1940s theater near 1880s park and hotel construction cost percentage questions

Questions

The Town of Weston has a Water Utility Fund with the following trial balance as of...

The Town of Weston has a Water Utility Fund with the following trial balance as of July 1, 2016, the first day of the fiscal year:

	Debits	Credits
Cash	$ 333,000
Customer accounts receivable	201,800
Allowance for uncollectible accounts		$ 30,300
Materials and supplies	121,200
Restricted assets (cash)	253,000
Utility plant in service	7,004,000
Accumulated depreciation-utility plant		2,603,000
Construction work in progress	103,000
Accounts payable		123,600
Accrued expenses payable		77,300
Revenue bonds payable		3,503,000
Net position		1,678,800
Total	$8,016,000	$8,016,000

During the year ended June 30, 2017, the following transactions and events occurred in the Town of Weston Water Utility Fund:

Accrued expenses at July 1 were paid in cash.
Billings to nongovernmental customers for water usage for the year amounted to $1,383,000; billings to the General Fund amounted to $110,000.
Liabilities for the following were recorded during the year:

Materials and supplies	$ 189,000
Costs of sales and services	363,000
Administrative expenses	204,000
Construction work in progress	222,000

Materials and supplies were used in the amount of $278,000 all for costs of sale and services.
$14,200 of old accounts receivable were written off.
Accounts receivable collections totaled $1,482,800 from nongovernmental customers and $49,000 from the General Fund.
$1,047,800 of accounts payable were paid in cash.
One year’s interest in the amount of $177,200 was paid.
Construction was completed on plant assets costing $253,000; that amount was transferred to Utility Plant in Service.
Depreciation was recorded in the amount of $263,100.
Interest in the amount of $25,300 was reclassified to Construction Work in Progress. (This was previously paid in item 8).
The Allowance for Uncollectible Accounts was increased by $10,000.
As required by the loan agreement, cash in the amount of $103,000 was transferred to Restricted Assets for eventual redemption of the bonds.
Accrued expenses, all related to costs of sales and services, amounted to $92,000.
Nominal accounts for the year were closed.

Required:

Record the transactions for the year in general journal form.
Prepare a Statement of Revenues, Expenses, and Changes in Fund Net Position.
Prepare a Statement of Net Position as of June 30, 2017.
Prepare a Statement of Cash Flows for the year ended June 30, 2017. Assume all debt and interest are related to capital outlay. Assume the entire construction work in progress liability (see item 3) was paid in entry 7. Include restricted assets as cash and cash equivalents.

In: Accounting

The Town of Weston has a Water Utility Fund with the following trial balance as of...

The Town of Weston has a Water Utility Fund with the following trial balance as of July 1, 2016, the first day of the fiscal year:

	Debits		Credits
Cash	$	332,000
Customer accounts receivable		201,200
Allowance for uncollectible accounts			$	30,200
Materials and supplies		120,800
Restricted assets (cash)		252,000
Utility plant in service		7,002,000
Accumulated depreciation—utility plant				2,601,000
Construction work in progress		102,000
Accounts payable				122,400
Accrued expenses payable				76,500
Revenue bonds payable				3,501,000
Net position				1,678,900
Totals	$	8,010,000	$	8,010,000

During the year ended June 30, 2017, the following transactions and events occurred in the Town of Weston Water Utility Fund:

Accrued expenses at July 1 were paid in cash.
Billings to nongovernmental customers for water usage for the year amounted to $1,381,000; billings to the General Fund amounted to $109,000.
Liabilities for the following were recorded during the year:


Materials and supplies	$	187,000
Costs of sales and services		361,000
Administrative expenses		202,000
Construction work in progress		221,000

Materials and supplies were used in the amount of $276,000, all for costs of sales and services.
$14,100 of old accounts receivable were written off.
Accounts receivable collections totaled $1,472,400 from nongovernmental customers and $48,700 from the General Fund.
$1,041,400 of accounts payable were paid in cash.
One year’s interest in the amount of $176,100 was paid.
Construction was completed on plant assets costing $252,000; that amount was transferred to Utility Plant in Service.
Depreciation was recorded in the amount of $262,100.
Interest in the amount of $25,200 was reclassified to Construction Work in Progress. (This was previously paid in item 8.)
The Allowance for Uncollectible Accounts was increased by $10,000.
As required by the loan agreement, cash in the amount of $102,000 was transferred to Restricted Assets for eventual redemption of the bonds.
Accrued expenses, all related to costs of sales and services, amounted to $90,000.
Nominal accounts for the year were closed.

