1. Problem 8-77A
   Excise Taxes

   Reagan Gas provides gas utilities to a wide area of eastern Illinois. During May 2019 it billed 36,000 of its residential customers located in the town of Moline a total of $3,295,000 for electricity (this is considered revenue). In addition Reagan is required to collect the following taxes:

   1. State excise tax: A tax of $5.00 per customer plus 3% of billing used to fund the Illinois Energy Commission
   2. Federal excise tax: A tax of $0.45 per customer plus 0.2% of billing used to fund the Federal Energy Commission

   Required:

   1. Determine how much Reagan will bill these customers in total for the month of May 2019.
   $

   2. Prepare the entry to record the billing of these amounts. If an amount box does not require an entry, leave it blank.

   	(Record sale)

   3. Prepare the entry to record the collection of these amounts.

   	(Record collection of receivables)

   4. Prepare the entry to record the payment of the state excise taxes to the appropriate governmental unit.

   	(Record payment)

Check My Work

WASHINGTON — The House failed on Thursday to advance a constitutional amendment that would require Congress not spend more than the nation collects in revenue. Some conservative lawmakers had hoped a vote on the bill would calm grassroots conservatives who had been fuming about recent high levels of spending. On a mostly party line vote, Republicans failed to advance the bill, 233-184. Normally, legislation requires 218 votes to win approval in the House and can be passed with just Republican votes. The balanced budget amendment, however, required bipartisan support with a two-thirds majority vote because it was a constitutional amendment. Analyze the following situations. The economy goes into a recession. A. What automatically happens to tax revenue and government spending during a recession? (See chapter 27) Why? (Does the budget go into deficit, surplus or stay balanced?) 5 points B. If the balanced budget amendment was in effect, what would the federal government have to do to obtain a balanced budget? 5 points C. What would happen to the recession? Why? (Would the recession improve, get worse or stay the same? 5 points

1.

Which of the following is a shortcoming of the balance sheet?

A. Most assets being recorded at their original purchase price instead of their market value

B. Most assets being recorded at their market value instead of their original purchase price

C. Inclusion of a company’s organically grown intangible assets (e.g., the brand value for Apple) on its balance sheet

D. None of the above is a shortcoming of balance sheet

2.

If you bought a piece of property 20 years ago for $100,000 and it is now worth $500,000, how would you record the property asset on a balance sheet?

A. As $400,000

B. As $100,000

C. As $500,000

D. As $300,000

3.

Why is EPS (Earnings Per Share) so important to potential investors?

a. It shows investors how small their share will be relative to the other investors

b. It shows investors companies' after tax earnings

c. It shows investors the percentage return they can get on their investment

d. It shows investors what a company gets to keep for every $1 of sales it makes

4.

When Walmart generates assets through selling products to its customers (through doing business), the source of that asset is called:

a. Revenue

b. Liability

c. Owner’s Equity

d. Paid-in-Capital

5.

When Walmart buys inventory and it promises its suppliers that it will pay them in the future, it records the amount it owes as_____________ on its balance sheet:

a. Unearned revenue

b. Short-term borrowing

c. Accounts payable

d. No entry is required for an amount owed until a cash payment is made

6.

How does an airline report the money you pay when you have purchased a plane ticket, but have not yet taken the flight?

A. As realized revenue

B. As revenue

C. As deferred revenue

D. As unearned revenue

Question C11.2 is based on the following case.

King Companies, Inc (KCI) is a private company that owns five auto parts stores in urban Los Angeles, California. KCI has gone from two auto parts stores to five stores in the last three years, and it plans continued growth. Eric and Patricia King own the majority of the shares in KCI. Eric is the chairman of the board of directors of KCI and CEO, and Patricia is a director as well as the CFO. Shares not owned by Eric and Patricia are owned by friends and family who helped the Kings get started. Eric started the company with one store after working in an auto parts store. To date, he has funded growth from an inheritance and investments from a few friends. Eric and Patricia are thinking about expanding by opening three to five additional stores in the next few years. In October 2021, Eric approached your accounting firm, Thornson & Danforth, LLP, to conduct an annual audit of KCI for the year ended December 31, 2022. KCI has not been audited before, but this year the audit has been requested by the company's bank because of anticipated bank loans and by a new private equity investor that has just acquired a 20% share of KCI. KCI employs 20 full-time staff. These workers are employed in store management, sales, parts delivery, and accounting. About 40% of KCI's business is retail walk-in business, and the other 60% is regular customers where KCI delivers parts to their locations and bills these customers on account. During peak periods, KCI also uses part-time workers. Eric is focused on growing revenues. In his opinion, revenue growth is particularly important to obtaining bank financing. Patricia trusts the company's workers to work hard for the company, and she feels they should be rewarded well. The accounting staff, in particular, is very loyal to the company. Eric tells you that accounting staff enjoy their jobs so much they have never taken any annual vacations, and hardly any workers ever take sick leave. There are two people currently employed as accounting staff, the most senior of whom is Jonathan Jung. Jonathan heads the accounting department and reports directly to Patricia. He is in his late fifties and hopes to retire in two or three years and move away from Los Angeles. Jonathan keeps a close watch on accounting and does many activities himself; including opening mail, cash receipts and vendor payments, depositing funds received, performing reconciliations, posting journals, and performing the payroll function. His second employee, Abby Owens, is a recent college graduate who just passed the CPA exam. Abby is responsible for the payroll functions and posting all journal entries into the accounting system. Jonathan and Abby often help each other out in busy periods.

