On January 1, the first day of the fiscal year, a company issues a $1,350,000, 11%, five-year bond that pays semiannual interest of $74,250 ($1,350,000 x 11% x ½), receiving cash of $1,512,610. Journalize the bond issuance. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS- General Ledger

ASSETS- 110 Cash, 111 Petty Cash, 121 Accounts Receivable, 122 Allowance for Doubtful Accounts, 126 Interest Receivable, 127 Notes Receivable, 131 Merchandise Inventory, 141 Office Supplies, 191 Land, 194 Office Equipment, 195 Accumulated Depreciation-Office Equipment

LIABILITIES- 210 Accounts Payable, 221 Salaries Payable, 231 Sales Tax Payable, 232 Interest Payable ,241 Notes Payable,251 Bonds Payable, 252 Discount on Bonds Payable, 253 Premium on Bonds Payable

EQUITY- 311 Common Stock, 312 Paid-In Capital in Excess of Par-Common Stock, 315 Treasury Stock, 321 Preferred Stock, 322 Paid-In Capital in Excess of Par-Preferred Stock, 331 Paid-In Capital from Sale of Treasury Stock, 340 Retained Earnings, 351 Cash Dividends, 352 Stock Dividends, 390 Income Summary

REVENUE- 410 Sales, 610 Interest Revenue, 611 Gain on Redemption of Bonds

EXPENSES- 510 Cost of Merchandise Sold, 515 Credit Card Expense, 516 Cash Short and Over, 522 Office Salaries Expense, 531 Advertising Expense, 532 Delivery Expense, 533 Repairs Expense, 535 Rent Expense, 536 Insurance Expense, 537 Office Supplies Expense, 541 Bad Debt Expense, 562 Depreciation Expense-Office Equipment, 590 Miscellaneous Expense, 710 Interest Expense, 711 Loss on Redemption of Bonds

The following gifts are received and sold in the current year:

Determine the basis for gain and basis for loss and realized gain or realized loss. Enter "0" if the field should be blank or if an amount is zero.

The traffic volume in the year 2018 at an airport (number of take-offs and landings) during peak hour of each day is a described as a log-normal random variable with a mean of 200 planes and a standard deviation of 60 planes. a. If the present runway capacity (for landings and take-offs) is 350 planes per hour, what is the current probability of congestion? [2 marks] b. If the mean traffic volume is increasing linearly at the annual rate of 10% of the volume in 2018 with the coefficient of variation remaining constant what would be the probability of congestion at the airport in year 2028? [2 marks] c. Assuming the same projected growth rate of traffic volume as part (b), and that the maximum acceptable probability of congestion is 10% what year will the airport need to increase their runway capacity? [4 marks] d. Assuming the same projected growth rate of traffic volume as part (b) when the airport upgrades their runway capacity in part (c) what new runaway capacity will they need to ensure the probability of congestion does not exceed the max acceptable probability of congestion of 10% until year 2038? [2 marks]

Journal Entries for Credit Losses At the beginning of the year, Whitney Company had the following accounts on its books:

The following transactions, among others, occurred during the year:

Required

a. Prepare journal entries to record the credit sales, the collections on account, and the preceding transactions and adjustment.
b. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on the December 31 balance sheet.

a.

b.

A 3 year old boy is brought to the pediatrician with a 102' F fever, cough, a runny nose, and red, watery eyes that have lasted three days. His mother is concerned because the fever is not getting better and her son is in obvious discomfort. The doctor suspects that it is a viral cold and instructs the mother to give an over the counter decongestant, an antihistamine, and ibuprofen for fever.

Two days later the same boy is brought to the Emergency Room. His symptoms have continued and now his face has blotchy, red spots on it. The responding doctor suspects Fifth Disease.

1. What is the etiological agent of Fifth's disease?
2. What symptoms do you think led to that diagnosis?
3. What is the incubation period for the disease?
4. How is it transmitted?
5. What is the treatment?
6. Are there any known complications?
7. What demographic is most likely infected?

Consider a project with a 5-year life. The initial cost to set up the project is $100,000. This amount is to be linearly depreciated to zero over the life of the project and there is no salvage value. The required return is 13% and the tax rate is 34%. You've collected the following estimates: Base case Pessimistic Optimistic Unit sales per year (Q) 8,000 6,000 10,000 Price per unit (P) 50 40 60 Variable cost per unit (VC) 20 35 15 Fixed costs per year (FC) 30,000 50,000 20,000

Attempt 3/5 for 10 pts. Part 1 What is the annual free cash flow in the base case?

Attempt 1/5 for 10 pts. Part 2 What is the NPV in the base case?

Attempt 1/5 for 10 pts. Part 3 What is the NPV in the pessimistic case?

Attempt 2/5 for 10 pts. Part 4 What is the NPV in the optimistic case?

Consider a project with a 6-year life. The initial cost to set up the project is $100,000. This amount is to be linearly depreciated to zero over the life of the project and there is no salvage value. The required return is 11% and the tax rate is 34%.

