On December 1, 2015 John Trap created a new travel agency, Trap Adventures, Inc. providing exclusive adventure trips. The following transactions occurred during December 2015. (NOTE: There are no beginning balances – this is a new company.) Dec 1 John Trap invested $60,000 cash in the company for common stock. 2 Purchase office equipment for $17,500 cash. 2 The company rented furnished office space by paying $18,000 cash for the first six months (December 2015 - May 2016) rent. 3 The company purchased $1,500 of office supplies on account. 10 The company paid $3,600 cash for the premium on a 12-month insurance policy. 14 The company paid $10,750 cash for two weeks' salaries earned by employees. 24 The company collected $54,000 cash on commissions from airlines on tickets obtained for customers. 28 The company paid $12,125 cash for two weeks' salaries earned by employees. 29 The company paid $350 cash for minor repairs to the company's computer. 30 The company paid $450 cash for this month's telephone bill. 30 Dividends of $3,000 cash were paid. Final Project Requirements Using the spreadsheet found here and information above, complete the following: Adjustment Data: One month's insurance coverage has expired. The company occupied the office space for the month of December. At the end of the month, $600 of office supplies are still available. Create journal entries to record the transactions that occurred during the month of December. (Completed in Unit 3) Prepare an unadjusted trial balance (Completed in Unit 3) Create adjusting journal entries at the end of the year, December 31 based on the adjustment data. Prepare an adjusted trial balance. Prepare an income statement, statement of stockholders' equity, and classified balance sheet. Create closing journal entries to close all temporary accounts. Prepare post-closing trial balance. In addition, answer TWO of the questions below in 1-2 fully developed paragraphs. A fully developed paragraph should have a major point with 3 to 5 support sentences. One or two sentences is not acceptable or does not discuss the question. Be sure to show what you know!!! Trap Adventures, Inc. is looking for an accountant. In your own words, explain to Trap's hiring team the role of accountant and accounting within business. Provide examples of the expectations of the accountant. Discuss the financial position of Trap Adventures, Inc. using the following ratios: Current ratio Return on equity: For each ratio, provide the calculation and an explanation of the meaning. Is this a positive or negative result for the Trap Adventures, Inc.? Using Trap Adventures, Inc.'s income statement, evaluate the operations for the month of December. Complete a common-size income statement using sales as the base number. What is the largest percentage? What is the smallest percentage? What recommendations could be made to increase Trap's net income? Currently, Trap Adventures, Inc. does not own any loans or bank notes (long-term liabilities). What would happen if Trap decides to obtain a bank loan for $25,000 to fund daily operations? How would this transaction impact the financial statements - which accounts would be affected? What is the debt to equity ratio? What does the debt to equity ratio

Select the best answer for the question. 8. A/An _______ fuel-injection system uses individual pumps that are contained within a single injection pump housing. A. individual pump B. multiple-plunger, inline pump C. common rail D. distributor pump

University work

Finance tutorial

Could you solve the question. I will give good feedback if it is well and completely answered. Failure to do so will result in negative feedback. Thanks!

X plans to buy a new machine. The cost of the machine, payable immediately, is $800,000 and the machine has an expected life of five years. Additional investment in working capital of $90,000 will be required at the start of the first year of operation. At the end of five years, the machine will be sold for scrap, with the scrap value expected to be 5% of the initial purchase cost of the machine. The machine will not be replaced.

Production and sales from the new machine are expected to be 100,000 units per year. Each unit can be sold for $16 per unit and will incur variable costs of $11 per unit. Incremental fixed costs arising from the operation of the machine will be $160,000 per year. The production and sales are expected to increase by 2.5% per annum. It is also expected that selling price inflation will be 4.2% per year, variable cost inflation will be 5% per year and fixed cost inflation will be 3% per year

X has an after‐tax cost of capital of 11% which it uses as a discount rate in investment appraisal. The company pays profit tax one year in arrears at an annual rate of 30% per year. Tax‐allowable depreciation should be ignored.

Calculate Internal rate of return and Net Present Value.

Is Social Security an Entitlement?