Required:
a. Record the transactions for the year in general journal form.
b. Prepare a Statement of Revenues, Expenses, and Changes in Fund Net Position.
c. Prepare a Statement of Net Position as of June 30, 2017.
d. Prepare a Statement of Cash Flows for the year ended June 30, 2017. Assume all debt and interest are related to capital outlay. Assume the entire construction work in progress liability (see item 3) was paid in entry 7. Include restricted assets as cash and cash equivalents.

In: Accounting

You have recently been given an opportunity to lock-in a 1% monthly interest rate on a...

You have recently been given an opportunity to lock-in a 1% monthly interest rate on a savings account. Which of the following options will yield you the highest amount of interest on your 1% interest payments after 12 months?

A) Accumulate 1% a month as an annual percentage rate

B) Accumulate 1% a month as an annual percentage appreciation

C) Accumulate 1% a month as an annual percentage yield

D) Accumulate 1% a month as an annual percentage growth

In: Finance

a) A 13-card Bridge hand is dealt from a standard deck. What is the percentage chance...

a) A 13-card Bridge hand is dealt from a standard deck. What is the percentage chance that the hand contains exactly 6 spades or exactly 6 hearts or exactly 6 diamonds? Be sure to give your answer as a percentage, not as a probability.

B) A 13-card Bridge hand is dealt from a standard deck. What is the percentage chance that the hand contains exactly 2 Aces or exactly 2 Kings? Be sure to give your answer as a percentage, not as a probability.

In: Math

PREPARE necessary disclosures, including disclosures about noncash financing and investing activities for Statement of Cash Flows!...

PREPARE necessary disclosures, including disclosures about noncash financing and investing activities for Statement of Cash Flows!


	*Smart Construction* Company**
	Statement of Cash Flows
	For Year Ended June 30, 2017

	Operating Activities:
	Net Income	$ 124,780
	Adjustments for noncash income items:
	Depreciation Expenses	$ 3,000
	Loss on Sale of Building	$ 1,500
	Amortization Discount on Bond	$ 45
	Bad Debt	$ 3,500
	Gain on Conversion of Preferred Stock	$ (4,000)
	Gain on Repayment of Note Payable	$ (1,000)
	Shared Income from Subsidiary	$ (6,000)
	Dividend Received from Subsidiary	$ 2,000
	Provision for Pension	$ 350,000
	Adjustments from cash flow effect from working capital items:
	Increase in Accounts Receivable	$ (30,000)
	Increase of Billings on Construction in Progress	$ (61,250)
	Decrease in Prepaid Expenses	$ 35,000
	Increase in Income Tax	$ 10,975
	Increase in Accounts Payable	$ 122,500
	Increase in Interest Payable	$ 3,600
	Decrease in Pension Liability	$ (100,000)
	Net cash provided (used) by operating activities	$ 454,650
	Investing activities:
	Marketable Security	$ (1,300)
	Investments (long-term)	$ (9,500)
	Lease Obligation Paid	$ (2,000)
	Sale of Building	$ 26,000
	Net cash provided (used) by investing activities	$ 13,200
	Financing Activities:
	Common Stock Issued	$ 8,000
	Bonds Payable	$ 43,650
	Dividend Paid	$ (650)
	Net cash provided (used) by financing activities	$ 51,000

	Net Cash Flow	$ 518,850
	Cash, June 30, 2016	$ 361,700
	Cash, June 30, 2017	$ 880,550

