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.

1. What different types of data can be part of a machine language instruction?

2. What are some differences between RISC and CISC computers?

3. What is the general architecture of most modern computers: VonNeumann, Harvard, or Modified Harvard?

4. What descriptors from 2 and 3 above would you use to classify today's personal computers?

5. Why is it important to know whether a machine is Big-Endian or Little Endian when converting 16-bit or 32-bit data from one type of machine to another?

6. Is a programmer concerned with the types and number of buses inside a CPU?

7. How large of a memory can be supported by each of a 16-bit, 32-bit, and 64-bit address bus ( both in K, M, G, and T and in the "real" number of addresses)?

8. Which addressing mode uses a register to specify the address of an instruction operand in memory: Indexed, Register, PC relative, or Immediate?

9. List 4 things that the processor's control unit does.

10. Why does a CPU need registers that are not accessible or programmable by a programmer?

11. List the steps that a CPU needs to go through in order to read a single data word from RAM.

12. What is the purpose of a bus inside of a CPU?

13. What type of special purpose computing device generally uses a Harvard architecture? Spell out the answer, an acronym is not enough

Case 6: Project Resource Management
Several people working on the Healthy You Intranet Project are confused about their responsibilities for the testing portion of the project. Recall that the team members include you, a programmer/analyst and junior/assistant project manager; Ivan, a network specialist; Helen, a business analyst; and Bonnie, another programmer/analyst. Paul Sparks is the project manager, and he has been working closely with managers in other departments to make sure everyone knows what’s going on with the project.
The main tasks for testing include writing a test plan, unit testing and integration testing for each of the main system modules (registration, tracking, and incentives), system testing, and user acceptance testing.
In addition to the project team members, a team of user representatives is available to help with testing, and Paul has also hired an outside consulting firm ABC Digital to help as needed.
One of the issues Paul identified is the ability to work effectively with the user group during testing. According to MBTI classifications, Paul knows that several of his project team members are very introverted and strong thinking types, while several members of the user group are very extroverted and strong feeling types.

Prepare a responsibility assignment matrix (RAM) based on the information from this case.
3. Prepare a RACI chart (use the template) to help clarify roles and responsibilities for these testing tasks. Document key assumptions you make in preparing the chart.

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

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 at least $50 per month on average. To test this claim, a random sample of 22 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 $44 and that the standard deviation in this this drop in premiums was calculated to be $12.00. At the .05 level of significance, is there sufficient evidence that the insurance company’s claim is false? In answering this question, complete the following in the spaces provided (including diagrams):

Please provide hypothesis, test staistic, decision rule, p-value, and conclusion.

Facts:

There is a home you want to purchase with a selling price of $220,000. You have saved $42,000 for a down payment. The bank charges 2 points on the balance of the note (before taking fees into account) in exchange for a 3% rate. The bank also charges financing fees of $800. You request that the fees and points be added to the balance of the mortgage, which the bank agrees to.

Required:

Based on the preceding facts, prepare an amortization table for the mortgage assuming a 30 year note, and another amortization table assuming a 15 year note. Assume you take the loan out on July 1, 2020, and the first payment is due July 31, 2020. For each note, calculate the effective interest rate assuming the note is held to maturity.

CP 9‐5

Paul’s Roofing Corporation paid monthly corporate income tax

installments of $500 commencing February 15, 2019. The company’s

income before income taxes for the year ended December 31, 2019

was $15,000. The corporate income tax rate is 40%. Paul’s Roofing paid

the 2019 corporate income taxes owing on January 31, 2020.

CHAPTER NINE / Debt Financing: Current and Non‐current Liabilities First US Edition

Required:

1. Record the February 15, 2019 payment.

2. Record the 2019 corporate income tax expense.

3. Record the January 31, 2020 payment.

Descriptions and general ledger account numbers are not necessary.

Show calculations where applicable.

Whispering Inc. reported the following pretax income (loss) and related tax rates during the years 2019–2022. Pretax Income (loss) Tax Rate 2019 $104,000 40 % 2020 (234,000) 40 % 2021 260,000 20 % 2022 130,000 20 % Pretax financial income (loss) and taxable income (loss) were the same for all years since Whispering began business. The tax rates from 2019–2022 were enacted in 2019. Partially correct answer iconYour answer is partially correct. Prepare the journal entries for the years 2020–2022 to record income taxes payable (refundable), income tax expense (benefit), and the tax effects of the loss carryforward. Assume that Whispering expects to realize the benefits of any loss carryforward in the year that immediately follows the loss year. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 2020 2021 2022 eTextbook and Media List of Accounts Partially correct answer iconYour answer is partially correct. Prepare the portion of the income statement, starting with “Operating loss before income taxes,” for 2020. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Whispering Inc. Income Statement (Partial) $ $ eTextbook and Media List of Accounts Partially correct answer iconYour answer is partially correct. Prepare the portion of the income statement, starting with “Income before income taxes,” for 2021. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Whispering Inc. Income Statement (Partial) $ $ $