Three former college classmates decided to open a store near campus to sell wireless equipment to students. They created a public company, The Wire, and issued stock to interested investors. They plan on creating monthly financial statements.

Required: Several transactions occurred in March. Each is described separately in this folder. For each transaction, indicate the accounts for The Wire that are affected, whether they increase or decrease, and the amount of the increase or decrease.

Instructions:

1. After each transaction description, there are several "Account" submission boxes and corresponding "Amount" submission boxes. To indicate the accounts that you think are affected, choose them from the drop-down menu. But you MUST select them in the order that they are listed in the menu. FOR EXAMPLE, if you think that Cash and Inventory are affected by a particular transaction, you must record the effect on the Cash account first and the effect on the Inventory account second, since that is the order in which they are listed in the drop-down menu. If you record the Inventory effect first and the Cash effect second, even if they are the correct accounts with the correct dollar amounts, your answer will be considered wrong.

2.When you record the dollar amounts, be sure to use a minus sign to indicate a decrease in the account. You don't need to use a plus sign to indicate an increase. Also, don't use a dollar sign or spaces.

3.There are always more "Account" and "Amount" submission boxes available than are necessary. When you have indicated all the accounts that are affected by the transaction, select "Leave Blank" from the drop-down menu for EACH of the remaining "Account" submission boxes (you can leave the "Amount" boxes blank).

Transaction 2
The company quickly acquired $36,000 in inventory, 60% of which was paid for in cash. The rest was acquired on open accounts that were payable after 30 days

Transaction 3
A one-year store rental lease was signed on March 1 for $12,000 for the year, and rent for the first 4 months was paid in advance. [Note: Record the complete entry for the March 1 transaction first and the complete adjusting entry on March 31 second.]

Transaction 4
The owners paid $2,000 for website advertising. They were able to get a good deal because one of the company's owners also owns stock in the website company. The owners also paid $5,500 for some advertising in local newspapers. [Note: Combine both transactions into one entry].

Transaction 5
Sales were $72,000. Cost of merchandise sold was 65% of its sales price. 30% of the sales were for cash. [Note: Record the complete entry for the sales first and the complete entry for the expenses second]

Transaction 6
Wages and salaries in March were $11,800, of which $8,400 was actually paid to employees.

Transaction 7
Miscellaneous expenses were $1,500, all paid for with cash.

Transaction 8
On March 1, fixtures and equipment were purchased for $6,000 with a downpayment of $1,000 and a $5,000 note, payable in one year. Interest of 7% per year was due when the note was repaid. The estimated life of the fixtures and equipment is 11 years with no expected salvage value. [Note: Record the complete entry for the March 1 equipment purchase first, the March 31 depreciation adjusting entry second, and the March 31 interest adjusting entry third. Also, round all answers to the nearest cent.]

Internal Control Case Study

Harper Theater is located in Midtown Mall. The cashier’s booth is near the entrance to the theater. Two cashiers are employed. Once works from 1-5 pm, the other from 5-9 pm.   Each cashier is bonded. The cashiers receive cash from customers and operate a machine that ejects serially numbered tickets. The rolls of tickets are inserted and locked into the machine by the theater manager at the beginning of each cashier’s shift.

After purchasing a ticket, the customer takes the ticket to an usher stationed at the entrance to the theater lobby some 60 feet from the cashier’s booth. The usher tears the ticket in half, admits the customer, and returns the ticket stub to the customer. The other half of the ticket is dropped into a locked box by the usher.

At the end of each cashier’s shift, the theater manager removes the ticket roll from the machine and makes a cash count. The cash count sheet is initialed by the cashier. At the end of the day, the manager deposits the receipts in total in a bank night deposit vault located in the mall. The manager also sends copies of the deposit slip and the initialed cash count sheets to the theater company treasurer for verification and to the company’s accounting department. Receipts from the first shift are stored in a safe located in the manager’s office.

Required: using Microsoft Word, answer the following questions and attach the document to this assignment:

1. Identify the internal control procedures and their application to the cash receipts transactions of the Harper Theater. You will find the Internal Control Procedures (Proper documentation, Adequate insurance, Separation of assets from custody, Separation of duties, and Use of technology). For each Internal Control Procedure, identify any Internal Control Procedures that Harper Theater has in place and/or is missing. Be specific and use at least 300 words for your answer.
2. If the usher and cashier decide to collaborate to misappropriate cash, what actions might they take? For each action, what internal control might be employed to stop the misappropriation of cash? Be specific and use at least 200 words for your answer.