SMART CONSTRUCTION COMPANY
Cash Flows Worksheet
For Year Ended June 30, 2017

	Balances		Change	Worksheet Entries
Account Titles	6/30/2016	6/30/2017	Increase (Decrease)	Debit	Credit
Debits
Cash	$ 361,700	$ 880,550	$ 518,850	$ 518,850
Noncash Accounts:
Accounts Receivable	$ 100,000	$ 125,000	$ 25,000	$ 30,000	$ 5,000
Marketable Securities (at cost)	$ 11,700	$ 13,000	$ 1,300	$ 1,300
Allowance for Change in Value	$ 1,500	$ 1,800	$ 300	$ 300
Construction in Process	$ 168,750	$ 405,000	$ 236,250	$ 236,250
Prepaid Expenses	$ 45,000	$ 10,000	$ (35,000)		$ 35,000
Investments (long-term)	$ -	$ 13,500	$ 13,500	$ 15,500	$ 2,000
Leased Equipment	$ -	$ 20,000	$ 20,000	$ 20,000
Building	$ 30,000	$ -	$ (30,000)		$ 30,000
Deferred Tax Asset	$ 5,375	$ 2,200	$ (3,175)		$ 3,175
Land	$ 10,500	$ 10,500	$ -
Discount on Bonds Payable	$ -	$ 1,305	$ 1,305	$ 1,350	$ 45

Totals	$ 734,525	$ 1,482,855	$ 748,330


Credits
Allowance for Doubtful Accounts	$ 6,000	$ 4,500	$ (1,500)	$ 1,500
Accounts Payable	$ 87,500	$ 210,000	$ 122,500		$ 122,500
Deferred Tax Liability	$ 1,000	$ 3,300	$ 2,300		$ 2,300
Income Tax Payable	$ 3,500	$ 9,000	$ 5,500		$ 5,500
Note Payable (long-term)	$ 3,500	$ -	$ (3,500)	$ 3,500
Accumulated Depreciation on Building	$ 2,500	$ -	$ (2,500)	$ 2,500
Accumulated Depreciation on Leased Asset	$ -	$ 3,000	$ 3,000		$ 3,000
Lease Obligation	$ -	$ 18,000	$ 18,000		$ 18,000
Interest Payable on Lease Obligation	$ -	$ 1,800	$ 1,800		$ 1,800
Interest Payable (bonds)	$ -	$ 1,800	$ 1,800		$ 1,800
Bonds Payable	$ -	$ 45,000	$ 45,000		$ 45,000
Billings on Construction in Process	$ 150,000	$ 325,000	$ 175,000		$ 175,000
Pension Liability	$ 150,000	$ 400,000	$ 250,000	$ 100,000	$ 350,000
Convertible Preferred Stock, $100 par	$ 9,000	$ -	$ (9,000)	$ 9,000
Common Stock, $10 par	$ 14,000	$ 24,500	$ 10,500		$ 10,500
Additional Paid-in Capital	$ 8,700	$ 13,700	$ 5,000		$ 5,000
Unrealized Increase in Value of Marketable Securities	$ 1,500	$ 1,800	$ 300		$ 300
Retained Earnings	$ 297,325	$ 421,455	$ 124,130	$ 650	$ 124,780



Totals	$ 734,525	$ 1,482,855	$ 748,330



Cash Flows from Operating Activities:	Debits	Credits
Net Income	$ 124,780
Depreciation Expenses	$ 3,000
Loss on Building Destroyed Due to Fire	$ 1,500
Amortization Discount on Bond	$ 45
Bad Debt	$ 3,500
Gain on Conversion of Preferred Stock		$ 4,000
Gain on Repayment of Note Payable		$ 1,000
Shared Income from Subsidiary		$ 6,000
Dividend Received from Subsidiary	$ 2,000
Provision for Pension	$ 350,000
Increase in Accounts Receivable		$ 30,000
Increase in Inventory (billings on construction in process)		$ 61,250
Decrease in Prepaid Expenses	$ 35,000
Increase in Income Tax Payable	$ 10,975
Increase in Accounts Payable	$ 122,500
Increase in Interest Payable	$ 3,600
Decrease in Pension Liability		$ 100,000

Cash Flows from Investing Activities:
Marketable Security		$ 1,300
Investments (long-term)		$ 9,500
Lease Obligation Paid		$ 2,000
Sale of Building	$ 26,000

Cash Flows from Financing Activities
Common Stock Issued (including additional capital)	$ 8,000
Bonds Payable	$ 43,650
Dividends Paid		$ 650

Net Increase in Cash		$ 518,850
Totals	$ 734,550	$ 734,550

Additional information:

a. Dividends declared and paid totaled $650.

