ 100,989 $ 100,989

Business Solutions had the following transactions and events in December 2017.   

Dec. 2 Paid $980 cash to Hillside Mall for Business Solutions’ share of mall advertising costs.
3 Paid $480 cash for minor repairs to the company’s computer.
4 Received $4,750 cash from Alex’s Engineering Co. for the receivable from November.
10 Paid cash to Lyn Addie for six days of work at the rate of $110 per day.
14 Notified by Alex’s Engineering Co. that Business Solutions’ bid of $7,900 on a proposed project has been accepted. Alex’s paid a $1,900 cash advance to Business Solutions.
15 Purchased $1,500 of computer supplies on credit from Harris Office Products.
16 Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8.
20 Completed a project for Liu Corporation and received $5,975 cash.
22–26 Took the week off for the holidays.
28 Received $3,900 cash from Gomez Co. on its receivable.
29 Reimbursed S. Rey for business automobile mileage (500 miles at $0.29 per mile).
31 The company paid $1,200 cash in dividends.

The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company’s first three months:

The December 31 inventory count of computer supplies shows $590 still available.

Three months have expired since the 12-month insurance premium was paid in advance.

As of December 31, Lyn Addie has not been paid for four days of work at $110 per day.

The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.

The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.

Three of the four months' prepaid rent has expired.


Required:
5. Prepare a statement of retained earnings for the three months ended December 31, 2017.
6. Prepare a balance sheet as of December 31, 2017.
7. Record and post the necessary closing entries as of December 31, 2017.
8. Prepare a post-closing trial balance as of December 31, 2017.

In: Accounting

After the success of the company’s first two months, Santana Rey continues to operate Business Solutions....

After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2015, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2015) follows.
No. Account Title Debit Credit
101   Cash $ 38,864
106   Accounts receivable 12,818
126   Computer supplies 2,545
128   Prepaid insurance 2,040
131   Prepaid rent 3,180
163   Office equipment 8,900
164   Accumulated depreciation—Office equipment $ 0
167   Computer equipment 23,200
168   Accumulated depreciation—Computer equipment 0
201   Accounts payable 0
210   Wages payable 0
236   Unearned computer services revenue 0
307   Common stock 67,000
318   Retained earnings 0  
319   Dividends 5,900
403   Computer services revenue 36,279
612   Depreciation expense—Office equipment 0
613   Depreciation expense—Computer equipment 0
623   Wages expense 2,475
637   Insurance expense 0
640   Rent expense 0
652   Computer supplies expense 0
655   Advertising expense 1,688
676   Mileage expense 644
677   Miscellaneous expenses 240
684   Repairs expense—Computer 785
   
  Totals $ 103,279   $ 103,279  
  

Question: Already have adjusting entries, just need help with Adjusted Trial Balance, Income Statement, Retained Earnings, Balance Sheet, and Post Closing Trial Balance.

Business Solutions had the following transactions and events in December 2015.  
Dec. 2   Paid $975 cash to Hillside Mall for Business Solutions’ share of mall advertising costs.
3   Paid $480 cash for minor repairs to the company’s computer.
4   Received $4,650 cash from Alex’s Engineering Co. for the receivable from November.
10    Paid cash to Lyn Addie for six days of work at the rate of $110 per day.
14

  Notified by Alex’s Engineering Co. that Business Solutions’ bid of $8,000 on a proposed    project has been accepted. Alex’s paid a $1,800 cash advance to Business Solutions.
15   Purchased $1,200 of computer supplies on credit from Harris Office Products.
16   Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8.
20   Completed a project for Liu Corporation and received $6,575 cash.
22–26   Took the week off for the holidays.
28   Received $3,100 cash from Gomez Co. on its receivable.
29   Reimbursed S. Rey for business automobile mileage (500 miles at $0.32 per mile).
31   The company paid $1,400 cash in dividends.

The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company’s first three months:
a. The December 31 inventory count of computer supplies shows $600 still available.
b. Three months have expired since the 12-month insurance premium was paid in advance.
c. As of December 31, Lyn Addie has not been paid for four days of work at $110 per day.
d. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
e. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
f. Three of the four months' prepaid rent has expired.

In: Accounting

After the success of the company’s first two months, Santana Rey continues to operate Business Solutions....

