4. Assuming the government of country Balistan has a balanced budget requirement and collects $100 million more in taxes than expected in 2016. As a result, the government would have to

increase taxes by $100 million.

increase spending by $100 million.

reduce spending by $100 million.

5.

Assuming that income tax is the only source of revenue for the government, with tax revenue of $50 billion and government spending totaling $70 billion, which of the following is true of the government’s budget?

The government has a budget surplus of $20 billion.

The government has a balanced budget of $70 billion.

The government has a budget deficit of $20 billion.

10.

Banks create money through which of the following processes?

printing money

lending money

writing checks on bank deposits

11.

Corporate stock ________.

represents debt in a firm.

is considered to be a loan from a bank.

represents ownership in a firm.

14.

If a person owns stock in a corporation, what do they own?

Corporate stock represents ownership in a firm.

Corporate stock is considered to be a bank bond.

Corporate stock represents firm debt.

16.

Debit cards are a form of

debt.

money.

credit.

AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February:

The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $32 per job, and the actual mobile lab operating expenses for February were $9,220. The company expected to work 140 jobs in February, but actually worked 142 jobs.

Required:

Prepare a flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and activity variances for February. (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.)

A) Suppose that the mean and standard deviation of the scores on a statistics exam are 89.2 and 6.49, respectively, and are approximately normally distributed. Calculate the proportion of scores below 77.

B)

When students use the bus from their dorms, they have an average commute time of 8.974 minutes with standard deviation 3.1959 minutes. Approximately 66.9% of students reported a commute time less than how many minutes? Assume the distribution is approximately normal.

C)

The revenue of 200 companies is plotted and found to follow a bell curve. The mean is $637.485 million with a standard deviation of $27.6736 million. Would it be unusual for a randomly selected company to have a revenue above $687.08 million?

On February 1, 2018, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,500,000. During 2018, costs of $2,200,000 were incurred, with estimated costs of $4,200,000 yet to be incurred. Billings of $2,740,000 were sent, and cash collected was $2,450,000.

In 2019, costs incurred were $2,740,000 with remaining costs estimated to be $3,900,000. 2019 billings were $2,990,000, and $2,675,000 cash was collected. The project was completed in 2020 after additional costs of $4,000,000 were incurred. The company’s fiscal year-end is December 31. This project does not qualify for revenue recognition over time.

Required:
1. Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years.
2a. Prepare journal entries for 2018 to record the transactions described (credit "various accounts" for construction costs incurred).
2b. Prepare journal entries for 2019 to record the transactions described (credit "various accounts" for construction costs incurred).
3a. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2018.
3b. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2019.

Green Advertising Services

Adjusted Trial Balance

December 31, 2018

Balance

Account Title

Debit

Credit

Cash

$14,000

Accounts Receivable

15,800

Office Supplies

6,500

Land

18,400

Building

47,900

Accumulated Depreciation—Building

$36,100

Furniture

19,600

Accumulated Depreciation—Furniture

14,100

Accounts Payable

10,600

Salaries Payable

7,200

Unearned Revenue

16,000

Common Stock

30,000

Retained Earnings

31,400

Dividends

18,300

Service Revenue

49,800

Salaries Expense

28,600

Supplies Expense

8,400

Depreciation Expense—Building

2,900

Depreciation Expense—Furniture

1,300

Advertising Expense

13,500

Total

$195,200

$195,200

Requirement 3. Prepare the classified balance sheet as of December 31,2018.

Use the account form.

Begin by preparing the asset section of the balance sheet and then prepare the liabilities and​ stockholders' equity sections. ​(If a box is not used in the balance​ sheet, leave the box​ empty; do not select a label or enter a zero. Abbreviation​ used: Accum.​ = Accumulated.)

On July 31, 2017, Coronado Company engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery. Construction was begun immediately and was completed on November 1, 2017. To help finance construction, on July 31 Coronado issued a $303,600, 3-year, 12% note payable at Netherlands National Bank, on which interest is payable each July 31. $208,600 of the proceeds of the note was paid to Minsk on July 31. The remainder of the proceeds was temporarily invested in short-term marketable securities (trading securities) at 10% until November 1. On November 1, Coronado made a final $95,000 payment to Minsk. Other than the note to Netherlands, Coronado’s only outstanding liability at December 31, 2017, is a $28,200, 8%, 6-year note payable, dated January 1, 2014, on which interest is payable each December 31.

Collapse question part

(a)

Calculate the interest revenue, weighted-average accumulated expenditures, avoidable interest, and total interest cost to be capitalized during 2017.

Interest revenue

$

Weighted-average accumulated expenditures

$

Avoidable interest

$

Interest capitalized

$

Wang Corporation's capital structure consists of 50,000 ordinary shares. At December 31, 2011 an analysis of the accounts and discussions with company officials revealed the following information:

            Sales                                                                                                       ¥1,100,000

            Purchase discounts                                                                                        18,000

            Purchases                                                                                                     642,000

            Loss on discontinued operations (net of tax)                                                42,000

            Selling expenses                                                                                          128,000

            Cash                                                                                                               60,000

            Accounts receivable                                                                                      90,000

            Share capital                                                                                                200,000

            Accumulated depreciation                                                                          180,000

            Dividend revenue                                                                                            8,000

            Inventory, January 1, 2011                                                                          152,000

            Inventory, December 31, 2011                                                                    125,000

            Unearned service revenue                                                                               4,400

            Accrued interest payable                                                                                 1,000

            Land                                                                                                            370,000

            Patents                                                                                                         100,000

            Retained earnings, January 1, 2011                                                            290,000

            Interest expense                                                                                             17,000

            General and administrative expenses                                                          150,000

            Dividends declared                                                                                        29,000

            Allowance for doubtful accounts                                                                    5,000

            Notes payable (maturity 7/1/14)                                                                 200,000

            Machinery and equipment                                                                           450,000

            Materials and supplies                                                                                   40,000

            Accounts payable                                                                                          60,000

The amount of income taxes applicable to ordinary income was ¥48,600, excluding the tax effect of the discontinued operations loss, which amounted to ¥18,000.

Instructions

(a) Prepare an income statement.

(b)       Prepare a retained earnings statement.

On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,350,000. During 2021, costs of $2,140,000 were incurred, with estimated costs of $4,140,000 yet to be incurred. Billings of $2,668,000 were sent, and cash collected was $2,390,000.

In 2022, costs incurred were $2,668,000 with remaining costs estimated to be $3,810,000. 2022 billings were $2,918,000, and $2,615,000 cash was collected. The project was completed in 2023 after additional costs of $3,940,000 were incurred. The company’s fiscal year-end is December 31. This project does not qualify for revenue recognition over time.

Required:

1. Calculate the amount of revenue and gross profit or loss to be recognized in each of the three years.

2a. Prepare journal entries for 2021 to record the transactions described (credit "various accounts" for construction costs incurred).

2b. Prepare journal entries for 2022 to record the transactions described (credit "various accounts" for construction costs incurred).

3a. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2021.

3b. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2022.

AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February:

The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus $31 per job, and the actual mobile lab operating expenses for February were $8,880. The company expected to work 140 jobs in February, but actually worked 144 jobs.

Required:

Prepare a flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and activity variances for February. (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.)

Required:  Prepare a combined Governmental Funds Balance Sheet/Statement of Net Position in the format presented in Illustration 9-1 from your textbook.

Additional information:

• Capital assets net of accumulated depreciation amounted to $475,000 at year-end.
• The liability for long-term compensated absences is estimated to be $73,000 at year-end.
• Long-term notes payable amounted to $423,000 at year-end.