DO NOT COPY PREVIOUS ANSWERS THEY ARE INCORRECT

Wally’s Widget Company (WWC) incorporated near the end of 2011. Operations began in January of 2012. WWC prepares adjusting entries and financial statements at the end of each month. Balances in the accounts at the end of January are as follows: Cash $ 21,470 Unearned Revenue (25 units) $ 5,300 Accounts Receivable $ 12,500 Accounts Payable (Jan Rent) $ 3,200 Allowance for Doubtful Accounts $ (1,850) Notes Payable $ 15,500 Inventory (30 units) $ 2,400 Contributed Capital $ 6,900 Retained Earnings – Feb 1, 2012 $ 3,620 • WWC establishes a policy that it will sell inventory at $165 per unit. • In January, WWC received a $5,300 advance for 25 units, as reflected in Unearned Revenue. • WWC’s February 1 inventory balance consisted of 30 units at a total cost of $2,400. • WWC’s note payable accrues interest at a 12% annual rate. • WWC will use the FIFO inventory method and record COGS on a perpetual basis. February Transactions 02/01 Included in WWC’s February 1 Accounts Receivable balance is a $1,700 account due from Kit Kat, a WWC customer. Kit Kat is having cash flow problems and cannot pay its balance at this time. WWC arranges with Kit Kat to convert the $1,700 balance to a note, and Kit Kat signs a 6-month note, at 9% annual interest. The principal and all interest will be due and payable to WWC on August 1, 2012. 02/02 WWC paid a $600 insurance premium covering the month of February. The amount paid is recorded directly as an expense. 02/05 An additional 170 units of inventory are purchased on account by WWC for $12,750 – terms 2/15, n30. 02/05 WWC paid Federal Express $510 to have the 170 units of inventory delivered overnight. Delivery occurred on 02/06. 02/10 Sales of 140 units of inventory occurred during the period of 02/07 – 02/10. The sales terms are 2/10, net 30. 02/15 The 25 units that were paid for in advance and recorded in January are delivered to the customer. 02/15 20 units of the inventory that had been sold on 2/10 are returned to WWC. The units are not damaged and can be resold. Therefore, they are returned to inventory. Assume the units returned are from the 2/05 purchase. 02/16 WWC pays the first 2 weeks wages to the employees. The total paid is $2,700. 02/17 Paid in full the amount owed for the 2/05 purchase of inventory. WWC records purchase discounts in the current period rather than as a reduction of inventory costs. 02/18 Wrote off a customer’s account in the amount of $1,950. 02/19 $6,400 of rent for January and February was paid. Because all of the rent will soon expire, the February portion of the payment is charged directly to expense. 02/19 Collected $9,900 of customers’ Accounts Receivable. Of the $9,900, the discount was taken by customers on $7,500 of account balances; therefore WWC received less than $9,900. 02/26 WWC recovered $590 cash from the customer whose account had previously been written off (see 02/18). 02/27 A $900 utility bill for February arrived. It is due on March 15 and will be paid then. 02/28 WWC declared and paid a $850 cash dividend. Adjusting Entries: 02/29 Record the $2,700 employee salary that is owed but will be paid March 1. 02/29 WWC decides to use the aging method to estimate uncollectible accounts. WWC determines 8% of the ending balance is the appropriate end of February estimate of uncollectible accounts. 02/29 Record February interest expense accrued on the note payable. 02/29 Record one month’s interest earned Kit Kat’s note (see 02/01).

A group of private investors borrowed $34,963,388million to build 300 new luxury apartments near a large university. The money was borrowed at 5% annual interest, and the loan is to be repaid in equal annual amounts over a 40-year period. Annual operating and maintenance expenses are estimated to be $4,310 per apartment. This expense will be incurred even if an apartment is vacant. The rental fee for each apartment will be $14,506 per year, and the worst case occupancy rate is projected to be 84%. Investigate the sensitivity of annual profit (or loss) to changes in occupancy rate. Express your answer in percent rounded to the nearest hundedths.

Wally’s Widget Company (WWC) incorporated near the end of 2011. Operations began in January of 2012. WWC prepares adjusting entries and financial statements at the end of each month. Balances in the accounts at the end of January are as follows:

  Cash $ 19,220 Unearned Revenue (40 units) $ 4,550   
  Accounts Receivable $ 10,250 Accounts Payable (Jan Rent) $ 1,700   
  Allowance for Doubtful Accounts $ (1,100) Notes Payable $ 15,500   
  Inventory (45 units) $ 3,600 Contributed Capital $ 5,400   
Retained Earnings – Feb 1, 2012 $ 4,820   

• WWC establishes a policy that it will sell inventory at $175 per unit.
• In January, WWC received a $4,550 advance for 40 units, as reflected in Unearned Revenue.
• WWC’s February 1 inventory balance consisted of 45 units at a total cost of $3,600.
• WWC’s note payable accrues interest at a 12% annual rate.
• WWC will use the FIFO inventory method and record COGS on a perpetual basis.

