Sanford Company

The Sanford Company had the following balance sheet as of December 31, 20x2. The transactions for the first three months of 20x3 are also presented along with other information about specific accounts.

Sanford Company

Balance Sheet

December 31, 20x2

Additional Information

Accounts Receivable

The following table indicates the historical breakout of accounts receivable

The company uses the gross method of recording all sales on accounts.

Marketable Securities

The interest rate earned on marketable securities is 6.0%.

Inventory

In 20x2, the company had used the gross method to record inventory purchases on account. As of January 1, 20x3, the company is using the net method to record inventory purchases on account.

Prepaid Insurance

A three-year insurance policy in the amount of $7,200 was purchased on July 1, 20x2.

Equipment

Equipment is depreciated at an average amount of $3,000 per month.

Building

The current building was purchased on January 1, ten years ago and has an expected 40-year life at which time its salvage value will be $40,000.

Intangible Assets

Intangible assets were initially valued at $80,000 and are being depreciated over 40 years at $2,000 per year.

Short-Term Notes Payable

The one-year short-term notes payable are due on March 1, 20x3. The interest rate is 5.0% which is payable at maturity.

Long-Term Notes Payable

The long-term notes payable are due in ten years. The interest rate on the notes is 4.5%.

Bonds Payable

The bonds payable mature in twenty years. The interest rate on the bonds is 4.0%.

Mortgage Payable

The following amortization schedule can be used for the January, 20x3 mortgage payment on the 7.0%, 30- year mortgage.

Capital Stock

The capital stock is common stock at $10 par value with 50,000 shares authorized, and 10,000 shares issued and outstanding.

Journal Entries

Jan 1 Equipment with a historical cost of $10,000 and an accumulated depreciation of $3,000 was sold for $6,000

Jan   2 Equipment with a historical cost of $20,000 and an accumulated depreciation of $18,000 was disposed of with an additional disposal cost of $1,300.

Jan   2 Sanford Company borrowed $24,000 on a short-term discounted 90 day, 3.0% noninterest-bearing note payable.

Jan 3 Sanford Company paid $18,000 in advance for the 6 month rental of a warehouse.

Jan 3 Equipment with a historical cost of $50,000 and an accumulated depreciation of $35,000 was traded for new similar equipment valued at $75,000. Sanford Company received $14,500 as a trade in for the old equipment, paid $7,500 and established a 4.5% long-term note payable for the balance due.

Jan 4 Equipment with a historical cost of $35,000 and an accumulated depreciation of $20,000 was traded for new dissimilar equipment valued at $60,000. The salvage value of the old equipment was $5,000 and the trade in value was $7,000. Sanford paid $4,000 for the equipment and established a 4.5% long-term note payable for the balance due.

Jan 5 Sanford Company declared a dividend of $2.00 per share payable on February 10, 20x3 to all shareholders of record on January 20, 20x3.

Jan 6 The amount in wages payable and taxes payable was paid in full.

Jan 8 Sanford Company paid a total of $18,000 on accounts payable and was able to take advantage of $1,500 in purchase discounts for early payment. The original inventory purchase was recorded at the full amount (gross method).

Jan 15 Cash sales for two weeks equaled $22,000. The cost of inventory sold equaled $12,000.

Jan 20 Supplies in the amount of $4,200 were purchased for cash.

Jan 21 A customer who owed $10,000 on an account receivable, agreed to sign a 60-day note receivable with an interest rate of 6.0%. The interest earned on the note will be paid at the maturity date of the note receivable.

Jan 29 The balance of $14,500 in accounts payable was paid.

Jan 30 The company purchased $45,000 of inventory on account with the terms 2/10, net 30. The company has decided to switch to the net method for all inventory purchases on account beginning in 20x3.

Jan 31 Cash sales for two weeks equaled $24,000. The cost of inventory sold equaled $13,000.

Jan 31 Sales on account for the month of January totaled $55,000 with the terms 2/10, net 30. The cost of inventory sold equaled $26,000.

Jan 31 The unearned revenue represented the rental of special equipment that was used by another company on weekends. $4,000 of the revenue was earned in January.

