Percentage-of-Completion and Completed Contract Methods

Philbrick Company signed a three-year contract to provide sales training to the employees of Elliot Company. The contract price is $1,200 per employee and the estimated number of employees to be trained is 400. The expected number to be trained in each year and the expected training costs follow.

Required

For each year, compute the revenue, expense, and gross profit reported assuming revenue is recognized using the following method.
(Do not round until your final answers. Round your answers to two decimal places.)

1. Percentage-of-completion method, where percentage-of-completion is determined by the number of employees trained.

2. Percentage-of-completion method, where percentage-of-completion is determined by the costs incurred.

3. Completed contract method.

The unadjusted trial balance as of December 31, 2018, for the Bagley Consulting Company appears below. December 31 is the company’s fiscal year-end.

1. The buildings have an estimated useful life of 50 years with no salvage value. The company uses the straight-line depreciation method.
2. The office equipment is depreciated at 10 percent of original cost per year.
3. Prepaid insurance expired during the year, $1,150.
4. Accrued salaries and wages at year-end, $850.
5. Deferred rent revenue at year-end should be $400.

Required:
1. From the trial balance and information given, prepare adjusting entries.
2. Post the beginning balances and adjusting entries into the appropriate t-accounts.
3. Prepare an adjusted trial balance.
4. Prepare closing entries.
5. Prepare a post-closing trial balance.

The unadjusted trial balance as of December 31, 2018, for the Bagley Consulting Company appears below. December 31 is the company’s fiscal year-end.

The buildings have an estimated useful life of 50 years with no salvage value. The company uses the straight-line depreciation method.

The office equipment is depreciated at 10 percent of original cost per year.

Prepaid insurance expired during the year, $1,400.

Accrued salaries and wages at year-end, $1,100.

Deferred rent revenue at year-end should be $650.

Required:
1. From the trial balance and information given, prepare adjusting entries.
2. Post the beginning balances and adjusting entries into the appropriate t-accounts.
3. Prepare an adjusted trial balance.
4. Prepare closing entries.
5. Prepare a post-closing trial balance.

On December 1, Macy Company sold merchandise with a selling price of $9,000 on account to Mrs. Jorgensen, with terms 4/10, n/30. On December 3, Mrs. Jorgensen returned merchandise with a selling price of $700. Mrs. Jorgensen paid the amount due on December 9. What journal entry did Macy Company prepare on December 9 assuming the gross method is used?

A) Debit Cash for $7,968 and credit Accounts Receivable for $7,968.

B) Debit Sales Revenue for $7,968, debit Sales Discounts for $332, and credit Accounts Receivable for $8,300.

C) Debit Sales Revenue for $8,300, credit Sales Discount for $332 and credit Cash for $7,968.

D) Debit Cash for $7,968, debit Sales Discounts for $332, and credit Accounts Receivable for $8,300.

26 randomly selected students were asked the number of movies they watched the previous week. The results are as follows:

Round all your answers to one decimal place.

The mean is:

The median is:

The sample standard deviation is:

The first quartile is:

The third quartile is:

What percent of the respondents watched at least 4 movies the previous week? ______%

74% of all respondents watched fewer than how many movies the previous week?

Please write step by step in details thanks will upvote

An entrepreneur opened a small hardware store in a street mall. During the first few weeks, the business was slow with the store averaging only one customer arrived every 20 minutes. Assume that the random arrival of customers is Poisson distributed.

(a) What is the probability that exactly 5 customers arrive during one-hour period?
(b) If the average revenue from each customer is USD 12, what is the probability that the entrepreneur’s hourly earnings are at least USD 24?
(c) If the hardware shop is open for 8 hours, what is the entrepreneurs mean daily earnings if each customer were to spend on average about USD 12.

Antonio’s Car Services provides maintenance services for motorized vehicles. In March 2018, Rick placed an order for a new set of tires for $350. When a customer purchases goods or services in excess of $300, Antonio’s gives the customer a 25% discount coupon for future purchases made in the next three months. Antonio’s estimates that approximately 80% of customers utilize the coupon and that on average those customers will purchase goods or services that typically sell for $75.

Required:
(a) How many performance obligations are in Rick’s contract?
(b) Prepare a journal entry to record revenue for this transaction, assuming that Antonio’s uses the residual method to estimate the stand-alone selling price of new tires sold without the discount coupon.

4. A private-label bottler of soft drinks asks each of 60 members of a tasting panel (who are regarded as a random sample from millions of potential customers) to rate each of two possible formulations of a cola drink on a 100-point scale; higher scores are desirable. Formulation G is less expensive and will be used unless there is a clear evidence that formulation R is preferred. From the data, the bottler obtains the difference (R-G) in the ratings for each panelist. After conducting appropriate statistical tests on the mean of the differences in the ratings, the management of the private-label bottler concluded that the difference in the ratings is negligible. Consequently, they have decided to use formulation G which is less expensive. The data on the panelist’s ratings they have used is in the Excel data file named ‘Cola Ratings’. Using the same data and at 10% level of significance, please conduct the test you think the management’s decision must have been based on. Based on your results, do you agree with the management’s conclusion? Does your conclusion change at 5% level of significance?

Great recession in 2008 experienced the burst of housing market bubble, which led financial market crisis.

You were hired as a chief economic advisor in a major corporate, and they would like to know more about macroeconomic conditions in 2008.

Your responded one of followings;

1. Aggregate demand fell in 2008. Here are the reasons; Unemployment and lower income, resulting from a drop in consumer spending and investment, meant governments took in less in tax revenue. This caused government spending to drop.
2. The Great Recession was caused by the Fed’s policy which created artificially low interest rates, and Government housing policy which encouraged bad mortgages.
3. Recovery was slow because of productivity decrease from 2005, and policy uncertainty in 2008.
4. Aggregate demand fell in 2008 because the Fed policy was not expansionary enough.

Explain your response based on the economic theory that you are subscribing (eg.  Real business cycle theory, Keynesian, Austrian, Monetarists etc.).

The bank statement and cash activity for the month of June for Greyhound Corporation are provided below:

Your analysis of the bank statement and company records revealed the following additional information:

Beginning cash balance for Greyhound Company on May 31st was $50,958.15.

Outstanding checks at 5/31/17 according to Greyhound Company were:

           4017         $   1,523.50

A monthly EFT deduction of $4,762.30 was made for payroll.

Required:

1. Determine the June 30^th ending cash balance per the books.

2. Determine the June 30^th ending cash balance per the bank.

3. Prepare the reconciliations from both the Company Books and Bank Statement to the correct cash balance at June 30^tht. Assume any errors were made by Greyhound.

4. Prepare the adjusting journal entries necessary at June 30^th, 2017.