After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2015, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2015) follows.
No. Account Title Debit Credit
101   Cash $ 38,864
106   Accounts receivable 12,818
126   Computer supplies 2,545
128   Prepaid insurance 2,040
131   Prepaid rent 3,180
163   Office equipment 8,900
164   Accumulated depreciation—Office equipment $ 0
167   Computer equipment 23,200
168   Accumulated depreciation—Computer equipment 0
201   Accounts payable 0
210   Wages payable 0
236   Unearned computer services revenue 0
307   Common stock 67,000
318   Retained earnings 0  
319   Dividends 5,900
403   Computer services revenue 36,279
612   Depreciation expense—Office equipment 0
613   Depreciation expense—Computer equipment 0
623   Wages expense 2,475
637   Insurance expense 0
640   Rent expense 0
652   Computer supplies expense 0
655   Advertising expense 1,688
676   Mileage expense 644
677   Miscellaneous expenses 240
684   Repairs expense—Computer 785
   
  Totals $ 103,279   $ 103,279  
  

Question: Need help on how to post the following adjusting entries below.

Business Solutions had the following transactions and events in December 2015.  
Dec. 2   Paid $975 cash to Hillside Mall for Business Solutions’ share of mall advertising costs.
3   Paid $480 cash for minor repairs to the company’s computer.
4   Received $4,650 cash from Alex’s Engineering Co. for the receivable from November.
10    Paid cash to Lyn Addie for six days of work at the rate of $110 per day.
14

  Notified by Alex’s Engineering Co. that Business Solutions’ bid of $8,000 on a proposed    project has been accepted. Alex’s paid a $1,800 cash advance to Business Solutions.
15   Purchased $1,200 of computer supplies on credit from Harris Office Products.
16   Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8.
20   Completed a project for Liu Corporation and received $6,575 cash.
22–26   Took the week off for the holidays.
28   Received $3,100 cash from Gomez Co. on its receivable.
29   Reimbursed S. Rey for business automobile mileage (500 miles at $0.32 per mile).
31   The company paid $1,400 cash in dividends.

The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company’s first three months:
a. The December 31 inventory count of computer supplies shows $600 still available.
b. Three months have expired since the 12-month insurance premium was paid in advance.
c. As of December 31, Lyn Addie has not been paid for four days of work at $110 per day.
d. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
e. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
f. Three of the four months' prepaid rent has expired.

In: Accounting

A large share of the world supply of diamonds comes from Russia and South Africa. Suppose...

A large share of the world supply of diamonds comes from Russia and South Africa. Suppose that the marginal cost of mining diamonds is constant at $2,000 per diamond, and the demand for diamonds is described by the following schedule:

Price Quantity (Dollars) Quantity(Diamonds)

8000 2000

7000 3000

6000 4000

5000 5000

4000 6000

3000 7000

2000 8000

1000 9000

If there were many suppliers of diamonds, the price would be _____ per diamond and the quantity sold would be _____ diamonds. If there were only one supplier of diamonds, the price would be _____ per diamond and the quantity sold would be _____ diamonds. Suppose Russia and South Africa form a cartel. In this case, the price would be _____ per diamond and the total quantity sold would be _____ diamonds. If the countries split the market evenly, South Africa would produce _____ diamonds and earn a profit of _____.

If South Africa increased its production by 1,000 diamonds while Russia stuck to the cartel agreement, South Africa's profit would ____ to ______. Why are cartel agreements often not successful?

One party has an incentive to cheat to make more profit.

Different firms experience different costs.

All parties would make more money if everyone increased production.

In: Economics

A large share of the world supply of diamonds comes from Russia and South Africa. Suppose...

A large share of the world supply of diamonds comes from Russia and South Africa. Suppose that the marginal cost of mining diamonds is constant at $2,000 per diamond, and the demand for diamonds is described by the following schedule:

Price

Quantity

(Dollars)

(Diamonds)
8,000 2,000
7,000 3,000
6,000 4,000
5,000 5,000
4,000 6,000
3,000 7,000
2,000 8,000
1,000 9,000

If there were many suppliers of diamonds, the price would beper diamond and the quantity sold would be

diamonds.

If there were only one supplier of diamonds, the price would beper diamond and the quantity sold would be

diamonds.

Suppose Russia and South Africa form a cartel.

In this case, the price would beper diamond and the total quantity sold would bediamonds. If the countries split the market evenly, South Africa would producediamonds and earn a profit of

.

If South Africa increased its production by 1,000 diamonds while Russia stuck to the cartel agreement, South Africa's profit would   to

.

Why are cartel agreements often not successful?

Different firms experience different costs.

One party has an incentive to cheat to make more profit.

All parties would make more money if everyone increased production.

In: Economics