Jan 31 Collected cash of $48,000 from the accounts receivable, plus there was a total sales discount of $1,000 for the payment of receivables within the ten day discount period.

Jan 31 Salary expenses in the amount of $14,000 and tax expenses in the amount of $8,000 were paid.

Jan 31 The utility bill of $2,500 was paid.

Jan 31 A bill in the amount of $3,600 for advertising expenses incurred during the month of January was received.

Jan 31 The monthly payment for January of the mortgage payable was made.

Feb 1 The Sanford Company made a new issue of 5,000 shares of common stock for cash. The market price of the stock was $40 per share.

Feb 2 A petty cash fund in the amount of $500 was established.

Feb 3 The Sanford Company bought back 1,000 shares of its own common stock for $40 per share.

Feb 8 The purchase of inventory on account on Jan 30th was paid in full.

Feb 10 Sanford Company sold the note receivable from Jan 21st to the bank, which discounted the note at 8.0%.

Feb 15 Cash sales for two weeks equaled $20,000. The cost of inventory sold equaled $11,000.

Feb 20 The company purchases $20,000 of inventory on account with the terms 2/10, net 30.

Feb 27 The company paid an advertising bill for $5,600 which included the February advertising expense of $2,000 plus the balance due from January.

Feb 28 Cash sales for two weeks equaled $25,000. The cost of inventory sold equaled $14,000.

Feb 28 The monthly payment for February of the mortgage payable was made.

Feb 28 The company collected cash of $59,000 from the accounts receivable, plus there was a total sales discount of $1,100 for the payment of receivables within the ten day discount period.

Feb 28 Salary expenses in the amount of $21,000 and tax expenses in the amount of $9,000 were paid.

Feb 28 The utility bill of $2,100 was paid.

Feb 28 Sales on account for the month of February totaled $60,000 with the terms 2/10, net 30. The cost of inventory sold equaled $30,000.

Mar 1 The short-term note payable that was due on March 1st plus all appropriate interest was paid.

Mar 3 The amount of the petty cash fund was increased by $200.

Mar 10 Supplies in the amount of $2,700 were purchased for cash.

Mar 15 Cash sales for two weeks equaled $27,000. The cost of inventory sold equaled $15,000.

Mar 20 Sanford Company reissued 300 shares of its own stock for $42 per share.

Mar 21 The bank notified Sanford Company that the note receivable from January 21st had not been paid. The bank collected the amount of the note plus the interest due and a $20 protest fee from Sanford Company. Sanford Company charged the full amount of the note receivable plus related fees against the customer’s account receivable balance.

Mar 25 The company purchased $50,000 of inventory on account with the terms 2/10, net 30.

Mar 28 The purchase of inventory on account on Feb 20th was paid in full.

Mar 29 The petty cash fund had $150 in cash and receipts in total amounts for the following expense categories: entertainment$160, travel $170, postage $90, and supplies $115. The petty cash fund was replenished.

Mar 30 Cash sales for two weeks equaled $20,000. The cost of inventory sold equaled $11,000.

Mar 30 The unearned revenue represented the rental of special equipment that was used by another company on weekends. $9,000 of the revenue was earned in March.

Mar 31 Sales on account for the month of March totaled $67,000 with the terms 2/10, net 30. The cost of inventory sold equaled $36,000.

Mar 31 Salary expenses in the amount of $16,000 and tax expenses in the amount of $7,000 were paid.

Mar 31 Collected cash of $70,000 from the accounts receivable, plus there was a total sales discount of $1,200 for the payment of receivables within the ten day discount period.

Mar 31 A warehouse building was acquired for $250,000. Closing costs on the acquisition equaled $7,000, and there were costs of $10,300 to get the building into an operational condition to be used by Sanford Company. Employee salaries specifically related to the building renovation were an additional $5,400. This salary expense was part of the normal monthly expenses and would have been incurred regardless of whether the employees worked on the warehouse or did other activities within the company. Sanford Company paid $100,000 in cash as a down payment with the balance due being added to the mortgage payable account.

Mar 31 The utility bill of $3,000 was paid.

