Sonia Inc. entered into a contract with Lala Inc. on July 1, 2018 to construct an office building. The total contract price for construction of the building is $400,000. The building was completed on December 31, 2020. Sonia’s fiscal year end is December 31.

Below is related information of Sonia Inc. regarding this construction:

Please answer each of the following questions and clearly label which question you are answering. You can prepare it in Word, in Excel, or handwrite it. Once completed, upload the completed Word or Excel document or a picture of the handwritten work (22 points).

Please use the percentage-of-completion method for items 1-5.

1. Prepare journal entries for the actual construction costs incurred and billings made in 2018. (4 points)

1. Calculate the amount of revenue and gross profit or loss to be recognized in 2018. Please show supporting calculations. (5 points)

1. Prepare the adjusting journal entry for 2018 to record revenue recognition and gross profit/loss. (3 points)

1. Prepare a partial balance sheet for 2018 relating to the contract. You do NOT need to include Cash and Accounts Receivable in your answer. Be sure to indicate whether an item is an asset or liability. Please show supporting calculations. (3 points)

1. Calculate the amount of revenue and gross profit or loss to be recognized in 2019. Please show supporting calculations. If needed, round the percentage calculation to the fourth decimal (e.g. 22.36%) and round the dollar amount to the whole dollar. (5 points)

Please use the completed contract method for item 6.

1. Using the completed contract method, how much revenue would be recognized in 2018? (2 points)

PROBLEM

In the Hotel management domain, we have the following concepts:
Hotel Hotel chain Hotel room      
Reservation Hilton Hilton San Diego Bayfront
Meeting room Ballroom Guest Room
Catering Service Internet Service       TV Service
Guest Parking Service       Item on bill      

You are asked to design a model, using a UML class diagram to relate the abovementioned concepts:

Correctly use UML notations for relations such as generalization, association, aggregation, composition. Be careful to distinguish objects from classes.

You may introduce additional concepts into the picture to make your model more appropriate.
For each Class in your diagram, you should define at least one attribute and one operation.

Use multiplicity whenever appropriate.

Note that if you are not sure about a concept, you should do research on the problem domain.

Over the past six months, Six Flags conducted a marketing study on improving their park experience. The study cost $3.00 million and the results suggested that Six Flags add a kid's only roller coaster.

Suppose that Six Flags decides to build a new roller coaster for the upcoming operating season. The depreciable equipment for the roller coaster will cost $50.00 million and an additional $5.00 million to install. The equipment will be depreciated straight-line over 20 years.

The marketing team at Six Flags expects the coaster to increase attendance at the park by 5%. This translates to 110,199.00 more visitors at an average ticket price of $39.00. Expenses for these visitors are about 11.00% of sales.

There is no impact on working capital. The average visitor spends $20.00 on park merchandise and concessions. The after-tax operating margin on these side effects is 38.00%. The tax rate facing the firm is 38.00%, while the cost of capital is 9.00%.

What is the project cash flow for year 0? (answer in terms of MILLIONS)

What is the project cash flow for year 1? (express answer in millions)

What is the NPV of this coaster project if Six Flags will evaluate it over a 20-year period? (Six Flags expects the first year project cash flow to grow at 5% per year, going forward)
(Express answer in millions)

Pacific Hotels operates a centralized call center for the reservation needs of its hotels. Costs associated with use of the center are charged to the hotel group (luxury, resort, standard, and budget) based on the length of time of calls made (time usage). Idle time of the reservation agents, time spent on calls in which no reservation is made, and the fixed cost of the equipment are allocated based on the number of reservations made in each group. Due to recent increased competition in the hotel industry, the company has decided that it is necessary to better allocate its costs in order to price its services competitively and profitably. During the most recent period for which data are available, the use of the call center for each hotel group was as follows: Division Time Usage(thousands of minutes) Number of Reservations (thousands) Luxury 220 104 Resort 110 143 Standard 440 273 Budget 330 780 During this period, the cost of the call center amounted to $870,000 for personnel and $660,000 for equipment and other costs.

Required: a. Determine the allocation to each of the divisions using the following:

1. A single rate based on time used. (Do not round intermediate calculations.)

2. Dual rates based on time used (for personnel costs) and number of reservations (for equipment and other cost). (Do not round intermediate calculations.)

Pacific Hotels operates a centralized call center for the reservation needs of its hotels. Costs associated with use of the center are charged to the hotel group (luxury, resort, standard, and budget) based on the length of time of calls made (time usage). Idle time of the reservation agents, time spent on calls in which no reservation is made, and the fixed cost of the equipment are allocated based on the number of reservations made in each group. Due to recent increased competition in the hotel industry, the company has decided that it is necessary to better allocate its costs in order to price its services competitively and profitably. During the most recent period for which data are available, the use of the call center for each hotel group was as follows:

During this period, the cost of the call center amounted to $890,000 for personnel and $630,000 for equipment and other costs.

Required:

a. Determine the allocation to each of the divisions using the following:

1. A single rate based on time used. (Do not round intermediate calculations.)

2. Dual rates based on time used (for personnel costs) and number of reservations (for equipment and other cost). (

Alvis Construction Supply Company has a department that manufactures wood trusses (wood frames used in the construction industry). The following information is for the production of these trusses for the month of February:

Required

Using the weighted-average method, calculate the following:

1-a. Costs per equivalent unit. (Round your answers to 4 decimal places.)

1-b. Cost of goods completed and transferred out. (Round "Cost per EU" to 4 decimal places. Round final answer to nearest whole dollars.)

1-c. Costs remaining in the Work-in-Process Inventory account. (Round "Cost per EU" to 4 decimal places. Do not round other intermediate calculations. Round final answer to nearest whole dollars.)

2. Assume that you are the company’s controller. The production department’s February equivalent unit cost is higher than expected. If the manager of the first department asks you to do him a favor by increasing the ending inventory completion percentage from 40 to 60% to lower the unit costs, how much would the unit cost be affected by this request? (Round your answer to 4 decimal places.)

Alvis Construction Supply Company has a department that manufactures wood trusses (wood frames used in the construction industry). The following information is for the production of these trusses for the month of February:

Required

Using the weighted-average method, calculate the following:

1-a. Costs per equivalent unit. (Round your answers to 4 decimal places.)

1-b. Cost of goods completed and transferred out. (Round "Cost per EU" to 4 decimal places. Round final answer to nearest whole dollars.)

1-c. Costs remaining in the Work-in-Process Inventory account. (Round "Cost per EU" to 4 decimal places. Do not round other intermediate calculations. Round final answer to nearest whole dollars.)

2. Assume that you are the company’s controller. The production department’s February equivalent unit cost is higher than expected. If the manager of the first department asks you to do him a favor by increasing the ending inventory completion percentage from 20 to 40% to lower the unit costs, how much would unit cost be affected by this request? (Round your answer to 4 decimal places.)

Can increasing revenue overcome an increase in the percentage of food cost?

In January 2017, Mitzu Co. pays $2,600,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $750,000, with a useful life of 20 years and a $85,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $360,000 that are expected to last another 12 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $1,890,000. The company also incurs the following additional costs:

Cost to demolish Building 1 $ 339,400
Cost of additional land grading 191,400
Cost to construct new building (Building 3), having a useful life of 25 years and a $400,000 salvage value 2,302,000
Cost of new land improvements (Land Improvements 2) near Building 2 having a 20-year useful life and no salvage value 168,000

Allocate the costs incurred by Mitzu to the appropriate columns and total each column.

2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1, 2017.

3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the 12 months of 2017 when these assets were in use.