The company has the following account balances on June 1, 2020. (all accounts have their ‘normal’ balances)

Drawings: 1000

Cash: 20000

Service revenue: 50000

Capital: 15000

Depreciation Expense: 700

Equipment: 30000

Accounts Payable: 5000

Insurance Expense: 500

Unearned Service Revenue: 4000

Prepaid Service Revenue: 500

Accounts Receivable: 4000

Rent Expense: 5000

Salaries Expense: 16000

Accumulated Depreciation - Equipment: 3000

During June 2018, the following events took place. Where appropriate, record a journal entry for each transaction. If no journal entry is required, write ‘no entry’.

1. On June 2, the company prepaid rent for July to September for $6,000.
2. On June 8, someone invested $3,000 cash and a computer system valued at $2,000 into the company.
3. On June 10, the company collected $4,000 it was owed on account.
4. On June 15, The company provided a quotation for membership fees to a corporation looking to provide fitness benefits to its employees. The quotation was for $10,000. The corporation will decide next month if it is a good fit.
5. On June 22 the company provided product and collected $5,000.
6. On June 24 the company received a $1,000 bill for advertising expense that it will pay in the near future.
7. On June 27 the company paid $2,000 cash on account.
8. On June 29, the owner withdrew $600 for personal use.
9. On June 30, the company purchased $1,000 of supplies on account.
10. On June 30, the company paid employee salaries of $3,000.

Question: Open T-accounts using the beginning balances provided and post entries into T-accounts. Calculate the balance of each one.

The company has the following account balances on June 1, 2020. (all accounts have their ‘normal’ balances)

Drawings: 1000

Cash: 20000

Service revenue: 50000

Capital: 15000

Depreciation Expense: 700

Equipment: 30000

Accounts Payable: 5000

Insurance Expense: 500

Unearned Service Revenue: 4000

Prepaid Service Revenue: 500

Accounts Receivable: 4000

Rent Expense: 5000

Salaries Expense: 16000

Accumulated Depreciation - Equipment: 3000

During June 2018, the following events took place. Where appropriate, record a journal entry for each transaction. If no journal entry is required, write ‘no entry’.

1. On June 2, the company prepaid rent for July to September for $6,000.
2. On June 8, someone invested $3,000 cash and a computer system valued at $2,000 into the company.
3. On June 10, the company collected $4,000 it was owed on account.
4. On June 15, The company provided a quotation for membership fees to a corporation looking to provide fitness benefits to its employees. The quotation was for $10,000. The corporation will decide next month if it is a good fit.
5. On June 22 the company provided product and collected $5,000.
6. On June 24 the company received a $1,000 bill for advertising expense that it will pay in the near future.
7. On June 27 the company paid $2,000 cash on account.
8. On June 29, the owner withdrew $600 for personal use.
9. On June 30, the company purchased $1,000 of supplies on account.
10. On June 30, the company paid employee salaries of $3,000.

Prepare the unadjusted trial balance for the company at June 31, 2018.

Some waste, scrap or by-product materials have little value. In fact, such materials represent liabilities for companies in that the materials require companies to incur significant disposal costs. Alternatively, some companies have historically found “cheap” ways to dispose of such materials. For example, on Friday April 2nd 1993, residents of Brazos County, Texas, U.S.A., stumbled across 19 cans of industrial waste that were scattered along the banks of the Navasota River. The cans were labelled “lacquer thinner” but the actual contents which were leaking into the ground and the river were not immediately known. The cans appeared to have been thrown from a vehicle travelling over on a nearby road. Some cans were heavily dented, some were capped with rags and all of them appeared to be scattered in a random pattern. State and county officials worked most of Saturday April 3rd 1993 cleaning up the site.
Source: Chuck Squatriglia, “Solvent Cans Dumped near Navasota River” Bryan-College Station Eagle (April 4, 1993), p.A9. Courtesy: Bryan-College Station Eagle.

