Which of the following is NOT a part of Koch’s Postulates?

Use the adjusted trial balance for Stockton Company to answer the question that follow.

Use the adjusted trial balance for Stockton Company. Determine the total liabilities for the period.

a.$5,433

b.$14,380

c.$6,925

d.$1,492

In 2018, North Company rented a villa for three years and received a total of $60,000. The rent is earned equally over the period 2018-2020. For tax purposes, North should report the full $60,000 on 2018 tax return form. By year end, the company reported an income tax expense of $22,000 and income tax payable of $37,000. In 2019, the company terminated a maintenance contract and agreed to pay $10,000 per year for 2019-2021. The total termination amount is fully deducted for financial reporting purposes and deducted as paid for tax purposes. The pretax financial income for 2019 is $90,000. The tax rates are 30% for 2018 and 35% for 2019. By end of 2019, the government announced the change of tax rate for future periods. a. Prepare the journal entry to record income taxes for 2019. b. Which approach have you applied in answering part (a)? what are the main objectives of this approach?

In 2018, North Company rented a villa for three years and received a total of $60,000. The rent is earned equally over the period 2018-2020. For tax purposes, North should report the full $60,000 on 2018 tax return form. By year end, the company reported an income tax expense of $22,000 and income tax payable of $37,000.
In 2019, the company terminated a maintenance contract and agreed to pay $10,000 per year for 2019-2021. The total termination amount is fully deducted for financial reporting purposes and deducted as paid for tax purposes. The pretax financial income for 2019 is $90,000. The tax rates are 30% for 2018 and 35% for 2019. By end of 2019, the government announced the change of tax rate for future periods.
a. Prepare the journal entry to record income taxes for 2019.

b. Which approach have you applied in answering part (a)? what are the main objectives of this approach?

1. Use the adjusted trial balance for Stockton Company to answer the question that follow.
   

   Stockton Company
   Adjusted Trial Balance
   December 31
   	Account No.	Debit Balances	Credit Balances
   Cash	11	6,530
   Accounts Receivable	12	2,100
   Prepaid Expenses	13	700
   Equipment	18	13,700
   Accumulated Depreciation	19		1,100
   Accounts Payable	21		1,900
   Notes Payable	22		4,300
   Bob Steely, Capital	31		12,940
   Bob Steely, Drawing	32	790
   Fees Earned	41		9,250
   Wages Expense	51	2,500
   Rent Expense	52	1,960
   Utilities Expense	53	775
   Depreciation Expense	54	250
   Miscellaneous Expense	59	185
   Totals		29,490	29,490

   
   Use the adjusted trial balance for Stockton Company. Determine the total assets.

   a.$23,030

   b.$8,630

   c.$9,330

   d.$21,930

Question 2

a. Produce a risk register template showing all the essential headings and evaluate the significance of the Earned Monetary Value and the Risk Response Owner in the overall scheme of developing Risk Management Plan

b. A company is in the process of inventing an unmanned vehicle for the defense industry. There is serious disagreement on whether the company should move straight into commercial production or they should first build a prototype. The available data indicates that building the prototype will cost the company $400,000 with a failure rate of 5% and an impact of $10,000. If the prototype succeeds there will be no impact. However, the data for not building the prototype and moving straight into commercial production shows a failure rate (probability of failure) of 95% with an impact of $4,000,000.

Using expected monetary Value (EMV) and a Decision Tree as a project manager:  

1. Construct a Decision Tree for the above case
2. Critically analyze the options available and advice on the best option based on the data provided

On October 1, 2018, Pipes & Plumbing Company received a 10 percent, six - month note receivable from Kirkman Constructions, one of Pipes & Plumbing Company’s problem credit customers. Kirkman had owed $75,000 on an account receivable that had defaulted. Pipes & Plumbing insists that any customer who fails to pay an account receivable when due must replace their unpaid account receivable with an interest - bearing note receivable. Assume the Pipes & Plumbing Company makes adjusting entrie s for accrued interest revenue once a year on December 31.

Journalize the following events on the books of Pipes & Plumbing Company:

1. Record the receipt of the note on October 1 in settl eme nt of the account receivable

2. Record accrued interest at December 31, 2018.

3. Assume that Kirkman Constructions pays the note plus accrued interest in ful l. Record the collection of the principal and interest on April 1, 2019.

4. Assume that Kirkman Constructions did not make the necessary principal and i nterest payment on April 1, 2019, defaulting on his obligation. Record the default on April 1, 2019.

5. Why does Pipes & Plumbing Company insist that any customer who fails to pay must replace their unpaid account receivable with an in terest - bearing note receivable?

1. Ellen Lee, human resource manager of High Fashion Clothing Company, a manufacturer of women’s clothing and accessories, had just returned from a management development seminar on work motivation. She felt that the company could immediately make use some of the theories she learnt to enhance the workers’ productivity. She was able to convince the executive committee of the company to launch a “high pay reward scheme” – giving extra bonus to those hard working staff members. After the program had been in operation for a number of months, she was puzzled to find that the results were not as she had expected. Clothing designers who belong to a group of yuppies (優皮士) did not seem to react enthusiastically to the programs. They responded by saying that they are not worrying about money, they are working for their interests. The motivation program was basically a waste of their time. Cutters, seamsters, pressers and packagers, who belong to a group of grassroot(草根階層) frontline staff reacted positively to the motivation program. Production was increased by 20 percent. (a) Use Maslow’s Hierarchy of Needs Theory to analyze the different needs of the two groups of staff in High Fashion Clothing Company.

(b) Hence explain why Ellen’s motivation program succeeded in one group but failed in the other group.

(c) What strategies would you recommend to Ellen to ensure high levels of motivation among the group of clothing designers?

You deposit $600 in an account earning 6% coumpound interest for 3 years. Find the future value and the interest earned for each of the following compounding frequencies. Use the Bankers' Rule for daily compounding.

Creditors would prefer a firm to have

1.       inventory turnover of 3.0

2.        Inventory turnover of 2.0

3.       Times-interest-earned of 3.0

4.       Times-interest earned of 5.0

a.       1 and 3

b.       1 and 4

c.        2 and 3

d.        2 and 4