In Jan. 2020 Mary Jones was earning $40,000 in net income and spending $39,000 on a yearly basis. Mary Jones loses her job on April 1, 2020, and regains the same job ---at the same pay ---exactly six months later on October 1, 2020. During the six month layoff period, in the first three months, April, May and June, she earns $600 a week in EXTRA unemployment benefits -- IN ADDITION TO the $347 a week he earns, which is the average UI benefit for the workers in our state. Thus, for these 13 weeks, she earns $947 per week. In the next three months, July, August and September, she earns $347 per week in UI benefits. She and her family cut back on their spending by ten percent during the six months duration of unemployment, but then they go back to spending $39,000 on a yearly basis after he goes back to work. What is her net income level and spending level for 2020? What is his A.P.C. for the year?

In Jan. 2020 Mary Jones was earning $40,000 in net income and spending $39,000 on a yearly basis. Mary Jones loses her job on April 1, 2020, and regains the same job ---at the same pay ---exactly six months later on October 1, 2020. During the six month layoff period, in the first three months, April, May and June, she earns $600 a week in EXTRA unemployment benefits -- IN ADDITION TO the $347 a week he earns, which is the average UI benefit for the workers in our state. Thus, for these 13 weeks, she earns $947 per week. In the next three months, July, August and September, she earns $347 per week in UI benefits. She and her family cut back on their spending by ten percent during the six months duration of unemployment, but then they go back to spending $39,000 on a yearly basis after he goes back to work. What is her net income level and spending level for 2020? What is his A.P.C. for the year?

On January 1, 2020, Empress Bank granted a loan to a borrower. The interest on the loan is 10% payable annually starting on December 31, 2019. The loan matures in three years on December 31, 2022.

After considering the origination fee charged against the borrower and the direct origination cost incurred, the effective rate on the loan is 8%.

Determine the carrying amount of the loan on January 1, 2020. Use comma to separate figures.

For the following journal entries, do not compound entries. Use comma to separate figures.

Prepare journal entries for January 1, 2020.

Prepare journal entry for receipt of interest on December 31, 2020.

Prepare journal entry for amortization of direct origination cost in 2021. (One entry for interest and one entry for amortization. Do not compound entries.)

Prepare journal entry for receipt of payment of loan in 2022.

Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2017–2020 are as follows: Service Revenue Collections Pretax Accounting Income 2017 $ 610,000 $ 590,000 $ 150,000 2018 710,000 720,000 215,000 2019 675,000 650,000 185,000 2020 660,000 685,000 165,000 There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 40%. (Hint: You may find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2017–2020.) Required: 1. Prepare the appropriate journal entry to record Alsup's 2018 income taxes, Alsup’s 2019 income taxes and Alsup’s 2020 income taxes.

Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2017–2020 are as follows:

service revenue collections pre tax accounting income

There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 40%.

(Hint: You may find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2017–2020.) Required: 1. Prepare the appropriate journal entry to record Alsup's 2018 income taxes, Alsup’s 2019 income taxes and Alsup’s 2020 income taxes.

Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2017–2020 are as follows:

There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 40%.

(Hint: You may find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2017–2020.)

Journal entry worksheet:

Record 2018 income taxes.

Record 2019 income taxes.

Record 2020 income taxes.

Question 5 : The BT Partnership has decided to liquidate after an unsuccessful few years. The following balance sheet is shown for BT Partnership after the closing of the business and the preparation of financial statements on December 31, 2020. The partners share income and losses equally. Cash $1,000 Notes Payable $500 Truck 10,000 Less: Accumulated Depreciation 5,000 Bachman, Capital 3,000 Turner, Capital 2,500 Total Assets $6,000 Total Liabilities and Partner's equity $6,000 BT Partnerships Balance Sheet December 31, 2020 Assets Liabilities Partners' Equity The truck has been sold for $4,500 cash. REQUIRED: Prepare the journal entries for the sale of the inventory and the distribution of the cash to the proper parties on January 1, 2021 below. The partner does not have sufficient personal assets to pay any deficits.

On January 1, 2020, Land’s End Construction purchased a used truck for $52,500. A new motor had to be in- stalled to get the truck in good working order; the costs were $21,000 for the motor and $7,500 for the labour. The truck was also painted for $6,000. It was ready for use by January 4. A 12-month insurance policy costing $5,100 was purchased to cover the vehicle. The driver filled it with $225 of gas before taking it on its first trip. It is estimated that the truck has a five-year useful life and a residual value of $9,000. Land’s End uses the straight-line method to depreciate all of its vehicles. Prepare the entry to record the purchase of truck, insur- ance, and gas, and record the depreciation at year-end, December 31, 2020.

An automobile insurance company claimed that, because of the Covid-19 pandemic, resulting in less automobile driving, they have reduced the monthly premiums that they charged per automobile by more than $60 per month on average. To test this claim, a random sample of 25 automobile policies were allowed to be looked at. This random sample compared the monthly premiums in June, 2020, with the monthly payment before the pandemic (February, 2020) and it was calculated that the monthly premium in June dropped by an average of $63 and that the standard deviation in this this drop in premiums was calculated to be $10.00. At the .01 level of significance, is there sufficient evidence that the insurance company’s claim is true? In answering this question, complete the following in the spaces provided (including diagrams):

Hypotheses

Test statistic

Decision rule

p-value

Conclusion