The following information applies to the questions displayed below.]

Pastina Company sells various types of pasta to grocery chains as private label brands. The company's fiscal year-end is December 31. The unadjusted trial balance as of December 31, 2018, appears below.

Information necessary to prepare the year-end adjusting entries appears below.

Depreciation on the office equipment for the year is $10,500.

Employee salaries and wages are paid twice a month, on the 22nd for salaries and wages earned from the 1st through the 15th, and on the 7th of the following month for salaries and wages earned from the 16th through the end of the month. Salaries and wages earned from December 16 through December 31, 2018, were $1,350.

On October 1, 2018, Pastina borrowed $60,900 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 12%. The principal is due in 10 years.

On March 1, 2018, the company lent a supplier $24,900 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2019.

On April 1, 2018, the company paid an insurance company $5,200 for a two-year fire insurance policy. The entire $5,200 was debited to insurance expense.

$830 of supplies remained on hand at December 31, 2018.

A customer paid Pastina $1,620 in December for 1,350 pounds of spaghetti to be delivered in January 2019. Pastina credited sales revenue.

On December 1, 2018, $2,200 rent was paid to the owner of the building. The payment represented rent for December 2018 and January 2019, at $1,100 per month.

3. Prepare an adjusted trial balance.

Please fill out a general journal for the transactions.

Customers are charged $87 per hour for services

Customers are charged $75 for each unit of retail product purchased

Inventory is purchased by the company for $36 per unit

To understand the value of counting loops:

1. Write a java program that implements matrix multiplication using counting loop constructs.
2. Then write the same program using only logical loops—for example, while loops.

Sample Result is shown below:

Enter the number of rows of matrix A: 2

Enter the number of columns of matrix A: 3

Enter the number of columns of matrix B: 3

Enter the number of columns of matrix B: 4

Enter matrix A;

1 2 3

4 5 6

Enter matrix B:

7 8 9 10

11 12 13 14

15 16 17 18

Matrix A:

1 2 3

4 5 6

Matrix B:

7    8    9 10

11    12 13 14

15 16 17    18

Product of matrix A and Matrix B ( A x B) :

74 80 86 92

173 188 203    218   

You are the audit senior on the Wendig Limited (Wendig) engagement and have commenced planning for the 2019 audit. You have been able to obtain the following information concerning the various segments of the business:

1. Inventory Balances and Purchase Transactions Although fairly voluminous, purchase transactions at Wendig are not complex. Inventories are tightly controlled so that overstocking and obsolescence are normally not a problem. Inventory, although not as liquid as cash, is subject to theft. At Wendig, finished packaged products are shipped immediately to customers, although large quantities of purchased merchandise are maintained on hand. The personnel handling purchases and inventory transactions are, in general, competent. Access to warehouse is unrestricted.

2. Trade Receivables and Credit Sales System These transactions are not particularly complex at Wendig, nor (except for the allowance for doubtful debts account) is there any degree of estimation involved. The persons processing revenue and trade receivables transactions are thoroughly familiar with the procedures and are generally competent. Sales transactions processing does, however, entail the completion of many transactions. Competition from overseas is becoming an issue, and because of the poor general economic conditions some customers have requested extensions of time to pay.

3. Property, Plant and Equipment (PPE) There are generally few fixed asset transactions. The transactions are often not complex but an element of risk can be introduced when management has to make decisions concerning whether to capitalise or expense items. PPE, being less liquid than other assets, is generally not subject to theft. In recent years a number of PPE items have been manufactured in-house. You have noticed, as a result of your analytical procedures, that repairs and maintenance expense has dropped considerably in the last two years. Asset registers are maintained on a timely basis, and staff are generally competent.

4. Trade Payables Transactions and Balances Although not complex, the volume of trade payables transactions is high. There is a risk with trade payables balances that personnel may fail to record them in the books, as the company has applied to the bank for an increase in its overdraft and wants to impress the bank with a strong current ratio. At Wendig a request form is first prepared for all items that are to be paid through the cash disbursements system. The previous trade payables clerk, who had been with the company for eight years, left in December 2018. A new clerk was hired but is not yet thoroughly familiar with the procedures.

Questions

1. Determine any significant risks with reference to relevant facts

2.Outline internal controls relevant to the audit.

