Chesterfield County had the following transactions.

1. A budget is passed for all ongoing activities. Revenue is anticipated to be $888,750 with approved spending of $583,000 and operating transfers out of $246,000.
2. A contract is signed with a construction company to build a new central office building for the government at a cost of $7,400,000 . A budget for this project has previously been recorded.
3. Bonds are sold for $7,400,000 (face value) to finance construction of the new office building.
4. The new building is completed. An invoice for $7,400,000 is received and paid.
5. Previously unrestricted cash of $1,250,000 is set aside to begin paying the bonds issued in (c).
6. A portion of the bonds comes due and $1,250,000 is paid. Of this total, $110,000 represents interest. The interest had not been previously accrued.
7. Citizens' property tax levies are assessed. Total billing for this tax is $845,000. On this date, the assessment is a legally enforceable claim according to the laws of this state. The money to be received is designated for the current period and 90 percent is assumed to be collectible in this period with receipt of an additional 6 percent during subsequent periods but in time to be available to pay current period claims. The remainder is expected to be uncollectible.
8. Cash of $165,000 is received from a toll road. This money is restricted for highway maintenance.
9. The county received investments valued at $335,000 as a donation from a grateful citizen. Income from these investments must be used to beautify local parks.

Prepare the entries first for fund financial statements and then for government-wide financial statements.

Q: Arlington Company is constructing a building in 2015. Construction began on January 1 and was completed on December 31. Expenditures were $4,800,000 on March 1, $3,960,000 on June 1, and $6,000,000 on December 31. Arlington Company borrowed $2,400,000 on January 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year, $4,800,000 note payable and an 11 %, 4-year, $9,000,000 note payable.

6. what is the weighted average use for interest capitalization purposes?

a.11%

b. 10.85%

c. 10.5%

d. 10.65%

7. what is the avoidable interest for Arlington Company?

a. $288000

b. $927615

c. $328562

d. $704415

8. what is the amount of interest capitalized for Arlington?

a $288000

b. $927615

c. $328562

d. $704415

9. How much is the interest expense for Arlington as of December 31 of the year?

a. $288000

b. $1053585

c. $328562

d. $704415

10. On its balance sheet, how much is the cost of building?

a. $704415

b.$6310000

c. $14760000

d. $15464415

11. Arlington Company uses the straight-line method for depreciation. The building will be depreciation for 30 years, with no salvage value. How much will the depreciation for the above building each year?

a. $704415

b. $288000

c. $704415

d. $515480.5

Electric Generator Corporation

The Electric Generator Corporation was founded in the early 1970s to develop and market electrical products for industrial and commercial markets. Recently, the company has developed a new electric generator, the EGI, with a revolutionary design. Although its initial cost is $2,000 higher than any competing generator, reduced maintenance costs will offset the higher purchase price within 18 months. The Electric Generator sales force has been instructed to concentrate all effort on selling this new generator, as the company believes it has a sales potential of $500 million.

Sandy Hart, the company's South Texas salesperson, has as her main customer the E. H. Zachary Construction Company of San Antonio, which is the largest nonunion construction firm in the world. Because of the importance of potential Zachary purchases of the EGI (estimated at $1 million), Sandy's boss asks her to take two days off and develop a plan for contacting and selling to Zachary. Monday morning, she is expected at the Houston regional sales office to present this plan to her boss, the regional sales manager, and the divisional sales manager. These two people will critique the presentation, and then the four of them will finalize a sales plan that Sandy will present to Zachary's buying committee.

Questions

1-What could Sandy have done differently?

2- What do you think about the current price?

On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2019.

Expenditures on the project were as follows:

On January 1, 2018, the company obtained a $4,000,000 construction loan with a 14% interest rate. The loan was outstanding all of 2018 and 2019. The company’s other interest-bearing debt included two long-term notes of $1,000,000 and $4,000,000 with interest rates of 10% and 12%, respectively. Both notes were outstanding during all of 2018 and 2019. Interest is paid annually on all debt. The company’s fiscal year-end is December 31.

Required:
1. Calculate the amount of interest that Mason should capitalize in 2018 and 2019 using the specific interest method.
3. Calculate the amount of interest expense that will appear in the 2018 and 2019 income statements.

Calculate the amount of interest that Mason should capitalize in 2018 and 2019 using the specific interest method and interest expense that will appear in the 2018 and 2019 income statements. (Enter your answers in dollars.)

2.

What is the total cost of the building? (Enter your answer in dollars.)

Chesterfield County had the following transactions.

1. A budget is passed for all ongoing activities. Revenue is anticipated to be $888,750 with approved spending of $583,000 and operating transfers out of $246,000.
2. A contract is signed with a construction company to build a new central office building for the government at a cost of $7,400,000 . A budget for this project has previously been recorded.
3. Bonds are sold for $7,400,000 (face value) to finance construction of the new office building.
4. The new building is completed. An invoice for $7,400,000 is received and paid.
5. Previously unrestricted cash of $1,250,000 is set aside to begin paying the bonds issued in (c).
6. A portion of the bonds comes due and $1,250,000 is paid. Of this total, $110,000 represents interest. The interest had not been previously accrued.
7. Citizens' property tax levies are assessed. Total billing for this tax is $845,000. On this date, the assessment is a legally enforceable claim according to the laws of this state. The money to be received is designated for the current period and 90 percent is assumed to be collectible in this period with receipt of an additional 6 percent during subsequent periods but in time to be available to pay current period claims. The remainder is expected to be uncollectible.
8. Cash of $165,000 is received from a toll road. This money is restricted for highway maintenance.
9. The county received investments valued at $335,000 as a donation from a grateful citizen. Income from these investments must be used to beautify local parks.

Prepare the entries first for fund financial statements and then for government-wide financial statements.

A sample of 51 research cotton samples resulted in a sample average percentage elongation of 8.11 and a sample standard deviation of 1.49. Calculate a 95% large-sample CI for the true average percentage elongation μ. (Round your answers to three decimal places.)

(_,_)

What assumptions are you making about the distribution of percentage elongation?

We assume the distribution of percentage elongation is normal with the value of σ unknown.

We make no assumptions about the distribution of percentage elongation.    

We assume the distribution of percentage elongation is uniform.

We assume the distribution of percentage elongation is normal with the value of σ known.

A sample of 56 research cotton samples resulted in a sample average percentage elongation of 8.16 and a sample standard deviation of 1.43.

a. Calculate a 95% large-sample CI for the true average percentage elongation μ. (Round your answers to three decimal places.)

b .What assumptions are you making about the distribution of percentage elongation?

a.We assume the distribution of percentage elongation is uniform.

b.We assume the distribution of percentage elongation is normal with the value of σ known.    

c.We make no assumptions about the distribution of percentage elongation.

d.We assume the distribution of percentage elongation is normal with the value of σ unknown.

Dividends in the construction industry are when insurance companies return portions of the surplus (gathered from premiums), to clients with relatively low loses.

True or False

Which type of occupation is expected to be the fastest growing from in the next decade?

Select one:

a. construction

b. manufacturing

c. mining

d. service

Discuss in not more than 100 words the purposes of hypothesis testing in quantitative research. Illustrate your answers with at least one example in the construction industry.