1. GMAT scores are required for admission to JHJ’s MBA program. GMAT scores are known to be normally distributed with a mean of 490 points and a standard deviation of 61 points.

1. 25% of the scores of applicants are less than what score?
2. 75% of the scores of applicants are less than what score?
3. 25% of the scores of applicants are less than what score?
4. 80% of the scores of applicants are more than what score?
5. Only applicants in the top 10% of all GMAT scores, are admitted to the MBA program. What score is required to be admitted to the MBA program.

On July 1, 2018, Boone Company acquired the following assets from Judge Company for $8,000,000:

Boone’s accountant was not sure how to value the assets, so he decided to simply expense everything and hope that no one would notice. During the annual external audit in January 2021, the new auditing firm discovered the error.

Boone’s policy regarding these types of fixed assets follows:

Prepare the entry(ies) that must be made to correct Boone’s accounting records with detailed works.

Dahl (2000) explained that the United States was and never has been a democracy due to the way the US treats its citizens. What did he mean by that thesis?

Reference

Dahl, R. A. (2000). How democratic is the American Constitution? New Haven, CT: Yale University Press.

subject: political science

The Procurement Technical Assistance Program requires us to have a proactive training program. This requirement is fulfilled through team and individual training. Individual training is the responsibility for all employees and is evaluated by the Program Director. Can you briefly describe the proactive actions you take to stay proficient as a program coordinator for an university?

Tyrex Corporation, located in New York, USA manufactures high quality porcelain shot glasses. The company has the capacity to produce 8,000 shot glasses per month. Current monthly demand is for 7,000 shot glasses at $25.00 per glass. The company pays a sales commission of 2% of its selling price. The cost data for the shot glass are as follows:

Variable product costs

Direct Material    $4 per glass

Direct Labour     $1.50 per glass

Manufacturing overhead costs      $1 per glass

Fixed Costs

Manufacturing overhead costs $84,000 per year

Recently, the 2020 Tokyo Olympic Games organising committee approached the Tyrex management. The committee expressed an interest in using Tyrex shot glasses to make commemorative shot glasses for the 2012 games. The order will be for 6,000 shot glasses, equally spread over four months. The offer price is $20 per glass. Each glass will require a special gold rim and a logo certifying official Olympic merchandise. Tyrex’s production manager estimated that the gold rim will cost $6 per glass and the embossing plate for the logo will cost $8,000. In addition, due to strict copyright concerns related to Olympic merchandise, Tyrex will have to hire an additional security person at a monthly salary of $1,000 for the four months of Olympic glass production period. Other variable costs related to the logo will be $1.00 per glass. There are no selling or other costs related to the order.

Required

(a) Assume Tyrex accepts the special order for 6,000 shot glasses. Calculate the impact on the operating income of the company for the fourmonths Olympic glass production period.

(b) List two other factors that should be considered by Tyrex before making the final decision whether to accept the special offer

(c) The CEO of Tyrex Corporation has decided to accept the Olympic order. He negotiated with a porcelain shot glass supplier to supply 500 shot glasses per month during the next four months at $15 per glass. The CEO plans to use these shot glasses solely to fulfill the regular orders that are impacted by the special order. Should the CEO accept the offer from the supplier? Explain and support your answer with computations.

(d) If Tyrex accepts the special order as well as the offer from the supplier, what is the net financial impact (compared to the current operating income)?

On December 31, 2020, Gibbs Co. acquired bonds issued by Walden Co. for $112,290. They have a face amount of $100,000, pay 12% interest, and were purchased to yield 10%. The maturity date is December 31, 2030, and interest is due every December 31. The fair value of the bonds on December 31, 2021, is $108,500. Required: (1) Complete the amortization schedule through the first interest payment on December 31, 2021. (2) Prepare the journal entry(ies) that Gibbs would make on December 31, 2021, assuming the company will sell the bonds if it needs cash at any time before December 31, 2030.

Williams-Santana, Inc., is a manufacturer of high-tech industrial parts that was started in 2009 by two talented engineers with little business training. In 2021, the company was acquired by one of its major customers. As part of an internal audit, the following facts were discovered. The audit occurred during 2021 before any adjusting entries or closing entries were prepared. The income tax rate is 25% for all years.

1. A five-year casualty insurance policy was purchased at the beginning of 2019 for $39,500. The full amount was debited to insurance expense at the time.
2. Effective January 1, 2021, the company changed the salvage value used in calculating depreciation for its office building. The building cost $636,000 on December 29, 2010, and has been depreciated on a straight-line basis assuming a useful life of 40 years and a salvage value of $100,000. Declining real estate values in the area indicate that the salvage value will be no more than $25,000.
3. On December 31, 2020, merchandise inventory was overstated by $29,500 due to a mistake in the physical inventory count using the periodic inventory system.
4. The company changed inventory cost methods to FIFO from LIFO at the end of 2021 for both financial statement and income tax purposes. The change will cause a $1,005,000 increase in the beginning inventory at January 1, 2022.
5. At the end of 2020, the company failed to accrue $17,300 of sales commissions earned by employees during 2020. The expense was recorded when the commissions were paid in early 2021.
6. At the beginning of 2019, the company purchased a machine at a cost of $810,000. Its useful life was estimated to be ten years with no salvage value. The machine has been depreciated by the double-declining balance method. Its book value on December 31, 2020, was $518,400. On January 1, 2021, the company changed to the straight-line method.
7. Warranty expense is determined each year as 1% of sales. Actual payment experience of recent years indicates that 0.75% is a better indication of the actual cost. Management effects the change in 2021. Credit sales for 2021 are $4,900,000; in 2020 they were $4,600,000.

