Whaling was a major industry around the world in the early to mid 1800s. Whale oil was used for lighting in homes. Over the late 1800s, the quantity of whale oil bought and sold on world markets decreased dramatically. Exactly why is a matter of some dispute, depending on who you ask about it.

A. Thinking simply about supply and demand graphs, how would you determine whether the decline in the quantity of whaling was a result of demand side or supply side reasons?

B. Why might there have been a decline in the demand for whale oil?

C. Why might there have been a decline in the supply of whale oil?

D. Might this be analogous to the market for petroleum today?

In the early part of 2018, the partners of Hugh, Jacobs, and Thomas sought assistance from a local accountant. They had begun a new business in 2017 but had never used an accountant’s services.

Hugh and Jacobs began the partnership by contributing $105,000 and $55,000 in cash, respectively. Hugh was to work occasionally at the business, and Jacobs was to be employed full-time. They decided that year-end profits and losses should be assigned as follows:

• Each partner was to be allocated 10 percent interest computed on the beginning capital balances for the period.
• A compensation allowance of $7,000 was to go to Hugh with a $19,000 amount assigned to Jacobs.
• Any remaining income would be split on a 4:6 basis to Hugh and Jacobs, respectively.

In 2017, revenues totaled $130,000, and expenses were $96,000 (not including the partners’ compensation allowance). Hugh withdrew cash of $6,000 during the year, and Jacobs took out $11,000. In addition, the business paid $9,000 for repairs made to Hugh’s home and charged it to repair expense.

On January 1, 2018, the partnership sold a 15 percent interest to Thomas for $58,000 cash. This money was contributed to the business with the bonus method used for accounting purposes.

3. What journal entries should the partnership have recorded on December 31, 2017?

4. What journal entry should the partnership have recorded on January 1, 2018?

Required C:

1-. Record entry to reclassify payment made to repair personal residence

2-.Record entry to close drawings accounts for 2017.

3.-Record entry to close revenue and expense accounts for 2017.

4-.Record the distribution of net income to partners.

Required D:

1-.Record the payment made by Thomas using the bonus method.

Highsmith Rental Company purchased an apartment building early in 2018. There are 20 apartments in the building and each is furnished with major kitchen appliances. The company has decided to use the group depreciation method for the appliances. The following data are available:

In 2021, two new refrigerators costing $4,700 were purchased for cash. The old refrigerators, which originally cost $5,500, were sold for $2,200.

Required:
1. Calculate the group depreciation rate, group life, and depreciation for 2018.
2. Prepare the journal entries to record the purchase of the new refrigerators and the sale of the old refrigerato

1. Lion Company is considering the acquisition of Tiger Company, Inc. early in 2018. To assess the amount it might be willing to pay, Lion Company makes the following computations and assumptions.

1. Tiger Company incomes in the year of 2014 to 2017 were OMR 180,000, OMR 180,000, OMR 200,000, OMR 250,000 and total income of the year’s OMR 810,000 respectively. Lion Company believes that an average of these earnings represents a fair estimate of annual earnings for the indefinite future. Depreciation on Office buildings and Plant and equipment each year OMR 350,000 and 150,000. Extraordinary gain of the Company in the year of 2016 OMR 100,000 and Extraordinary loss of the Company in the year of 2018 OMR 350,000.
2. Lion Company has identifiable assets with a total fair value of OMR 25,000,000 and Creditors OMR 700,000 and Account payable OMR 200,000. The assets include office equipment with a fair value approximating book value, office building with a fair value 25% higher than book value and Vehicle with a fair value 50% higher than book value. The remaining lives of the assets are deemed to be approximately equal to those used by Lion Company.

Required:

The normal rate of return on the net assets is 20%. The company earns 25% return on its investment. Fair value of return on investment 30%. Calculate estimated goodwill.

2. Putin Company acquired the assets and assumed the liabilities of Joni Company on January 1, 2018, paying OMR 4,500,000 cash. Immediately prior to the acquisition, Joni Company's balance sheet was as follows:

                                                BOOK VALUE FAIR VALUE

            Accounts receivable                        240,000              220,000

            Inventory                                        290,000              320,000

            Land                                                960,000           1,508,000

            Buildings                                      1,020,000         1,392,000

                  Total                                       2,510,000           3,440,000

            Accounts payable                           270,000            270,000

            Note payable                                   600,000              600,000

            Common stock, $5 par                    420,000

            Other contributed capital                640,000

            Retained earnings                           580,000

                  Total                                       2,510,000

Required:

1. Prepare the journal entries on the books of Putin Company to record the purchase the assets and assumption of the liabilities of Joni Company assuming that the amount paid was OMR 900,000.
2. Repeat the requirement in (A) assuming that the amount paid was OMR 400,000 except cash.

An educator wants to determine if early exposure to school will affect IQ. He enlists the aid of the parents of 10 pairs of preschool-age identical twins who agree to let their twins participate in his experiment. One member of each twin pair is enrolled in preschool for 2 years, while the other member of each pair remains at home. At the end of 2 years, subjects in both conditions were given an intelligence test. The test scores recorded are given below.

Preschool: 110 121 107 117 119 125 130 116 118 110

Home: 95 105 109 120 104 100 128 110 100 93

a. Describe (1) the independent variable and its levels, and (2) the dependent variable and its scale of measurement.

b. Describe the null and alternative hypotheses for the study described.

c. Using Excel, conduct a statistical test of the null hypothesis at p = .05. Be sure to properly state your statistical conclusion.

d. Provide an interpretation of your statistical conclusion in part C.

e. What type of statistical error might you have made in part C?

f. Obtain the 95% confidence interval using the obtained statistic.

g. Provide an interpretation of the confidence interval obtained in part f

. h. Does the confidence interval obtained support your statistical conclusion? Explain your answer

Early in 2018 Johnson Company was acquired by a new owner who discovered errors in the accounting records. The new owner would like you to analyze the error described and then determine the impact the accounting items listed. Each error should be analyzed separately. Be Sure to indicate the dollar amount or not the error caused the items to be overstated (OS) or Understated (US) or No Effect.

