Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.95 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:

The total cost of operating the company for the year is $358,000 which includes the following costs:

Resource consumption is distributed across the activities as follows:

Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.

Required:

1. Prepare the first-stage allocation of costs to the activity cost pools.

2. Compute the activity rates for the activity cost pools.

3. The company recently completed a 600 square foot carpet-cleaning job at the Flying N Ranch—a 54-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system.

4. The revenue from the Flying N Ranch was $143.70 (600 square feet @ $23.95 per hundred square feet). Calculate the customer margin earned on this job.

Prepare the first-stage allocation of costs to the activity cost pools.

Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.)

The company recently completed a 600 square foot carpet-cleaning job at the Flying N Ranch—a 54-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system. (Round your intermediate calculations and final answer to 2 decimal places.)

The revenue from the Flying N Ranch was $143.70 (6 hundred square feet @ $23.95 per hundred square feet). Calculate the customer margin earned on this job. (Negative customer margins should be indicated with a minus sign. Round your intermediate calculations and final answers to 2 decimal places.)

Step 1 - Information

A new client, OC Ranger, comes to you and asks you to record the business accounting transactions and prepare financial statements for a business as of December 31, 2019. The company, which uses the calendar year as its annual reporting period, began business on December 1, 2019. The name of the company is OC Ranger’s College Consulting Company.

1. Analyze the following transactions, calculate the amount of each entry, and use the debit and credit rules to prepare a journal entry for each transaction.
2. Post each debit and credit from the journal entries to their general ledger accounts (using T-Accounts) and cross-reference each account in the posting reference (PR) columns of the journal and ledger.
3. Calculate each account balance and list the accounts with their balances on a trial balance. Use the Accounting Worksheet to prepare the trial balance.
4. Verify that the total debits in the trial balance equal the total credits.

Accounting Transactions:

12/1/2019            OC Ranger invested $25,000 cash into a new business, OC Ranger’s College Consulting Company.

12/1/2019            $600 cash was paid for one month’s rent expense.

12/1/2019            $1,500 cash was paid to purchase a computer system.

12/1/2019            $7,000 of office equipment was purchased. $1,000 cash was paid as a down payment on the equipment and a note payable of $6,000 was signed for the remainder owed on the equipment.

12/1/2019            $3,000 of office supplies were purchased. $1,000 cash was paid and $2,000 was charged as an accounts payable.

12/1/2019            $2,400 cash was paid to purchase a 12-month prepaid insurance policy.

12/1/2019            $400 cash was paid to purchase advertising for the month of December.

12/15/2019         $2,100 cash was received from customers for consulting services revenue paid in cash.

12/15/2019         Customers were billed $3,600 for consulting services revenue earned on credit, which are recorded as accounts receivable.

12/20/2019         $900 cash was paid to a part-time employee for wages earned December 1 through December 15.

12/20/2019         $1,900 cash was received from customers for consulting services revenue paid in cash.

12/21/2019         $1,800 cash was collected from customers’ accounts receivable.

12/22/2019         $1,000 cash was received as a deposit from a customer for a special-order project the customer requested. The $1,000 is to be recorded in unearned revenue.

12/31/2019         Customers were billed $2,500 for consulting services revenue earned on credit, which are recorded as accounts receivable.

12/31/2019         $190 cash was paid for the office telephone bill.

12/31/2019         OC Ranger withdrew $3,000 cash from the business.

Chart of Accounts to be used for this client

Step 2 - Information

The following information relates to your new client’s accounts. The company initially records prepaid and unearned items in balance sheet accounts (assets and liabilities, respectively).

1. Prepare all necessary adjusting entries on December 31, 2019. Use the debit and credit rules to prepare a journal entry for each transaction.
2. Post each debit and credit from the journal entries to their general ledger accounts (using T-Accounts) and cross-reference each account in the posting reference (PR) columns of the journal and ledger.
3. Calculate each adjusted account balance and list the adjusted balances on an adjusted trial balance. Use the Accounting Worksheet to prepare the adjusted trial balance.
4. Verify that the total debits in the adjusted trial balance equal the total credits.

Adjusting Entries

1. Record one month of depreciation for the computer of $25
2. Record one month of depreciation for the office equipment of $150
3. Record one month of insurance used as of December 31, 2019 of $200.
4. A physical count of the office supplies on December 31, 2019 shows that $1,100 of supplies are still in the storage cabinet.
5. Half of the $1,000 deposit received from the customer requesting a special-order project (originally recorded as unearned revenue) has been earned as of December 31, 2019.
6. Record $900 of wages payable as of December 31, 2019.
7. Record one month of interest payable on the equipment of $50.
8. Record the cell phone bill payable, but not paid, of $200.

Step 3 - Information

1. Prepare your client’s financial statements for the year ended December 31, 2019.
2. Complete the Income Statement and Balance Sheet columns of the Accounting Worksheet.
3. Prepare the December 31, 2019, Financial Statements, including the Income Statement, Statement of OC Ranger’s Capital, and the Balance Sheet.

Step 4 - Information

Prepare closing entries for your client.