b. 300 shares of common stock (at par) were issued for cash.

c. On July 1, 2016, convertible preferred stock that had originally been issued at par value were
converted into 500 shares of common stock. The book value method was used to account for the
conversion.

d. The long-term note payable was paid by issuing 250 shares of common stock at the beginning of the
fiscal year.

e. Short-term marketable securities were purchased at a cost of $1,300. The portfolio was increased by
$300 to a $14,800 fair value at year-end by adjusting the related allowance account.

f. During the year, a 30% interest in Ricochet Co. was purchased as an investment for $9,500. Ricochet
reported $20,000 in net income for the year and paid dividends of $2,000 to Smart.

g. $5,000 of accounts receivable were written off as uncollectible during the year.

h. Smart’s inventory consists of Construction-in-Process in excess of the Billings on
Construction-in-Process account balance.

i. A building was destroyed by fire during the year and insurance proceeds of $26,000 were collected.

j. The 12% bonds payable were issued on February 28, 2017, at 97. They mature on February 28, 2027.
The company uses the straight-line method to amortize bond premiums and discounts.

k. Smart recorded pension expense of $350,000 for the year.

l. A lease agreement was signed on July 1st, 2016 for the use of equipment worth $20,000. The
company determined that the transaction should be recorded as a capital lease.

In: Accounting

Select a company from the accompanying list and write a short report answering the following questions...

Select a company from the accompanying list and write a short report answering the following questions about your company. Create a Word file to answer the following questions.

Provide a basic history of the company you have selected. When was the company founded? Who are the senior leaders (CEO, CFO, Board Chair)? Where is the company incorporated? Has the company been in the news recently (last 5 years) and for what?

What types of products or services does your company sell?

On what day of the year does its fiscal year end?

For how many years does it present complete:

a. Balance sheets?

b. Income statements?

c. Cash flow statements?

Are its financial statements audited by independent CPAs? If so, by whom? What type of opinion did the financial report receive?

What are the values in the company’s accounting equation for the most recent year?

Did its total assets increase or decrease over last year? By what percentage? (Hint: Percentage change is calculated as [current year - last year] / last year. Show supporting computations.)

Did its net income increase or decrease over last year? By what percentage?

Which of the following had the largest percentage increase from last year to the current year? (See the formula in 6. above. Show all supporting computations.)

a. Net sales

b. Cost of sales

c. Net income

6. What are the future financial projections of the company and how does it plan to get there?

List of Accompanying Companies

Green Mountain Coffee

Kimberly Clark

Caterpillar

Hershey Foods

Alcoa

WalMart

Ben and Jerry's

IBM

DuPont

eBay

Amazon

In: Accounting

Residents from the Town of Mountain View authorized a $7,400,000 renovation to their historic town hall...

Residents from the Town of Mountain View authorized a $7,400,000 renovation to their historic town hall on November 15, 2016. Financing for the project consists of $2,800,000 from a 5 percent serial bond issue, $2,400,000 from a state grant, and $2,200,000 from the General Fund. Debt service for the serial bonds will be provided by a one-quarter-cent city sales tax imposed on every dollar of sales in the city. The town has a calendar year-end.

Prepare journal entries to record the related transactions in the town’s capital projects fund, debt service fund, and governmental activities at the government-wide level. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Transaction	Fund	General Journal	Debit	Credit
a. Record the 2017 budget for the Serial Debt Service Fund. $260,000 of sales taxes are expected to be collected in 2017; the only appropriation is expected to be six months of interest on the serial bond.
a	Debt Service fund



	Capital Projects Fund


	Governmental Activities


b. The town transfers $2,200,000 from the General Fund to a newly established capital projects fund.
b	Debt Service fund


	Capital Projects Fund


	Governmental Activities


c. Planning and architect’s fees for the town hall renovation are paid in the amount of $270,000.
c	Debt Service fund


	Capital Projects Fund


	Governmental Activities


d. The town hall renovation construction contract is awarded to a local contractor, Central Paving and Construction, for $6,142,000.
d	Debt Service fund


