1. The following selected accounts appeared in the unadjusted trial balance of Hawthorne Industries: -

Additional data:

1. One-half of the revenue received in advance has been earned by December 31, 2019
2. The prepaid insurance represents three years premium on a policy providing coverage starting September 1, 2019
3. Since the last payday, employees have earned an additional $2,500 which has not yet been paid or recorded
4. The equipment has an estimated life of 10 years and no expected value at the end of its life
5. Services performed but unbilled and uncollected at year end amounted to $6,500
6. The prepaid rent relates to one-half of the year beginning on October 1, 2019

Prepare the necessary year-end adjusting entries as of December 31, 2019.

2. The unadjusted trial balance and information regarding adjusting entries for Becky’s Carpets, Inc., is given below. Prepare the financial statements for Becky’s Carpet Inc., after making the necessary adjustments

Becky’s Carpets, Inc.,

Unadjusted Trial Balance

December 31, 2019

Adjusting entry information:

1. Salaries earned but unpaid at the end of the year, $1,500
2. Insurance expired, 700
3. Depreciation expense, 800
4. Unearned service revenue earned during the year, $1,500
5. The inventory of supplies at year end was $3,400

3. Galarus company had the following trial balance as of December 31, 2019

Galarus Company

Trial Balance

December 31, 2019

Additional information:

1. Supplies used during the month, $450
2. Prepaid insurance expired during the month, $300
3. Depreciation on equipment for the month, $550
4. Unearned service revenue earned during the month, $2,200
5. Accrued salary expense at the end of the month, $650

Based on the trial balance and the additional data, prepare financial statements for the year ended December 31, 2019

Statistic Question

Market research for an online electronics retailer showed that 23% of its customers purchased a smartphone. 12% of these smartphone customers used an online payment system (such as Paypal) to pay for their purchases, i.e., given that a customer purchased a smartphone, the probability was 12% that he/she used an online payment system to pay. In general, 8% of the customers used an online payment system to pay for their purchases.

a.What percent of customers did not purchase a smartphone?

b.What percent of customers purchased a smartphone and used an online payment system to pay?

c.What percent of customers purchased a smartphone or used an online payment system to pay?

d.Are the events “purchased a smartphone” and “used an online payment system to pay” mutually exclusive? Why or why not?

e.Are the events “purchased a smartphone” and “used an online payment system to pay” independent? Use probabilities to justify your answer.

The owner of a local restaurant has recently surveyed a random sample of n=250 customers of the restaurant. she would like to determine whether or not the mean age of her customers is greater than 30. if so she plans to alter the menu to appeal to this age. if not no menu changes will be made. suppose she found that the sample mean was 30.45 years in the sample standard deviation was 5 years, if she wants to have a level of significance at 0.01 what conclusion can she make.

a) there is sufficient evidence that the mean age of her customers is not greater than 30

b) there is not sufficient evidence that the mean age of her customers is not greater than 30

c) there is not sufficient evidence that the mean age of her customers is greater than 30

d) there is sufficient evidence that the mean age of her customers is greater than 30

Suppose the owner of Haywood Ceramics needs to raise prices to stay in business, but is concerned that raising prices would result in a death spiral. To avoid a decline in sales, the owner is considering sending letters to her customers explaining why the price increase is necessary. The letter would inform customers about the cost increases that necessitated the price increase, explain what the company is doing to keep costs as low as possible, and allow customers to place orders for a given time period at the current price.

Required

(a)     Describe the death spiral in your own words.

(b)     Explain why the owner cannot be sure how customers will respond to a price increase.

(c)     Suppose the owner decides to send letters to her customers. From a customer’s point of view, discuss possible pros and cons of this strategy.

(d)     Would you recommend that the owner send letters to her customers? Why?

Sampling Distribution of Proportions A restaurant chain regularly surveys its customers. On the basis of these surveys, the management of the chain claims that 75% of its customers rate the food as excellent. A consumer testing service wants to examine this claim. They take a simple random sample of 600 customers and ask them each to rate the food. Assume that the restaurant chain’s claim is true (i.e. that the true proportion is indeed 0.75).

a) assuming that the chain’s claim is true (i.e. that the true proportion is indeed 0.75), what is the probability that, in a simple random sample of 600 customers, less than 70% rate the food as excellent?

b)Suppose that in a random sample of 600 customers, 420 rate the food as excellent. Does this support or refute the restaurant chain’s claim? Hint: Refer to the previous question.

c) if the process is repeated with 1000 customers, what is the probability that 70% rate the food excellent?

