Record below listed transactions under the appropriate General Ledger accounts. Be sure to list the Posting Reference number in the space provided under the General Ledger account for each transaction. Remember, each transaction should affect at LEAST two seperate General Ledger accounts.

Posting Reference Date Transaction PR 1 1/1/2020 Record owner's investment of $10,000 cash.

PR 2 1/1/2020 Purchased equipment at a total cost of $6,000. $1,000 of purchase paid with cash and the remainder paid with note payble in the amount of $5,000.

PR 3 1/3/2020 Prepaid three months of insurance expense in the amount of $900 with cash.

PR 4 1/15/2020 Deposited $2,000 for services provided.

PR 5 1/22/2020 Purchased $500 in office supplies with cash.

PR 6 1/31/2020 Deposited $2,500 for services provided.

AJE 1 1/31/2020 Record depreciation for equipment purchased at beginning of January. Equipment total cost was $6,000 with estimate life of 5 years. Record one month of depreciation.

AJE 2 1/31/2020 Record one month of insurance expense for the month of January 2020.

PR 7 2/4/2020 Paid January rent expense of $1,000 with cash.

PR 8 2/7/2020 Received January electricity bill in the amount of $232 to be paid later.

PR 9 2/7/2020 Received January telephone bill in the amount of $85 to be paid later.

PR 10 2/14/2020 Provided $500 in services; payment to be received later.

PR 11 2/25/2020 Paid January electricity bill with cash.

PR 12 2/25/2020 Paid January telephone bill with cash.

PR 13 2/25/2020 Paid $100 on Equipment Note Payable with cash; $84 toward princple and $16 toward interest expense.

PR 14 2/28/2020 Deposited $1,000 from services provided.

AJE 3 2/28/2020 Record depreciation for equipment purchased at beginning of January. Equipment total cost was $6,000 with estimate life of 5 years. Record one month of depreciation.

AJE 4 2/28/2020 Record one month of insurance expense for the month of February 2020.

PR 15 3/4/2020 Paid February rent expense of $1,000 with cash.

PR 16 3/4/2020 Prepaid March 2020 rent expense of $1,000 with cash.

PR 17 3/6/2020 Received February electricity bill in the amount of $200 to be paid later.

PR 18 3/6/2020 Received February telephone bill in the amount of $85 to be paid later.

PR 19 3/9/2020 Received payment for $500 of previously provided services.

PR 20 3/12/2020 Deposited $1,250 for services provided.

PR 21 3/16/2020 Paid $450 in professional fees for legal services with cash.

PR 22 3/25/2020 Paid February electricity bill with cash.

PR 23 3/25/2020 Paid February telephone bill with cash.

PR 24 3/25/2020 Paid $100 on Equipment Note Payable with cash; $84 toward princple and $16 toward interest expense.

PR 25 3/27/2020 Paid $75 for advertising expenses.

PR 26 3/27/2020 Provided $1,200 in services; payment to be received later.

PR 27 3/31/2020 Deposited $2,300 from services provided.

PR 28 3/31/2020 Received bill of $367 for maintenance services provided on equipment to be paid later.

PR 29 3/31/2020 Prepaid $3,000 for three months of rent expense.

PR 30 3/31/2020 Prepaid three months of insurance expense in the amount of $900 with cash.

AJE 5 3/31/2020 Record depreciation for equipment purchased at beginning of January. Equipment total cost was $6,000 with estimate life of 5 years. Record one month of depreciation.

AJE 6 3/31/2020 Record one month of insurance expense for the month of March 2020.

AJE 7 3/31/2020 Record March 2020 rent expense.

AJE 8 3/31/2020 Record March 2020 interest expense on Equipment Note Payable of $16.

AJE 9 3/31/2020 Record March 2020 electricity bill in the amount of $245 to be paid later.

AJE 10 3/31/2020 Record March 2020 telephone bill in the amount of $85 to be paid later.

Kurz Manufacturing is currently an​ all-equity firm with

3535

million shares outstanding and a stock price of

$ 11.50$11.50

per share. Although investors currently expect Kurz to remain an​ all-equity firm, Kurz plans to announce that it will borrow

$ 45$45

million and use the funds to repurchase shares. Kurz will pay interest only on this​ debt, and it has no further plans to increase or decrease the amount of debt. Kurz is subject to a

38 %38%

corporate tax rate.  

a. What is the market value of​ Kurz's existing assets before the​ announcement?

b. What is the market value of​ Kurz's assets​ (including any tax​ shields) just after the debt is​ issued, but before the shares are​ repurchased?

c. What is​ Kurz's share price just before the share​ repurchase? How many shares will Kurz​ repurchase?

d. What are​ Kurz's market value balance​ sheet, and share price after the share​ repurchase?

