Why is economic growth important to us and what are the most important/critical factors that contribute to growth?

What is holding the US economy back from achieving the desired 4% growth?

Question # 6 Erica Corp., who reports under ASPE, leases machinery on January 1, 2020, and records this as a capital lease. Seven annual lease payments of $ 140,000 are required the end of each year, starting December 31, 2020. The present value of the lease payments are calculated using 10%. Title passes to Erica at the end of the lease. Erica uses the effective interest method of amortization for the lease. The company uses straight-line depreciation. The equipment’s expected useful life of eight years, with no residual value. Instructions (Round values to the nearest dollar.) a. What type of lease is this for the lessee? What is your rationale? a. Prepare a lease amortization table for 2020 and 2021. b. Prepare the general journal entries relating to this lease for 2020.

Erica Corp., who reports under ASPE, leases machinery on January 1, 2020, and records this as a capital lease. Seven annual lease payments of $ 140,000 are required the end of each year, starting December 31, 2020. The present value of the lease payments are calculated using 10%. Title passes to Erica at the end of the lease.

Erica uses the effective interest method of amortization for the lease. The company uses straight-line depreciation. The equipment’s expected useful life of eight years, with no residual value.

Instructions (Round values to the nearest dollar.)

1. What type of lease is this for the lessee?  What is your rationale?

1. Prepare a lease amortization table for 2020 and 2021.
2. Prepare the general journal entries relating to this lease for 2020.

Pina Company provides the following information about its defined benefit pension plan for the year 2020.

Prepare the journal entry recording pension expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

A company in the civil engineering industry with headquarters locate in Accra undertakes contract anywhere in Ghana

The company has had its tender for a job in Kumasi Accepted for GHS 288,000 and work is due to begin in June 2020. However, the company has also been asked to undertake a contract on the Coast of Accra. The price offered for this contract is GHS 352,000. Both of the contracts cannot be undertaken simultaneously because of constraints on staff site management personnel and on plant available. An escape clause enables the company to withdraw from the contract in Accra, provided notice is given before the end of April, 2020 and an agreed penalty of GHS 28,000 is paid.

The company’s quantity surveyor has submitted the following estimates

Additional Information:

1. X, Y and Z are three building materials. Material X is not in common use and would not realize much money if re-sold; however, it could be used on other contracts but only as a substitute for another material currently quoted at 10% less than the original cost of X. The price of Y a material in common use has doubles since it was purchased; it net realizable value if resold would be the new price less 15% to cover the disposal cost. Alternatively, it could be kept for use on another contract in the following year.

2. With the construction industry not yet recovered from the recent recession, the company is confident that manual labour, both skilled and unskilled could be hired locally on a sub-contract basis to meet the needs of each of the contracts

3. The plant, which would be needed for the Coast of Accra contract, has been owned by for some years and GHS 12,800 is the year’s depreciation on a straight-line basis. If the Kumasi contract is undertaken , less plan will be required but the surplus plant will be hired out for the period of the contract at a rental of GHS 6,000

4. It is the company’s policy to charge all contracts with nominal interest at 8% on estimated working capital involved in contracts. Progress payments would be made receivable from the contractee

5. Salaries and general cost of operating the small headquarters amount to about GHS 108,000 each year. There are usually ten contracts being supervised at the same time

6. Each of the two contracts is expected to last from June 2020 to December 2020 which, coincidentally is the company’s financial year

7. Site management is treated as a fixed cost

Required:

As a management accountant to the company, present comparative statements to show the net benefit to the company for undertaking the more advantageous of the two contracts.

Explain the reasoning behind the inclusion and omission from your comparative financial statement for each item given in the cost estimates and the notes relating thereto

Copper Explorations recently acquired the rights to mine a new site. Equipment and a truck were purchased to begin mining operations at the site. Details of the mining assets follow:

Copper's year-end is December 31 and it uses the straight-line method for all mining assets including intangibles.

Required:
1. Record amortization and depreciation at December 31, 2020, on the mining assets, including the mineral rights.

