Cedar Point amusement park management is preparing the park's annual promotional plan for the coming season. Several advertising alternatives exist: newspaper, television, radio, and displays at recreational shows. The information below shows the characteristics associated with each of the advertising alternatives, as well as the maximum number of placements available in each medium. Given an advertising budget of $125,000, how many placements should be made in each medium to maximize total audience exposure? Formulate this as a linear programming problem to be solved using QM.

Energy projects are usually large and impact local labor markets. Suppose a large energy project is being implemented in North-East of Edmonton which will employ approximately 10,000 individuals in the construction phase during the first two years and then 1,500 people in its operation stage after construction.

1. What impact do you expect this project to have on the labor market in Edmonton during the construction phase? Explain.
2. What impact do you expect this project to have on the labor market in Edmonton during its operation stage [after the construction]? Is this effect going to last forever? Explain.

Hawkins Corporation began construction on a motel on March 31, 2018. The project was completed on April 30, 2019. No new loans were required to fund construction. Hawkins does have the following two interest-bearing liabilities that were outstanding throughout the construction periods:

$4,000,000 6% note

$16,000,000 10% bonds

Construction expenditures incurred were as follows:

March 31, 2018 $4,000,000

June 30, 2018 6,000,000

November 30, 2018 1,800,000

February 28, 2019 3,000,000

The company's fiscal year-end is December 31.

Calculate the amount of interest capitalized for 2018 and 2019.

Your software company was invited to provide a proposal for a company in Australia. You currently have the cost in US dollars and need to convert the prices to the Australian dollar. Write a 2-part program using Ruby, Java®, or Python. Part 1: Write a function to gather the following costs from the user: Travel Cost: $9,800 Hotel Cost: $3,500 Rental Car Cost: $1,600 Labor Cost: $15,500 Part 2: Write a function to convert the costs from United States dollar (USD) to Australian dollar (AUD). Note: Look up the current USD to AUD exchange rate to use in your function. Test the program 3 times by providing different costs in USD. Provide the code and take a screenshot of the output, then paste the screenshot(s) into a Microsoft® Word document. Write a half-page response in the same Microsoft® Word document to address the following: Provide a manual for the user explaining how to use the program. Explain what type of user input validations you should have. What happens if the user enters a negative number? What happens if the user puts a $ in the input?

1.a.)When using FIFO for inventories, market value generally refers to ________ under U.S. GAAP and ________ under IFRS.

A) current replacement cost; historical cost

B) historical cost; net realizable value

C) historical cost; current replacement cost

D) net realizable value; net realizable value

b. Margaret Company reported the following information for the current year:

Industry Averages available are:

How do the inventory turnover and gross profit percentage for Margaret Company compare to the industry averages for the same ratios? (Round inventory turnover to two decimal places. Round gross profit percentage to the nearest percent.)

A) Margaret Company has superior gross profit percentage and inventory turnover.

B) Margaret Company has superior gross profit percentage and inferior inventory turnover.

C) Margaret Company has inferior gross profit percentage and superior inventory turnover.

D) Margaret Company has inferior gross profit percentage and inventory turnover.

c.)Ending inventory for the year ended December 31, 2019, is understated by $8,000. How will this affect net income for 2019 and 2020?

A) Net income will be understated by $8,000 in 2019 and 2020.

B) Net income will be overstated by $8,000 in 2019 and 2020.

C) Net income will be understated by $8,000 in 2019 and overstated by $8,000 in 2020.

D) Net income will be overstated by $8,000 in 2019 and understated by $8,000 in 2020.

d.) Ending inventory for the year ended December 31, 2019, is understated by $23,000. How will this error affect net income for 2020?

A) Net income will be understated by $46,000.

B) Net income will be overstated by $46,000.

C) Net income will be understated by $23,000.

D) Net income will be overstated by $23,000.

e.) Beginning inventory for the year ended December 31, 2019, is understated. How will this error affect net income for 2019 and 2020?

A) 2019 overstated; 2020 understated

B) 2019 understated; 2020 overstated

C) 2019 overstated; 2020 no effect

D) 2019 understated; 2020 no effect

f.)Beginning inventory for the year ended December 31, 2019, is understated. How will this error affect net income for 2019 and 2020?

A) 2019 overstated; 2020 understated

B) 2019 understated; 2020 overstated

C) 2019 overstated; 2020 no effect

D) 2019 understated; 2020 no effect

On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2019.

Expenditures on the project were as follows:

On January 1, 2018, the company obtained a $3 million construction loan with a 14% interest rate. The loan was outstanding all of 2018 and 2019. The company’s other interest-bearing debt included two long-term notes of $6,000,000 and $8,000,000 with interest rates of 8% and 10%, respectively. Both notes were outstanding during all of 2018 and 2019. Interest is paid annually on all debt. The company’s fiscal year-end is December 31. Assume the $3 million loan is not specifically tied to construction of the building.

