On January 1, 2017, Albany Company issued 8% bonds dated January 1, 2017, with a face amount of $10 million. The bonds mature January 1, 2027 (10 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31.

          Required:

1. Determine the price of the bonds at January 1, 2017. You must show all of the steps to receive full credit.
2. Prepare the journal entry to record the bond issuance by Albany on January 1, 2017. You must show your work.
3. Prepare the journal entries to record interest on June 30, 2017 and December 31, 2017, using the effective interest method. You must show your work.
4. What amount(s) related to the bonds would Albany Company report in its financial statements (Balance Sheet, Income Statement, and Statement of Cash Flows) dated December 31, 2017? You must show your work and show how it would be properly displayed.
5. What is the outstanding balance of the Bonds Payable on December 31, 2019?
6. Prepare the journal entry for the bond’s maturity on January 1, 2027. Hint: You have to assume a journal entry was made on December 31, 2026 and take that into account for your final “payoff” journal entry.

Mahalo Boat Adventure Inc. has a July 31 year-end. It showed the following partial amortization schedules regarding two bond issues:

Bond Issue A

*Adjusted for rounding

(For all requirements, do not round intermediate calculations. Round the final answers to the nearest whole dollar.)

Required:
1. Bond Issue A
a. Were the bond A issued at a premium and/or discount?

b. Journalize the issuance of bond A on June 1, 2020.

c. What is the contract interest rate for the issue bond A?
d. Interest of how much is paid how often for bond A issued?
e. What is the term of bond A issue?
f. Show how bond A would appear on the balance sheet under non-current liabilities at July 31, 2026. (Enter all amounts as positive values.)

g. Calculate the total bond A interest expense that would appear on the income statement for the year ended July 31, 2027.
h. Independent of (a) through (g), assume bond A issues were retired on December 1, 2027, at 97. Record the entries

Bond Issue B

*Adjusted for rounding

2. Bond Issue B
a. Were the bond B issued at a premium and/or discount?

• Issued at discount

• Issued at premium

• Issued at premium & discount

b. Journalize the issuance of bond B on April 1, 2018.
c. What is the contract interest rate for the issue bond B?
d. Interest of how much is paid how often for bond B issued?
e. What is the term of bond B issue?

f. Show how bond B would appear on the balance sheet under non-current liabilities at July 31, 2026.

g. Calculate the bond B interest expense that would appear on the income statement for the year ended July 31, 2027.

h. Independent of (a) through (g), assume that bond B issues was retired on December 1, 2027, at 97. Record the entries.

Using the same data… 2 3 4 4 4 6 6 6 7 8 8 9 10 10 11 12 16 16 28 46 (d) [5 pts] Determine the 5# summary. (e) Determine the lower and upper fence to determine if there are any outliers. (f) Draw and carefully label a modified boxplot for this data. (g) What is the shape of the distribution (symmetric, skewed left, or skewed right). Explain.

Eli Orchid has designed a new pharmaceutical product, Orchid Relief, which improves the night sleep. Before initiating mass production of the product, Eli Orchid has been market-testing Orchid Relief in Orange County over the past 8 weeks. The daily demand values are listed above. Eli Orchid plans on using the sales data to predict sales for the upcoming week. An accurate forecast would be helpful in making arrangements for the company’s production processes and designing promotions.

Before a forecasting model is built and a forecast for the next week is generated, the COO of the company has asked the data analyst for an exploratory analysis of the demand.

Specifically, the COO has asked the analyst1:

Average K_eq: 235.8

Does your data support a complete conversion or partial conversion? Based on your results was the measured K_eq too high or too low? Explain please.

Question 5

a) (1) X~Normal(mean=4, standard deviation=3), (2) Y~Normal(mean=6, standard deviation = 4), and (3) X and Y are independent, then, P(X+Y>13) equals (in 4 decimal places)

Answers options: a) 0.7257, b) 0.3341, c) 0.2743, d) 0.6759, e) none of these

b) Let X~Gamma(4, 1.2). Which of the following is possible R code for computing the probability that X < 2.6?