2. Assume the mine was closed on October 31, 2023, and the assets were scrapped. Record the disposal of the assets.

Do male college students spend more time than female college students using a computer? This was one of the questions investigated by the authors of an article. Each student in a random sample of 46 male students at a university in England and each student in a random sample of 38 female students from the same university kept a diary of how he or she spent time over a three-week period.

For the sample of males, the mean time spent using a computer per day was 45.1 minutes and the standard deviation was 63.3 minutes. For the sample of females, the mean time spent using a computer was 39.4 minutes and the standard deviation was 57.3 minutes. Is there convincing evidence that the mean time male students at this university spend using a computer is greater than the mean time for female students? Test the appropriate hypotheses using

α = 0.05.

(Use a statistical computer package to calculate the P-value. Use μ_males − μ_females. Round your test statistic to two decimal places, your df down to the nearest whole number, and your P-value to three decimal places.)

State your conclusion.

Fail to reject H₀. We do not have convincing evidence that the mean time per day male students at this university spend using a computer is greater than the mean time for female students.Reject H₀. We do not have convincing evidence that the mean time per day male students at this university spend using a computer is greater than the mean time for female students.    Fail to reject H₀. We have convincing evidence that the mean time per day male students at this university spend using a computer is greater than the mean time for female students.Reject H₀. We have convincing evidence that the mean time per day male students at this university spend using a computer is greater than the mean time for female students.

Do female college students spend more time than male college students watching TV? This was one of the questions investigated by the authors of an article. Each student in a random sample of 46 male students at a university in England and each student in a random sample of 38 female students from the same university kept a diary of how he or she spent time over a three-week period.

For the sample of males, the mean time spent watching TV per day was 68.3 minutes and the standard deviation was 67.5 minutes. For the sample of females, the mean time spent watching TV per day was 93.8 minutes and the standard deviation was 89.1 minutes. Is there convincing evidence that the mean time female students at this university spend watching TV is greater than the mean time for male students? Test the appropriate hypotheses using

α = 0.05.

(Use a statistical computer package to calculate the P-value. Use μ_males − μ_females. Round your test statistic to two decimal places, your df down to the nearest whole number, and your P-value to three decimal places.)

State your conclusion.

Reject H₀. We have convincing evidence that the mean time female students at this university spend watching TV is greater than the mean time for male students.Fail to reject H₀. We do not have convincing evidence that the mean time female students at this university spend watching TV is greater than the mean time for male students.    Reject H₀. We do not have convincing evidence that the mean time female students at this university spend watching TV is greater than the mean time for male students.Fail to reject H₀. We have convincing evidence that the mean time female students at this university spend watching TV is greater than the mean time for male students.

Do female college students spend more time than male college students watching TV? This was one of the questions investigated by the authors of an article. Each student in a random sample of 46 male students at a university in England and each student in a random sample of 38 female students from the same university kept a diary of how he or she spent time over a three-week period.

For the sample of males, the mean time spent watching TV per day was 68.8 minutes and the standard deviation was 67.5 minutes. For the sample of females, the mean time spent watching TV per day was 93.8 minutes and the standard deviation was 89.1 minutes. Is there convincing evidence that the mean time female students at this university spend watching TV is greater than the mean time for male students? Test the appropriate hypotheses using

α = 0.05.

(Use a statistical computer package to calculate the P-value. Use μ_males − μ_females. Round your test statistic to two decimal places, your df down to the nearest whole number, and your P-value to three decimal places.)

State your conclusion.

a.Reject H₀. We do not have convincing evidence that the mean time female students at this university spend watching TV is greater than the mean time for male students.

b.Fail to reject H₀. We have convincing evidence that the mean time female students at this university spend watching TV is greater than the mean time for male students.     

c.Reject H₀. We have convincing evidence that the mean time female students at this university spend watching TV is greater than the mean time for male students.

d.Fail to reject H₀. We do not have convincing evidence that the mean time female students at this university spend watching TV is greater than the mean time for male students.