The price per unit is $50, variable costs are $20 per unit and fixed costs are $30,000 per year. You've collected the following estimates for unit sales:

Attempt 2/5 for 8 pts.

Part 1

What is the NPV in the base case?

Attempt 1/5 for 10 pts.

Part 2

What is the NPV in the pessimistic case?

Attempt 1/5 for 10 pts.

Part 3

What is the NPV in the optimistic case?

Assume there are three companies that in the past year paid exactly the same annual dividend of ​$2.88 a share. In​ addition, the future annual rate of growth in dividends for each of the three companies has been estimated as​ follows:

(Click on the icon located on the​ top-right corner of the data table below in order to copy its contents into a​ spreadsheet.)

Assume also that as the result of a strange set of​ circumstances, these three companies all have the same required rate of return (r=14%).

a. Use the appropriate DVM to value each of these companies.

b. Comment briefly on the comparative values of these three companies. What is the major cause of the differences among these three​ valuations?

a. For​ Buggies-Are-Us, the value of the​ company's common shares is $___. (Round to the nearest​ cent.)

For Steady​ Freddie, Inc., the value of the​ company's common shares is $__. (Round to the nearest​ cent.)

For Gang Buster​ Group, the value of the​ company's common shares is $___. (Round to the nearest​ cent.)

b. Comment briefly on the comparative values of these three companies. What is the major cause of the differences among these three​ valuations?​(Select the best choice​ below.)

A.The value of​ Buggies-Are-Us is $20.57 compared to $62.80 for Steady​ Freddie, Inc., and $70.45 for Gang Busters Group. The difference in values is caused by the difference in dividend growth rates. The​ Buggies-Are-Us dividends do not​ grow, resulting in the lowest value. The dividends of Steady​ Freddie, Inc., grow at a constant rate of 9​% forever, whereas Gang Busters​ Group's dividends grow at approximately​ 12% for the first four years and 14​% from year five to the foreseeable future. The higher growth in dividends in the earlier years causes the stock of Gang Busters Group to be worth more than Steady​ Freddie, Inc., stock.

B. The value of​ Buggies-Are-Us is $20.57 compared to $62.80 for Steady​ Freddie, Inc., and $70.45 for Gang Busters Group. The difference in values is caused by the difference in dividend growth rates. The​ Buggies-Are-Us dividends do not​ grow, resulting in the lowest value. The dividends of Steady​ Freddie, Inc., grow at a constant rate of 9​% forever; whereas Gang Busters​ Group's dividends grow at approximately​ 12% for the first four years and 9​% from year five to the foreseeable future. The higher growth in dividends in the earlier years causes the stock of Gang Busters Group to be worth more than the Steady​ Freddie, Inc., stock.

California TrueFarms produces and sells a lot of oranges each year. The oranges are collected at the company’s two farms and transported to the company’s two warehouses. Then they are distributed to four major retailers to be sold to local supermarkets. The shipping costs (per ton) are shown in the tables below:

Farms 1 and 2 can produce up to 500 and 300 tons of oranges in each month, respectively. The cost of producing each ton of orange at Farm 1 is $35, whereas the cost at Farm 2 is $47 because of limited water availability. The four retailers show average monthly demands of 200, 100, 150, and 200 tons, respectively. Because of limited truck capacities, at most 250 tons of orange can be transported between Farm 1 and Warehouse 1.  

a)    Formulate a linear program that determines optimal amounts of production at each farm as well as optimal shipping of oranges in the network to satisfy demands at lowest possible (production + shipping) cost. Clearly define your variables, and write the objective function and all constraints in algebraic form.

b)    Create a spreadsheet model for this problem in Excel and solve with Solver. (Attach three snapshots:  Final setup, Formula view, Solver Menu)

c)     What is the optimal solution? What is the total cost of this production and distribution plan?

d)    Assume TrueFarms can use another truck company to provide additional assistant on the shipments from Farm 1 to Warehouse 1 (so it can ship beyond 250 tons). How much should TrueFarm be willing to pay to the new truck company to carry each additional ton of oranges? (Explain how you came up with that price).

e)    Assume that some oranges perish while being kept at warehouses. In particular, assume that 5% of oranges at Warehouse 1, and 10% of oranges at Warehouse 2 go bad in storage and need to be discarded (before shipping out to retailers). How would this change your algebraic formulation in part (a)? Clearly write down the changes in formulation in algebraic form. Update your Excel setup accordingly, re-solve the problem, and provide a snapshot of the new setup with solutions (no need to get Formula view and Solver menu again)

Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2018:

Gibson acquired 60 percent of Davis on April 1, 2018, for $603,900. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $84,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $402,600. Davis earned income evenly during the year but declared the $40,000 dividend on November 1, 2018.

1. Prepare a consolidated income statement for the year ending December 31, 2018.

2. Determine the consolidated balance for each of the following accounts as of December 31, 2018:

• Goodwill
• Equipment (net)
• Common stock
• Buildings (net)
• Dividends declared