1. Prepare all necessary closing entries on December 31, 2019. Use the debit and credit rules to prepare a journal entry for each transaction, post the journal entries to the Adjusting and Closing Journal.
2. Close revenue and expense accounts to the Income Summary account in the general ledger.
3. Post each debit and credit from the journal entries to their general ledger accounts (using T-Accounts) and cross-reference each account in the posting reference (PR) columns of the journal and ledger.
4. Calculate each general ledger account balance after the closing entries have been posted.
5. Enter the closing entries and list the post-closing balances on the Accounting Worksheet.
6. Verify that the total debits in the post-closing trial balance on the worksheet equal the total credits.

In each of the following​ cases, calculate the price of one share of the foreign stock measured in United States dollars​ (US$).

a. A Belgian stock priced at 103.1 euros (euro) when the exchange rate is 0.9025 euro​/US$.

b. A Swiss stock priced at 93.1 Swiss francs​ (Sf) when the exchange rate is 0.968 Sf/US$.

c. A Japanese stock priced at 1,334 yen​ (¥) when the exchange rate is 109.1149 ¥/US$.

(A) Consider the model of long run exchange rate determination. It assumed prices were flexible and income is fixed. There are two countries, the US and Europe. There is no expectation of price stability.

Determine the effects of the following events on the US exchange rate (E$/€ )with Europe.

• a. Europe increases its money supply by twenty percent.

• b. There is economic growth of 4 percent in the US. At the same

  time, the US increases the money supply by 8 percent.

An instructor is interested in seeing if there is an association between attendance and final grade earned in a freshman level class. He records the number of absences for each student and then whether they pass or fail the class. The results are summarized below.

Construct a 99% confidence interval for the true proportion of students who pass the class Round your sample statistic and confidence limits to three decimal places.
0.
1.
2.

3.

4.

5.

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b. At a 0.01 significance level, can the instructor conclude that there is a relationship between number of absences and whether the student passes or fails the class? (Note: Round expected counts to the nearest whole number)
1.
2.
3.
4.
5.

Question 1
The minimum wage was first set by the Bake Shop Act, a law passed during the presidency of _____.
Herbert Hoover

Franklin Delano Roosevelt

Richard Nixon

Lyndon Johnson

Question 2
The Supplemental Security Income increased federal support for the _____.
blind

all of these

elderly

disabled

Question 3
The purpose of the Earned Income Tax Credit (EITC) is to help poor people who are _____.

homeless

working

unable to work

unemployed

Question 4
The EITC bonus received by a low-income person:

increases indefinitely as long as their annual income keeps increasing

remains constant as their income increases

decreases as their income increases

increases until it reaches a certain peak ($20,000 maximum)

Question 5
The majority of the assistance the United States government offers to poor people is done through:

job guarantees

cash transfers

in-kind transfers

income tax exemptions

Jeremy earned $270,000 in salary and $8,000 in interest income during the year. Jeremy has two qualifying dependent children who live with him. He qualifies to file as head of household and has $21,000 in itemized deductions. Neither of his dependents qualifies for the child tax credit. (use the tax rate schedules.). (Do not round intermediate calculations. Round "Income tax liability" to 2 decimal places.) MUST USE 2017 TAX RATE !!!!!!!!!!!!!!!!!! ​1) What is Jeremys income tax liability? 2) Assume that in addition to the original facts, Jeremy has a long-term capital gain of $13,000. What is Jeremy’s tax liability including the tax on the capital gain? 3) Assume the original facts except that Jeremy had only $8,000in itemized deductions. What is Jeremy’s total income tax liability?

For both questions, please show what you typed into the TVM solver.

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Time of month: End or beginning

1. Rachel, who just turned 18, deposits a $15,000 gift into an interest-bearing account earning a 7.5% annual rate of interest. How much will she have in the account when she retires at age 60, assuming all interest is reinvested at the 7.5% rate? If Rachel decided she only needed $300,000 at retirement, could she retire at 59? Explain.

2. James deposited $800 at the end of the past 16 years to purchase his granddaughter, Kali, a car, James earned 8% interest compounded annually on his investment. If the car Kali chooses costs $22,999, would she have enough money in the account to purchase the vehicle? What would be the deficit or surplus?

The following is a list of target audience examples. Your task is to identify what the bases for segmentation is in each example. Is the segmentation effort Geographic, Behavioral, Demographic, or Psychographic? There could be more than one correct answer. List the letter(s) for each situation below:

A = Geographic

B = Behavioral

C = Demographic

D = Psychographic

1. A bank that markets home loans to young married people and financial planning services to retired people
2. A mobile phone company that targets people who frequently vacation in remote parts of the world
3. A gourmet cheese company that targets people buying cheese platters for a dinner party or function
4. Computer software firm that is most interested in households with a high level of software purchases
5. Prestige car manufacturers who highlight the status associated with owning one of their vehicles
6. Smart phone manufacturers targeting those consumers who are interested in purchasing their first smart phone in the future
7. A plumber deciding to do letterbox drops his local area
8. A book publisher that specializes in children’s books
9. A home-delivered spring water company advertising in a ‘health’ magazine
10. A travel package tour operator targeting retired people who want educational travel experiences