Required:
1. Calculate the amount of interest that Mason should capitalize in 2018 and 2019 using the weighted-average method.
2. What is the total cost of the building?
3. Calculate the amount of interest expense that will appear in the 2018 and 2019 income statements.

Part IV.   Capital Projects Fund

Prepare journal entries to record the following transactions of a state, identifying the funds affected by each transaction. Record journal entries for all funds affected. The state prepares a budget for the Capital Projects Fund and uses encumbrance accounting in that fund.                    

1. The state records its capital budget. It appropriates $10 million for highway construction, which will be financed entirely with the issuance of bonds.
2. The state sells 20-year 6% bonds having a face value of $10 million. The bonds are sold at a discount, so the state realizes a total of $9,900,000. Equal installments of principal will be paid every six months, together with interest on the unpaid balance.
3. The state awards two contracts, one for highway construction ($6,500,000) and one for construction supervision ($350,000). Both contracts provide for progress payments. The highway construction contract provides for 10% retainage pending completion of the project. There is no retainage on the construction supervision contract.
4. The construction contractor submits an invoice for $1,500,000. The invoice is approved and a voucher is prepared, less the 10% retainage.

Record both budgetary and actual journal entries for the capital projects fund of Everett County. Record all appropriate accruals. No closing entries are required. Assume a fiscal year-end of December 31. 20x7

1. The county issues $5,000,000 of 5%, 9-month bond anticipation notes on July 1, 20x7, to allow the county to begin immediate construction on a new state of the art recreational baseball complex for area youth. The bond anticipation notes are issued in relation to the upcoming bond issue that has been approved by votes to fund the baseball complex. The bonds are legally authorized and definitely issuable. All legal steps have been taken to refinance the BAN, and the county will refinance the BAN on a long-term basis.

2. The county receives a federal grant of $500,000 to fund the construction of a playground to accommodate children with special needs.

3. The county signs a construction contract with KC Enterprises for the construction of the complex. The contract specifies that construction costs will not exceed $5,025,000.

4. The county orders playground equipment in the amount of $420,000.

5. KC Enterprises bills the county $3,200,000 for work completed by the end of fiscal year 20x7. The county paid the amount billed less a 4% retainage to be remitted upon completion of the complex. 20x8

6. On January 1, the county issues $5,500,000 par value bonds at 101. Bond issue costs are $55,000.

7. KC Enterprises bills the county $1,000,000 for work completed in the first quarter. The county again paid the amount billed less a 4% retainage.

8. Salaries of $25,000 are paid to the crews working on the special needs playground.

9. The county orders signage and ground covering for the special needs playground. The estimated costs are $45,000.

10. The county receives the playground equipment order in 20x7. Actual cost is $425,000.

11. The county receives the signage for the special needs playground. Actual cost is $40,500.

12. The bond anticipation notes and interest are paid at maturity.

13. KC Enterprises submitted its final bill for $825,000. The complex was approved by the county, and KC Enterprises was paid in full.

14. The amounts due for the playground equipment and signage (transactions 10 and 11) are remitted to the appropriate vendors.

15. The remaining unearned portion of the grant money was refunded to the grantor. (show calculations)

16. The remaining cash was transferred to the Debt Service Fund. (show calculations)

intermediate accounting 1

Question 2 - Application

MH Plumbing Inc. (MH) is the largest plumbing contractor in Moncton, Alberta. Information on selected transactions/events is given below:

a.      On 15 January 2012, MH purchased land and a warehouse building for $455,000. The land was appraised at $175,000, while the building was appraised at $375,000.

b.      During January and February 2012, MH spent $53,200 on the warehouse building, renovating it for its expected use as a storage and shipping facility.

c.       MH used the warehouse building from February 2012 until August 2018. The building was expected to have a 20-year life and a residual value of $11,000.

d.      In late August 2018, MH traded the warehouse and land for another facility on the other side of town. The second facility was slightly larger. MH paid $33,750 to the vendor, and $19,800 in legal fees as a result of the transaction. The new warehouse was appraised at $425,000, and the new land at $180,000. This warehouse facility was expected to have a useful life of 18 years and a residual value of $7,800.

e.      MH used the new warehouse facility from August 2018 until February 2019. At that time, a fire destroyed the warehouse. MH received $356,800 from the insurance company.

f.        MH called for tenders for construction of a new warehouse building in March 2019, but the lowest bid was $788,000. The company decided to self-construct and began in May 2019. Monies spent were as follows:

g.      MH received a $100,000 investment tax credit in 2019 as a result of the building activities, which reduced 2019 taxes payable.

h.      MH occupied its new warehouse in September 2019. It was appraised at $650,000. It was expected to last for 25 years, and have a residual value of $20,000.

Required:

Prepare journal entries to record all transactions listed above, including annual depreciation to the end of 2019. Record annual depreciation using a declining-balance method of 10% for buildings, and 8% for parking lots. MH records a full year of depreciation in the year of acquisition and no amortization in the year of disposal. Justify any decisions made with respect to accounting policy or application.