Pewter Publishing Co. (PPC) prepares and publishes a monthly newsletter for an industry in which potential circulation is limited. Because information provided by the newsletter is available only piecemeal from other sources and because no advertising is carried, the subscription price for the newsletter is relatively high. To increase circulation, PPC recently purchased a contact list from the industry’s trade association for $110,000. PPC then engaged in a campaign to increase circulation. The campaign involved extensive use of long distance telephone calls to industry members on the list who were not current subscribers. The telephone cost of the campaign was $38,000, plus salary payments to individuals who made the calls amounting to $51,000.
As a direct result of the campaign, new one year subscriptions at $175 each generated revenue of $294,100. New three year subscriptions at $450 each generated revenue of $224,700, and new five year subscriptions at $625 each generated $187,500. Cancellations are rare, but when they occur, refunds are made on a half rate basis (e.g., if a subscriber has yet to receive $100 worth of newsletters, $50 is refunded).
The subscription campaign was conducted during August 20X0. New subscriptions began with the October 20X0 issue of the monthly newsletter. The company’s accounting year ends 31 December.
Required:
Identify the specific accounting issues involved in recognizing revenue and costs for PPC. Calculate the related assets, liabilities, revenue, and expenses that would be reported by the company for 20X0 on its SFP and SCI.
In: Accounting
Suppose a basketball player shooting free throws would like to know the likelihood of the following for questions 19-20, Assuming, the athlete makes 74 percent of his shots and each shot is independent of the next: What is the probability that he will make 2 out of five shot? What is the probability that the athlete will make at least 4 out of 5 shots attempted?
In: Statistics and Probability
Independent random samples from two normal distributions
returned the values:
Sample 1: 45, 78, 121, 45, 67, 89, 95, 99, 79, 74
Sample 2: 67, 32, 67, 45, 21, 67, 89, 78, 77, 96, 94, 99
Find a 95% confidence interval for the difference in population
means.
In: Statistics and Probability
Independent random samples from two normal distributions
returned the values:
Sample 1: 45, 78, 121, 45, 67, 89, 95, 99, 79, 74
Sample 2: 67, 32, 67, 45, 21, 67, 89, 78, 77, 96, 94, 99
Find a 95% confidence interval for the difference in population
means.
In: Statistics and Probability
Find the 25th, 50th, and 75th percentile from the following list
of 32 data
| 1 | 3 | 7 | 9 | 12 |
| 13 | 16 | 19 | 23 | 29 |
| 31 | 39 | 43 | 44 | 45 |
| 48 | 50 | 59 | 61 | 65 |
| 66 | 67 | 68 | 73 | 74 |
| 81 | 83 | 89 | 92 | 93 |
| 97 | 100 |
In: Statistics and Probability
To study if high cholesterol levels are more common among men than among women, a sample of 244 men and a sample of 232 women were randomly selected. The cholesterol levels were measured and 74 men and 48 women had elevated levels. At α=0.05, can it be concluded that men are more susceptible to having higher levels of cholesterol?
In: Math
1/ Arizona Desert Homes (ADH) constructed a new subdivision during 2017 and 2018 under contract with Cactus Development Co. Relevant data are summarized below:
| Contract amount | $ | 3,270,000 | ||
| Cost: | 2017 | 1,260,000 | ||
| 2018 | 660,000 | |||
| Gross profit: | 2017 | 890,000 | ||
| 2018 | 460,000 | |||
| Contract billings: | 2017 | 1,635,000 | ||
| 2018 | 1,635,000 | |||
ADH recognizes revenue upon completion of the contract.
What is the journal entry in 2018 to record revenue?
Multiple Choice
| Construction in progress | 460,000 | |
| Cost of construction | 660,000 | |
| Revenue from long-term contracts | 1,120,000 |
| Accounts receivable | 1,635,000 | |
| Revenue from long-term contracts | 1,635,000 |
| Construction in progress | 1,350,000 | |
| Cost of construction | 1,920,000 | |
| Revenue from long-term contracts | 3,270,000 |
| Cost of construction | 2,150,000 | |
| Gross profit | 1,120,000 | |
| Revenue from long-term contracts |
3,270,000 |
2/ On December 15, 2018, Rigsby Sales Co. sold a tract of land that cost $3,300,000 for $5,000,000. Rigsby appropriately uses the installment sales method of accounting for this transaction. Terms called for a down payment of $440,000 with the balance in two equal annual installments payable on December 15, 2019, and December 15, 2020. Ignore interest charges. Rigsby has a December 31 year-end.