February Transactions
02/01

Included in WWC’s February 1 Accounts Receivable balance is a $1,900 account due from Kit Kat, a WWC customer. Kit Kat is having cash flow problems and cannot pay its balance at this time. WWC arranges with Kit Kat to convert the $1,900 balance to a note, and Kit Kat signs a 6-month note, at 12% annual interest. The principal and all interest will be due and payable to WWC on August 1, 2012.

02/02

WWC paid a $700 insurance premium covering the month of February. The amount paid is recorded directly as an expense.

02/05

An additional 150 units of inventory are purchased on account by WWC for $9,000 – terms 2/15, n30.

02/05

WWC paid Federal Express $600 to have the 150 units of inventory delivered overnight. Delivery occurred on 02/06.

02/10

Sales of 120 units of inventory occurred during the period of 02/07 – 02/10. The sales terms are 2/10, net 30.

02/15

The 40 units that were paid for in advance and recorded in January are delivered to the customer.

02/15

25 units of the inventory that had been sold on 2/10 are returned to WWC. The units are not damaged and can be resold. Therefore, they are returned to inventory. Assume the units returned are from the 2/05 purchase.

02/16 WWC pays the first 2 weeks wages to the employees. The total paid is $2,600.
02/17

Paid in full the amount owed for the 2/05 purchase of inventory. WWC records purchase discounts in the current period rather than as a reduction of inventory costs.

02/18 Wrote off a customer’s account in the amount of $1,200.
02/19

$3,400 of rent for January and February was paid. Because all of the rent will soon expire, the February portion of the payment is charged directly to expense.

02/19

Collected $8,400 of customers’ Accounts Receivable. Of the $8,400, the discount was taken by customers on $5,500 of account balances; therefore WWC received less than $8,400.

02/26

WWC recovered $440 cash from the customer whose account had previously been written off (see 02/18).

02/27

A $700 utility bill for February arrived. It is due on March 15 and will be paid then.

02/28 WWC declared and paid a $400 cash dividend.

Adjusting Entries:

02/29

Record the $2,600 employee salary that is owed but will be paid March 1.

02/29

WWC decides to use the aging method to estimate uncollectible accounts. WWC determines 8% of the ending balance is the appropriate end of February estimate of uncollectible accounts.

02/29 Record February interest expense accrued on the note payable.
02/29 Record one month’s interest earned Kit Kat’s note (see 02/01).

Prepare all February journal entries and adjusting entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

- Record the cost of goods sold for 120 units

- Record the unearned revenue for 40 units paid in advance

-Record the cost of goods sold for 40 units

-Record the 25 units of inventory returned

- Record the sales return and allowance

- WWC pays the first two weeks wages to the employees. The total paid is $2600

-Paid in full the amount owed for the 2/05 purchase of inventory. WWC records purchase discounts in the current period rather than as a reduction of inventory costs.

-Wrote off a customers account in the amount of $1200

-$3400 of rent for January and February was paid.

Because all of the rent will soon expire, the February portion of the payment is charged directly to expense.

- Collected $8400 of customers Accounts Receivable. Of the $8400, the discount was taken by customers on $5500 of account balances ; therefore WWC received less than $8400

-Record the entry to reversal of allowance for doubtful accounts

-Record the entry to recovered $440 cash from the customer

-A $700 utility bill for February arrived. It is due on March 15th and will be paid then.

-WWC declared and paid a $400 cash dividend

-Record the $2600 employee salary that it owed but will be paid March 1st

-WWC decides to use the aging method to estimate uncollectible accounts. WWC determines 8% of the ending balance is the appropriate end of February estimate of uncollectible accounts.

