The Triquel Theater Inc. was recently formed. It began operations in March 2017. The Triquel is unique in that it will show only triple features of sequential theme movies. On March 1, the ledger of The Triquel showed Cash $18,800; Land $40,800; Buildings (concession stand, projection room, ticket booth, and screen) $22,000; Equipment $16,000; Accounts Payable $14,800; and Common Stock $82,800. During the month of March, the following events and transactions occurred:

Which of the following goods likely has the most inelastic demand curve?

a. Comped business flight to an important meeting that will affect your chances at a promotion

b. Vacation flight to Maui.

c. Square feet in an apartment

d. Pet Adoption e. Marijuana

If a good has an elastic demand curve, a decrease in price and movement along the demand curve will result in:

a. An increase in total revenue

b. A decrease in total revenue

c. The same amount of total revenue

d. There isn’t enough information to answer the problem

Assuming the production function for retail checkouts are the same in each country, making use of automated capital and low-skilled workers. Why does Japan have so many more vending machines compared to the US?

a. Vending machines are cheaper to make in Japan.

b. Theft is less common in Japan.

c. The opportunity cost of hiring low-skilled workers is higher in Japan than in the US.

d. The cost of both vending machines and low-skilled workers is lower in Japan

e. Americans are more outgoing.

In the short-run, rising Variable Cost eventually corresponds to:

a. Diminishing returns to variable input

b. Increasing returns to variable input

c. Constant returns to scale

d. Decreasing returns to scale

e. Increasing returns to scale

Jean runs a pig farm and sells manure. She makes $250,000 in revenue, pays $150,000 in expenses, and has land and capital that are valued at $100,000. What is her economic and accounting profit?

a. Economic $100,000 Accounting $100,000

b. Economic $100,000, Accounting $0

c. Economic $0, Accounting $100,000

d. Economic $0, Accounting $0

e. Economic $0, Accounting $150,000

A perfectly competitive firm has a Total Cost function of TC=3Q2+2. Suppose the price increases from 1 to 12. How much does Q change for the firm if it’s profit-maximizing?

a. Increase by 1

b. Increase by 2

c. Increase by 0

d. Decrease by 1

e. Decrease by 2

Analyze the income statement for any potential risk factors and compliance issues with Generally Accepted Accounting Principles (GAAP) or International Financial Recording Standards (IFRS). B. Analyze the risk factors and compliance issues with GAAP or IFRS on the balance sheet. C. Using the internal control, analyze the cash and revenue for potential risk factors.

1. What risks need to be documented?

2. How does this information compare to the company or industry averages, or the company’s past performance?

D. Explain the audit universe and how you identified it.

E. Based on your analysis of risk, devise a sampling program for the audit universe.

F. Choose the most preferable audit testing procedures that could be used in the field, based on the audit universe items sampled in this situation.

ncome Statement

All numbers in thousands

The El Dorado Star is the only newspaper in El Dorado, New Mexico. Certainly, the Star competes with The Wall Street Journal, USA Today, and the New York Times for national news reporting, but the Star offers readers stories of local interest, such as local news, weather, high-school sporting events, and so on. The El Dorado Star faces the revenue and cost schedules shown in the spreadsheet that follows: A template for the spreadsheet is provided in the Course Materials. You may download my template or create your own. Since we are using dollars and cents, be sure to go out two decimal places on your calculations. Add columns to show, respectively, marginal cost (MC), marginal revenue (MR), and total profit

What price should the manager of the EI Dorado Star charge? How many papers should be sold daily to maximize profit?

At the price and output level you answered in the previous question, is the EI Dorado Star making the greatest possible amount of total revenue? Is this what you expected? Explain why or why not.

Use the appropriate formulas to create two new columns (7 and 8) for total profit and profit margin, respectively. What is the maximum profit the EI Dorado Star can earn? What is the maximum possible profit margin? Are profit and profit margin maximized at the same point on demand?

What is the total fixed cost for the El Dorado Star? Explain how you arrived at this conclusion.

Create a new spreadsheet in which total fixed cost increases to $5,000. What price should the manager charge? How many papers should be sold in the short run?

On January 1, 2020, Swifty Company purchased 12% bonds having a maturity value of $230,000, for $247,437.40. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Swifty Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category.

Prepare the journal entry at the date of the bond purchase. (Enter answers to 2 decimal places, e.g. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Jan 01, 2020

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Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 2,525.25.)

Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 2,525.25.)

1.

Requirement 1. Record each transaction in the journal. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries.)

Requirement 1) Dec.1:Murphy Delivery Service began operations by receiving $13,000 cash and a truck with a fair value of $9,000 from Russ Murphy.The business issued Murphy

shares of common stock in exchange for this contribution.

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Requirement 2)

Record each transaction in the journal using the following chart of accounts. Explanations are not required.

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2.

Post the transactions in the T-accounts.

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3.

Prepare an unadjusted trial balance as of December 31 , 2018.

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4.

Prepare a worksheet as of December 31 ,2018.

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5.

