On December 31, 2020, Crane Associates owned the following securities, held as a long-term investment. The securities are not held for influence or control of the investee.

On December 31, 2020, the total fair value of the securities was equal to its cost. In 2021, the following transactions occurred:

At December 31, the fair values per share of the common stocks were: Gehring Co. $32, Wooderson Co. $6, and Kitselton Co. $16

1. Journalize the 2021 transactions and post to the account Stock Investments. (Use the T-account form.)

Example:

2. Prepare the adjusting entry at December 31, 2021, to show the securities at fair value.

3. Show the balance sheet presentation of the investments at December 31, 2021. At this date, Crane Associates has common stock $1,468,000 and retained earnings $1,177,000.

The following selected transactions were completed during August between Summit Company and Beartooth Co. Both companies use the net method under a perpetual inventory system. Aug. 1 Summit Company sold merchandise on account to Beartooth Co., $52,150, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $25,940. 2 Summit Company paid freight of $1,235 for delivery of merchandise sold to Beartooth Co. on August 1. 5 Summit Company sold merchandise on account to Beartooth Co., $60,090, terms FOB shipping point, n/eom. The cost of the goods sold was $36,900. 9 Beartooth Co. paid freight of $2,140 on August 5 purchase from Summit Company. 15 Summit Company sold merchandise on account to Beartooth Co., $62,600, terms FOB shipping point, n/45. Summit paid freight of $1,515, which was added to the invoice. The cost of the goods sold was $32,600. 16 Beartooth Co. paid Summit Company for purchase of August 1. 20 Summit Company paid Beartooth Co. a cash refund of $1,000 for defective merchandise purchased on August 1. Beartooth Co. kept the merchandise. 31 Beartooth Co. paid Summit Company on account for purchase of August 5. 31 Summit Company issued Beartooth Co. a credit memo for merchandise with an invoice amount of $3,800 that was returned from the August 15 sale. The cost of the merchandise returned was $2,200. Journalize the August transactions for (1) Summit Company and (2) Beartooth Co. Refer to the Chart of Accounts of the appropriate company for exact wording of account titles.

Preparing a Cash Budget

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

1. Sales are budgeted to be $153,000. 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 $101,000. 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 $1,600 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.
$

Feedback

Correct

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

1. The Accountant at EZ Toys, Inc. is analyzing the production and costs data for its Trucks

Division. For October, the actual results and the master budget data are presented below.

Actual Results

Budget Data

Produced and sold

10,000

Production and sales

12,000

Unit Selling Price

$15

Unit Selling Price

$15

Variable Costs:

Unit Variable Costs:

Direct materials

$52,800

Direct materials

$5

Direct labor

51,000

Direct labor

4

Variable OH

23,000

Variable OH

2

Total variable Costs $126,800

Total unit variable costs $11

Fixed Overhead

$9,000

Fixed Overhead

$9,600

Required: Prepare a variance analysis to compare actual results and master budget.

2. Required: Use the data above to determine the flexible budget variance and the sales volume

variance.

3. Required: Calculate the direct materials variances for October using the following

Information regarding the use of direct materials at EZ Toys’ Trucks Division for October:

Standard Costs

2 units per truck @ $2.5 per unit

Trucks produced in October = 10,000

Actual Materials purchased and used 22,000 units @ $2.4 per unit

4. Required: Calculate the direct labor variances for October using the following Information

regarding the use of direct labors at EZ Toys’ Trucks Division for October:

Standard Costs

0.4 hours per truck @ $10 per hour

Trucks produced in October = 10,000

Actual Direct Labor costs

Actual hours worked = 5,000 hours

Total actual labor cost = $51,000

Average cost per hour = $10.20

What might be causing these variance

What is the source of bias in each of the following situations the sample suffers from and why?

a) A health survey was conducted among households in a community that were selected at random from the telephone directory. In this community, 4% of households have no telephone and another 35% have unlisted telephone numbers.

b) Respondents to a lifestyle survey may not truthfully answer a question on the use of illegal drugs.

c) A researcher is interested in studying the natural behavior of chimpanzee. Initially the chimps would flee at the sight of him and he had to observe them from a distance with binoculars. But he persisted until the animals eventually got accustomed enough to him to ignore him.

2. (25p) You are about to take a 16-question true-false test. Assume you answer all 16 questions by guessing.
What is the probability of getting more than 10 questions correct?

3. (25p) A telephone number is selected at random from a directory. Suppose X denote the last digit of selected telephone number. Find the probability that the last digit of the selected number is
a. 5
b. less than 5
c. greater than or equal to 9

4. (25p) Suppose that the random variable Family income ~ N($65000, $320002). If the poverty level is $24,000, what percentage of the population lives in poverty?

Filename and extension: sales.txt

File type(s): Python and .txt

Is college worth it? Among a simple random sample of 300 American adults who do not have a four-year college degree and are not currently enrolled in school, 147 said they decided not to go to college because they could not afford school.

1. Calculate a 99% confidence interval for the proportion of Americans who decide to not go to college because they cannot afford it, and interpret the interval in context. Round to 4 decimal places.

2. Suppose we wanted the margin of error for the 99% confidence level to be about 3.5%. What is the smallest sample size we could take to achieve this? Note: For consistency's sake, round your z* value to 3 decimal places before calculating the necessary sample size.

Is college worth it? Among a simple random sample of 350 American adults who do not have a four-year college degree and are not currently enrolled in school, 130 said they decided not to go to college because they could not afford school.

NOTE: While performing the calculations, do not used rounded values. For instance, when calculating a p-value from a test statistic, do not use a rounded value of the test statistic to calculate the p-value. Preserve all the decimal places at each step.

Enter at least 4 decimal places for each answer in WeBWorK.

1. A newspaper article states that only a minority of the Americans who decide not to go to college do so because they cannot afford it and uses the point estimate from this survey as evidence. What are the correct hypotheses for conducting a hypothesis test to determine if these data provide strong evidence supporting this statement?

A. ?0:?=0.5H0:p=0.5, ??:?>0.5HA:p>0.5
B. ?0:?=0.5H0:p=0.5, ??:?<0.5HA:p<0.5
C. ?0:?=0.5H0:p=0.5, ??:?≠0.5HA:p≠0.5

2. Calculate the test statistic for this hypothesis test.

3. Calculate the p-value for this hypothesis test.

4. Based on the p-value, we have:
A. very strong evidence
B. little evidence
C. strong evidence
D. extremely strong evidence
E. some evidence
that the null model is not a good fit for our observed data.