Answers options: a) dgam(2.6, 4, 1.2), b) pgamma(4, 1.2, 2.6), c) dgamma(2.6, 4, 1.2), d) pgamma(2.6, 4, 1.2), e) None of these

c) If X~Exponential(lambda=2.8), which of the following code computes P(X>2) correctly?

answers options: a) 1-dexp (2, rate=2.8), b) pexp(2, rate=2.8), c) 1-pexp(2, rate=2.8), d) dexp(2, rate=2.8)

d) If X has an Exponential distribution with mean 2.5, which of the following code computes P(X<3) correctly?  

Answers options: a) pexp(3, rate=2.5), b) dexp(3, rate=2.5), c) pexp(3, rate=0.4), d) dexp(3, rate=0.4), e) None of these

e) If X1, X2, ..., X100 are independent and identically distributed as Uniform (0,1), the probability that the average of these 100 random variables is less than 0.3 equals   , approximately? ( ). Answers options: a) 0.4586, b) 0.5414, c) 0.6406, d) 0.3594, e) None of these

Problem 4. The data {(1, 10),(2, 5.49),(3, 0.89),(4, −0.14),(5, −1.07),(6, 0.84)} comes from a model F(x) = (r/ x )+ sx. Use least squares to estimate the parameters r, s.

A new magazine, Cycling n’ Running NZ is about to be published. The magazines’ publishers are unsure whether readers of this magazine would be more interested in articles on cycling or articles on running. Accordingly, a study was conducted to find out how interested readers of this magazine would be in articles on either of these topics. The variables to use in answering this question are Cycling and Running. Potential interest in both topics was measured on a five-point semantic differential scale that was anchored 1=Very Uninterested to 5=Very Interested. Is there a difference in the extent of preference for articles about cycling compared to articles about running?

row 1(going down): cycling

Row 2 (going down): running

4   2
3   3
4   1
5   2
5   3
5   1
5   2
3   2
3   2
3   3
3   3
3   4
3   2
2   4
2   2
2   3
2   3
2   4
2   4
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1   4
1   1
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1   3
1   2
1   2
1   3
3   1
5   1
4   2
4   2
3   4
2   2
1   4
2   2
5   1
5   2
3   3
3   3
2   2
5   2
2   4
4   1
5   2
4   3
2   1
1   4
4   2
3   4
4   2
1   3
4   2
3   3
2   2
2   5
2   3
4   4
1   2
3   3
3   2
3   4
4   5
3   3
5   1
4   3
4   2
3   3
2   1
5   1
2   4
5   2
3   2
2   1
5   4
3   2
1   3
3   2
3   3
2   2
2   3
4   3
2   4
2   2
4   1
3   5
1   3
5   1
5   3
5   1
4   4
1   3
3   3
1   2
1   4
2   5
2   4
5   2
5   1
2   3
4   1
3   2
3   3
5   1
3   3
2   4
3   2
3   3
2   4
1   4
3   5
5   2
3   1
4   3
4   2
4   2
4   3
2   3
3   4
5   2
3   4
5   1
3   2
5   1

3. A package delivery service adopted a new dispatching system to try to reduce the total mileage required by its truck fleet to make deliveries. The new system would be worth the cost if it reduced the fleet mileage by more than 10% from its current level of 2200 miles per day. The miles required for each of the 66 days under a trial of the new system are recorded in column 1 of the Excel data file named “Package Delivery”. Using the given data and 7% level of significance, please conduct an appropriate test to determine if the new dispatching system is worth its cost. Based on your results, do you think the new system is worth its cost? Show the necessary steps and explain your conclusion

Create a Graph and label axis - These data come from the 2008 General Social Survey. A subset of 190 respondents were selected at random from the full data set. Use the appropriate Graph either: a. Histograms b. Bar charts c. Box plots d. Stem-and-leaf plots e. Pie charts f. Line charts g. Frequency tables

Variable Information: Religious: 1 = Not religious, 2 = Slightly religious, 3 = Moderately religious, 4 = Very religious.

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