Listed below are departure delay times (minutes) for american Airline flights from New York to Los Angeles. Negative values correspond to flights that departed early.

Use a 0.05 significance level to test the claim that the different flights have the same mean departure delay time.What is the critical value (F-value)? [Round to 4 decimal places]

Use a 0.05 significance level to test the claim that the different flights have the same mean departure delay time.

What is the critical value (F-value)? [Round to 4 decimal places]

Question 1: Preparing a Balance Sheet Convict Australia Wallet Limited is a wholesaler of luxury brand wallets and watches. The company set up an office in Perth in 2022 and have established a strong distribution network throughout the Australia and South-East Asia. The financial year of the company is from April 1 to March 31. Due to an unexpected accident involving the company’s regular accountant, you have been engaged to prepare the 2026/2027 financial year (that is, April 1, 2026 to March 31, 2027) for Convict Australia Wallet Limited. After examining the notes of the company’s regular accountant, you have discovered the following initial list of accounts and trial balance amounts have been registered. Account Name Trial Balance Value Accounts Receivable $41,000,000.00 Accumulated Depreciation $95,000,000.00 Associate Investment $111,000,000.00 Bank Loans $145,000,000.00 Cash $126,500,000.00 Copyright $2,500,000.00 Foreign Currency Reserve $50,000,000.00 Gain on Sale of Land $14,000,000.00 General Reserve $75,000,000.00 Goodwill $10,500,000.00 Income Tax Expense $12,650,000.00 Inventory $111,000,000.00 Investments Available for Sale $25,000,000.00 Land $360,000,000.00 Long-Term Bonds (Due More than 12 Months) $75,000,000.00 Long-Term Investment (Held to Maturity) $25,000,000.00 Long-Term Pension Obligations $14,000,000.00 Notes Payable (Due More than 12 Months) $39,000,000.00 Paid-Up Capital $255,000,000.00 Patents $1,500,000.00 Property, Plant and Equipment $180,000,000.00 Retained Earnings $145,000,000.00 Sales Revenue $256,000,000.00 Short-Term Marketable Securities $22,000,000.00 Wages and Salaries $42,500,000.00 The following key information has already been prepared by the regular accountant. 1. A review of the ‘Goodwill’ account indicated an amount of goodwill to the value of $1,500,000 had been impaired. This impairment had yet to be reduced from the ‘Goodwill’ account balance, or the ‘Retained Earnings’. 2. The value of ‘Property, Plant and Equipment’ is shown in the accounts at the historical value. The annual depreciation of $18,000,000 has yet to be deducted for the 2026/2027 financial year. 3. The value of ‘Inventory’ as shown in the Trial Balance is at cost. The net realizable value of inventory is indicated to be $145,000,000. 4. Expenses (e.g., insurance) for the 2027/2028 financial year to the amount of $2,200,000 were prepaid using cash 2 days prior to the end of the 2026/2027 financial year. This amount has yet to be shown in the trial balance values nor deducted from the cash account. 3 | P a g e 5. During the 2024/2025 financial year the company sold assets for a gain of $45,000,000. This was account for in the corresponding income statement and close to the balance sheet at the time. 6. Half of the value of ‘Notes Payable (Due More than 12 Months)’ shown in the ‘Trial Balance’ is incorrectly recorded and are due to be paid in the 2027/2028 financial year. 7. Records also indicate that $50,000,000 of the ‘Paid-Up Capital’ is yet unpaid and is incorrectly recorded. Cash that should have been supposedly collected should be shown as ‘Other Receivables’. 8. During the 2026/2027 financial year, the company purchased issued capital to the value of $20,000,000. These transactions have yet to be reflected in the ‘Trial Balance’ values. 9. The board of directors have determined that the balance of the ‘Foreign Currency Reserve’ account must be equal to the balance of the ‘General Reserve’ account at year end. This has yet to be accounted for. 10. On March 1, 2027 the company signed a non-binding agreement to sell all the ‘Investments Available for Sale’ that will yield a gain of $12,000,000 for the company. The sale will be completed no earlier than August 1, 2027. Required: Using the scenario information, prepare a balance sheet for Convict Australia Wallet Limited for the 2026/2027 financial year using correct form based on the specifications of International Accounting Reporting Standards IAS 1. 4 | P a g e Question 2: Preparing an Income Statement Ugly Face Surgery Australia Limited is a wholesaler of luxury facial make-up and perfumes. The company also provides consultancy services on facial plastic surgery. The company set up an office in Launceston in 2019 and have established a strong distribution network and consultancy throughout the Tasmania and mainland Australia. The financial year of the company is from July 1 to June 30. You have just been employed as the company chief financial officer, and the first task assigned to you is to prepare the income statement for the company for the 2024/2025 financial year (i.e., July 1, 2024 to June 30, 2025). The following notes have been provided to assist you in preparing the income statement. 1. Number of units sold of each main business line, and the number of consultancies performed during the 2024/2025 financial year are: (a) 1,200,000 (facial make-up); (b) 2,591,000 (perfumes); and (c) 31,580 (consultancy). 2. Average sale price and consultancy fee are: (a) $18.45 (facial make-up); (b) $21.25 (perfumes); and (c) $52.70 (consultancy). 3. Average cost of each unit sold and consultancy provided is: (a) $14.98 (facial make-up); (b) $12.65 (perfumes); and (c) $32.45 (consultancy). 4. The relevant operating expenses are defined in the following table: Operating Expense Cost Entertainment Expenses $1,450,000.00 Vehicle Expenses $2,136,000.00 Administration Salaries $3,678,400.00 Legal Service Expenses $984,000.00 Depreciation Administration Building $5,001,600.00 Insurance Expense $450,000.00 Sales Office Rental Expense $856,000.00 Marketing and Advertising Expenses $1,780,000.00 Sales Management Salaries $981,000.00 5. The company also received $4,500,000 in dividend income during the course of the year from its long-term investments. 6. The total finance interest received from cash and cash equivalent balance held during the year amounted to $11,001,100 whilst the company paid $15,024,800 on interest on interest-bearing debt issued by the company. 7. The share of net profit the company received from its associate and joint venture investments amounted to $2,250,160. 8. The company tax rate is 35%. 9. During the year the company discontinued a line of business. For the 2024/2025 financial year, the discontinued operations contributed a net profit of $2,150,124. 10. The company at the end of the 2024/2025 financial year had a total of 121,450,000 common shares outstanding. Required: Using the scenario information, prepare an income statement for Ugly Face Surgery Australia Limited for the 2024/2025 financial year using correct form based on the specifications of International Accounting Reporting Standards IAS 1. (Include a calculation for basic EPS).

