Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,050,000. The project began in 2018 and was completed in 2019. Data relating to the contract are summarized below:

20182019

Costs incurred during the year$304,000 $1,595,000

Estimated costs to complete as of 12/31 1,216,000  0

Billings during the year 385,000  1,630,000

Cash collections during the year 252,000  1,755,000

Required:
1. Compute the amount of revenue and gross profit or loss to be recognized in 2018 and 2019 assuming Nortel recognizes revenue over time according to percentage of completion.
2. Compute the amount of revenue and gross profit or loss to be recognized in 2018 and 2019 assuming this project does not qualify for revenue recognition over time.
3. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2018 assuming Nortel recognizes revenue over time according to percentage of completion.
4. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2018 assuming this project does not qualify for revenue recognition over time.

• Required 1
• Required 2
• Required 3
• Required 4

Compute the amount of revenue and gross profit or loss to be recognized in 2018 and 2019 assuming Nortel recognizes revenue over time according to percentage of completion. (Loss amounts should be indicated with a minus sign. Use percentages as calculated and rounded in the table below to arrive at your final answer.)

Case:

Rent Relief Caravans4Hire Ltd1 provides short-term rental of caravans to tourists for camping holidays throughout Australia. Caravans4Hire Ltd leases several large properties in Adelaide, Perth and Sydney, which it needs to park its caravans when not in use.

Due to border restrictions, travel restrictions, localised lockdowns and Government advice to stay home, Caravans4Hire Ltd has suffered a significant loss of revenue and cash flow. On 1 May 2020 the National Hotel and Tourism Industry Association which is a non-government, not-for-profit industry association. It supports its members, who are businesses operating in the hospitality and tourism industry awarded Caravans4Hire Ltd a grant of $360 000 in total for rent relief for the three months ended 31 July 2020. The grant was received in cash on 1 May 2020. Caravans4Hire Ltd is under no obligation to repay the money received.

REQUIRED

All questions should be answered from the perspective of Caravans4Hire Ltd. The word lengths are a suggestion only, i.e., they are NOT strict word limits for each part.

a) What is the main accounting policy issue(s) that need to be resolved to account for the grant from the National Hotel and Tourism Industry Association? (20%) (part a) 15 – 50 words)

b) i) Identify one principle that is relevant to the accounting policy issue that you identified in part a) by providing a reference for that principle (e.g., AASB XXX, para. zz; or Conceptual Framework, Chapter X, para. x.xx) AND explain why you chose that principle. (20%)

ii) identify another principle that is relevant to the accounting policy issue that you identified in part a) by providing a reference for that principle.(10%) (part b) 50 – 100 words).

c) Describe an accounting policy to account for the grant from the National Hotel and Tourism Industry Association. Do not justify your policy. Just describe it. (50%) (part c) 20 - 80 words)

The Business School at State University currently has three parking lots, each containing 155 spaces. Two hundred faculty members have been assigned to each lot. On a peak day, an average of 70% of all lot 1 parking sticker holders show up, an average of 72% of all lot 2 parking sticker holders show up, and an average of 74% of all lot 3 parking sticker holders show up.

a. Given the current situation, estimate the probability that on a peak day, at least one faculty member with a sticker will be unable to find a spot. Assume that the number who show up at each lot is independent of the number who show up at the other two lots. Compare two situations: (1) each person can park only in the lot assigned to him or her, and (2) each person can park in any of the lots (pooling). (Hint: Use the RISKBINOMIAL function.) If needed, round your answer to a whole percentage and if your answer is zero, enter "0".

b. Now suppose the numbers of people who show up at the three lots are highly correlated (correlation 0.9). How are the results different from those in part a? If needed, round your answer to a whole percentage.

Antimony is alloyed with lead to increase the rigidity of components used in the construction of lead storage batteries.
2.606 g of a particular metallic alloy, compounded of only Pb and Sb, can be quantitatively converted into a 3.034-g mixture of the oxides PbO₂ and Sb₂O₄.
What was the percentage (by mass) of antimony in the alloy?

