The October 31 bank statement of Spooky Halloween Costumes Ltd. (SHC) has just arrived from TD Bank. To prepare the SHC bank reconciliation, you gather the following data:

SHC’s Cash account shows a balance of $2,256.14 on October 31.

The October 31 bank balance is $4,023.05.

The bank statement shows that SHC earned $38.19 of interest on its bank balance during October. This amount was added to SHC’s bank balance.

SHC pays utilities of $250 and insurance of $100 by EFT.

The following SHC cheques did not clear the bank by October 31:

The bank statement includes a donation of $850, electronically deposited to the bank for SHC.

The bank statement lists a $10.50 bank service charge.

On October 31, the SHC treasurer deposited $16.15, which will appear on the November bank statement.

The bank statement includes a $300 deposit that SHC did not make. The bank added $300 to SHC’s account for another company’s deposit.

The bank statement includes two charges for returned cheques from donors. One is a $395 cheque received from a donor with the imprint “Unauthorized Signature.” The other is a nonsufficient funds cheque in the amount of $146.67 received from a client.

Prepare the bank reconciliation for SHC.

Journalize the October 31 transactions needed to update SHC’s Cash account. You do not need to include an explanation for each entry.

Preparing a Cash Budget

La Famiglia Pizzeria provided the following information for the month of October:

1. Sales are budgeted to be $152,000. About 85% of sales is cash; the remainder is on account.
2. La Famiglia expects that, on average, 70% of credit sales will be paid in the month of sale, and 28% will be paid in the following month.
3. Food and supplies purchases, all on account, are expected to be $117,000. La Famiglia pays 25% in the month of purchase and 75% in the month following purchase.
4. Most of the work is done by the owners, who typically withdraw $6,000 a month from the business as their salary. (Note: The $6,000 is a payment in total to the two owners, not per person.) Various part-time workers cost $7,300 per month. They are paid for their work weekly, so on average 90% of their wages are paid in the month incurred and the remaining 10% in the next month.
5. Utilities average $5,950 per month. Rent on the building is $4,100 per month.
6. Insurance is paid quarterly; the next payment of $1,200 is due in October.
7. September sales were $181,500 and purchases of food and supplies in September equaled $130,000.
8. The cash balance on October 1 is $2,147.

Required:

If required, round your answers to the nearest dollar.

1. Calculate the cash receipts expected in October.
$

2. Calculate the cash needed in October to pay for food purchases.
$

3. Prepare a cash budget for the month of October.

QUESTION 1

1. The Wall Street Journal reported that the average amount of time that a French person spends eating lunch at a restaurant is 22 minutes. Perform a hypothesis test to determine if a difference exists between the average time an American spends eating lunch when compared to a person from France. The following data represents the time, in minutes, that random French and American diners spent at lunch. Assume that the population variances are unequal.

   American	21	17	17	20	25	16	20	16
   French	24	18	20	28	18	29	17

   If Population 1 is defined as French diner times and Population 2 is defined as American diner times, the correct hypothesis statement for this hypothesis test would be

   	A.
   	B.
   	C.
   	D.

10 points   

QUESTION 2

1. The Wall Street Journal reported that the average amount of time that a French person spends eating lunch at a restaurant is 22 minutes. Perform a hypothesis test to determine if a difference exists between the average time an American spends eating lunch when compared to a person from France. The following data represents the time, in minutes, that random French and American diners spent at lunch. Assume that the population variances are unequal.

   American	21	17	17	20	25	16	20	16
   French	24	18	20	28	18	29	17

   The degrees of freedom for this hypothesis test are ________.

   	A.	10
   	B.	14
   	C.	15
   	D.	9

10 points   

QUESTION 3

1. The Wall Street Journal reported that the average amount of time that a French person spends eating lunch at a restaurant is 22 minutes. Perform a hypothesis test to determine if a difference exists between the average time an American spends eating lunch when compared to a person from France. The following data represents the time, in minutes, that random French and American diners spent at lunch. Assume that the population variances are unequal.

   American	21	17	17	20	25	16	20	16
   French	24	18	20	28	18	29	17

   If Population 1 is defined as French diner time and Population 2 is defined as American diner time, the test statistic and its p-value for this hypothesis test would be ________.

   	A.
   	B.
   	C.
   	D.

10 points   

QUESTION 4

1. Suppose Burger King has run a major advertising campaign in the hopes of increasing monthly sales. To investigate the effectiveness of this campaign, Burger King randomly selected six restaurants and recorded the monthly sales before and after the advertising. The following data represents these sales figures in thousands of dollars.