-Record February interest expense accrued on the note payable

- Record one month's interest earned Kit Kats note (see 02/01)

Mt. Denali, Alaska elevation 17,660 ft. The climbers slowly ascended the icy cliff in the near darkness of 4 a.m., carefully avoiding the steep crevasses that fell off sharply to either side. Several times each hour, the lead climber Tom would call out "Everyone okay?" They had stopped replying long ago, too exhausted by the supreme effort of simply placing each foot in the proper direction. Three hours into a 12+ hour climbing day, only labored breathing and the crunch of ice under crampons permeated the silence. Emily, a Registered Nurse and the only woman on the six-person expedition team, was third in line, following her friend Mark, the least experienced climber of the group. For the last couple of days, Mark had been coughing heavily, and all morning had been slowing up, causing a backlog behind them and prompting several "everyone okay"'s from Tom. Knowing Mark's competitive spirit, Emily was hesitant to urge him to pick up the pace, and when he pulled up to rest on a protected ledge, Emily motioned to the other climbers to pass on by. Her head was pounding anyway, and she rationalized she could use the break.

"You okay?" Emily asked.

"Yeah....I just....can't seem to....catch my breath," gasped Mark.

"Just rest a minute. There's no rush, Mark. Take your time....slow, deep breaths."

Tom appeared from the upper trail. "What's up?"

"Mark's having a little trouble catching his breath." Emily was getting worried.

Tom looked sharply at her. "How much trouble?"

"Quite a bit, I think." Emily looked over at Mark, whose breathing didn't appear eased by the rest stop, and then back at Tom. "I think we should get him down to a lower altitude. Quickly."

Tom nodded. "I'll get the others."

As they helped guide Mark down the steep trail, Mark's breathing became increasingly labored and was loud enough to worry Emily.

"Geez, do we sound like that?" gasped one of the other climbers. "I mean, I'm out of breath, too, but he sounds horrible!"

"No, we're not that bad. Remember, that's why we spent the prep month at 15,000 feet. Mark was with us, so he experienced the same physiological changes we did. This," Emily nodded at Mark, "is some sort of problem."

Mark deteriorated rapidly and lost consciousness by the time the group reached the lower camp. The urgency of the situation strengthened the tired legs of the climbers as they carried Mark the final yards towards camp. Emily had run ahead to call for support help, and the group was told an airlift was on its way and would be there within the hour. The camp's medical tent had some basic supplies and a resident paramedic, and he and Emily went to work stabilizing Mark with oxygen and a Gammow bag (a pressurization bag).

90 Minutes Later, Denali Valley Hospital

"We have a 28-year-old white male, unresponsive, no prior history of pulmonary disease, who became unconscious around 15,000 feet after hiking to 17,000 feet earlier today. His friends say he was having severe breathing difficulty prior to losing consciousness...." As the paramedic droned on, Emily looked around for the nearest phone so she could locate Mark's family in case this was as serious as it looked.

1. How would the oxygen and Gammow bag help Mark?

2. Are some of the lab normal either below or above normal range as a normal result of the month spent at high elevation? Explain.

3. Which lab values appear to represent the most serious problem Mark is having? Is his situation life-threatening?

4. Compare the results of Alveolar Oxygen Tension to Arterial Oxygen levels. What might cause this type of discrepancy?

5. Come up with a possible diagnosis for Mark’s condition. What data are you using to come to this conclusion?

Here are the results of his blood and pulmonary tests.

The following tables summarize the findings of the Denali Valley Hospital Medical Team:

BLOOD LEVELS

No prescription medications or other pharmacological agents were found.

PULMONARY FUNCTION TESTS

HEART RATE: 88 bpm (normal: 60-90 bpm) BLOOD PRESSURE: 105/60 (normal: 110-120/60-80 mm Hg)

Optimal and near-optimal process scheduling and page replacement algorithms.

a) What is the theoretically best process scheduling algorithm?

b) Do shortest job first and shortest remaining time first amount to the same thing or not?

c) Can they be directly implemented?

d) What do you consider the next best scheduling option, and how does it use the recent past to approximate the ideal case?

e) Consider the analogous case in page replacement. What is the best possible choice of page to replace?

f) Can this be known? If not, what is the best approximation of the ideal case, and how does it use knowledge of the recent past to implement it?

g) What is the overhead involved in keeping track of the recent past in the case of page replacement?

Many studies have been conducted to determine the concentration of CO (carbon monoxide) near freeways with various conditions of traffic flow. The basic technique involves measuring CO concentrattions with a spectrophotometer. These machines are quite delicate and have to be calibrated every day. If the machine reads close to 70 ppm on the span gas, it’s ready for use; if not, it has to be adjusted.
Each data set below represents some readings on span gas. Assume the Gaussian model, with errors following the normal curve. In each case, make a t-test to see whether the instrument is properly calibrated or not.
a) 71, 68, 79
b) 71, 68, 79, 84, 78, 85, 69
c) 71
d) 71, 84