Baltic Supplies presented the following unadjusted trial balance as at December 31, 2016

The following information was made available at December 31, 2016

A.) Unearned revenue still not earned at December 31, 2016 amounted 120,000

B.) The prepaid insurance of 156,000 was paid on August 1, 2016 for 6 months to January 2017

C.) The building and equipment has an estimated life of (10) years and is being depreciated on the straight line method of depreciation, down to residual value of 10,000

D.) Accrued travelling expense amounted to 2,300 at December 31, 2016

E.) A physical count of inventory at December 31, 2016, reveals 315,000 worth of inventory on hand

Required to:

1 Prepare the necessary adjusting entries on December 31, 2016

2 Prepare the adjusted trial balance as at December 31, 2016

3 Prepare the company multi-step Income Statement for the year ended December 31, 2016

4 Prepare the company statement of Owner's Equity for the year ended December 31, 2016

5 Prepare the company classified Balance Sheet at December 31, 2016

Starcups Coffee Company is launching a new sustainability initiative that would reward customers for purchasing a reusable cup. During the cup promotion, customers would pay an extra $1.00 for the reusable cup and would receive a 20% discount each time they return with the cup to buy a cup of coffee.

Each week Starcups serves 41,000 customers who purchase an average of 2.00 cups of coffee per week (82,000 cups total). Starcups’s contribution margin income statement for a typical week is shown below:

Assume the new cup promotion is expected to impact sales volume, revenue, fixed, and variable costs as follows:

• Starcups estimates that 25% of its current customers (10,250) will participate in the promotion. The remainder of its existing customer base (30,750) will continue to buy an average of 2.00 cups of coffee per week.
• Starcups expected to attract 5,100 new customers to participate in the promotion.
• Customers who participate in the promotion will pay an additional $1.00 for the reusable cup. They will then receive a 20% discount on repeat visits when they bring back their reusable cup.
• The additional variable cost of purchasing the reusable cup is $1.60. The variable cost savings of the paper cup is $.30.
• Starcups expects that customers who participate in the reusable cup promotion will visit an average of 5 times per week, including the first purchase of the reusable cup.
• Starcups will spend a total of $11,000 per week advertising the reusable cup promotion.

Required:
1. Prepare a contribution margin income statement to predict how the reusable cup promotion will impact weekly net operating income.



2. Compute the difference in total revenue, total variable costs, total contribution margin, total fixed costs, and total operating income before and after the promotion.

Create a level 1 Dataflow diagram for a ticket booking system based on the information from a usecase below

• The priority will be high
• The actor will be the employee

• The use case is about getting net profit, cost, and revenue reports

• The type is external

• The trigger is that net profit, cost and revenue repords will be generated by the employee

• The preconditions are:

1.) the data of the ticket price can be accessed after the user logs in to the system

2.) In order for the ticket to be available in the system, the ticket has to be bought

3.) The ticket must be sold and the prices are already set or can be changed

The normall course will be,

1.1 Ticketprice data is asked for from system

I) the data of the ticket price can be accessed after the emplyee logs in to the system

II) the employe will type in the price of the ticket in the system

III) for the give time period, the system will create the reports

IV) the user will be asked to enter a destination

V) the info is sent to the entered destination

VI) the system will save the info

The alternativw course will be,

1.1 Boss or some employee from another section/dept generates the reports

1 the user is asked for a destination

2 user sends it to their own destination (themselve)

The postconditions will be,

1.) The information on reports is stored and can be altered/ modded later on

2.) report,s sent

The exceptions are going to be,

E #1 The reports don’t got enough info

1.) the system will tell the user that it cant generate the rport due to lack of provided info

2.) the employee will the be given the option to reenter the info to exit orr cancel

3.) the emp requests to again enter the info

4.) the normall course is restarted by the systm

5.) the emp tells the sys to exit

The current usecasse is terminated by the systm and exited

The sum inpurts are: the log in id and pswd of the emp, the needed info, the destination address of the recipient

The source is emp, emp, employee

The outputs are ticket price/cost data, Revenue, Cost and Net Profit Report

SentReport        

The destination is system,system, recipientt

Create a level 1 Dataflow diagram for a ticket booking system based on the information from a usecase below

• The priority will be high
• The actor will be the employee

• The use case is about getting net profit, cost, and revenue reports

• The type is external

• The trigger is that net profit, cost and revenue repords will be generated by the employee

• The preconditions are:

1.) the data of the ticket price can be accessed after the user logs in to the system

2.) In order for the ticket to be available in the system, the ticket has to be bought

3.) The ticket must be sold and the prices are already set or can be changed

The normall course will be,

1.1 Ticketprice data is asked for from system

I) the data of the ticket price can be accessed after the emplyee logs in to the system

II) the employe will type in the price of the ticket in the system

III) for the give time period, the system will create the reports

IV) the user will be asked to enter a destination

V) the info is sent to the entered destination

VI) the system will save the info

The alternativw course will be,

1.1 Boss or some employee from another section/dept generates the reports

1 the user is asked for a destination

2 user sends it to their own destination (themselve)

The postconditions will be,

1.) The information on reports is stored and can be altered/ modded later on

2.) report,s sent

The exceptions are going to be,

E #1 The reports don’t got enough info

1.) the system will tell the user that it cant generate the rport due to lack of provided info

2.) the employee will the be given the option to reenter the info to exit orr cancel

3.) the emp requests to again enter the info

4.) the normall course is restarted by the systm

5.) the emp tells the sys to exit

The current usecasse is terminated by the systm and exited

The sum inpurts are: the log in id and pswd of the emp, the needed info, the destination address of the recipient