Mar 31 Sanford Company repaid the 90 day discounted note payable from January 2nd in full.

Mar 31 The equipment depreciation entry for the three months of 20x3 was completed.

Mar 31 The depreciation entry for the building for the months of January, February, and March was entered.

Mar 31 The amortization of intangible assets for the three months of 20x3 was completed.

Mar 31 The bad debt expense based on the aging schedule for accounts receivable was determined for the three month period.

Mar 31 Salary expenses incurred during the month of March but not yet paid equaled $8,400 and tax expenses equaled $2,800.

Mar 31 A physical inventory of supplies indicated a total amount of $5,000 of supplies still on hand.

Mar 31 A customer sent an advance payment of $10,000 for the use of special equipment in April and May.

Mar 31 The amount of rent expense for the warehouse for the first three months of 20x3 was recognized.

Mar 31 Sanford Company provided services to a customer in the amount of $3,000 during March but a bill has not been sent.

Mar 31 The amount of insurance expense for the first three months of 20x3 was recognized.

Mar 31 The amount of interest earned on marketable securities for the three months of 20x3 was recognized.

Mar 31 The amount of interest expense for the total long-term notes payable for the first three months of 20x3 was recognized.

Mar 31 The amount of interest expense for the bonds payable for the three months of 20x3 was recognized.

Mar 31 The monthly payment for March of the mortgage payable was made.

Required

1.   Supply journal entries for each of the transactions. The numbers in the journal entries can be rounded to the nearest dollar.

I asked 100 students to complete a statistics test. the mean score on the test was 30 points with a standard deviation of 5 points. using this information and the normal distribution, calculate the following: [want to check my overall answers and help with the process of some] thank you

a. what is the probability a student earned a score of 45 points or less?

P(score <45 points)

i got 0.9987

b. what is the probability a student earned a score higher than 30 points?

P(score > 30 points)

not sure how to do this one

c. what is the probability a student earned a score between 25 and 45 points?

P(25 points < score < 45 points)

overall got 0.84.

d. i want to know the cutoff value for the upper 10%. what score separated the lower 90% of scores from the upper 10%?

P(score<____)=90% or 0.90 cumulative area to the left.

[i got p(score<0.8159)=90% --> x=34.0795 separates the scores.

e. want to know the cutoff values for the lowest 25% and the highest 25%

[not sure how to do these]

P(score<____)=25% or 0.25 cumulative area to the left.

P(score>____)=25% or 0.25 cumulative area to the right

1- An MNC has an incentive to invest short-term funds in a foreign currency if investments denominated in the foreign currency have a ___(higher OR lower)     interest rate than investments denominated in the home currency of the MNC.

True or False: If a currency’s LIBOR rate rises, the money market interest rates denominated in that currency also rise.

• True
• False

2- True or False: Short-term loans of six months or less, extended by banks to MNCs in Europe, are called eurocredit loans.

• True
• False

3- The United States Congress passed the Sarbanes-Oxley (SOX) Act in 2002. This act required all firms, including foreign firms, to provide more comprehensive financial information in order to list their stock on US stock exchanges.

True or False: The high cost of SOX compliance leads some non-US firms to withdraw from US exchanges.

True

False

Microbiology class

Create what would be, a 10 to 15 minute PowerPoint presentation about a specific disease (you may choose any from Chapters 19, 20, 24, or 25 of our textbook). You should discuss the type of microbe that causes the disease in detail. Describe the type of test used to diagnose the disease. Tell us about the microbe and its characteristics. Tell us the symptoms of the disease. Tell us how the immune system may react to the disease. Describe the treatments/cures if there are any. You may also include current research into cures or alleviation of symptoms and the history of the disease. The presentation should be at least 15 slides long. Remember, since we are not giving these presentations orally, you need to include all the details in the slides themselves or the notes portion at the bottom of the slides.

