The following events occur for The Underwood Corporation during 2021 and 2022, its first two years of operations.

Required:

1. Record transactions for each date. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
2. Post transactions to the following accounts: Cash, Accounts Receivable, and Allowance for Uncollectible Accounts.
3. Calculate net accounts receivable at the end of 2021 and 2022.

The following events occur for The Underwood Corporation during 2018 and 2019, its first two years of operations.
  
  

June 12, 2018   Provide services to customers on account for $35,000.
September 17, 2018   Receive $20,000 from customers on account.
December 31, 2018   Estimate that 40% of accounts receivable at the end of the year will not be received.
March 4, 2019   Provide services to customers on account for $50,000.
May 20, 2019   Receive $10,000 from customers for services provided in 2018.
July 2, 2019   Write off the remaining amounts owed from services provided in 2018.
October 19, 2019   Receive $40,000 from customers for services provided in 2019.
December 31, 2019   Estimate that 40% of accounts receivable at the end of the year will not be received.

1. Record transactions for each date. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. Post transactions to the following accounts: Cash, Accounts Receivable, and Allowance for Uncollectible Accounts.

3. Calculate the net realizable value of accounts receivable at the end of 2018 and 2019.
  

In this exercise, you will create a program that displays the amount of a cable bill. The amount is based on the type of customer shown in figure 10-30. For a residential customer, the user will need to enter the number of premium channels only. For a business customer, the user will need to enter the number of connections and the number of premium channels. Use a separate void function for each customer type. Enter your C++ instructions into the source file and any appropriate comments and any additional instructions required by the compiler. Test the program appropriately.

• Use pass by reference variables in both functions.
• Allow the user to enter multiple customers.
• Before ending the program, show the average charge for both Residential Customers and Business Customers.

FIG10-3

Residential Customers:

Processing Fee: $4.50

Basic Service Fee: $30

Premium Channels: $5 per channel

Business Customers:

Processing Fee: $16.50

Basic Service Fee: $80 for the first 5 connections, $4 for each additional connection

Premium channels: $50 per channel regardless of the number of connections

XM, Ltd. was a small engineering firm that built high-tech robotic devices for electronics manufacturers. One very complex device was partially completed at the end of 2018. Barb McLauren, head engineer, knew the experimental technology was a failure and XM would not be able to complete the $20,000,000 contract next year. However, the corporation was getting ready to be sold in January. She told the controller that the device was 80% complete at year-end and on track for successful completion the following spring; the controller accrued 80% of the contract revenue at December 31, 2018. McLauren sold the company in January 2019 and retired. By mid-year, it became apparent that XM would not be able to complete the project successfully and the new owner would never recoup his investment. Requirements

1. For complex, high-tech contracts, how does a company determine the percentage of completion and the amount of revenue to accrue?

2. What action do you think was taken by XM in 2019 with regard to the revenue that had been accrued the previous year?

Baird Company, which expects to start operations on January 1, 2018, will sell digital cameras in shopping malls. Baird has budgeted sales as indicated in the following table. The company expects a 14 percent increase in sales per month for February and March. The ratio of cash sales to sales on account will remain stable from January through March.

Required

1. Complete the sales budget by filling in the missing amounts.

2. Determine the amount of sales revenue Baird will report on its first quarter pro forma income statement.

Complete the sales budget by filling in the missing amounts. (Round intermediate calculations and final answers to 2 decimal places.)

Determine the amount of sales revenue Baird will report on its first quarter pro forma income statement. (Round intermediate calculations and final answer to 2 decimal places.)

Exercise 4-22

The adjusted trial balance for Pharoah Company is given below:

Create a Income Statement, Retained Earnings Statement, Balance Sheet

Solomon Company, which expects to start operations on January 1, 2018, will sell digital cameras in shopping malls. Solomon has budgeted sales as indicated in the following table. The company expects a 15 percent increase in sales per month for February and March. The ratio of cash sales to sales on account will remain stable from January through March.

1. Complete the sales budget by filling in the missing amounts.

2. Determine the amount of sales revenue Solomon will report on its first quarter pro forma income statement.

• Required A
• Required B

Complete the sales budget by filling in the missing amounts. (Round intermediate calculations and final answers to 2 decimal places.)

Determine the amount of sales revenue Solomon will report on its first quarter pro forma income statement. (Round intermediate calculations and final answer to 2 decimal places.)

The adjusted trial balance for Pharoah Company is given below.

Prepare the retained earnings statement for the year, prepare the income statement for the year, prepare the balance sheet at August 31.

LIS Corporation, an environmental service provider, had revenues of $209 million in 2002 and reported losses of $3.1 million. It had earnings before interest and taxes of $12.5 million in 2002, and had debt outstanding of $109 million (in market value terms). There are 15.9 million shares outstanding, trading at $11 per share. The pre-tax interest rate on debt owed by the firm is 8.5%, and the stock has a beta of 1.15. The firm's EBIT is expected to increase 10% a year from 2003 to 2006, after which the growth rate is expected to drop to 4% in the long term. Capital expenditures will be offset by depreciation, and working capital needs are negligible. (The corporate tax rate is 40%, and the treasury bond rate is 7%.)

1. Estimate the cost of capital for LIS.

2. Estimate the value of the firm.

3. Estimate the value of equity (both total and on a per share basis).

3. In 2000, a sample of 209 people aged 18-30 found that they spent an average of 6.75 hrs/week on the internet. In 2006, a sample of 541 people aged 18-30 spent an average of 7.34 hrs/week on the internet. Has the average increased?

Use correct notation where appropriate.
For each of the following situations,
a) What is/are the population(s) in the study?
b) Does the scenario involve 1 or 2 parameters to be estimated/tested/compared?
c) What is/are the parameter(s) to be estimated/tested/compared? Be specific and use the appropriate notation.
d) What is/are the variable(s) involved. Is each numerical or categorical?
e) Is it most appropriate to create a confidence interval or conduct a hypothesis test? If a hypothesis test should be conducted, state the
hypotheses.
f) Will the critical value or test statistic be a z-value or t-value?