The source is emp, emp, employee

The outputs are ticket price/cost data, Revenue, Cost and Net Profit Report

SentReport        

The destination is system,system, recipientt

Create a level 1 Dataflow diagram for a ticket booking system based on the information from a usecase below

• The priority will be high
• The actor will be the employee

• The use case is about getting net profit, cost, and revenue reports

• The type is external

• The trigger is that net profit, cost and revenue repords will be generated by the employee

• The preconditions are:

1.) the data of the ticket price can be accessed after the user logs in to the system

2.) In order for the ticket to be available in the system, the ticket has to be bought

3.) The ticket must be sold and the prices are already set or can be changed

The normall course will be,

1.1 Ticketprice data is asked for from system

I) the data of the ticket price can be accessed after the emplyee logs in to the system

II) the employe will type in the price of the ticket in the system

III) for the give time period, the system will create the reports

IV) the user will be asked to enter a destination

V) the info is sent to the entered destination

VI) the system will save the info

The alternativw course will be,

1.1 Boss or some employee from another section/dept generates the reports

1 the user is asked for a destination

2 user sends it to their own destination (themselve)

The postconditions will be,

1.) The information on reports is stored and can be altered/ modded later on

2.) report,s sent

The exceptions are going to be,

E #1 The reports don’t got enough info

1.) the system will tell the user that it cant generate the rport due to lack of provided info

2.) the employee will the be given the option to reenter the info to exit orr cancel

3.) the emp requests to again enter the info

4.) the normall course is restarted by the systm

5.) the emp tells the sys to exit

The current usecasse is terminated by the systm and exited

The sum inpurts are: the log in id and pswd of the emp, the needed info, the destination address of the recipient

The source is emp, emp, employee

The outputs are ticket price/cost data, Revenue, Cost and Net Profit Report

SentReport        

The destination is system,system, recipientt

The Unadjusted Trial Balance has been prepared (provided below and also in ThreeBrothers worksheet.xlsx), showing only those accounts with a non-zero balance. You have gathered the following information that will be helpful in preparing any necessary adjusting entries (add any accounts necessary). Good luck!

Also, in addition to its normal operations, ThreeBrothers's management entered into a long-term agreement on September 1, 2017 to supply its internally developed smart-phone-interactive fitness equipment, FITTRACKER, and maintenance support to a regional 24-hour fitness chain. The details of the agreement call for ThreeBrothers to be paid $10,000,000 up front for the equipment and 3 years of maintenance support (beginning on agreement date). The fitness chain could have bought just the equipment for $9,000,000 with no support, and they could have independently contracted for the maintenance support for $2,000,000 for the three-year period. ThreeBrothers has arranged with a 3^rd-party manufacturer to make and ship the equipment direct to customers so ThreeBrothers does not carry any FITTRACKER inventory. The cost of the equipment sold to the fitness chain was $4,500,000. ThreeBrothers has recorded the $10,000,000 as a point-of-sale transaction.

1. I need the adjusting journal entry and closing journal entry, if necessary. Thank You.

The auditor is trying to determine whether to use a horizontal or vertical analysis. In the analytic to be performed the auditor wants to understand whether the numbers as presented are reasonable.

The auditor decided to perform a horizontal analysis why did the auditor decide to so this instead of a vertical analysis?

For the balance sheet and income statement prepare a horizontal analysis

What are the journal entries for the following?

13) The Board of Directors declared dividends for the common shareholders of $50,000 plus the amount due for the preferred shareholders. No dividends have been paid for the year 2018.

14) The income tax rate is 20%.

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports—the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 65 students enrolled in those two courses. Data concerning the company’s cost formulas appear below:

For example, administrative expenses should be $3,800 per month plus $41 per course plus $6 per student. The company’s sales should average $870 per student.

The company planned to run four courses with a total of 65 students; however, it actually ran four courses with a total of only 59 students. The actual operating results for September appear below:

Required:

Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September. (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.)

Suppose you are the Chief Marketing Officer for a retailer that has data on the home addresses of its

1,000,000 most active customers. You hope to determine whether sending out “20% off your entire

purchase” coupons by mail will increase revenues.

You conjecture that customers who have access to this coupon will spend more in the store over the

next year. However, skeptics in your company argue that the coupons will just allow customers to

spend less on items they would have purchased anyway. This is a debate that an experiment can

resolve.

In thinking about how large of an experiment you need to have enough statistical power, you realize

that many of the customers you send the coupons to in the mail will not open the mail and so will not

realize they received the coupon.

1. The CEO argues that to estimate the effects of the coupons on revenue, you should compare

the difference in revenues from a) people you sent the coupons and who used them and b)

people you sent the coupons but who did not use them. Write a response to your CEO:

describe the flaw with this plan in language the CEO will understand, and advocate for your

proposed experiment.

2. To avoid the cost of sending out coupons you do not need to, you ask the data science team

to plan an experiment just large enough (with just enough statistical power) to reliably detect

a treatment effect if the true effect on those who open the mail and realize they have the

coupon is a $2 increase in revenue over the next year. The data science team tells you that

an experiment with 100,000 people in the treatment group (leaving the remaining 900,000 in

the control group) will be well-powered to detect an overall difference between the entire

treatment and control groups of $2 in revenue over the next year. To send out the minimum

number of coupons required while still having enough statistical power to detect a $2 effect of

opening the mail, can you send out fewer, the same number of, or more coupons than

100,000?