Harrington Company was sued by an employee in late 2017. General counsel concluded that there was an 85 percent probability that the company would lose the lawsuit. The range of possible loss is estimated to be $18,000 to $61,000, with no amount in the range more likely than any other. The lawsuit was settled in 2018, with Harrington making a payment of $58,000.

Assume that a U.S.–based company is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore income taxes.

Required:

1. Prepare journal entries for this lawsuit for the years ending December 31, 2017, and December 31, 2018, under (1) U.S. GAAP and (2) IFRS.

2. Prepare the entry(ies) that Harrington would make on the December 31, 2017, and December 31, 2018, conversion worksheets to convert U.S. GAAP balances to IFRS.

Using basic demographic information (age, household income, marital status, etc.), you collect a random sample size 190 customers who accepted a special balance transfer offer from a major credit card company six months ago. The company wants to determine if there is evidence that it would profit by offering the deal to the population of customers with those same demographic characteristics. The sample mean balance transfer amount is 1,935 with a sample standard deviation of 424. Based on the information above, if the company were to perform a hypothesis test at α = 0.05, what is the largest value it could specify in the null hypothesis and still fail to reject the null hypothesis? Hint: Think about the relationship between hypothesis tests and intervals. Specifically, think about how a test done at alpha equals 0.05 would relate to a 95% confidence interval?

RECORD IN JOURNAL ENTRY FORM

1. Record the journal entry for paying off a supplier invoice of $10,000 for raw materials on September 28th:

2. Record the journal entry for receive cash from a new shareholder who gave your company $300,000 in exchange for 3,000 shares of common stock, where the current market price is $100 per share.

3. Your company wants to expand your company to Seattle and lease office space downtown. You find an office building where you want your office to be for new employees, the landlord makes you pay 1 year of rent in advance for discount pricing at total cost of $225,000 for the year. Record the journal entry on day 1 when you sign the lease on 1st of October and pay in cash for the new office in Seattle:

3. The national mean score of an aptitude test is 50 with a standard deviation of 5. I think students at Ohio University can earn higher scores than people nationally. I survey 30 students at Ohio University and find a mean 57 with a standard deviation of 6.8. Is the mean scores of Ohio University students significantly more than the mean score of the aptitude test nationally? (use  = .05)

a. State the null and alternative hypotheses in symbols. (2 points)

b. Set up the criteria for making a decision. That is, find the critical value(s). (1 point)

c. Compute the appropriate test statistic. Show your work. (3 points)

d. Based on your answers above, evaluate the null hypothesis. (1 point) Reject Fail to reject (circle one)

e. State your conclusion in words. (1 point)

f. Given your decision, what type of error could have been committed? (1 point) Type I error Type II error (circle one)

This week has covered various perspectives, orthodox and heterodox, on who gets paid how much and why. Recognizing that income inequality is a fact of modern capitalist economies (as well as any other type of economy), discussions on the topic often focus on whether or not that inequality is morally objectionable; however, in economics we're concerned first and foremost with understanding the causes of that inequality. As you've learned in this module, neoclassical theory tends to relate a person's income to her contribution--her 'productivity'--with the assumption that a profit maximizing firm wouldn't pay someone more than what they contributed to the bottom line. Heterodox economists, on the other hand, often take a more holistic approach, understanding incomes as the result of different classes conflicting and cooperating in various ways that determines the distribution of what the economy produces. Use one (or both) of these perspectives to explain a particular topic or example of your choice concerning the distribution of income. How does that perspective help us understand the underlying causes of 'who gets paid how much and why'? What are the limitations of that perspective in addressing the issue generally?

1) What are the Goals of the World Bank and the IMF? Why are some people upset and protesting about the World Bank and IMF?

2) Give the pros and cons of Flash Trading and Dark Pools. How and should the U.S. government regulate them?

3) If the British pound and Euro are both appreciating relative to the dollar, how does this impact exports and imports, AD and GDP? What should the Fed. due to respond?