Part 1 -- Bonds:

1. National Company issued a 7.5% bond, dated January 1, 2020 with a face amount of $600,000 on January 1, 2020. The bonds mature on December 31, 2026. The market yield for bonds of similar risk and maturity was 5.5%. Interest is made semiannually on June 30 and December 31.

REQUIRED:

1. Determine the price of the bonds at January 1, 2020 (be certain to include all of the “Given” information as discussed in class).
2. Prepare a bond amortization table using the effective interest method (as reviewed in class), and make certain to obtain totals for the columns of Cash Interest Paid, Interest Expense, and Premium Amortization.
3. Prepare the journal entry to record their issuance by National Company on January 1, 2020.
4. Prepare the journal entry recording the first interest payment on June 30, 2020.
5. Prepare the journal entry recording the interest payment on December 31, 2020.
6. Prepare journal entries at maturity on December 31, 2026.
7. Prepare the journal entry to record the retirement of the bond at a call price of $640,000 on January 1, 2023.
8. Instead of retirement of the bond as described in “g” above, assume the bond was retired @108 call price on January 1, 2023. Prepare the journal entry to record this retirement of the bond.

Part 2 -- Installment note:

2. On January 1, 2020 National Company signed a $500,000, 7% installment note to be repaid with 8 equal annual installments to be first made on December 31, 2020, and then every December 31 thereafter.

REQUIRED:

1. Determine the amount of each annual payment.
2. Prepare an amortization table for this installment note (as reviewed in class).
3. Prepare the journal entry for the issuance of the installment note.
4. Prepare the journal entry for the first payment on the note.

Range Co. offers a postretirement benefit plan. Range estimates the following benefit payments for Reg Vick after he retires on January 1, 2024: 2024 and 2025,

$18,200 per year; 2026, $32,100; 2027 through 2029, $25,800 per year. Assume end- of-year payments.

On December 31, 2016, Vick has completed 12 of his 16 years of eligibility. The discount rate is 5.15%. The plan is unfunded (no plan assets). Use the following present value factors for a lump sum payment of $1 at 5.15% for n periods:

Answer the following for Vick’s benefits (WATCH THE DATES!):

1. Service cost for2017

1. Flint Corporation issued a 4-year, $48,000, zero-interest-bearing note to Garcia Company on January 1, 2017, and received cash of $48,000. In addition, Flint agreed to sell merchandise to Garcia at an amount less than regular selling price over the 4-year period. The market rate of interest for similar notes is 12%.

