National Supply’s shareholders’ equity included the following accounts at December 31, 2017:

Required:
1. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Prepare the entries for each of the transactions under each of two separate assumptions: the shares are (a) retired and (b) accounted for as treasury stock.

REQUIRED 1A

Feb 15 Record the repurchase of shares on February 15, 2018 for retirement.

Feb 17 Record the repurchase of shares on February 17, 2019 for retirement.

Nov 9 Record the sale of shares on November 9, 2020.

REQUIRED 1B

Feb 15 Record the repurchase of shares on February 15, 2018 and accounted as treasury stock.

Feb 17 Record the repurchase of shares on February 17, 2019 and accounted as treasury stock.

Nov 09 Record resale of treasury shares on November 9, 2020 (assumes FIFO cost).

REQUIRED 2

Prepare the shareholders’ equity section of National Supply’s balance sheet at December 31, 2020, assuming the shares are (a) retired and (b) accounted for as treasury stock. Net income was $11 million in 2018, $12 million in 2019, and $13 million in 2020. No dividends were paid during the three-year period. (Enter your answers in whole dollars.)

3. Job Order Costing – Inventory Accounts; Cost Flows (8pts):   DaleksRUs, Corp. is a manufacturer that uses a job-order costing system. At the beginning of April 2020, DalekRUs had only one job in process, Job 57. During April 2020, DaleksRUs continued working on Job 57, but also began working on 4 additional jobs: Job 58, Job 59, Job 60, and Job 61. Costs for these five jobs are listed below:

DaleksRUs provided additional information for April:

• Job 57 sold for $69,140 on account in April
• Raw materials inventory (direct and indirect), beginning balance on 4/1/2020: $27,800
• Raw materials (direct and indirect) purchased in April 2020: $99,250
• Finished goods inventory, beginning balance on 4/1/2020: $0
• Actual Factory OH costs incurred in April: Indirect materials = $6,425; Indirect labor = $13,880; Factory rent = $12,000; Factory utilities = $1,930; Factory equipment depreciation = $28,890

Prepare journal entries for the month of April to record the below transactions (make sure to use proper journal entry formatting and include a brief description of each entry).

1. Raw materials purchases (on credit).
2. Direct materials used in production.
3. Direct labor used and assigned to Work in Process Inventory (credit Factory Wages Payable).
4. Overhead costs applied to Work in Process Inventory.
5. Indirect materials used and assigned to Factory Overhead.
6. Indirect labor paid in cash and assigned to Factory Overhead.
7. Actual other overhead costs incurred and assigned to Factory Overhead (assume Factory rent and utilities are paid in cash).
8. Transfer of Jobs 57, 58, and 61 to Finished Goods Inventory.
9. Revenue from the sale of Job 57.
10. Cost of goods sold for Job 57.
11. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account (Assume the amount is not material).

The current administration is offering the 2 trillion dollars stimulus package to maintain the loss due to the unprecedented chaos caused by the Coronavirus. (Let’s say this package can inject 4 trillion dollars into the economy this year while including the multipliers).

• What will be the unemployment rate during this summer? How about at the end of the year?

The US unemployment rate in March 2020 was 4.4%. It is expected to increase due to lockdowns and the fact that it will take some time for businesses, especially small ones, to recover. My estimation for the summer unemployment rate would be 5.5%.At the end of the year hopefully quite a lot of businesses would have recovered. My estimate for the end of year business rate would be 4%.

• Use GDP per capita in the US in 2019, calculate the total number of unemployed people because of the Coronavirus in 2020, and estimate the total loss in the economy, due to the unemployment.
• 2019 USA GDP per capita $65,111.6
• Total US labor force is ~165 million.
• The US unemployment rate in December 2019 was 3.6%. This has jumped to 4.4% now, an increase of .8%.
• .8%x165= 1.32 million
• Total loss in economy due to unemployment= 1.32mil x65111= 85.947 billion

If businesses lose 10 percent of their value by the end of this year (despite the stimulus package), what is the total loss in the economy because of that (use Wall Street Journal website to derive the total assets of the US companies)?

• American total assets for the quarter ending December 31, 2019 were $525.064B.
• A 10% loss from that is 52.5 billion

• What will be your estimation of the total GDP in 2020? Calculate the growth rate (from 2019 to 2020)

My estimation is that there will be contraction in US economy in first 2 quarters, and then slight expansion in the last 2 quarters. Total growth would be level, at best at .5%. So, total GDP in 2020

=GDP in 2019x1.005

=21.44x1.005= $21.5472 trillion

NEED ANSWERS TO THE FOLLOWING

• Based on your above calculations, roughly compute the saving rates in 2020 if the population growth rate would be 0.5 percent, depreciation rate 3 percent, and technological progress 1 percent (considering the current crisis). Explain the “ODD” result you get!

