Listed below are several transactions that took place during the second and third years of operations for the RPG Company.

In addition, you learn that the company incurred advertising costs of $17,000 in year 2, owed the advertising agency $4,200 at the end of year 1, and there were no liabilities at the end of year 3. Also, there were no anticipated bad debts on receivables, and the rent payment was for a two-year period, year 2 and year 3.

Required:
1. Calculate accrual net income for both years.
2. Determine the amount due the advertising agency that would be shown as a liability on RPG’s balance sheet at the end of year 2.

Listed below are several transactions that took place during the second and third years of operations for RPG Company.

Year 2 Year 3

Amounts billed to customers for services rendered $400,000 $500,000

Cash collected from credit customers 310,000 450,000

Cash disbursements:

Payment of rent 85,000 0

Salaries paid to employees for services rendered during the year 145,000 165,000

Travel and entertainment 35,000 45,000

Advertising 17,500 40,000

In addition, you learn that the company incurred advertising costs of $30,000 in year 2, owed the advertising agency $5,500 at the end of year 1, and there were no liabilities at the end of year 3. Also, there were no anticipated bad debts on receivables, and the rent payment was for a two-year period, year 2 and year 3.

Required:

1. Calculate accrual net income for both years.

2. Determine the amount due the advertising agency that would be shown as a liability on RPG's balance sheet at the end of year 2.

On November 1, 2020, Carla Company adopted a stock-option plan that granted options to key executives to purchase 33,900 shares of the company’s $9 par value common stock. The options were granted on January 2, 2021, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $30, and the fair value option-pricing model determines the total compensation expense to be $508,500.

All of the options were exercised during the year 2023: 22,600 on January 3 when the market price was $65, and 11,300 on May 1 when the market price was $74 a share.

Prepare journal entries relating to the stock option plan for the years 2021, 2022, and 2023. Assume that the employee performs services equally in 2022 and 2023.

Parent Corporation paid $400,000 cash for 90% of Subsidiary Corporation's common stock on January 1, 2006,

when Subsidiary had $300,000 capital stock and $100,000 retained earnings. Th book value of Subsidiary's
assets and liabilities were equal to fair values. During 2006, Subsidiary reported net income of $20,000 and
declared $10,000 in dividends on December 31. Balance sheets for Parent and Subsidiary at December 31, 2006,
are as follows (in thousands):
Parent Subsidiary
Assets
Cash $                              42 $                            20
Receivable - net 50 130

Inventories 400 50
Land 150 200
Equipment - net 600 100
Investment in Subsidiary 409
$                          1,651 $                          500
Liabilities and Equity
Accounts payable 410 80
Dividends payable 60 10
Capital stock 1000 300
Retained earnings 181 110
$                          1,651 $                          500
Required:
1. Prepare consolidated balance sheet working papers for Parent Corporation and Subsidiary for December 31,2006.

kelly's blue book publishes data on new used cars. The following table contains the manufacturer's suggested retail price for four vehicles, model years 2006 and 2007. we are interested in the difference in price between the 2006 models and the 2007 models. Assume that the population of price differences is normally distributed.

use the mean of the differences, d=753.75, and the standard deviation of the differences, sd=986.1658

(a)Identify the null and alternative hypotheses to test whether 2007 models are on average more expensive.

(b) using level of significance a=0.05, find the test statistic and the critical value, and make your conclusion about the hypothesis test.

(c) construct and interpret a 95% confidence interval for us, the population mean difference in price.

EJH Cinemas, a movie theater next to your university, attracts two types of customers: those who are associated with the university (students, faculty, and staff) and locals who live in the surrounding area. There are 10,000 university customers interested in purchasing movie tickets from EJH Cinemas, with a maximum willingness to pay of $7 per ticket. There are 20,000 local customers interested in purchasing tickets, with a maximum willingness to pay of $9 per ticket. The movie theater incurs a constant marginal cost of $4 per ticket. For simplicity, assume each customer purchases, at most, one ticket.

a. What will be the amount of EJH Cinemas’ total revenue if the price is $7 per ticket?

b. What is the amount of consumer surplus if the price is $7 per ticket?

c. What will be the amount of EJH Cinemas’ total revenue if the price is $9 per ticket?

d. What is the amount of consumer surplus if the price is $9 per ticket?

e. If EJH Cinemas decides to practice price discrimination, charging $9 for a standard ticket available to everyone but only $7 for a ticket if you show your university identification (students, faculty, and staff), what will be the movie theater’s total revenue?

f. If EJH Cinemas decides to practice price discrimination, charging $9 for a standard ticket available to everyone but only $7 for a ticket if you show your university identification (students, faculty, and staff), what will be the amount of consumer surplus?

g. If you were in charge of EJH Cinemas, what pricing scheme should you use?

please show the solution.

Mobile Security, Inc. (MSI) has been an audit client of Leo & Lee, LLP for the past 12 years. MSI is a small, publicly traded aviation company based in Cleveland, Ohio, where it manufactures high-tech unmanned aerial vehicles (UAV), also known as drones, and other surveillance and security equipment. MSI’s products are primarily used by the military and scientific research institutions, but there is growing demand for UAVs for commercial and recreational use. MSI must go through an extensive bidding process for large government contracts. Because of the sensitive nature of government contracts and military product designs, both the facilities and records of MSI must be highly secured.

MSI is known as being an innovator in the industry and holds 25 patents on its products. One of its older patents is for the Covert Recorder, a listening device for land-line phones. Sales of the Covert Recorder have slowly declined in the last decade, primarily due to increased use of smart phones and other advances in technology. For the last few years, management has debated whether the patent, which currently has a carrying value of $500,000, should be impaired. Management conducted an analysis by estimating the future cash flows that will be generated from sales of the Covert Recorder. Based on the analysis, management believes an impairment loss of $400,000 should be recorded and the patent balance written down for the current year.

A. Information gathering: Prepare a list of questions that the auditors would ask MSI managers regarding how the impairment loss was determined.

B. Analysis and evaluation: Comment on the level of estimation uncertainty that is involved with determining if the patent is impaired. What factors in this case affect estimation uncertainty?

C. Analysis and evaluation: Explain the role of management bias in situations such as the impairment issue with the patent.

D. Analysis and evaluation: What substantive audit procedures should be performed for the audit of the Covert Recorder patent balance?

A model rocket is fired vertically upward from rest. Its acceleration for the first three seconds is a(t)=96t, at which time the fuel is exhausted and it becomes a freely "falling" body. 1919 seconds later, the rocket's parachute opens, and the (downward) velocity slows linearly to −16 ft/s in 5 s. The rocket then "floats" to the ground at that rate.

(a) Determine the position function s and the velocity function v(for all times t).

(b) At what time does the rocket reach its maximum height? (Round your answer to two decimal places.)

What is that height? (Round your answer to the nearest integer.)

(c) At what time does the rocket land? (Round your answer to one decimal place.)

The restaurant owner Lobster Jack wants to find out what the peak demand periods are, during the hours of operation, in order to be better prepared to serve his customers. He thinks that, on average, 60% of the daily customers come between 6:00pm and 8:59pm (equally distributed in that time) and the remaining 40% of customers come at other times during the operating hours (again equally distributed). He wants to verify if that is true or not, so he asked his staff to write down during one week the number of customers that come into the restaurant at a given hour each day. His staff gave him the following data:

Help the manager figure out if his instincts are correct or not. Use a Chi-Squared test to see if the observed distribution is similar to the expected. Use the average demand for a given time as your observed value.

Use the following data to calculate and record the correlation coefficient, r.