Prepare Flint Corporation’s January 1 journal entry.

2. At December 31, 2017, Wildhorse Corporation has the following account balances:

Show how the above accounts should be presented on the December 31, 2017, balance sheet, including the proper classifications.

3. The Vaughn Company issued $340,000 of 10% bonds on January 1, 2017. The bonds are due January 1, 2022, with interest payable each July 1 and January 1. The bonds are issued at face value.

Prepare Vaughn’s journal entries for (a) the January issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry.

4. The Cullumber Company issued $220,000 of 8% bonds on January 1, 2017. The bonds are due January 1, 2022, with interest payable each July 1 and January 1. The bonds were issued at 99.

Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Cullumber Company records straight-line amortization semiannually.

On January 1, 2021, Larkspur Inc., a public company, purchased $570,000 of Pearl Corporation’s five-year, 5% bonds for $595,600 when the market interest rate was 4%. Interest is received semi-annually on July 1 and January 1. Larkspur’s year end is December 31. Larkspur intends to hold Pearl’s bonds until January 1, 2026, the date the bonds mature. The bonds’ fair value on December 31, 2021, was $580,000.

1) Record the purchase of the bonds on January 1, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

2)

Prepare the entry to record the receipt of interest on July 1, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,276.)

3) Prepare the adjusting entry required at December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,276.)

4)

Show the financial presentation of the bonds for Larkspur on December 31, 2021. (Round answers to 0 decimal places, e.g. 5,276.)

5)

Prepare the entry to record the receipt of interest on January 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

6) Prepare the entry to record the receipt on maturity of the bonds on January 1, 2026. Assume the entry to record the last interest payment has been recorded. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

7) How would your answers to parts (a) through (c) change if the bonds were purchased for the purpose of trading? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,276.

8)

Given the following dataset x   1   1   2   3   4   5

y   0   2   4   5   5   3

We want to test the claim that there is a correlation between xand y. The level of cretaine phosphokinase (CPK) in blood samples measures the amount of muscle damage for athletes. At Jock State University, the level of CPK was determined for each of 25 football players and 15 soccer players before and after practice. The two groups of athletes are trained independently. The data summary is as follows :For football players : n=25 before practice  after practice   difference(before-after)

mean   254.73   225.6   29.13

St.deviation   115.5   132.6   21.00

For soccer players

n=15   before practice   after practice   difference(before-after)

mean   177.1   173.8   3.3

st.deviation   60.7   64.4   6.88

7. Construct a 95% Confidence Interval for the difference in mean CPK values for foot-ball players and soccer players BEFORE exercises.

8. Construct a 95% Confidence Interval for the difference in mean CPK values for foot-ball players BEFORE and AFTER exercises.

9. Test the claim that the mean CPK level has DECREASED for soccer players AFTERexercise (compared to the mean BEFORE exercise), using α= 0.10.

10. AFTER practice, do football players have a DIFFERENT mean CPK values com-pared to soccer players? Test this claim by performing a hypothesis test, usingα= 0.10.

Given the following dataset

We want to test the claim that there is a correlation between xand y.

(a) What is the null hypothesis Ho and the alternative hypothesis H1?

(b) Using α= 0.05, will you reject Ho? Justify your answer by using a p-value.

(c) Base on your answer in part (b), is there evidence to support the claim?

(d) Find r, the linear correlation coefficient.

The level of cretaine phosphokinase (CPK) in blood samples measures the amount of muscle damage for athletes. At Jock State University, the level of CPK was determined for each of 25 football players and 15 soccer players before and after practice. The two groups of athletes are trained independently. The data summary is as follows :For football players :

For soccer players :

Assume that all the data above are normal, use the information above to answer problems 7 to 10.

7. Construct a 95% Confidence Interval for the difference in mean CPK values for foot-ball players and soccer players BEFORE exercises.

8. Construct a 95% Confidence Interval for the difference in mean CPK values for foot-ball players BEFORE and AFTER exercises.

9. Test the claim that the mean CPK level has DECREASED for soccer players AFTERexercise (compared to the mean BEFORE exercise), using α= 0.10.

10. AFTER practice, do football players have a DIFFERENT mean CPK values com-pared to soccer players? Test this claim by performing a hypothesis test, usingα= 0.10.