(note: there is no disease in the textbook, I think we can pick up any disease that relates to bacteria species)

4) If the US has 250,000 hours available to produce 2 goods: Wheat which takes 2 hours per ton of wheat to produce and Airplanes which takes 1,000 hours per airplane to produce. If China has 500,000 hours available to produce 2 goods: Wheat which take 5 hours per ton of wheat to produce and airplanes which takes 3,000 hours per airplane to produce. a. Draw the PPF diagram for the US assume they consume half of each product without trade. Demonstrate all relevant points. b. Draw the PPF diagram for China assume they consume half of each product without trade. Demonstrate all relevant points c. Is there a basis for trade between US and China? If so what is the economic theory for the basis of trade? d. If they trade and the terms of trade are 50,000 Wheat for 100 planes, demonstrate and prove the gains from trade.

Is this a true statement why or why not?

Rejecting the null hypothesis that the population slope is equal to zero or no relationship exists concludes that the population slope is, indeed, not equal to zero; and, therefore, there is a significant relationship between x and y. That being said, this information simply provides us with the measure of the strength of the relationship between the two variables. It informs us of how the variables are correlated, if they are linearly related, and if a significant relationship exists between the two (or more) variables. However, it does NOT enable us to conclude whether a cause-and-effect relationship is present. Determining a cause-and-effect relationship requires analysts to take several other factors into consideration. We can only conclude that there is a cause-and-effect relationship if the analyst can provide some extent of theoretical justification of the relationship actually being casual. From my understanding, concluding that there is a cause-and-effect relationship requires some sort of theoretical justification and entails that the analyst make a judgment call using the given information.

Nevada Co., a US-based MNC, makes regular, monthly purchases of materials from a German supplier named Spicurity. These regular payments are typically in the amount of 300,000 euros. Last month the exchange rate was $1.93 per euro. Nevada Co. only has cash reserves in dollars, while Spicurity only has cash reserves in euros. Suppose both companies use the same bank.

Suppose that this month the exchange rate has decreased to $1.87 and that it is time for Nevada Co. to makes its monthly purchase of materials from Spicurity.

a. In order to conduct this transaction this month, Nevada Co. now requires $ ________to pay for the materials. Thus, the bank handling the transaction must reduce Nevada’s account by this amount, denominated in _________( euros OR dollars) . The bank must then convert this amount to ___________ _________( euros OR dollars) and credit it to Spicurity’s account.

b. True or False: The bank has acted as a foreign exchange dealer in this transaction.

True

False

From mid-2003 to early 2009, Apple charged $0.99 for every song on its US iTunes website. In April of 2009, Apple revised their pricing strategy: $0.69 for older songs, $0.99 for most new songs and $1.29 for the most popular tracks.

In June 2015, Apple introduced a streaming audio service, Apple Music, for $9.99 per month. This service competes with traditional music download models.

Before Apple changed their pricing, they collected data from a number of focus group consisting of a random sample of music buyers in order to better predict the outcomes of their changes.

Assume the following information was collected from a focus group of 20 (when the price was fixed at $0.99 per song)

The question asked each participant, was ‘how many songs do you download now, and how many songs would you purchase at … (varying prices)’

The focus group responses were:

a) estimate the linear demand function of song downloads on price.

b) interpret your results statistically

c) explain what the price coefficient means.

d) Using these results, determine how revenue varies with price.

e) BONUS: given only this information, can you speculate what price Apple would likely charge and why?

From mid-2003 to early 2009, Apple charged $0.99 for every song on its US iTunes website. In April of 2009, Apple revised their pricing strategy: $0.69 for older songs, $0.99 for most new songs and $1.29 for the most popular tracks.

In June 2015, Apple introduced a streaming audio service, Apple Music, for $9.99 per month. This service competes with traditional music download models.

Before Apple changed their pricing, they collected data from a number of focus group consisting of a random sample of music buyers in order to better predict the outcomes of their changes.

Assume the following information was collected from a focus group of 20 (when the price was fixed at $0.99 per song)

The question asked each participant, was ‘how many songs do you download now, and how many songs would you purchase at … (varying prices)’

The focus group responses were:

a) estimate the linear demand function of song downloads on price.

b) interpret your results statistically

c) explain what the price coefficient means.

d) Using these results, determine how revenue varies with price.

e) BONUS: given only this information, can you speculate what price Apple would likely charge and why?