At January 1, 2018, Brant Cargo acquired equipment by issuing a six-year, $200,000 (payable at maturity), 5% note. The market rate of interest for notes of similar risk is 10%.

Prepare necessary journal entries:

1. On Jan 1, 2018

2. On Dec 31, 2018

3. On Dec 31, 2019

Darya McNeil owns and operates Darya’s Day Spa. She has decided to sell the business and retire. She has had discussions with a representative from a regional chain of day spas. The discussions are at the complex stage of agreeing on a price. Among the important factors have been the financial statements of the business. Each year they develop a statement of profits on a cash basis; no balance sheet was prepared. Darya provided the other company with the following statement for 2018:

You have been asked to examine the financial figures for 2018. The other company’s representative said, “I question the figures because, among other things, they appear to be on a 100 percent cash basis.” Your investigations revealed the following additional data at December 31, 2018.

Of the $1,215,000 in total spa fees collected in 2018, $142,000 was for services performed in 2017.

At the end of 2018, spa fees of $89,000 for services performed during the year were on account and should be collected in 2019.

Office equipment owned and used by Darya cost $205,000. Depreciation was estimated at $20,500 annually.

A count of supplies on December 31, 2018, reflected $5,200 worth of items purchased during the year that were still on hand. Also, the records for 2017 indicated that the supplies on hand at the end of 2017 were $3,125.

At the end of 2018, the secretary whose salary is $4,000 per month had not been paid for December because of a long trip that extended into January, 2019.

The December 2018 telephone bill for $1,400 has not been recorded or paid. In addition, the $12,200 amount on the statement of profits includes payment of the December 2017 bill of $1,800 in January 2018.

The $130,000 office rent paid was for 13 months (it included the rent for January 2019).

Required

Complete journal entries for a – g above.

Prepare a corrected income statement for 2018 (ignore income taxes).

Write a memo highlighting important items that should be considered in the pricing decision.

For Questions 1 through 5, use the following information

MVP Corp. issues common stock on 1/1/2018. All Shareholders’ Equity accounts have a $ 0 as of that day. On 1/1/2018, they issue 20,000 shares of $1 par common stock (they are authorized to issue 55,000 shares). The issue price of the shares was $26/share. On 4/5/2018, MVP repurchases 3,000 shares of their common stock at the market price of $29/share. They are not retiring the shares. On 7/19/2018, they sell 1,000 of those shares at the market price of $25/share; on 9/15/2018 they sell an additional 1,000 shares at the new market price of $29/share. During 2018, MVP reports net income of $114,500. They declare a cash dividend of $11,500 on 11/30/2018. MVP’s policy is to pay dividends 60 days after they are declared.

1. As of 1/31/2018, what are the balances in MVP's equity account(s)?

A. Common Stock $20,000 and PIC-Excess of par $ 500,000

B. Common stock $ 55,000 and PIC--Excess of par $ 1,375,000

C. Common stock $ 520,000

D. Common stock $ 1,430,000

E. Common stock $20,000; PIC-Excess of par $ 500,000; Treasury Stock $ 910,000

2. The repurchase of shares on 4/5/2018 has which effect:

A. Increase shareholders' equity by $ 87,000

B. Decrease shareholders' equity by $ 87,000

C. Decrease common stock by $ 3,000

D. Increase common stock by $ 3,000

E. None of the above

3. As of 12/31/2018, the balance in the Treasury stock account is

A. Debit of $ 30,000

B. Credit of $ 30,000

C. Debit of $ 29,000

D. Credit of $ 29,000

E. $ 0

4. When recording the share resale of 9/15/2018, which of the following is part of the journal entry?

A. Debit common stock $ 1,000

B. Credit treasury stock $ 32,000

C. Debit treasury stock $ 29,000

D. Credit paid-in-capital: share repurchase $, 3,000

E. Credit retained earnings $ 3,000

5. How many outstanding shares of common stock will MVP report as of 12/31/2018?

A. 55,000

B. 20,000

C. 17,000

D. 19,000

E. 35,000

Hoo Company sells TVs and it operates a periodic inventory system. On 1 January 2018, the inventory account in firms’ ledger had a balance of 1,200,000. Based on the following information, answer the required questions.

1. 1. Hoo’s accountants conducted a physical counting of inventory on 31 December 2018 and concluded that the value of all the inventories in Hoo’s warehouse was 1,000,000.

1. 2. On 1 May 2018, Hoo purchased more TVs from Kota Inc. at the cost of 600,000. Kota Inc. shipped out the TVs on 5 May 2018 on the terms of FOB shipping point. Hoo received those TVs on 20 May 2018. Hoo will not pay Kota Inc. until 1 January 2019.

1. 3. On 1 June, Hoo found out that some TVs purchased from Kota Inc. were in defect and returned those TVs. The total cost of those returned TVs was 160,000.