4) What happens to the value of the dollar if the European Central Bank (ECB) increases its money supply and lowers interest rates? How will this impact the value of the dollar, exports and imports, AD and GDP?

5) What are 5 financial innovations and deregulations that led to the financial crisis in 2008? What are 5 policy responses by the Federal Reserve and the U.S. Government and Treasury department that helped us to get out of the financial crisis? Who are the winners and losers?

6) Explain the “flight to quality” that happened in Germany due to the Greek Debt crisis in 2010 and explain how this impacts the price and interest rates of German and Greek bonds? Who does this help and hurt?

You want to estimate the difference between the average grades on a certain math exam before the students take the associated math class and after they take the associated math class. You take the random samples of 5 students who have taken the class and 5 students who have not taken the class. You get the following results:

A) Determine the population(s) and parameter(s) being discussed.

B) Determine which tool will help us find what we need (one sample z test, one sample t test, two sample t test, one sample z interval, one sample t interval, two sample t interval).

C) Check if the conditions for this tool hold.

D) Whether or not the conditions hold, use the tool you choose in part B. Use C=95% for all confidence intervals and alpha=5% for all significance tests.

* Be sure that all methods end with a sentence describing the results *

Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company’s most popular models appear below.

Required:

1. If we assume that the total time available on the plastic injection molding machine is the constraint in the production process, how much contribution margin per minute of the constrained resource is earned by each product?

3. If we assume that a severe shortage of plastic pellets has required the company to cut back its production so much that its new constraint has become the total available pounds of plastic pellets, how much contribution margin per pound of the constrained resource is earned by each product?

Memo Assignment #4

Instructions: This will be done in a professional memo format with complete sentences that explain your process and conclude in a recommendation. I would expect the memo to be no less than one full page and no more than four pages. The goal is two-fold: the professional recommendations AND the appropriate presentation.

Heavenly Scents was founded by Riley Williams when she bought Bund Farm in 2015. Heavenly Scents has two departments, a harvesting department and a processing department. Currently, all of the harvesting department’s output goes to the processing department for extraction of the oils, and the oils are then sold to Frutarom (a division of IFF, a major flavor and fragrance supplier).  The processing division averages a yield of 500 milliliter (ml) of oils for each 1000 pounds (lb) of source materials (flowers and other plant materials). Cost and market data for the two divisions are as follows:

As the new accountant, you have been tasked with determining several items and with making some suggestions:

1. What is the operating income for the 2020 growing season from the estimated harvest of 480,000 pounds of source materials and processing it for final sale to Frutarom?
2. Heavenly Scents rewards its division managers with a bonus equal to 6% of their division’s operating income. Compute the bonus earned by each division manager for the 2020 growing season for each of two transfer pricing policies, a) 225% of full cost and b) market cost.
3. Which transfer-pricing method will each division manager prefer? Give some suggestions on how Heavenly Scents could resolve or reduce transfer pricing and bonus compensation conflicts?

You need not show every detail of your calculations, keep this at a fairly high level, but still give the requested details. Remember the harvest weight is an estimate, so don’t give figures to the penny because that makes them seem more accurate that they really are - implausibly exact figures give the appearance of certainty.

1. You are an accounting student at Berkeley College and will not graduate for another year. But because of your excellent grades so far, you have been able to land a job in the purchasing department of a retailer. One of the purchasing agents in your company is negotiating for the receipt of a very large order of uninsured goods from a supplier. The purchasing agent is able to get a better deal on the goods if they are shipped FOB shipping point rather than FOB destination. The agent doesn’t know the difference between these two concepts. He also doesn’t understand why choosing one over the other should make any difference to the company. As a student of accounting at Berkeley College, you know well the difference between these 2 concepts and you know why one would be a better choice over the other in the case of uninsured goods. Please explain these two concepts in this discussion and tell the purchasing agent which shipping method is preferable and why. In addition to your response, please comment to at least one classmate’s post including information from Chapter 6 in your eText.

2. Explain the difference between the Perpetual and Periodic inventory systems and let us know why anyone would use Periodic inventory in this computerized age.