(11.2) Audit data analytics for revenue Analysis: You have been asked by your audit

manager to consider how the audit firm might audit revenues by using audit data

analytics to evaluate 100% of the revenue transactions. Where do you feel that it would

be most effective to audit 100% of the transactions using ADA? In addition to the sales

information, what other information should you consider in your analysis? Develop a

specific audit strategy for how you would screen 100% of the revenues, how you would

identify exceptions, and how you might consider what would be acceptable variations

from your expectation norm versus unacceptable variations.

1. Jami and Fred are two neighbors and they are trying to decide if they should put a hedge between their two yards to increase their privacy. The cost of the hedge would be $1,000. Jami values the hedge at $800 and Fred values the hedge at $600. If there is no hedge the status quo remains and they each have net benefits of zero. The plan would be for each neighbor to contribute half of the cost for the hedge. Whoever calls the landscaper will have to pay at the time of the service and collect the other neighbors contribution on their own.

1. Would either person be willing to pay for the service on their own? Explain whether or not this example illustrates the point that public goods tend to be underprovided.
2. Create a payoff matrix for this game.
3. Write down the outcomes of all four of the potential moves.
4. What is the Nash Equilibrium for this game?
5. Is this an example of a “prisoner’s dilemma” game? Explain.

Prepare a short report of maximum 3 pages comparing UAE country with Oman:

The theories of absolute and comparative advantage contribute to the explanation of the international trade process. Bearing this in mind, below are some of the examples of products through which the implementation of absolute and comparative advantage between Oman and UAE can be implemented:

1)    Cars

2)    Petroleum

3)    Computers

4)    Pharmaceuticals

5)    Gold

- Discuss the likelihood that UAE country would enjoy an absolute advantage, a comparative advantage, or no particular advantage of each of the products.         

- Conduct your own research to see whether the UAE country is trading any of the above products with Oman. Provide details of what you find out. Sources of reference should be cited to back up your research findings.

1. What are 2 factors that determine how much investors put into stocks versus bonds?

2. Assume the long-term average return for bonds is 6% and for stocks is 10%, what is the effect of shifting some weight from bonds to stocks? imagine that you are 35 years away from retirement and you plan to contribute $10,000 per year for the next 35 years to your portfolio which is currently split equally between stocks and bonds (i.e. $5,000 goes into stocks and $5,000 goes into bonds each year). How much more would you have at your retirement in 35 years if instead of 50/50 split if you had invested 70% in stocks (i.e. $7,000) and only 30% in bonds (i.e. $3,000)?

Consider, for example, what criteria are used in Psychology to evaluate alignment of research components. And in what way will future research contribute to the identity as scholar-practitioner who is dedicated to positive social change?

For this Discussion, consider criteria for evaluating alignment among the various components of a research study. Also reflect on the role as a positive social change agent through research. With these thoughts in mind:

Post

1. An explanation of the criteria you could use to evaluate alignment between data collection methods and other research components, such as the problem, purpose, research questions, and design.

2. Then, reflecting on the course content, discuss the extent to which your newly acquired research knowledge and skills can support your role as an agent of positive social change.

3. Be specific and provide an example(s).

THIS IS A 2 PART QUESTION FROM THE ECONOMIC WAY OF THINKING:

The important difference between police protection and food that explains why one is commonly provided by government while the other is not is that food:

A can easily be withheld from those who won't pay for it.

B it is not a traditional concern of governemtn

C it is too vital to be trusted to the government

D producers form a powerful political lobby

E provided through the government would be too inefficient

The Bureau of Economic Analysis excludes from its calculation of gross domestic product most of the goods produced that are not sold in markets because:

A Their production has no real cost

B Their value is implicitly included in marketed goods

C there is no satisfactory way to measure their value

D They do not contribute to the national welfare

E this would be inappropriate for an exchange economy

A person A contributes to an RRSP at the age of 20. She deposits $ 3,000 per year for 10 years, but no longer makes any deposits afterwards. A Person B waits until age 30 to contribute to an RRSP. She deposits $ 3,000 per year for 30 years. There is no initial investment in neither cases. (Suppose the interest is compounded continuously.)

a) Assume a rate of return of 8%. What the RRSP balance at age 60 for persone A and B?

b) For a constant rate of return r but not specified, determine the RRSP balance of each at the age of 60 based on r.

c) Draw the graph of the difference between the two balances from what you obtained in part b) for 0 <= r <= 0.10.

d) determine the rate of return for which the two RRSPs will have an equal value at the age of 60 years old.