	Capital Projects Fund


	Governmental Activities


e. On April 1, 2017, the town issues serial bonds with a face value totaling $2,800,000 and having maturities ranging from one to 20 years at 104. The bonds bear interest of 5 percent per annum, payable semiannually on April 1 and October 1.
e(1)	Debt Service fund	Record the issue of bonds in the Debt Service Fund



e(2)		Premiums on bonds issued must be deposited directly in the debt service fund and are restricted for debt service. (Remember to amend the debt service fund budget, since this premium was not anticipated.)



e(3)	Capital Projects Fund	Premiums are amortized using the straight-line method over 40 interest periods. Record the issue of bonds.



e(4)	Governmental Activities	Record the issue of bonds.




f. The capital projects fund paid the city’s Utility Fund $40,000 for wiring associated with the renovation. No encumbrance had been recorded for this service.
f	Debt Service fund


	Capital Projects Fund


	Governmental Activities


g. On October 1, 2017, the city mailed checks to bondholders for semiannual interest on the bonds.
g	Debt Service fund


	Capital Projects Fund


	Governmental Activities



h. Sales taxes earmarked for debt service of $260,000 were collected.
h	Debt Service fund


	Capital Projects Fund


	Governmental Activities


i. Central Paving and Construction submitted a progress billing to the town for $2,800,000. The city’s public works inspector agrees that all milestones have been met for this portion of the work.
i	Debt Service fund


	Capital Projects Fund




	Governmental Activities


j. The town paid Central Paving and Construction the amount it had billed, except for 5 percent that was withheld as a retained percentage per terms of the contract.
j	Debt Service fund


	Capital Projects Fund



	Governmental Activities



k. Grant funds totaling $2,400,000 are received from the state historical society, since eligible expenditures have been made.
k	Debt Service fund


	Capital Projects Fund


	Governmental Activities


l

In: Accounting

According to the Normal model ?N(0.054?,0.015?) describing mutual fund returns in the 1st quarter of? 2013,...

According to the Normal model ?N(0.054?,0.015?) describing mutual fund returns in the 1st quarter of? 2013, determine what percentage of this group of funds you would expect to have the following returns. Complete parts? (a) through? (d) below. ?

a) Over? 6.8%? ?b) Between? 0% and? 7.6%? ?c) More than? 1%? ?d) Less than? 0%?

A) The expected percentage of returns that are over 6.8% is ______%

b) The expected percentage of returns that are between 0& and 7.6% is ____%

C) The expected percentage of returns that are more than 1% is ____%

D) The expected percentage of returns that are less than 0% is ____%

Type an intenger or a decimal rounded to one decimal place as needed.

In: Statistics and Probability

Fill in the Blanks: a.) The shape of the price-yield relationship for standard coupon bonds is...

Fill in the Blanks:

a.) The shape of the price-yield relationship for standard coupon bonds is referred to as a _________ (concave/convex) relationship. This relationship is not _________ (linear/nonlinear).

b.) Although the prices of standard coupon bonds move in the _________ (same/opposite) direction from the change in yield, the percentage price change _________ (is/is not) the same for all bonds.

c.) For very _________ (small/large) changes in the yield, the percentage price change for a given bond is roughly the same, whether the yield increases or decreases. For _________ (small/large) changes in the yield, the percentage price change is not the same for an increase in the required yield as it is for a decrease in the yield. For a given large change in yields, the percentage price increase is _________ (smaller/greater) than the percentage price decrease.

In: Finance

Please answer the following by hand showing all arithmatic and original formulas, please do not use...

Please answer the following by hand showing all arithmatic and original formulas, please do not use a graphic calculator.

The province of Ontario is planning to construct a new hydropower plant to help make energy prices more affordable, as well as to support improved public health and environmental quality. The construction of the hydropower plant will start by the beginning of 2023 and will take 3 years at a cost of $200 million per year. The cost of maintenance and repairs, which is to start after project completion, is expected to be $5 million for the first 6 years, and to increase by $50,000 per year thereafter. The scrap value of the hydropower plant is estimated to be $25 million at the end of its service life. The project is expected to save the province $55 million per year in energy savings. Assume the present to be the end of 2017/beginning of 2018, the life of the project is till the end of year 2060, and the interest rate to be 5%.

a) Draw a cash flow diagram for this project (from present till 2060).

b) What is the Present Worth of the project?

c) What is the Future Worth of the project?

d) Is it a good investment for the province to make?

In: Finance