(i)Comment on whether this method of disposing of industrial waste is a “cheap” alternative.
(ii) Briefly discuss the ethical and legal implications of disposing of industrial waste in this manner.
(iii) What actions can people take to reduce these kinds of incidents?
(iv) Ethically, what obligation does the vendor/manufacturer of these industrial materials have to the consumers and society as a whole.

Please read the following excerpt from an article:

" As President Barack Obama prepares to depart Thursday for his first Asia trip, Chinese premier Wen Jiabao is urging the U.S. to keep its deficit to an "appropriate size," a clear message to the leader of the world's largest debtor nation from its largest creditor.

China is the largest holder of U.S. government debt and has invested an estimated 70% of its more than $2 trillion stockpile of foreign-exchange reserves (the world's largest) in dollar assets, Reuters reports. Further dollar weakness, brought on by enormous U.S. deficit spending and near-zero interest rates, would erode the value of China's huge U.S. holdings.

"Most importantly, we hope the United States will keep an appropriate size to its deficit so that there will be basic stability in the exchange rate, and that is conducive to stability and the recovery of the global economy," Wen Jiabao said over the weekend at a news conference in Egypt.  

In contrast, the best strategy for the U.S. may be an inflationary stance. We need stimulus spending to jump start our economy and reduce the real value of our record budget deficit of $1.42 trillion in the fiscal year that ended Sept. 30. An improved U.S. economy also would mean more Americans buying up Chinese-made goods"

Please comment on the following questions:

Why is China concerned about the value of US dollar? What can they do to decrease their exposure to fluctuations in the value of US dollar? Is decreasing exposure to US dollar an easy task for China? Why?

A patient can't see objects closer than 35.2 cm and wishes to clearly see objects that are 20.0 cm from his eye.(

a) Is the patient nearsighted or farsighted?

(b) If the eye–lens distance is 1.99 cm, what is the minimum object distance p from the lens? (Give your answer to at least three significant digits.)
____ cm

(c) What image position with respect to the lens will allow the patient to see the object? (Give your answer to at least three significant digits.)
______cm

(d) Is the image real or virtual? Is the image distance q positive or negative? (Select all that apply.)

(e) Calculate the required focal length.
cm

(f) Find the power of the lens in diopters.
_____diopters

(g) If a contact lens is to be prescribed instead, find p, q, and f, and the power of the lens.

3.

–/16 POINTSSERCP11 25.2.P.012.

MY NOTES

ASK YOUR TEACHER

A certain child's near point is 11.0 cm; her far point (with eyes relaxed) is 123 cm. Each eye lens is 2.00 cm from the retina.(a) Between what limits, measured in diopters, does the power of this lens–cornea combination vary?

(b) Calculate the power of the eyeglass lens the child should use for relaxed distance vision.
diopters

Is the lens converging or diverging?

convergingdiverging    

2. Suppose the following. The Argentinian government undertakes extensive borrowing by issuing U.S. dollar denominated bonds. (Let’s say investors think Argentinian peso denominated bonds would be higher risk.) To keep the size of its debt repayments low, the Argentinian government decides to peg (fix) the peso to the dollar, and it does so at an exchange rate where the peso is stronger than the market exchange rate.

(a) To bring about the desired fixed exchange rate, which would the Central Bank of the Argentine Republic do, buy foreign currencies or sell foreign currencies?

(b) Suppose financial markets expect that, in the near future, the Argentinian central bank will run out of the currency needed to pursue its fixed exchange rate regime. What will currency traders do, buy the peso now or sell the peso now?

(c) Let’s say the Argentinian central bank runs out of the currency it needs for fixing the exchange rate. Given the actions of currency traders in (2b), does peso appreciate or does it depreciate?

(d) Given an expectation of the change in the peso strength in (2c), what happens to the amount of financial capital in Argentina?

(e) What happens to the interest rate in Argentina?

(f) What happens to production and employment of Argentina?

(g) What could Argentina do to respond (at least temporarily) to the situation where it can’t make payments (using foreign currencies) to buy foreign products and foreign parts or make repayments on its dollar denominated debt?

