Part I

(1) Jill, a supervisor at a construction company, distributes payroll and has authority to hire and fire employees. How might the owner of the construction company determine whether Jill has fictitious employees on the payroll and is secretly cashing their payroll checks for herself?

(2) Please explain why it is desirable to have at least two officials approve pay rate changes.

Part II

Jet-Clean sold washing machines totaling $1 million. Each washing machine carries a three-year warranty. Jet-Clean estimates that warranty repairs on the washing machines will cost 1 percent of the sales price.

   (1) Record the entry to accrue Jet-Clean’s warranty costs.

   (2) Jet-Clean paid $750 for washing machine repairs under warranty. Please record this entry.

Stoney Run Construction Company (U.S. GAAP) enters into a 3-year contract to build a new warehouse facility. Information for Years 1, 2, and 3 is shown below:

Question 4:

Calculate the gross profit booked in Year 2:

Question 5:

Book the following journal entries for Year 2:

1-Record costs incurred

2-Record billings on contract

3-Record payments received

4-Record revenue/cost during construction period

Construction Documents Review

17. Definitions; Submittal, Constructability, Vented soffit, Specifier, Lead time, etc.

18. Four levels of certification for Green projects? Three levels of credentials for individuals?

19. Four Insurances required at minimum for Construction Projects?

20. Three Bonds required for Construction projects?

Kabul Star Hotel adjusts its accounts on a monthly basis. Most guests pay at the time they check out, and the amount collected is credited to Rental Revenue. A few guests pay in advance for rooms and these amounts are credited to Unearned Rental Revenue at the time of receipt.

a: Salaries earned by employees but not paid amount to $20,000.

b: As of Dec 31, Kabul Star Hotel has earned $11,000 rental revenue but has not received any amount yet.

c: On Dec 1, a room was rented to a corporation for six months at a monthly rental of $5,000. The entire six month rental of $30,000 was collected in advance and credited to Unearned Rental Revenue.

d: A Corolla Car to carry guests to and from the airport had been rented on Dec 15, at a daily rate of $250. No rental payment has yet been made.

e: Depreciation on the Hotel’s building is based on an estimated useful life of 15 years. The original cost of the building was $500,000 and a residual value of $50,000.

f: A one-year fire insurance policy had been purchased on Dec. 1, The premium of $24,000 for the entire life of the policy had been paid on Dec. 1 and recorded as Unexpired Insurance.

Instructions:

1. Prepare adjusting entries of the above transactions.

2. Prepare adjusted Trial Balance.

3. Prepare Financial Statements (Balance Sheet & Income Statement).

4. Prepare closing entries and prepare after closing trial balance.

Purpose: The purpose of this lab is to study the behavior of static electric charges.

The answers to these questions can be found by watching the videos for PHY124 Lab # 7 Electric Charges. Read each of the statements below and type in the answers to the questions that follow.

When a charged rubber rod is brought near the top of an uncharged electroscope the leaves spread apart. When the rubber rod is removed from the location near the top of the electroscope the leaves fall back down. (Note: the rubber rod will have a net negative charge after being rubbed with the fur.)

1. This is caused by the movement of what electrically charged particle?

2.When rubber rod is brought near the electroscope, the electrically charged particles that moved (the ones that are the answer to question # 1 above) move from what to where?

3.Why do the leaves spread apart when the charged rubber rod is brought near the top of the uncharged electroscope?

4.When the charged rubber rod is removed from the location near the top of the electroscope, between what locations are the electrically charged particles moving as the leaves fall back down?

5. Why do the leaves fall back down after the charged rubber rod is removed from the location near the top of the electroscope?

When a charged glass rod is brought near the top of an uncharged electroscope the leaves spread apart. When the glass rod is removed from the location near the top of the electroscope the leaves fall back down. (Note: the glass rod will have a net positive charge after being rubbed with the silk.)

6. This is caused by the movement of what electrically charged particle?

7.When glass rod is brought near the electroscope, the electrically charged particles that moved (the ones that are the answer to question # 6 above) move from what to where?

8.Why do the leaves spread apart when the charged glass rod is brought near the top of the uncharged electroscope?

9.When the charged glass rod is removed from the location near the top of the electroscope, between what locations are the electrically charged particles moving as the leaves fall back down?

10.Why do the leaves fall back down after the charged glass rod is removed from the location near the top of the electroscope?

When a charged glass rod is carefully dragged across the ball at the top of an uncharged electroscope and then removed from the location of the electroscope the leaves spread apart and stay apart.

11. The electric charges that moved under these conditions have moved from what to where?

If after charging the electroscope with the glass rod, the glass rod is recharged and brought near the top of the electroscope, the leaves at the bottom of the electroscope try to spread apart even further.

12.Between what locations are the electric charges moving? (I am referring only to the electric charges that are actually moving when the recharged glass rod is brought near the top of the electroscope.)

If after charging the electroscope with the glass rod, the rubber rod is charged and brought near the top of the electroscope, the leaves at the bottom of the electroscope will fall down.

13. What is happening to cause the leaves to fall when the charged rubber rod is initially brought near the top of the electroscope? (This is done after the electroscope has been charged with the glass rod.)

If the charged rubber rod is brought close enough to the top of the electroscope (with the electroscope initially charged with the glass rod) the leaves can be made to spread apart again after they are made to fall.

14.What is happening to cause the leaves to spread apart again (after they fall)?

When the rubber rod is rubbed with the fur, the rubber rod develops a net negative charge and the fur develops a net positive charge. When the glass rod is rubbed with the silk, the glass rod develops a net positive charge and the silk a net negative charge. But if plastic rod is rubbed with either the fur or silk the plastic rod develops a net negative charge.