Background

Alan Simpson, Senator from Wyoming, Co-chair of Obama’s deficit commission, called senior citizens “the Greediest Generation” as he compared Social Security to a Milk cow with 310 million teats”. The following is a response1 from a unknown fellow in Montana:

_________________________________________________________________

“1. As a career politician, you have been on the public dole for FIFTY YEARS…

2. I have been paying Social Security taxes for 48 YEARS (since I was 15 years old. I am now 63)…

3. My Social Security payments, and those of millions of other Americans, were safely tucked away in an interest bearing account for decades until you political pukes decided to raid the account and give OUR money to a bunch of zero ambition losers in return for votes, thus bankrupting the system and turning Social Security into a Ponzi scheme that would have made Bernie Madoff proud…

4. Recently, just like Lucy & Charlie Brown, you and your ilk pulled the proverbial football away from millions of American seniors nearing retirement and moved the goalposts for full retirement from age 65 to age 67. NOW, you and your shill commission is proposing to move the goalposts YET AGAIN…

5. I, and millions of other Americans, have been paying into Medicare from Day One, and now you morons propose to change the rules of the game. Why? Because you idiots mismanaged other parts of the economy to such an extent that you need to steal money from Medicare to pay the bills…

6. I, and millions of other Americans, have been paying income taxes our entire lives, and now you propose to increase our taxes yet again. Why? Because you incompetent bastards spent our money so profligately that you just kept on spending even after you ran out of money. Now, you come to the American taxpayers and say you need more to pay of YOUR debt…

To add insult to injury, you label us “greedy” for calling “bullshit” on your incompetence. Well, Captain Bullshit, I have a few questions for YOU…

1. How much money have you earned from the American taxpayers during your pathetic 50-year political career?

2. At what age did you retire from your pathetic political career, and how much are you receiving in annual retirement benefits from the American taxpayers?

3. How much do you pay for YOUR government provided health insurance?

4. What cuts in YOUR retirement and health care benefits are you proposing in your disgusting deficit reduction proposal, or, as usual, have you exempted yourself and your political cronies?

It is you, Captain Bullshit, and your political co-conspirators who are “greedy”. It is you and they who have bankrupted America and stolen the American dream from millions of loyal, patriotic taxpayers. And for what? Votes. That’s right, sir. You and yours have bankrupted America for the sole purpose of advancing your pathetic political careers. You know it, we know it, and you know that we know it.

And you can take that to the bank, you miserable son of a bitch.

Always say what you mean !! Always mean what you say !! NEVER COMPROMISE ……… “____________________________________________-

The above letter makes many claims but offers no numbers to help us to decide who is right. Below is a more substantive angry email I received that attempts to quantitatively “expose” the “Social Security Scam”.

____________________________E-Mail___________________________________-

Remember, not only did you contribute to Social Security but your employer did too. It totaled 15% of your income before taxes. If you averaged only $30K over your working life, that's close to $220,500.

If you calculate the future value of $4,500 per year (yours & your employer's contribution) at a simple 5% (less than what the govt. pays on the money that it borrows), after 49 years of working you'd have $892,919.98.

If you took out only 3% per year, you'd receive $26,787.60 per year and it would last better than 30 years (until you're 95 if you retire at age 65) and that's with no interest paid on that final amount on deposit! If you bought an annuity and it paid 4% per year, you'd have a lifetime income of $2,976.40 per month.

Washington has pulled off a bigger Ponzi scheme than Bernie Madoff.

Entitlement?? NOT!!! I paid cash for my social security insurance!!!! Just because they borrowed the money, doesn't make my benefits some kind of charity or handout!!

Congressional benefits ---- free healthcare, outrageous retirement packages, 67 paid holidays, three weeks paid vacation, unlimited paid sick days, now that's welfare, and they have the nerve to call my social security retirement entitlements?

They call SS and Medicare an entitlement even though most of us have been paying for it all our working lives and now when it's time for us to collect, the government is running out of money. Why did the government borrow from it in the first place? Imagine if the *GOVERNMENT* gave 'US' the same support they give to other countries.

Sad isn't it?

99% of people won't have the guts to forward this.

I'm one of the 1% -- I Just Did.

Discussion

The above email asserts that any claim that Social Security pays retired people who worked all their adult lives more than their contributions to the system actually merit, is bogus. Their mathematical argument in support of this assertion is as follows:

1) The combined contribution to Social Security by workers and their employers is about 15% of before tax income.

2) If a worker averaged as little as $30K per year in his working life, the combined contribution to the Social Security system on his behalf would be about $4,500 per year (i.e. 3,000*.15) and $220,500 after 49 years of work.

3) The future value of $4,500 per year after 49 years at an interest rate of 5% per year (less than what the govt. pays on the money that it borrows) is $892,919.98.

4) $892,919.98 distributed at the rate of 3% per year, $26,787.60 (i.e. 892,919.98*.03) would last more than 30 years (until 95 if you retire at age 65) without interest paid on the on the final amount on deposit!

Assignment

Your group has been hired by the AARP to write a report that looks into the merit of the above analysis. Your report should:

1) Address the mathematical consistency of the assertions made in steps 1) through 4). If you find any inconsistencies please state and explain them.