   Restaurant	1	2	3	4	5	6
   After	$123	$122	$145	$156	$160	$134
   Before	$107	$110	$143	$168	$145	$125

   If difference d is defined as sales after the advertising campaign minus sales before the advertising campaign, the correct hypothesis statement for this hypothesis test would be

   	A.
   	B.
   	C.
   	D.

A sealed 1.0-L flask, initially containing 0.20 M COCl2, 0.20 M Cl2, and 0.20 M CO, is heated to 700 K

and allowed to come to equilibrium.

COCl2(g) ⇌ Cl2(g) + CO(g) Kc = 0.12 at 700 K

a. What are the molar concentrations of COCl2, Cl2, and CO once the reaction has reached equilibrium

at 700 K?

COCl2:_______________________________

Cl2:_______________________________

CO:_______________________________

b. 0.10 mol COCl2 is added to the equilibrium mixture. What are the molar concentrations of COCl2,

Cl2, and CO once equilibrium is re-established?

COCl2:_______________________________

Cl2:_______________________________

CO:_______________________________

1. Which of the following are examples of non-union resolutions?
   1. Work Councils, Co-determination, Co-worker Mediation, Litigation
   2. Work Councils, Co-determination, Worker Co-operatives, Popular Vote
   3. Work Councils, Co-determination, Worker Co-operatives, Litigation
   4. None of the above
   5. All of the above
2. The strength of trade unions is usually measured by the size of union membership relative to the number of people eligible to join.
   1. True
   2. False
3. A developing country is experiencing a(n) ____________ when its educated and skilled citizens leave for jobs with better pay in developed countries.

Sampson Co. sold merchandise to Batson Co. on account, $26,800, terms 2/15, net 45. The cost of the goods sold is $20,100. The Batson Co. paid the invoice within the discount period. Assume both Sampson and Batson use a perpetual inventory system.

Prepare the entries that Sampson Company would record for the information above.

a. Accounts Receivable-Batson Co.:

Sales:

b. Cost of Goods Sold: 20,100

Inventory: 20,100

c. Cash:

Accounts Receivable-Batson Co.:

Prepare the entries that Batson Company would record for the information above.

a. Inventory:

Accounts Payable-Sampson Co.:

b. No entry required No entry required

c. Accounts Payable-Sampson Co.:

Cash:

Given below is the history of a sale on credit by SpongeBob Co. to Star Inc.

(Note: SpongeBob Co. uses the perpetual inventory system and the gross method to account for merchandise sales.)

i. June 25, 2005: SpongeBob Co. sold merchandise to Star Inc. for $9,000, terms 2/10, n/30. The inventory cost SpongeBob Co. $8000.

ii. December 31, 2007: After numerous attempts to collect, SpongeBob Co. wrote off Star Inc.'s account off as uncollectible. SpongeBob Co. uses an allowance account.

iii. June 30, 2010: Star Inc. contacted SpongeBob Co. with the intention to pay the outstanding amount, so SpongeBob Co. added Star Inc.'s account back into the system.

iv. July 5, 2010: Star Inc. paid the debt in full, plus $1,800 in interest.

Instructions: Record the 4 journal entries for SpongeBob Co at the time that they happen. Please also add the dates to the entries.

Clonex Labs, Inc., uses the weighted-average method in its process costing system. The following data are available for one department for October:

The department started 394,000 units into production during the month and transferred 411,000 completed units to the next department.

What is the Equivalent of production for Materials and Conversion?

1. Nobel Prize–winning economist Milton Friedman stated in a New York Times Magazine article in 1970 that the only “social responsibility of a business is to increase its profits.” Using the stakeholder theory and corporate examples, please explain if this statement is right or wrong in today's business environment.

2. What are the big ethical dilemmas of the twenty-first century? Please discuss a corporate example facing ethical dilemmas regarding its consumers.

Suppose the owners of a new bed and breakfast establishment are interested in conducting an experiment to determine effective advertisement strategies for increasing the number of reservations. The bed and breakfast owners intend to rotate advertisements for 12 weeks between a travel website, a travel magazine and a local billboard. Customers making reservations will be asked if they saw the advertisement. In this experiment, the independent variable has how many levels?

A) 1

B) 2

C) 3

D) 4

E) 0