In an important 1992 paper, Card and Krueger used difference-in-differences to examine the effects of a New Jersey wage law on employment. They got data on fast-food employment in New Jersey and Pennsylvania, which did not increase its minimum wage.

a) What is the treatment here? What are the treatment and control groups?

b) Card and Krueger focused on restaurants near the border between NJ and PA. Why?

c) Suppose that there are only two time periods. Pennsylvania had employment of 23.33 before and 21.17 after, and New Jersey had 20.44 before and 21.03 after. What is the ‘difference-in-differences’ number showing the effect of the minimum wage law on employment?

d) Now suppose you have data for more than two time periods. Write the regression equation.

e) Your teacher (and your conscience) say you should check trends in the outcome variable for treatment and control groups before the treatment happens. Why?

The U.S. government has decided to decrease the corporate tax rate from 35% to 20% (for the record, I originally wrote this problem long before this actually happened). You have been tasked with re-estimating the remaining PV of a project’s cash flows. The project will operate for the next 4 years before shutting down. It will produce yearly revenue of $40k with yearly operating costs of $20k. The project utilizes some heavy machinery which has a current book value of $80k and is being depreciated on a straight-line basis by $15k per year for the remainder of the project. (IMPORTANT: This does not mean that you purchase the machine today for $80k. You bought the machine in the past when you started the project). The machinery will have a resell value of $30k at the completion of the project. The firm’s discount rate is 10%.

2. Compute the after-tax salvage both before and after the tax change.

Question 2 Active PLC is a leading investment company in Australia and you the below details relating to the capital structure of the company. Information concerning raising new capital Bonds $1,000 Face value 13% Coupon Rate (Annual Payments) 20 Term (Years) $25 Discount offered (required) to sell new bonds $10 Flotation Cost per bond Preference Shares 11% Required rate to sell new preference shares $100 Face Value $3 Flotation cost per share Ordinary Shares $83.33 Current Market Price $4.00 Discount on share price to sell new shares $5.40 Flotation Cost per bond $5.00 2019 - Proposed Dividend Dividend History $4.63 2019 $4.29 2018 $3.97 2017 $3.68 2016 $3.40 2015 Current Capital Structure Extract from Balance Sheet $1,000,000 Long-Term Debt $800,000 Preference Shares $2,000,000 Ordinary Shares Current Market Values $2,000,000 Long-Term Debt $750,000 Preference Shares $4,000,000 Ordinary Shares Tax Rate 33% Risk Free Rate 5% 3 a) Calculate the cost associated with each new source of finance. The firm has no retained earnings available. b) Calculate the WACC given the existing weights The financial controller does not believe the existing capital structure weights are appropriate to minimise the firm’s cost of capital in the medium term and believes they should be as follows Long-term debt 40% Preference Shares 15% Ordinary Shares 45% c) What impact do these new weights have on the WACC? The firm is considering the following investment opportunity. (2020-2027) Data is as follows Initial Outlay $1,600,000 Upgrade $700,000 End of Year 4 Upgrade - 350,000 Increased sales units per annum - (Year 5-8) Working Capital $45,000 Increase required Estimated Life 8 Years Salvage Value $60,000 Depreciation Rate 0.125 For tax purposes The machine is fully depreciated by the end of its useful life Other Cash Expenses $60,000.00 Per annum (Years 1-4) Other Cash Expenses $76,000.00 Per annum (Years 5-8) Production Costs $0.15 Per Unit Sales price $0.75 Per Unit (Years 1-4) Sales price $1.02 Per Unit (Years 5-8) 4 Prior sales estimates Year Sales 2010 520000 2011 530000 2012 540000 2013 560000 2014 565000 2015 590000 2016 600000 2017 610000 2018 615559 2019 659000 2020 680000 d) Calculate the Net Present Value, Internal Rate of Return and Payback Period The financial controller is considering the use of the Capital Asset Pricing Model as a surrogate discount factor. The risk-free rate is 5 per cent. Year Stock Market Share Index Price 2010 2000 $15.00 2011 2400 $25.00 2012 2900 $33.00 2013 3500 $40.00 2014 4200 $45.00 2015 5000 $55.00 2016 5900 $62.00 2017 6000 $68.00 2018 6100 $74.00 2019 6200 $80.00 2020 6300 $83.33 e) Calculate the CAPM f) Explain why this figure may differ from that calculated above (i.e. Cost of equity – Ordinary Shares)

Accounts receivable has a balance of $16,000 and the allowance for uncollectible accounts has a credit balance of $1,600. What is net accounts receivable before and after a $60 account receivable is written off?

1. Your patient is in active labor. An epidural anesthetic is ordered. Describe the care for the patient before, during and after administration of an epidural and the complications associated with them. Are there any contraindications that the nurse should be aware of?

The carrying amount of the Accounts Receivable is $19,000 before the write off of a $2,500 account. What is the carrying amount after the write off?

Question 28 options:

The growth of the railroads in the period after the Civil War to the 1890s is a very important factor in the growth of the nation's economy, industry, and business. Why? What did the railroads enable that was not present before their rise?