• Explain and calculate the total debt for the US at the end of 2020 (part of the debt is due to the stimulus package, and the other part is because of the reduction in government’s revenue from taxation).

• Who will pay this debt, and how will this debt show itself in the future of the US economy?

• Who is (actually) responsible for this substantial cumulative debt? Support your claim

Question No 5:

1. Using the supply schedule given below, draw an accurately labelled supply curve. Also, comment on the shape of the supply curve. Why does the supply curve slope like this? Explain clearly.

[Answer in 180 – 240 words]

[Draw in paper; take photo and paste/Use MS Word/add screenshot]

2. Do you think the level of technology available have an impact on the supply of a product? Using examples, discuss the impact of technology on supply.             [Answer in 60 – 80 words]
3. What do you think the impact of a change in tax on the supply of a product? Using examples, discuss the impact of tax on supply.                                                        [Answer in 60 – 80 words]

a) Using the supply schedule given below, draw an accurately labelled supply curve. Also, comment on the shape of the supply curve. Why does the supply curve slope like this? Explain clearly. Price 10 8 6 4 2 Supply 500 400 300 200 100 [Answer in 180 – 240 words] [Draw in paper; take photo and paste/Use MS Word/add screenshot]

b) Do you think the level of technology available have an impact on the supply of a product? Using examples, discuss the impact of technology on supply. [Answer in 60 – 80 words]

c) What do you think the impact of a change in tax on the supply of a product? Using examples, discuss the impact of tax on supply. [Answer in 60 – 80 words]

microeconomics

Games, Inc. is considering selling tennis racquets. It can use a proven technology to produce the racquets. This method will produce a $24M cashflow next year. The firm could also choose a new experimental method for producing racquets. This method has lower costs if it works. If the new technology works it will produce a cashflow of $28M next year. If it is unsuccessful it will produce a zero cashflow next year. The probability of success is 0.8 and the cashflows are uncorrelated with the market return. Both methods require a $20M dollar investment today. There are no cashflows after next year. The risk-free rate is 10%. The market price of risk is 8.4%.

(a) What is the NPV of the two projects? Which project should an all equity firm choose? Hint. You will have to determine the discount rate for both technologies [5 Marks]

A newspaper published an article about a study in which researchers subjected laboratory gloves to stress. Among 225 vinyl? gloves, 60?% leaked viruses. Among 225 latex? gloves, 9?% leaked viruses. Using the accompanying display of the technology? results, and using a 0.05 significance? level, test the claim that vinyl gloves have a greater virus leak rate than latex gloves. Let vinyl gloves be population 1.

Technology Results:::

Pooled? proportion: 0.35

Test? statistic, z: 11.2921

Critical? z: 1.6449

?P-value: 0.0000

90?% Confidence? interval:

0.4441890 < p1? p2 <0.5691444

A) What are the null and alternative hypotheses?

B) Identify the test statistic

C) Identify the P-value

D) What is the conclusion for the test?

A power equation is a nonlinear regression equation of the form

y equals ax Superscript by=axb.

Use a technology tool to find and graph the power equation for the data below. Include a scatter plot in your graph. Note that you can also find this model by solving the equation

log y equals m left parenthesis log x right parenthesis plus blogy = m(log x)+b.

LOADING...

Click the icon to view the data set.

x   y
1   689
2   410
3   225
4   116
5   81
6   78
7   69
8   76?

Use technology to find the power equation.

y equals left parenthesis nothing right parenthesis x Superscript nothingy=x

?(Round to two decimal places as? needed.)

Most people have several jobs over their lifetimes. Give a brief description of two jobs . Without revealing private information, explain if the job was part-time or full-time and address the following questions.

• What skills were required to perform your best?

  • To what extent were agility, problem solving, and technology skills necessary for success?

• What skills did you learn in each job?

  • How did learning these skills contribute to improving your ability to be effective in your work?

• Did these new skills increase your human capital?

• If you haven’t yet had a job, describe the type of career you hope to have after finishing school.

  • How will agility, problem solving, and technology skills be a vital part of your success in this type of career?

Jones Co. is in a technology-intensive industry. Recently, one of its competitors introduced a new product with technology that might render obsolete some of Jones’s inventory. The accounting staff wants to follow the appropriate authoritative literature in determining the accounting for this significant market event. Instructions If your school has a subscription to the FASB Codification, log in and prepare responses to the following. Provide Codification references for your responses. a.   Identify the primary authoritative guidance for the accounting for inventories. What is the predecessor literature?  

b.   List three types of goods that are classified as inventory. What characteristic will automatically exclude an item from being classified as inventory?  

c.   Define “market” as used in the phrase “lower-of-cost-or-market.”  

d.   Explain when it is acceptable to state inventory above cost and which industries allow this practice.