1. 4. On 28 December Hoo purchased more TVs from Dato Inc. at the cost of 200,000. Dato Inc. shipped out the TVs on 29 December 2018 on terms of FOB destination. Hoo received the TVs from Dato Inc. on 4 January 2019.

1. 5. One of Hoo’ major customers purchased 240,000 worth of TVs from Hoo, with cost 200,000, on 25 December 2018. Hoo shipped out the TVs on 27 December 2018, on terms of FOB destination. Those TVs arrived at the buyer’s place on 2 January 2019.

1. 6. Among the inventory in Hoo’s warehouse on 31 December 2018 was some TVs on consignment from Zaza Inc., with a cost of 100,000.

Required:

Hoo Inc. has not made any journal entries for all the above transactions yet. Assume that the above are all the transactions related to Hoo’s inventory for the 2018 accounting period.

• • For each of the above 6 transaction information, provide all relevant journal entries, if any, required on 31 December 2018. If no journal entry is needed, please indicate “No Entry” in your answer.

• • Calculate the ending inventory and the cost of goods sold for Hoo Inc.’s 2018 operation. Provide the journal entry for recognition of Hoo’ cost of goods sold.

A medical researcher wants to compare the pulse rates of smokers and non-smokers. He believes that the pulse rate for smokers and non-smokers is different and wants to test this claim at the 0.05 level of significance. A sample of 52 smokers has a mean pulse rate of 78, and a sample of 64 non-smokers has a mean pulse rate of 74. The population standard deviation of the pulse rates is known to be 88 for smokers and 77 for non-smokers. Let μ1 be the true mean pulse rate for smokers and μ2 be the true mean pulse rate for non-smokers.

Step 1 of 5:

State the null and alternative hypotheses for the test.

Step 2 of 5:

Compute the value of the test statistic. Round your answer to two decimal places

Step 3 of 5:

Find the p-value associated with the test statistic. Round your answer to four decimal places.

Step 4 of 5:

Make the decision for the hypothesis test.

Step 5 of 5:

State the conclusion of the hypothesis test.

Separate random samples were collected by a polling agency to investigate the difference in employee satisfaction at​ non-profit organizations and at​ for-profit companies. Data collected from 400 employees at​ non-profit organizations revealed that 365 of them were​ "highly satisfied." From the​ for-profit companies, 431 out of 509 employees reported the same level of satisfaction. Researchers want to test if the proportions of satisfied employees are the same at​ for-profit companies as at​ non-profit companies.

A) What is the difference in the proportions of the two types of​ companies? Assume P1 is the proportion of satisfied​ non-profit employees and P2 is the proportion of satisfied​ for-profit employees. P1 - P2 is ____ (round to 3 decimals).

B) What is the pooled proportion of satisfied employees in both types of companies​ combined?

C) What is the standard error of the difference in part​ a?

D) What is the Z statistic and P Value?

_____ the null hypothesis. There _____ sufficient evidence to conclude that the proportions of satisfied employees in​ non-profit organizations and in​ for-profit companies are different.

Thank you in advance for your help!

Colander Co is preparing its financial statements for the year ended 31 December 2018 and has a number of issues to deal with regarding non-current assets.

(1) Colander has suffered an impairment loss of €90,000 to one of its cash-generating units. The carrying amounts of the assets in the cash-generating unit prior to adjusting for impairment are:

(2) During the year to 31 December 2018 Colander Co acquired Sieve Co for €10 million, its tangible assets being valued at €7 million and goodwill on acquisition being €3 million. Assets with a carrying amount of €2.5 million were subsequently destroyed. Colander has carried out an impairment review and has established that Sieve Co could be sold for €6 million, while its value in use is €5.5 million.

(3) Colander Co owns property originally costing €100,000 with a 50-year useful life. It has accumulated depreciation to date of €20,000. The asset will be revalued to €130,000 at 31 December 2018.

Questions:

What is the post-impairment carrying amount of plant and machinery in (1) above?

Group of answer choices

€40,000

€50,000

€30,000

€20,000

The Finance Director has been asked to report to the Board on the reasons for the impairment review of the cash-generating unit. Which TWO of the following would be internal indicators of impairment of an asset?

Group of answer choices

The asset has been fully depreciated.

The market value of the asset has fallen significantly.

There are adverse changes to the use of the asset to which the asset is put in the entity.

The operating performance of the asset has declined.

What is the recoverable amount of Sieve Co in (2) above?

Group of answer choices

€4.5 million

€6 million

€500,000

€5.5 million

Which of the following effects will the revaluation in (3) above have on Colander's financial statements? (The property is used for administrative purposes and has not been revalued before).

Group of answer choices

There will be a gain on revaluation of €50,000 shown under other comprehensive income

There will be a gain on revaluation of €30,000 increasing the profit for the year

There will be a gain on revaluation of €30,000 shown under other comprehensive income

There will be a gain on revaluation of €50,000 increasing the profit for the year