The owner of a restaurant that serves Continental-style entrées has the business objective of learning more about the patterns of patron demand during the Friday-to-Sunday weekend time period. She decided to study the demand for dessert during this time period. In addition to studying whether a dessert was ordered, she will study the gender of the individual and whether a beef entrée was ordered. Data were collected from 630 customers and organized in the following contingency tables:

At the 0.05 level of significance, is there evidence of a difference between males and females in the proportion who order dessert?

At the 0.05 level of significance, is there evidence of a difference in the proportion who order dessert based on whether a beef entrée has been ordered?

The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for National Intercable Company. Additional information from NIC’s accounting records is provided also.

1. Preparation of financial statements

Using the Adjusted Trial Balance shown below, prepare the company’s:

(a)   Income Statement

(b)   Statement of Retained Earnings

(c)    Balance Sheet

by completing the tables provided on the following pages.

#2   Below is a series of accounts for the Whitman Company, numbered for identification. Following the accounts is a series of transactions. For each transaction, indicate the account(s) that should be debited and credited in the required journal entry(s) by entering the appropriate account number(s) to the right of each transaction.

Hints:   Transactions B, C, D each have only one debit and one credit.

              Transaction A had 2 debits and 2 credits.

            Transaction E has one debit and three credits.

3  

On Jan 1, Bike Mart had a beginning inventory of 20 bicycles which it purchased for $350 each.

During January, the company purchases four more bicycles for $400 each. None were sold in January.

On February 15, the company purchases five more bicycles for $450 each.

Between February 16 and 28, Bike Mart sells 10 of these bicycles.

a.) Calculate Bike Mart’s Ending Inventory Balance (in dollars) at the end of February and Cost of Goods Sold through February using the FIFO Method. (show all work.)

b.) Calculate Bike Mart’s Ending Inventory Balance (in dollars) at the end of February and Cost of Goods Sold through February using the Weighted Average Method. (show all work.)

c.) At the end of February, will Bike Mart’s Net Income (profits) on its Income Statement be higher if it uses the FIFO or Weighted Average Inventory Method? Why?

This is a study on minimum wage and poverty thresholds.  I have included the procedure for one year, 2009, below.  You will calculate all variables for all years 1968 – 2013.  You will have three graphs.  Check the attached excel data sheet to see what info. you already have.  You will need to calculate a few variables for each year.  Use the excel data sheet to do quick and easy cut and paste formulas.  If you need help, or are hyperventilating now, just drop me a line or come by the office.     JB

Step 1. Start off by using the 2009 and 2010 data.  You have this data on the excel data sheet:

1. Minimum wage/Nominal minimum wage (NMW)
2. Consumer Price Index (CPI) Use CPI-U for Urban Consumer, annual average
3. Poverty level income threshold for a household of 2 (H2)
4. Poverty level income threshold for a household of 4 (H4)

(NMW, H2 and H4 are nominal variables)

5. You must calculate this one.  CPI in hundredths = CPI/100. Divide all nominal values by CPI in hundredths to convert nominal values to real values.

Step 2. Convert nominal minimum wage (NMW) to real minimum wage (RMW).  

Minimum wage (NMW) from data source in 2009 = $______, the CPI for 2009 = ______

Formula 1:  RMW= NMW/CPI in hundredths

                                _____________ for 2009

Step 3. Calculate yearly percent change in RMW (PP). % chg PP represents annual percent change in purchasing power.

Formula 2: % chg PP from 2009 to 2010:

= (RMW in 2010–RMW in 2009)/RMW in 2009) x 100, = _____________________; an       (increase or decrease) in purchasing power.

Step 4. Calculate the yearly percentage change in the CPI (INFLT). INFLT represents annual percent change in inflation.

Formula 3: INFLT from 2009 to 2010:

                      = (CPI₂₀₁₀ – CPI₂₀₀₉/ CPI₂₀₀₉ x 100;       

                      = (CPIY₂₀₁₁ – CPI₂₀₁₀)/ CPI₂₀₁₀ x 100;     

                        = __________________, an (increase or decrease) in inflation from 2009 to 2010

Step 5. Graph 1. For every year, graph % chg in PP and Inflation (INFLT) on the same graph. Title of graph should be Trend in Purchasing Power and Inflation for Selected Years    

Step 6. Calculate real annual income 1(INC1):  RMW x 40 hours per week x 50 weeks per year.

Formula 4:    INC1 for 2009 = ______________, H2 =________ , this is a nominal value

Formula 5:   Convert to real value (RH2) = h2/CPI (2009) in hundredths = _______________

A new company has an upfront cost of $250,000 today. Starting one year from today they will produce a revenue of $85,000 every year for a total of ten years. The following year (t=11), the revenue will grow at a rate of 7% and this growth rate will remain constant every year forever. The interest rate is 8%. What is the value of these cash flows today for this new company?

Do hypothesis testing (t test)

Test to see if there is a difference between grade of male and female students - insert the SPSS output in the space below.

a- What would be the alternate hypothesis for the study?                                                

b- What would be the null hypothesis?                                                         

c- What Level of Significance do you choose?                                              

d- What is the computed t critical value for the study?                                

e- What is the P-value of the test?                  

f- What is the conclusion?