Required:
For each situation:
1. Identify whether it represents an accounting change or an error. If an accounting change, identify the type of change. For accounting errors, choose "Not applicable".
2. Prepare any journal entry necessary as a direct result of the change or error correction, as well as any adjusting entry for 2021 related to the situation described. Any tax effects should be adjusted for through Income tax payable or Refund—income tax.

Williams-Santana, Inc., is a manufacturer of high-tech industrial parts that was started in 2009 by two talented engineers with little business training. In 2021, the company was acquired by one of its major customers. As part of an internal audit, the following facts were discovered. The audit occurred during 2021 before any adjusting entries or closing entries were prepared. The income tax rate is 25% for all years.

1. A five-year casualty insurance policy was purchased at the beginning of 2019 for $31,000. The full amount was debited to insurance expense at the time.
2. Effective January 1, 2021, the company changed the salvage value used in calculating depreciation for its office building. The building cost $568,000 on December 29, 2010, and has been depreciated on a straight-line basis assuming a useful life of 40 years and a salvage value of $100,000. Declining real estate values in the area indicate that the salvage value will be no more than $25,000.
3. On December 31, 2020, merchandise inventory was overstated by $21,000 due to a mistake in the physical inventory count using the periodic inventory system.
4. The company changed inventory cost methods to FIFO from LIFO at the end of 2021 for both financial statement and income tax purposes. The change will cause a $920,000 increase in the beginning inventory at January 1, 2022.
5. At the end of 2020, the company failed to accrue $15,600 of sales commissions earned by employees during 2020. The expense was recorded when the commissions were paid in early 2021.
6. At the beginning of 2019, the company purchased a machine at a cost of $640,000. Its useful life was estimated to be ten years with no salvage value. The machine has been depreciated by the double-declining balance method. Its book value on December 31, 2020, was $409,600. On January 1, 2021, the company changed to the straight-line method.
7. Warranty expense is determined each year as 1% of sales. Actual payment experience of recent years indicates that 0.75% is a better indication of the actual cost. Management effects the change in 2021. Credit sales for 2021 are $3,200,000; in 2020 they were $2,900,000.

Required:
For each situation:
1. Identify whether it represents an accounting change or an error. If an accounting change, identify the type of change. For accounting errors, choose "Not applicable".
2. Prepare any journal entry necessary as a direct result of the change or error correction, as well as any adjusting entry for 2021 related to the situation described. Any tax effects should be adjusted for through Income tax payable or Refund—income tax.

Williams-Santana, Inc., is a manufacturer of high-tech industrial parts that was started in 2009 by two talented engineers with little business training. In 2021, the company was acquired by one of its major customers. As part of an internal audit, the following facts were discovered. The audit occurred during 2021 before any adjusting entries or closing entries were prepared. The income tax rate is 25% for all years.

1. A five-year casualty insurance policy was purchased at the beginning of 2019 for $36,500. The full amount was debited to insurance expense at the time.
2. Effective January 1, 2021, the company changed the salvage value used in calculating depreciation for its office building. The building cost $612,000 on December 29, 2010, and has been depreciated on a straight-line basis assuming a useful life of 40 years and a salvage value of $100,000. Declining real estate values in the area indicate that the salvage value will be no more than $25,000.
3. On December 31, 2020, merchandise inventory was overstated by $26,500 due to a mistake in the physical inventory count using the periodic inventory system.
4. The company changed inventory cost methods to FIFO from LIFO at the end of 2021 for both financial statement and income tax purposes. The change will cause a $975,000 increase in the beginning inventory at January 1, 2022.
5. At the end of 2020, the company failed to accrue $16,700 of sales commissions earned by employees during 2020. The expense was recorded when the commissions were paid in early 2021.
6. At the beginning of 2019, the company purchased a machine at a cost of $750,000. Its useful life was estimated to be ten years with no salvage value. The machine has been depreciated by the double-declining balance method. Its book value on December 31, 2020, was $480,000. On January 1, 2021, the company changed to the straight-line method.
7. Warranty expense is determined each year as 1% of sales. Actual payment experience of recent years indicates that 0.75% is a better indication of the actual cost. Management effects the change in 2021. Credit sales for 2021 are $4,300,000; in 2020 they were $4,000,000.

Required:
For each situation:
1. Identify whether it represents an accounting change or an error. If an accounting change, identify the type of change. For accounting errors, choose "Not applicable".
2. Prepare any journal entry necessary as a direct result of the change or error correction, as well as any adjusting entry for 2021 related to the situation described. Any tax effects should be adjusted for through Income tax payable or Refund—income tax.