2) One member of the AARP group reaching out to you recently retired at age 65 after 40 years of work where he averaged roughly $30,000 per year. His Social Security Taxable Income is given in Table 1 on the next page. Using the assumptions about Social Security made in the email analysis, calculate the current value of his Social Security Contributions and whether it can support 30 years of annual Social Security Income of $26,787.60 (without interest paid on the current amount of deposit). If not,

a) Explain the difference between this portfolio and the one in the above analysis.

b) Assuming a 5% return on current monies in the Social Security Account and a 30 year payout period, how much annual payout could this portfolio support?

3) Look up how much Social Security would actually pay each of the 2 people described above.

4) Based on all of the above, what is your conclusion as to the merits of calling Social Security and entitlement.

5) The above email claims a 15% combined contribution to Social Security by both employee and employer and 5% yearly interest rate on money in the fund.. Check to see whether these numbers are historically correct. If not, using the correct values recalculate the numbers for the AARP member in Table 1.

6) Based on current interest rates, is an assumption of 5% on Social Security funds realistic? If not, recalculate using what you consider to be a realistic interest rate.

In the concluding section of your report, based on all of your analysis and fact finding, state yo

Table 1

Social Security

Year Salary

1972 $ 4,121.40

1973 $ 4,680.00

1974 $ 5,400.00

1975 $ 6,480.00

1976 $ 7,920.00

1977 $ 8,069.40

1978 $ 9,180.00

1979 $ 9,900.00

1980 $ 10,620.00

1981 $ 13,740.00

1982 $ 15,540.00

1983 $ 17,075.40

1984 $ 19,440.00

1985 $ 21,420.00

1986 $ 22,680.00

1987 $ 23,760.00

1988 $ 25,200.00

1989 $ 26,280.00

1990 $ 27,000.00

1991 $ 28,800.00

1992 $ 30,780.00

1993 $ 32,040.00

1994 $ 33,300.00

1995 $ 34,560.00

1996 $ 36,360.00

1997 $ 36,720.00

1998 $ 37,620.00

1999 $ 39,240.00

2000 $ 41,040.00

2001 $ 43,560.00

2002 $ 45,720.00

2003 $ 48,240.00

2004 $ 50,940.00

2005 $ 52,200.00

2006 $ 52,740.00

2007 $ 54,000.00

2008 $ 56,520.00

2009 $ 58,500.00

2010 $ 61,200.00

2011 $ 64,080.00

1. Question 4-6: A corporation randomly selects 150 salespeople and finds that 99 salespeople would like to take a self-improvement course. The firm did a similar study 10 years ago in which 96 salespeople out of a random sample of 160 salespeople wanted a self-improvement course. The groups are assumed to be independent random samples. Let  p ₁ and  p ₂ represent the true proportion of workers who would like to attend a self-improvement course in the recent study and the past study, respectively.
   
   Which equation should be used to compute the value of the test statistic ?

   		A. eq 10.5
   		B. eq 10.9
   		C. eq 10.7
   		D. eq 10.16

2. The company tests to determine at the 0.05 level whether the population proportion has changed from the previous study. Which of the following is most correct if the test statistic is 1.093?

   		A. Reject the null hypothesis and conclude that the proportion of employees who are interested in a self-improvement course has increased over the intervening 10 years.
   		B. Fail to reject the null hypothesis, there is not enough evidence to conclude that the proportion of employees who are interested in a self-improvement course has not changed over the intervening 10 years.
   		C. Fail to reject the null hypothesis, there is not enough evidence to conclude that the proportion of employees who are interested in a self-improvement course has changed over the intervening 10 years.
   		D. Reject the null hypothesis and conclude that the proportion of employees who are interested in a self-improvement course has changed over the intervening 10 years.

Q 1 A survey of 200 workers was conducted regarding their education (school graduates or less, college graduates, university graduates) and the level of their job satisfaction (low, medium, high). These are the results:

We will test at a 0.025 level of significance whether the level of job satisfaction depends on the level of education. (Critical Value = 11.14)                                       

Q 2 Four hostels took a random sample of students regarding their grade averages for the past term. The results are shown below:

Use a significance level of 1%, is there a difference in grade averages among the hostels? (Critical Value = 4). Also make the ANOVA summary table.                   