In its December 31, 2018, balance sheet, Rigsby would report:
Multiple Choice
Installment receivables (net) of $4,560,000.
Installment receivables (net) of $3,009,600.
Realized gross profit of $149,600.
Deferred gross profit of $149,600
3/ Lake Power Sports sells jet skis and other powered recreational equipment. Customers pay one-third of the sales price of a jet ski when they initially purchase the ski, and then pay another one-third each year for the next two years. Because Lake has little information about the ability to collect these receivables, it uses the cost recovery method to recognize revenue on these installment sales. In 2017, Lake began operations and sold jet skis with a total price of $750,000 that cost Lake $375,000. Lake collected $250,000 in 2017, $250,000 in 2018, and $250,000 in 2019 associated with those sales. In 2018, Lake sold jet skis with a total price of $1,200,000 that cost Lake $720,000. Lake collected $400,000 in 2018, $270,000 in 2019, and $270,000 in 2020 associated with those sales. In 2020, Lake also repossessed $260,000 of jet skis that were sold in 2018. Those jet skis had a fair value of $97,500 at the time they were repossessed.
In 2017, Lake would recognize realized gross profit of:
Multiple Choice
$0.
$250,000.
$375,000.
$125,000.
4/ Indiana Co. began a construction project in 2018 with a contract price of $161 million to be received when the project is completed in 2020. During 2018, Indiana incurred $36 million of costs and estimates an additional $89 million of costs to complete the project. Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed.
Indiana:
Multiple Choice
Recognized $72.00 million loss on the project in 2018.
Recognized $36.00 million loss on the project in 2018.
Recognized $10.37 million gross profit on the project in 2018.
Recognized no gross profit or loss on the project in 2018.
In: Accounting
High Performance Layer Chromatography Questions:
1. What are three main differences between High Performance Liquid Chromatography and Gas Chromatography?
2. Which type of High Performance Liquid Chromatography is most widely used? Explain its characteristics.
3. What is the separation principle in Size Exclusion Chromatography?
4. Which is the most commonly used detector in High Performance Chromatography and why?
5. What is the difference between a bulk property detector and a specific property detector?
6. What is the difference between isocratic and gradient elution?
7. What are three desirable features of a High Performance Liquid Chromatography detector?
8. What do you understand by theoretical plate concept and how HETP affects the separation in an HPLC column.
In: Chemistry
Suppose there is a mean-variance optimizer looking to
invest for two periods in bonds. They
can invest in a two year bond with annual yield y2 or they can
invest in the one year bond at r1 and then,
a year later, invest in another one year bond at currently
uncertain rate r2. What must be the liquiditiy
premium in order for them to be indifferent between the two
options?
Now suppose they are looking to invest for three years. What is the
liquidity premium to make them
indifferent between the three year bond or getting a two year bond,
then a one year bond after?
What if they want to invest for n years. Derive the liquidity
premium to make them indifferent between the
n year bond and the n − 1 year bond followed by a one year
bond.
In: Finance
The second facilitator has elaborated on software.
a. Using suitable examples, differentiate between system software
and application software
b. Describe three (3) major categories of system software.
c. Using appropriate examples, describe three (3) types of
interfaces that are commonly used.
d. Compare and contrast between Workgroup Applications and
Enterprise Applications.
The final session of the workshop was focused on Artificial Intelligence (AI). Over the last decade, AI has grown from a pipe dream into the driving force behind the fourth industrial revolution.
a. What is Artificial Intelligence?
b. What are the various areas where AI can be used?
c. Differentiate between Artificial Intelligence (AI) and Machine Learning (ML)
d. Discuss on five (5) benefits and five (5) drawbacks of developing Artificial Intelligence in this generation
In: Computer Science