Journalize the adjusting entries using the following adjustment data and also by reviewing the journal entries prepared in Requirement 1. Post adjusting entries to the T-accounts.

Adjustment data:

6.

Prepare an adjusted trial balance as of

December 31 ,2018

7.

Prepare Murphy Delivery Service's income statement and statement of retained earnings for the month ended December 31 2018

and the classified balance sheet on that date.On the income statement, list expenses in decreasing order by

amount—that is, the largest expense first, the smallest expense last.

8.

Journalize the closing entries and post to the T-accounts.

9.

Prepare a post-closing trial balance as of

December 31, 2018

   PX = $9500   PY = $10000   I = $15000   A = $170000   W = 160
This function is:
       Qs = 89830 -40PS +20PX +15PY +2I +.001A +10W

1. Use the above to calculate the arc price elasticity of demand between PS = $8000 and PS = $7000. The arc elasticity formula is:
Ep= Q/P8 * P1+P1/Q1+Q2
  
2. Calculate the quantity demanded at each of the above prices and revenue that will result if the quantity is sold (fill in table below).  
PS     QS   Revenue
$8000      
$7000      

3.   Marketing suggests lowering the price PS from $8000 to $7000. The size of the elasticity coefficient in #1 should tell you what is likely to happen to revenue. Explain why this is (or is not) a good marketing suggestion from a revenue viewpoint (note: your answer in #1 and the calculations in #2 should be giving the same message). If the implications in #1 and #2 differ, does the difference make sense (or did you make a mistake in #1 or #2)?

4.   Calculate the point price elasticity of demand for Smooth Sailing boats at PS = $8000 (which should make QS = 141600). Does this elasticity value indicate that demand for Smooth Sailing boats is relatively elastic? Explain why or why not. The formula is:
Qs/Px *Ps/Qs

5.   Calculate the point cross-price elasticity of demand between Qs and Px with Px = $9500. Use Qs corresponding to Ps = 8000. Other variables and their values are as given at the top, before question #1. Does this elasticity indicate that the demand for Smooth Sailing’s boats is relatively responsive to changes in Px? Explain why or why not. The formula is:

Esx= QS/Px*Px/Qs

6. Calculate the point cross-price elasticity of demand between QS and Py, given that Py = 10000 and that PS = $7500 (thus QS should equal 161,600). Other variables are as given at the top before #1. Does this elasticity indicate that the demand for Smooth Sailing boats is relatively responsive to changes in Py? Explain why or why not. The formula is:
Esy= Qs/Py *Py/Qs

Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below:

When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 customers.

1. What amount of revenue would be included in Adger’s flexible budget for May?

2. What amount of employee salaries and wages would be included in Adger’s flexible budget for May?

3. What amount of travel expenses would be included in Adger’s flexible budget for May?

4. What amount of other expenses would be included in Adger’s flexible budget for May?

5. What net operating income would appear in Adger’s flexible budget for May?

6. What is Adger’s revenue variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

7. What is Adger’s employee salaries and wages spending variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

8. What is Adger’s travel expenses spending variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

14. What activity variance would Adger report in May with respect to its revenue? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

1) A business purchases equipment in exchange for a note payable. This transaction results in

A) a debit to Notes Payable and a credit to Equipment B) an increase in liabilities C) no journal entry because no cash has been paid D) a debit to Equipment and a credit to Accounts Payable

2) Accumulated Depreciation is a(n) ________ account and carries a normal ________ balance.

A) liability; credit B) revenue; debit C) contra asset; credit D) expense; debit

3) Anthony Delivery Service has a weekly payroll of $35,000. December 31 falls on Tuesday and Anthony will pay its employees the following Monday (January 6) for the previous full week. Assume that Anthony has a five-day workweek and has an unadjusted balance in Salaries Expense of $885,000 at December 31. What is the December 31 balance of Salaries Expense after adjusting entries are recorded and posted?

A) $920,000 B) $906,000 C) $899,000 D) $885,000

4) The balances of select accounts of McMurray, Inc. as of December 31, 2018 are given below:
Notes Payable Nshort-term $1,300 Salaries Payable 3,000 Notes Payable Nlong-term 24,000 Accounts Payable 3,300 Unearned Revenue 1,000 Interest Payable 2,400
The Unearned Revenue is the amount of cash received for services to be rendered in January 2019. Interest Payable will be paid on February 5, 2019. What are the total long-term liabilities shown on the balance sheet at December 31, 2018?

A) $4,300 B) $24,000 C) $1,300 D) $3,000

5) A merchandiser reports sales revenue of $25,000 and sales discounts forfeited of $1,500. The merchandiser uses a perpetual inventory system. The first entry in the closing process would include _____.

A) a debit to Income Summary for $25,000 B) a debit to Income Summary for $26,500 C) a credit to Income Summary for $26,500 D) a credit to Income Summary for $25,000

6) Which of the following inventory valuation methods should be used for unique items?

A) first-in, first-out B) weighted-average C) specific identification D) last-in, first-out