Stacey's Piano Rebuilding Company has been operating for one year. At the start of the second year, its income statement accounts had zero balances and its balance sheet account balances were as follows:

1. Rebuilt and delivered five pianos in January to customers who paid $18,700 in cash.
2. Received a $550 deposit from a customer who wanted her piano rebuilt.
3. Rented a part of the building to a bicycle repair shop; received $910 for rent in January.
4. Received $7,900 from customers as payment on their accounts.
5. Received an electric and gas utility bill for $480 to be paid in February.
6. Ordered $900 in supplies.
7. Paid $2,140 on account in January.
8. Received from the home of Stacey Eddy, the major shareholder, a $900 tool (equipment) to use in the business in exchange for 110 shares of $1 par value stock.
9. Paid $14,100 in wages to employees who worked in January.
10. Declared and paid a $2,300 dividend (reduce Retained Earnings and Cash).
11. Received and paid cash for the supplies in (f).

Required:

Prepare an unadjusted classified income statement for January of the second year (ignore income taxes).

Golf Guide is seeking new customers through both direct mail and magazine ads. In a recent period, Golf Guide spent $25,277 on direct mail and spent $34,173 on golf magazine ads. The company gained 548 new customers through its direct mail and gained 805 new customers through its magazine ads. Calculate the overall cost per customer acquired for the combined program of direct mail and magazine ads. (Rounding: nearest penny.)

show step by step how you got the answer.

1- Clever Computers has a five-day work week and pays the office staff $3,050 each week. If the month ends on a Thursday, the adjusting entry will credit Wages Payable for

a.$610.

b.$3,050.

c.$1,220.

d.$2,440.

2-

A month-end review of work performed during the month at an accounting firm for tax clients indicates there are a total of 50 tax returns completed for which customers owe $196 each. They remain unbilled at the end of the period. The adjusting journal entry should include a

a.credit to Cash for $9,800.

b.debit to Cash for $9,800.

c.credit to Tax Preparation Revenue for $9,800.

d.debit to Tax Preparation Revenue for $9,800.

3- The cash payment for accrued revenues occurs __________ the adjusting entry to record the accrued revenue.

a.before

b.after

c.at the same time

d.concurrently with

4- Barry Company received $8,000 full payment in advance for services that are 60% complete at the end of the period. The adjusting entry will

a.debit Service Revenue for $4,800 and credit Unearned Revenue for $4,800.

b.debit Unearned Revenue for $4,800 and credit Service Revenue for $4,800.

c.debit Unearned Revenue for $8,000 and credit Service Revenue for $8,000.

d.debit Cash for $4,800 and credit Service Revenue for $4,800.

5- When recording an adjusting entry for a prepaid expense,

a.an asset account is debited.

b.a liability account is debited.

c.an expense account is credited.

d.an asset account is credited.

6-

If an entry to adjust unearned rent and rent revenue is not recorded at the end of the period, Rent Revenue and Net Income on the income statement will be

a.understated.

b.overstated.

c.unaffected because these items are not on the income statement.

d.unaffected because the omitted entry affects two accounts that cancel each other out.

7-

The accumulated depreciation account is called a(n)

a.contra asset account.

b.prepaid asset account.

c.expense account.

d.liability account.

8-

The accumulated depreciation account is called a(n)

a.contra asset account.

b.prepaid asset account.

c.expense account.

d.liability account.

9-

If an entry to adjust depreciation is not recorded at the end of the period, Depreciation Expense on the income statement will be

a.understated.

b.overstated.

c.unaffected because Depreciation Expense is reported on the balance sheet, not on the income statement.

d.unaffected because the omitted entry affects two accounts that cancel each other out

10 -

If the beginning balance of the Accumulated Depreciation—Equipment account is $10,000 and an adjusting journal entry for depreciation on the equipment for $2,500 is omitted at the end of the period, Accumulated Depreciation on the income statement will

a.be understated by $2,500.

b.be overstated by $2,500.

c.be overstated by $10,000.

d.not be impacted because Accumulated Depreciation is reported on the balance sheet.

11-

If an adjustment for $7,500 in accrued revenues is omitted, how will this affect the financial statements?

a.Net income will be understated by $7,500.

b.Net income will be overstated by $7,500.

c.There will be no effect on the financial statements.

d.Accounts Receivable will be overstated by $7,500.

12-

If the following adjusting entry is omitted, what effect will it have on the financial statements?

a.Revenues will be overstated by $1,900.

b.Revenues will be understated by $1,900.

c.There will be no effect on liabilities.

d.There will be no effect on net income.

13-

An adjusting entry debiting Supplies Expense and crediting Supplies is an example of adjusting a(n)

a.prepaid expense.

b.accrued expense.

c.deferred revenue.

d.prepaid revenue.

14-

The adjusted trial balance is prepared

a.to determine the net income or loss.

b.to verify the equality of total debit and credit balances.

c.to determine whether the balance sheet is in balance.

d.for all of these reasons.

15 -

Once the adjusted trial balance is balanced, it can be used to prepare

a.the income statement, the statement of owner's equity, and the classified balance sheet.

b.the classified balance sheet only.

c.the classified balance sheet and the income statement only.

d.None of these financial statements are prepared with the adjusted trial balance.

16 -

The adjusted trial balance

a.does not have a date.

b.is at a specific date.

c.is for a period of time.

d.None of these choices are correct.