The Bijou Theater shows vintage movies. Customers arrive at the theater line at the rate of 80 per hour. The ticket seller averages 30 seconds per customer, which includes placing validation stamps on customers’ parking lot receipts and punching their frequent watcher cards. (Because of these added services, many customers don’t get in until after the feature has started.)

a. What is the average customer time in the system? (Round your answer to 2 decimal places.)

b. What would be the effect on customer time in the system of having a second ticket taker doing nothing but validations and card punching, thereby cutting the average service time to 20 seconds? (Round your answer to 3 decimal places.)

c. What would be the customer time in the system if a second window was opened with each server doing all three tasks? (Use closest λ/µ value . Do not round intermediate calculations. Round your answer to 3 decimal places.)

The Bijou Theater shows vintage movies. Customers arrive at the theater line at the rate of 100 per hour. The ticket seller averages 30 seconds per customer, which includes placing validation stamps on customers' parking lot receipts and punching their frequent watcher cards. (Because of these added services, many customers don't get in until after the feature has started.)

a. What is the average customer time in the system?

b. What would be the effect on customer time in the system of having a second ticket taker doing nothing but validations and card punching, thereby cutting the average service time to 20 seconds?

c. Would system waiting time be less than you found in(b) if a second window was opened with each server doing all three tasks.

Part C. is the one I need help with the most. Please explain in depth. Thank you!

The Bijou Theater shows vintage movies. Customers arrive at the theater line at the rate of 80 per hour. The ticket seller averages 36 seconds per customer, which includes placing validation stamps on customers’ parking lot receipts and punching their frequent watcher cards. (Because of these added services, many customers don’t get in until after the feature has started.) (Use the Excel spreadsheet Queue Models.)

a. What is the average customer time in the system? (Round your answer to 2 decimal places.)

b. What would be the effect on customer time in the system of having a second ticket taker doing nothing but validations and card punching, thereby cutting the average service time to 25 seconds? (Round your answer to 3 decimal places.)

Average time in system ________ minutes

c. What would be the customer time in the system if instead of the change in Part b, a second window was opened with each server doing all three tasks? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

d. Would system waiting time which is obtained in part (c) be less than you found in (b)?

• Yes

• No

Is the product or service of the hotel industry standardized or differentiated? Explain. Compared to other industries, is it difficult or easy to enter the hotel industry? Explain. Are there examples of nonprice competition in the hotel industry? Illustrate. Based on the above, would you say that the hotel industry is monopoly, oligopoly, monopolistic competition or perfect competition? Explain.

Thrasher Construction Co. was contracted to construct a building for $975,000. The building is owned by the customer throughout the contract period. The contract provides for progress payments. Thrasher’s accounting year ends 31 December. Work began under the contract on 1 July 20X5, and was completed on 30 September 20X7. Construction activities are summarized below by year:

20X5 Construction costs incurred during the year, $180,000; estimated costs to complete, $630,000; progress billings during the year, $153,000; and collections, $140,000. 20X6 Construction costs incurred during the year, $450,000; estimated costs to complete, $190,000; progress billing during the year, $382,500; and collections, $380,000. 20X7 Construction costs incurred during the year, $195,000. Because the contract was completed, the remaining balance was billed and later collected in full per the contract.

Required: 1. Prepare Thrasher’s journal entries to record these events. Assume that percentage of completion is measured by the ratio of costs incurred to date divided by total estimated construction costs. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar.)

Problem 17

The Hodges, a 300-room hotel, has provided you with the following data for the months of June and July:

                                                                 June                    July

                            Single rooms sold                  2,400                   2,418

                            Double rooms sold                4,200                   4,278

                            Room revenue                    $396,000                       $339,000

                            Number of paid guests 9,900                   9,910

Required:

1. Compute the following for June and July.
   1. Paid occupancy percentage
   2. Multiple occupancy percentage
   3. Average number of guests per double room sold (assume that only one guest stayed in each single room sold)
   4. Monthly ADR
   5. Monthly RevPar

2. Was the Hodges financial performance better in June or July? (Assume that fixed costs were constant and that the variable costs per room sold remained constant. Support your answer with detailed discussion.