Your company purchased $2,000 of supplies and recorded the amount as an asset. At year end, a physical count shows $700 of supplies on hand. Before closing the books, it is discovered that an adjusting entry was never made. If no correcting entry is made, the balance sheet will be accurate, but the income statement will be understated assets will be understated and net income will be overstated assets will be overstated and net income will be overstated the income statement will be accurate, but the balance sheet will be understated assets will be overstated and net income will be understated assets will be understated and net income will be understated

Select 15 ratios to use at year end and give a description and example of each.

What is the present value of $1,200 per year, at a discount rate of 8 percent, if the first payment is received 9 years from now and the last payment is received 28 years from now?

The following unadjusted trial balance is for Montana Construction Company as of year-end for the December 31, 20x7 fiscal year. The December 31, 20x6 credit balance of the stockholders’ equity account is $46,900, and the stockholders invested $40,000 cash in the company during 20x7.

NO.      Account Title                          Debit               Credit

101      Cash                                         $7,000

126      Supplies                                   $16,000

128      Pre-paid insurance                   $12,600

167      Equipment                               $200,000

168      Accumulated depreciation – equipment $14,000

201      Accounts payable $6,800

251      Long-term notes payable $30,000

301      Stockholders’ equity $86,900

302      Dividends                                 $12,000

401      Demolition fees earned $187,000

623      Wage expense $41,400

633      Interest expense                     $3,300

640     Rent expense                          $13,200

683     Property tax expense               $9,700

684      Repairs expense                      $4,700

690     Utilities expense                      $4,800

TOTALS $324,700         $324,700

Instructions:

a) Journalize the following adjusting entries as of fiscal year-end December 31, 20x7.

b) Using the worksheet, post the adjusting entries using the adjustments column and prepare the adjusted trial balance.

c) Create financial statements. Namely, i) the income statement, ii) statement of stockholders’ equity, and iii) the balance sheet for 20x7.

Adjustments needed:

The supplies available at the end of fiscal 20x7 year are at a cost of $7,900.

The cost of expired insurance for the fiscal year is $10,600.

Annual depreciation on equipment is $7,000; no other depreciation adjustment was made in 20x7.

The December utilities expense of $800 is not included in the adjusted trial balance because the bill arrived after the trial balance was prepared. The $800 amount owed needs to be recorded.

The company's employees have earned $2000 in accrued wages for the fiscal year.

The rent expense not yet paid or recorded in the fiscal year is $3000.

Additional property taxes of $550 have been assessed for the fiscal year, but have not yet been paid or recorded in the accounts.

The $300 accrued interest for December has not yet been paid and reported.

BWT, Inc. shows the following data in its financial statements at the end of the year. Assume all securities were outstanding for the entire year. 6.125% convertible bonds, convertible into 33 shares of common stock. Issue price $1,000, 100 bonds outstanding. 6.25% convertible preferred stock, $100 par, 2,315 shares outstanding. Convertible into 3.3 shares of common stock, Issue price $100. 8% convertible preferred stock, $100 par, 2,572 shares outstanding. Convertible into 5 common shares, Issue price $80. 9,986 warrants are outstanding with an exercise price of $38. Each warrant is convertible into 1 share of common. Average market price of common is $52.00 per share. Common shares outstanding at the beginning of the year were 40,045. Net Income for the period was $200,000, while the tax rate was 40%. What are the basic and diluted EPS for the year? Basic EPS Diluted EPS

Multiple Choice

• 21.46%

• 21.9%

• 22.34%

• 20.8%

• 23%

Maynard Company projects the following sales for the first three months of the year: $15800 in January; $15,900 in February; $11,100 in March. The company expects 60% of the sales to be cash and the remainder on account. Sales on account are collected 50% in the month of the sale and 50% in the following month. The Accounts Receivable account has a zero balance on January 1. Round to the nearest dollar.

Requirements:

1.) Prepare a schedule of cash receipts for Maynard for January, February, and March. What is the balance in Accounts Receivable on March 31?

2.) Prepare a revised schedule of cash receipts if receipts from sales on account are 70% in the month of the sale, 10% in the month following the sale, and 20% in the second month following the sale. What is the balance in Accounts Receivable on March 31?

Requirement 1. Prepare a schedule of cash receipts for

Maynard

for

January?,

February?,

and

March.

What is the balance in Accounts Receivable on

MarchMarch

31??

?(Leave unused and zero balance account cells? blank, do not enter? "0".)

Requirement 2. Prepare a revised schedule of cash receipts if receipts from sales on account are 70?% in the month of the? sale, 10?% in the month following the? sale, and 20?% in the second month following the sale. What is the balance in Accounts Receivable on March 31?? ?(Leave unused and zero balance account cells? blank, do not enter? "0".)

January

February

March

Total

Total sales

January

February

March

Total

Cash Receipts from Customers:

Accounts Receivable balance, January 1

January—Cash sales

January—Credit sales, collection of January sales in January

January—Credit sales, collection of January sales in February

January—Credit sales, collection of January sales in March

February—Cash sales

February—Credit sales, collection of February sales in February

February—Credit sales, collection of February sales in March

March—Cash sales

March—Credit sales, collection of March sales in March

Total cash receipts from customers

Accounts Receivable balance, March 31:

Credit sales, collection in April and May

In a recent year, the average daily circulation of the Wall Street Journal was 2,276,207. Suppose the standard deviation is 70,940. Assume the paper’s daily circulation is normally distributed.

(a) On what percentage of days would circulation pass 1,814,000?
(b) Suppose the paper cannot support the fixed expenses of a full-production setup if the circulation drops below 1,622,000. If the probability of this even occurring is low, the production manager might try to keep the full crew in place and not disrupt operations. How often will this even happen, based on this historical information?

(Round the values of z to 2 decimal places. Round your answers to 4 decimal places.)

The Aluminum Association reports that the average American uses 56.8 pounds of aluminum in a year. A random sample of 50 households is monitored for one year to determine aluminum usage. If the population standard deviation of annual usage is 12.2 pounds, what is the probability that the sample mean will be each of the following? Appendix A Statistical Tables

a. More than 61 pounds

b. More than 57 pounds

c. Between 55 and 57 pounds

d. Less than 55 pounds

e. Less than 49 pounds

Tesla. has a unique opportunity to invest in a two-year project in Australia. The project is expected to generate 1,700,000 Australian dollars (A$) in the first year and A$2,700,000 in the second. Tesla would have to invest $3,000,000 in the project. Tesla has determined that the cost of capital for similar projects is 16 percent. What is the net present value of this project if the spot rate of the Australian dollar for the two years is forecasted to be $.65 and $.70, respectively (5 Points)?