Vacation pay earned in 2017 of 31100 was not accrued in 2017. The vacation pay occurred in 2018 and expensed when paid.

Analysis:

Net Income for the period ending 12/31/2017__________________

Retained Earnings as of 12/31/2017__________________

Working Capital as of 12/31/2017_______________

Net Income for the period ending 12/31/2018________________

Retained Earnings as of 12/31/2018________________________

December 31, 2017 ending inventory was overstated by 50,000

Analysis:

Net Income for the period ending 12/31/2017 _______________

Retained Earnings as of 12/31/2017__________________

Working Capital as of 12/31/2017_________________

Net Income for the period ending 12/31/2018__________________

Retained Earnings as of 12/31/2018_________________

3.At the beginning of 2017 a machine was purchased for total cost of $50,000. The Machine had no salvage value and had a life of 15 years. The bookkeeper accidentally expensed the entire cost of the machine in 2017. Johnson company normally uses straight line depreciation.

                Analysis:

Net Income for the period ending 12/31/2017____________________________

Retained Earnings as of 12/31/2017_____________________

Working Capital as of 12/31/2017_____________________

Net Income for the period ending 12/31/2018_____________________

Retained Earnings as of 12/31/2018_______________________

4.At the end of 2017. $30,000 of cash collected in advance for future services was included is Service revenue for the period ending 12/31/2017. The services will be performed equally in 2018 and 2019.

Net Income for the period ending 12/31/2017____________________________

Retained Earnings as of 12/31/2017_____________________

Working Capital as of 12/31/2017_____________________

Net Income for the period ending 12/31/2018_____________________

Retained Earnings as of 12/31/2018_______________________

You walk into the offices of Global Private Bank early in the morning on February 2nd, 2006. You are employed by the bank to market proprietary financial products to moderate to high net worth customers. Going into the break room to grab a cup of coffee, you flip on the TV to CNBC to catch the morning financial news. The commentator says “… and the latest release shows that consumer confidence has fallen for the second straight month. Given this, and the previous statistics on business inventories, it is not surprising that investors are nervous. So, now, all eyes turn to the Fed”. You switch the TV off. It looks like the economy is going to be the topic of discussion for the next week. More importantly, the people you work with will expect you to know what is happening (and maybe explain it to them). It is going to be a busy day. Global Private Bank is a mid-tier regional bank, focused primarily on consumer and small business lending. Historically the bank has funded its loans through traditional bank deposits. However, given the rapid development in convenience of mutual funds and online investing, the bank has shifted its focus to offering a larger range of financial products and advice to its high-end customers. This included offering its own mutual funds, annuity and insurance products from other companies, and financial planning courses. Global Private Bank has a large staff dedicated to customer relations. Jobs range from handling accounts to marketing consumers’ products to providing financial advice. Your job is to work with this staff to determine what the best products are and how best to market them. You interact daily with people from all over the bank, including some of the bank’s major customers (since they are a good source of information on how the company is doing). A large part of the bank’s customer base is retired individuals who have had long-term relationships with the bank. These individuals have a range of financial expertise, some being dedicated followers of the financial news, while others have never heard of the Federal Reserve. The bank’s customers get their income from a variety of sources. Most have traditional bank accounts. Some, particularly the middle age customers, have substantial holdings of stock. Retired investors also typically have some sort of pension or retirement plan. The bank’s customers can be very concerned about changes in the economy. Those holding stock are worried about corporate profitability; the more profitable the company, the higher the value of the stock. Some of those with pensions have other concerns. Often, the value of their pensions does not keep up with inflation. These investors tend to watch for signs of future inflation that could mean they would have a lower real income in the years ahead. The growth of GDP seems to be slowing, leading many investors to be concerned about the future prospects for the economy. One indicator of the weakness of the economy is the decline in consumer confidence, a measure of how optimistic consumers are about the strength of the economy in the near future. If this decline continues, it could lead to a decrease in consumer spending. Also, firms have spent the last two years dramatically expanding their capacity by buying new machinery and building new factories. Because of this, it is expected that companies are likely to rein in spending on investment over the next year. The Economic Research Group of Global Private Bank has provided historical data on GDP along with forecasted values for the upcoming year (see the spreadsheet on the course website). The forecasts are based on the information given above, but the forecasts also assume that the Federal Reserve will not take action. The Federal Open Market Committee (FOMC) of the Federal Reserve will be meeting in two weeks to make a decision on monetary policy. The leading issue at that meeting will be the weakness in the economy. Many of the members of the FOMC believe that the Federal Reserve should take immediate action to counter the forecasted decline in the economy.

Question: If the Federal Reserve decides to act, how will that affect investors that deal with Global Private Bank? Limit your answer to issues discussed in the case.

In the early 1930s depression, as thousands of banks, businesses, and millions of jobs were vanishing, some prominent economists and policymakers argued that a laissez-faire approach was best: government should not spend any money to help save companies and jobs. Instead, they argued, it should wait until the marketplace completed its “creative destruction” of vulnerable firms. If that process took many months or years, what could be the negative consequences of such a hands-off approach.

2) The origin of life on our planet can be traced back to an early primordial soup and to the origin of RNA. What is the RNA world? Name of the characteristics of RNA as one of the most flexible molecules that kick-stared complex life. (This is an essay question for Biology 1000, please be sure of your answer and I will rate high).