A. Fethe Inc. is a custom manufacturer of guitars, mandolins, and other stringed instruments and is located near Knoxville, Tennessee. Fethe's current value of operations, which is also its value of debt plus equity, is estimated to be $5 million. Fethe has $3 million face value, zero coupon debt that is due in 2 years. The risk-free rate is 7%, and the standard deviation of returns for companies similar to Fethe is 30%. Fethe's owners view their equity investment as an option and they would like to know the value of their investment.

Using the Black-Scholes option pricing model, how much is Fethe's equity worth? Do not round intermediate calculations. Round your answer to two decimal places. $ million

How much is the debt worth today? What is its yield? Do not round intermediate calculations. Round your answer for the debt worth to two decimal places. Round your answer for the yield on the debt to one decimal place.

Debt worth today: $ million

Yield on the debt: %

How would the equity value and the yield on the debt change if Fethe's managers could use risk management techniques to reduce its volatility to 20%? Do not round intermediate calculations. Round your answer for the equity worth to two decimal places. Round your answer for the yield on the debt to one decimal place.

New equity worth: $ million

New yield on the debt: %

Can you explain this? The value of the stock goes down and the value of the debt goes up because with lower risk, Fethe has (more/less) of a chance of a "home run".

Waterways Continuing Problem 07 (Part 1)

Waterways mass-produces a special connector unit that it normally sells for $3.90. It sells approximately 32,700 of these units each year. The variable costs for each unit are $2.50. A company in Canada that has been unable to produce enough of a similar connector to meet customer demand would like to buy 14,500 of these units at $2.80 per unit. The production of these units is near full capacity at Waterways, so to accept the offer from the Canadian company would require temporarily adding another shift to its production line. To do this would increase variable manufacturing costs by $0.30 per unit. However, variable selling costs would be reduced by $0.20 a unit.

An irrigation company has asked for a special order of 2,100 of the connectors. To meet this special order, Waterways would not need an additional shift, and the irrigation company is willing to pay $3.40 per unit.

1. What are the consequences of Waterways agreeing to provide the 14,500 units to the Canadian company? Would this be a wise “special order” to accept?

Waterways should or should not accept the special order because net income would increase or decrease by $_________?

2. Should Waterways accept the special order from the irrigation company?

Waterways should or should not accept the special order because net income would increase or decrease by $_________?

3. What would be the consequences of accepting both special orders?

Accepting both offers would increase or decrease net income by $________?

Assume that in an annual audit of Sandhill Inc. at December 31, 2020, you find the following transactions near the closing date. Assuming that each of the amounts is material, state whether the merchandise should be included in the client’s inventory. Transactions 1. A special machine, fabricated to order for a customer, was finished and specifically segregated in the back part of the shipping room on December 31, 2020. The customer was billed on that date and the machine excluded from inventory although it was shipped on January 4, 2021. select an option 2. Merchandise costing $5,740 was received on January 3, 2021, and the related purchase invoice recorded January 5. The invoice showed the shipment was made on December 29, 2020, f.o.b. destination. select an option 3. A packing case containing a product costing $6,970 was standing in the shipping room when the physical inventory was taken. It was not included in the inventory because it was marked “Hold for shipping instructions.” Your investigation revealed that the customer’s order was dated December 18, 2020, but that the case was shipped and the customer billed on January 10, 2021. The product was a stock item of your client. select an option 4. Merchandise received on January 6, 2021, costing $1,394 was entered in the purchase journal on January 7, 2021. The invoice showed shipment was made f.o.b. supplier’s warehouse on December 31, 2020. Because it was not on hand at December 31, it was not included in inventory. select an option 5. Merchandise costing $1,476 was received on December 28, 2020, and the invoice was not recorded. You located it in the hands of the purchasing agent; it was marked “on consignment.” select an option

The following transactions and adjusting entries were completed by a local delivery company called Fast Delivery. The company uses straight-line depreciation for delivery vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for franchise rights.

2018

2019

Required:
Prepare the journal entries required on each of the above dates. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)