Chandler Company is owned by Roscoe Chandler and provides appraisal services to individuals and companies wishing to purchase and sell fine art. Chandler Company began business on January 1, 2018, and is just completing its first year of business. Roscoe asks for your help in completing the accounting cycle for the company by assisting with the closing process.

Before the closing entries are made, you begin with an adjusted trial balance. The closing entries are essentially the link from the adjusted trial balance to the post-closing trial balance.

Chandler Company

ADJUSTED TRIAL BALANCE

December 31, 2018

The Closing Process

The final step of the accounting cycle is the closing process. The main goal of this stage of the cycle is to ensure that the balance of each temporary account is returned to zero and that net income is transferred to the owner's capital account. The first step in successfully undertaking the closing process is to understand the difference between a temporary account and a permanent account. Roscoe has some questions about the process.

Answer the following questions (1) - (3).

1. If a temporary account has an ending balance of $67,000, what is its beginning balance for the following accounting period? If there is no amount or an amount is zero, enter “0”.

2. If a permanent account has an ending balance of $67,000, what is its beginning balance for the following accounting period?

3. Roscoe will be preparing his yearly financial statements after completing Chandler Company’s closing process, and is a somewhat confused about the characteristics of the accounts on his Chart of Accounts. He has started by creating the following chart, and asks for your help in completing it. For each account or type of account listed, choose all descriptions that apply.

Roscoe’s Journal

Roscoe has attempted to prepare the closing entries for Chandler Company on this panel. He’s not sure if he’s entered the journal entries correctly, and asks you to review them. You find that one entry is correct, but the other is incorrect.

Determine which entry is incorrect, and journalize both closing entries for Chandler Company as of Dec. 31 on the Journal panel.

PAGE 25

JOURNAL

ACCOUNTING EQUATION

Journal

Roscoe has attempted to prepare the closing entries for Chandler Company on the Roscoe’s Journal panel. He’s not sure if he’s entered the journal entries correctly, and asks you to review them. You find that one entry is correct, but the other is incorrect. Refer to the Chart of Accounts for exact wording of account titles.

Determine which entry is incorrect, and journalize both closing entries for Chandler Company as of Dec. 31 in the following journal.

PAGE 25

JOURNAL

ACCOUNTING EQUATION

Post-Closing Trial Balance

The post-closing trial balance shows all the permanent accounts with their updated values after the temporary accounts have been reduced to zero balance for the next accounting cycle. Also, the post-closing trial balance is meant to ensure that debits equal credits post-close.

Roscoe is very happy with your work on the closing entries for Chandler Company, and asks if you would prepare a post-closing trial balance for the company.

Chandler Company

POST-CLOSING TRIAL BALANCE

December 31, 2018

1. The chart below records number of hours 12 students spent online during the weekend and the Math test scores they achieved the following Monday.  

Hours on‐line (x)   0      7      5         2         3        5        1        3        5        10           7         6  

Test scores (y)       96    75    84      82      74      76      85      95      68      50          65        58  

a) Find the value of “r”, the linear regression constant  

b) Find the equation of the regression line  

c) Using the regression line, predict, if possible, the Math exam grade if a student was online for: i) 4 hours ii) 5.5 hours iii) 15 hours.

d) Use a scatter plot with the linear regression line on the same graph   

In order to reduce hostility levels, twelve students were randomly assigned to three different types of therapy. After completing a therapy, each student was given a test that recorded hostility level. A lower score indicates lower hostility and vice-versa.

Calculate the sample variance (or standard deviation) for each therapy.

For Hartley's test of homogenity

calculate the test statistic F'.

For σ = 0.05, specify the critical region for Hartley's test of homogeneity and make a decision about H_o.

Find the P-value and compare to σ = 0.05.

The following accounting information pertains to Boardwalk Taffy and Beach Sweets. The only difference between the two companies is that Boardwalk Taffy uses FIFO, while Beach Sweets uses LIFO.

a-1. Compute the gross margin percentage for each company.
a-2. Identify the company that appears to be charging the higher prices in relation to its cost.
b-1. For each company, compute the inventory turnover ratio and the average days to sell inventory.
b-2. Identify the company that appears to be incurring the higher financing cost.
  

Compute the gross margin percentage for each company. (Round your answers to 1 decimal place.)

or each company, compute the inventory turnover ratio and the average days to sell inventory. (Use 365 days in a year. Round your "Inventory Turnover Ratios" to 1 decimal place and all other answers to the nearest whole number.)