15. What determines which material gets what type of charge when two different insulators are rubbed together?

16. What do we mean when we say that a material is a good electrical conductor?

17. What do we mean when we say that a material is a good electrical insulator?

18. What determines whether a material is going to be a good electrical conductor or a good electrical insulator?

19. Coulomb’s Law tells us that objects with opposite electric charges will attract each other and objects with similar electric charges will repel by an amount that is directly proportional to the product of the charges on those objects and inversely proportional to the square of the distances between them. With that being the case, how is it that an electrically neutral object (like water) could be attracted to an object with a net electric charge?

Could you answer as many as possible?

Can someone explain the calculations for cost basis and how to compute it?

Herberger Oil & Gas Company paid $10 million for the drilling rights to a 1,000 acre tract of land near Midland, Texas. On the basis of several exploratory wells that had cost an aggregate of $400,000 to drill, petroleum engineers estimated that the tract of land might contain as much as 500,000 barrels of oil. 4 additional development wells were drilled at a cost of approximately $200,000 each. Calculate the depletion expense for the first year assuming that 100,000 barrels are extracted. Calculate the depletion expense for the second year assuming that 150,000 barrels are extracted. Round answers to the nearest whole number Year 1 - $? Year 2 - $? What is the cost basis of the remaining reserves at the end of the second year? $?

In a month, I can sell 420 of my unlicensed Warriors T-shirts at a price of $12. At $18, I sell 180. The T-shirts cost me $8 each, and I bribe the local law enforcement $300 per month to use a corner near a BART station to sell my shirts.

1. Assume price-demand is linear

a. Find the slope of the price-demand function.

b. Find the vertical-intercept of the price-demand function.

c. Write a function to predict demand (in a month) given any price.

d. Predict the demand at a price of $10.

e. What price fetches a demand of 800 shirts?

2. Assume cost is linear.

a. Write a function to predict cost (in a month) given any price.

b. Predict the cost at a price of $10.

Hospitality Enterprises is planning to build a 112 room inn in Martin. The initial cost of land leases and construction is anticipated to be $3.4 million. The annual operating and maintenance costs are expected to average $25,000 for the 20-year life of the inn. Every 4 years the interior of the inn must be painted at a cost of $15,000. The exterior must be painted and refurbished every 5 years at a cost of $60,000. The carpet and furniture must be replaced every 6 years at a cost of $100,000. Every 8 years $80,000 will be spent on paving and striping the parking areas. The inn will have a net demolition cost of $100,000 at the end of its life. If the MARR for Hospitality is 5%, determine the EUAC for the inn.

US Hotelier and Chinese Insurer Contest Ownership of Starwood In March 2016, struggling US hotel group, Starwood Hotels and Resorts, owner of Weston and Sheraton Hotels, found itself in a bidding war. It had accepted an offer of $10.8bn (€8.1bn, £6.5bn) in cash and stock from US hotelier Marriott International the previous year. Whilst discussing the details of the acquisition, due to close in March 2016, Beijing-based Anbang Insurance Group made an unsolicited offer of $12.9bn. Marriott responded by increasing its offer to $13.6bn and Starwood investors eagerly awaited higher bids.

If Marriott succeeded it would create the world’s largest hotel company with 5500 owned or franchised hotels with 1.1 million rooms under 30 brands. Marriott believed it was a compelling bidder having demonstrated multi-year industry-leading growth, powerful brands and consistent return of capital to shareholders, with shares trading consistently above those of its peers. Having already conducted five months of extensive investigation and joint integration planning with Starwood, including careful analysis of the brand architecture, Marriott was confident it could make annual cost savings of $250m, generate greater long-term shareholder value from a larger global presence and offer wider choice of brands to consumers and improved economics to owners and franchisees.

Little known outside of China before 2013, Anbang Insurance Group originated as a small car insurer, before China’s move to give insurers greater freedom to invest their money. This allowed Anbang to sell investment products and other services, making them major players in real estate. A slowing Chinese economy and devaluing currency encouraged many domestic companies to invest overseas and Anbang then aggressively pursued overseas deals, largely fuelled by selling high yield investment products at home. Having spent $2bn on insurers in Belgium and South Korea, Anbang also made many large US acquisitions including the Waldorf Astoria for $1.95bn, the American insurer, Fidelity & Guaranty Life Insurance ($1.6bn) and the biggest-ever acquisition of American property assets by a mainland Chinese buyer, Strategic Hotels and Resorts ($6.5bn), owner of Four Seasons hotels, the Fairmont and Intercontinental hotels and the JW Marriott Essex House hotel. As a late bidder, Anbang had had little time for in-depth investigation of Starwoods but was making its bid in a consortium that included American private equity firm J.C. Flowers & Company. With close personal links to the Chinese Government, commentators believed Anbang could greatly increase Starwood’s cash reserves.

On 28 March, Anbang raised its bid to $14bn and analysts wondered whether Marriott would be able to raise its offer further as increasing the cash part of its offer could threaten its investment-grade rating and adding more stock would dilute its earnings per share. Marriott’s response was to say that its offer was not just about price. It also questioned whether Anbang had sufficient funds to close the deal and whether the Committee on Foreign Investment (Cfius), which reviews all deals for American companies that involve national security, would intervene as it had with the Waldorf sale, although this had been approved. Starwood properties could be deemed to be near government offices and military bases. This could delay the deal and possibly discourage Anbang’s bid. Commentators also wondered whether they had the skills to manage Starwood as the management team at its Belgian acquisition had left quickly amid complaints about Anbang’s management style.

Questions

1. How do the bidders’ acquisition motives differ?

2. What are the strategic and organisational fit implications of both bids?