Q 3 Researchers are interested in the mean age of a certain population. A random sample of 32 individuals drawn from the population of interest has a mean of 27. Assuming that the population is approximately normally distributed with variance 20, can we conclude that (a) the mean is different from 30 years (b) the mean is greater than 30 years (c) the mean is less than 30 years ? (α=0.05) .                                                                        

Q 4 A certain company would like to determine the amount of time employees waste at work each day. A random sample of 10 of its employees shows a mean time of 121.80 minutes wasted per day with a standard deviation of 9.45 minutes per day. Does the data provide evidence that the mean amount of time wasted by employees each day is more than 120 minutes? Test at α=.05. Assume the population is at least approximately normally distributed.                                                                                                 

Q 5 The government is concerned that in Pakistan the percentage of deaths of Sindhi prisoners was higher than the per cent of deaths of other prisoners, which is 0.25%. A sample of six years was collected, and 51 out of 14,495 Sindhi prisoners died. Does data provide evidence to show that the proportion of deaths of Sindhi prisoners is more than 0.25%?

The trail balance sheet of Moe’s Mowing, Inc is dated August 31, 2019: Assets Liabilities Cash 6,000 Account Payable 5,000 Account Receivable 400 Notes payable 2,500 Supplies 6000 salary payable 2,000 Prepaid rent 13,000 Loan Payable 13,000 Inventory 2,500 Unearned Revenue 4000 Total current assts 27,900 Total Liabilities 26,500 Cars 7,500 building 1500 Shareholder’s Equity furniture 2500 Common Stocks 6,700 Retained Earning 6,200 Total fixed asset 11,500 Total owner's equity 12,900 Total Assets 39,400 Total Liabilities and Equity 39,400 During the month of September, the business incurred the following transactions: 9/1/2019 Deposited $5,000 cash in the business’s bank account. The company received the cash and issued common stocks. 9/2/2019 The company purchased a car for $1,750 on account from Melton Supply 9/3/2019 The company bought equipment, paying cash, 1,750 9/4/2019 The company purchased office supplies for $1000 cash. 9/5/2019 The company provided services to the Walker Company for $18000 on account. 9/6/2019 The company paid $500 to Melton Office Supply 9/7/2019 The company borrowed a short-term debt (notes payable) from the bank, $20,000 9/8/2019 The company received $8,000 in cash for services provided to a new customer. 9/9/2019 Shortly after opening the business, the company paid the month’s rent of $650. 9/10/2019 1% of the inventory has been expired (bad goods expense). 9/11/2019 The company paid $100 cash to repair car. 9/12/2019 Sold merchandise on account to Kara Elsworth, $14,500, term 2/10, n/30 9/13/2019 The company sold 12% of its furniture for cash at price of $40,000. 9/14/2019 Kara Elsworth returned $500 of the merchandise purchased on September 11 9/16/2019 The company received $1,100 cash from Walker Company 9/16/2019 Declared and paid dividends of $600. 9/17/2019 Collecting 70% of accounts receivable. 9/18/2019 Collected payment from Kara Elsworth for September 11 sale. 9/19/2019 The company paid 35% of its accounts payable. 9/20/2019 Supplies on hand at month-end, $4000 9/21/2019 Salary owed but not paid yet $1000 9/22/2019 Prepaid rent expired, $8,000 9/23/2019 $2000 out of the unearned service revenue was earned during September. 9/24/2019 The loan accrues interest at 1% per month. No interest was paid in September 9/25/2019 The bookkeeper recorded a collection from accounts receivable of $100 as $10 9/26/2019 On May 18, Moe’s Mowing, Inc purchased on account equipment costing $450. The transaction was journalized and posted as a debit to Equipment $45 and a credit to Accounts Payable $45. The error was discovered on 9/26/2019. 9/27/2019 Income tax is 2.5% Required: Record theses business transactions in Journal entry, and create the financial statements

A Mutual Fund Company (“the Company”) has engaged your firm to conduct their internal audit services. All of the employees of the company are skilled investment managers and administrators. They are also very well paid compared to others in the industry. Upon reviewing the documents you found out that the CEO of the Company had formed a company which offered similar business products and services but had been fined by the Securities Commission for failure to file its statutory returns in a timely manner. You have also found out, from your search on the internet, that a company with a similar name is listed under the fraud watch-list of the Commission. As time is of the essence, you have contacted the HR Department of the company requesting a resume of the CEO. They advised that they could not locate it and that he was on vacation at that time. If have also attempted to google the name of this persons but you cannot locate him You also realize that the company did not file their audited financials from 2018. So you contacted the previous accounting firm who were not available to provide any feedback on the client company and the reasons why the accounts were not submitted to the regulator. You complete your review by cross checking the picture of the office with On a final attempt to confirm the information, you cross check the picture of the offices provided with the google maps and find out that there is another structure on that location and it is not the Fund Company

a. What are the red flags identified which might indicate money laundering activity and/or terrorist financing in this case?

b. What are the risks and the potential threats that the accounting firm may be faced with in this situation?

c. What KYC/Due Diligence work could the accounting firm have carried out and when?