Case Study
C & S Department Store is the second largest clothing and retail store chain in Jamaica. At present, they have 5 clothing and retail stores in all 14 parishes and are planning to expand to 7 stores per parish in the next 3 years. C & S Department Store has a centralized Human Resource Department located at its main office in Kingston. Unfortunately, although the HR processes are managed centrally, there are many HR tasks, policies and procedures that are controlled by the clothing and retail store managers or by the lead parish manger in each parish. Currently, the HR management processes are using Excel spreadsheet to compile reports from various parish Headquarters and stores. This task is being performed by a team of HR executives at its main office in Kingston.
Simone Coram is the Senior HR Manager of C & S Department Store and has discovered various administrative and HR issues with the clothing and retail store sites. Due to high focus on sales revenue and stores profitability, Retail Store Managers have difficulties in managing the stores in the areas of staff attendance, discipline and critical HR practices.
The fundamental emphasis and foundation of C & S Department Store has been centered on always maintaining the highest standards of customer service and for that reason they are in direct contact with customers at each and every Department Store. What sets C & S Department apart is a commitment to exceeding expectations making it one of their unique selling points. Giving excellent customer service is one of the main reasons why their customers choose C & S Department Store and why they keep coming back.
Imperatively, the entity’s strategy is purposed towards employing the ideal candidate for both their part-time and full-time sales associates with the capacity and proficiency to grow and hone their skills for prospective advanced position within the organization. Presently, the store managers for three (3) of C&S Department Store have made the announcement that they plan to retire within the next 18 to 24 month. These three managers have insisted that they will not remain in their position beyond this particular point.
A team of HR internal auditors has conducted a study and identified that there are irregularities in the staff attendance data both at the retail stores and regional offices. Sometimes many of the staff did not sign the attendance register or signed intermittently. During the HR audit, it was discovered that some staff signed the attendance register only at the end of the day. Further, sometimes staff signed the register and then left their post. There was also no mechanism to track the leave data of employees. Employees did not know their exact leave data. At the end of the year it was revealed that some employees have taken excess leave while some employees worked incessantly, creating frustration among staff.
There was also no standardization in the reports between head office, regional offices and the retail stores and this created discrepancies. HR provided a set of excel sheets and paper-based forms to help store managers maintain data. However, many store managers used and made unique formats of reports making it difficult to collate the reports. The data thus collated had to be verified over again and again, as there was a tendency for errors to emerge.
This discrepancy has caused a significant issue in salary. HR and attendance data were used to generate data for payroll. As there were many discrepancies in HR data and reports, this created several salary discrepancies and caused numerous issues among the employees, thus lowering employee satisfaction rate and affecting the employee morale.
Training and communication have become a major issue at C & S Department Store. As the company was growing at a fast pace, training employees on various HR procedures and policies was becoming increasingly difficult. Thus line managers took decisions based on their previous experience or personal insights and created unnecessary hassles that required HR intervention.
The staff turnover in two (2) key departments of Marketing and Accounts was running at 90%. Estimated cost of staff turnover - including overtime, loss of revenue, loss of skills, training time and management time to replace a staff member – is equivalent to approximately $3,000 per position thus costing the business around $500,000 per year.
Human Resource Management focuses on matching the needs of the business with the needs and development of employees and as such you are required to answer the following questions based on the scenario represented above.

4. As Ms. Coram, you have suggested the implementation of a Management by Objectives method to improve the performance management system at C & S Department Store. Justify the use of this method to assist the company in meeting its performance standards. Explain five (5) factors that the team should take into consideration before implementing the MBO ?

Case Study
C & S Department Store is the second largest clothing and retail store chain in Jamaica. At present, they have 5 clothing and retail stores in all 14 parishes and are planning to expand to 7 stores per parish in the next 3 years. C & S Department Store has a centralized Human Resource Department located at its main office in Kingston. Unfortunately, although the HR processes are managed centrally, there are many HR tasks, policies and procedures that are controlled by the clothing and retail store managers or by the lead parish manger in each parish. Currently, the HR management processes are using Excel spreadsheet to compile reports from various parish Headquarters and stores. This task is being performed by a team of HR executives at its main office in Kingston.
Simone Coram is the Senior HR Manager of C & S Department Store and has discovered various administrative and HR issues with the clothing and retail store sites. Due to high focus on sales revenue and stores profitability, Retail Store Managers have difficulties in managing the stores in the areas of staff attendance, discipline and critical HR practices.
The fundamental emphasis and foundation of C & S Department Store has been centered on always maintaining the highest standards of customer service and for that reason they are in direct contact with customers at each and every Department Store. What sets C & S Department apart is a commitment to exceeding expectations making it one of their unique selling points. Giving excellent customer service is one of the main reasons why their customers choose C & S Department Store and why they keep coming back.
Imperatively, the entity’s strategy is purposed towards employing the ideal candidate for both their part-time and full-time sales associates with the capacity and proficiency to grow and hone their skills for prospective advanced position within the organization. Presently, the store managers for three (3) of C&S Department Store have made the announcement that they plan to retire within the next 18 to 24 month. These three managers have insisted that they will not remain in their position beyond this particular point.
A team of HR internal auditors has conducted a study and identified that there are irregularities in the staff attendance data both at the retail stores and regional offices. Sometimes many of the staff did not sign the attendance register or signed intermittently. During the HR audit, it was discovered that some staff signed the attendance register only at the end of the day. Further, sometimes staff signed the register and then left their post. There was also no mechanism to track the leave data of employees. Employees did not know their exact leave data. At the end of the year it was revealed that some employees have taken excess leave while some employees worked incessantly, creating frustration among staff.
There was also no standardization in the reports between head office, regional offices and the retail stores and this created discrepancies. HR provided a set of excel sheets and paper-based forms to help store managers maintain data. However, many store managers used and made unique formats of reports making it difficult to collate the reports. The data thus collated had to be verified over again and again, as there was a tendency for errors to emerge.
This discrepancy has caused a significant issue in salary. HR and attendance data were used to generate data for payroll. As there were many discrepancies in HR data and reports, this created several salary discrepancies and caused numerous issues among the employees, thus lowering employee satisfaction rate and affecting the employee morale.
Training and communication have become a major issue at C & S Department Store. As the company was growing at a fast pace, training employees on various HR procedures and policies was becoming increasingly difficult. Thus line managers took decisions based on their previous experience or personal insights and created unnecessary hassles that required HR intervention.
The staff turnover in two (2) key departments of Marketing and Accounts was running at 90%. Estimated cost of staff turnover - including overtime, loss of revenue, loss of skills, training time and management time to replace a staff member – is equivalent to approximately $3,000 per position thus costing the business around $500,000 per year.
Human Resource Management focuses on matching the needs of the business with the needs and development of employees and as such you are required to answer the following questions based on the scenario represented above

1. What is Human Resource Management? Explain the functions of the HRM. Based on the scenario, identify five (5) challenges that C&S Department Store faces and propose appropriate HRM solutions to meet the challenges identified.