Use Workbench/Command Line to create the commands that will run the following queries/problem scenarios.

Use MySQL and the Colonial Adventure Tours database to complete the following exercises.

1. List the last name of each guide that does not live in Massachusetts (MA).

2. List the trip name of each trip that has the type Biking.

3. List the trip name of each trip that has the season Summer.

4. List the trip name of each trip that has the type Hiking and that has a distance longer than 10 miles.

5. List the customer number, customer last name, and customer first name of each customer that lives in New Jersey (NJ), New York (NY) or Pennsylvania (PA). Use the IN operator in your command.

6. Repeat Exercise 5 and sort the records by state in descending order and then by customer last name in ascending order.

7. How many trips are in the states of Maine (ME) or Massachusetts (MA)?

8. How many trips originate in each state?

9. How many reservations include a trip price that is greater than $20 but less than $75?

10. How many trips of each type are there?

11. Colonial Adventure Tours calculates the total price of a trip by adding the trip price plus other fees and multiplying the result by the number of persons included in the reservation. List the reservation ID, trip ID, customer number, and total price for all reservations where the number of persons is greater than four. Use the column name TOTAL_PRICE for the calculated field.

12. Find the name of each trip containing the word “Pond.”

13. List the guide’s last name and guide’s first name for all guides that were hired before June 10, 2013.

14. What is the average distance and the average maximum group size for each type of trip?

15. Display the different seasons in which trips are offered. List each season only once.

16. List the reservation IDs for reservations that are for a paddling trip. (Hint: Use a subquery.)

17. What is the longest distance for a biking trip?

18. For each trip in the RESERVATION table that has more than one reservation, group by trip ID and sum the trip price. (Hint: Use the COUNT function and a HAVING clause.)

19. How many current reservations does Colonial Adventure Tours have and what is the total number of persons for all reservations?

Jason Ackerman is the management accountant for Central Restaurant Supply ​(CRS. Beth Donaldson, the CRS sales​ manager, and Jason are meeting to discuss the profitability of one of the​ customers, Mama Leone's Leone's Pizza. Jason hands Beth the following analysis of Mama Leone's activity during the last​ quarter, taken from Central ​activity-based costing​ system:

Sales $23,400

Cost of goods sold (all variable) 14,025

Order processing (25 orders processed at $300 per order) 7,500

Delivery (2,500 miles driven at $0.75 per mile) 1,875

Rush orders (3 rush orders at $165 per rush order) 495

Sales calls (3 sales calls at $150 per call) 450

Operating income $ (945)

Beth looks at the report and​ remarks, "I'm glad to see all my hard work is paying off with Mama Leone's. Sales have gone up 10 % over the previous​ quarter!"

Jason ​replies, "Increased sales are​ great, but​ I'm worried about Mama Leone's ​margin, Beth. We were showing a profit with Mama Leone's at the lower sales​ level, but now​ we're showing a loss. Gross margin percentage this quarter was 40 %​, down five percentage points from the prior quarter.​ I'm afraid that corporate will push hard to drop them as a customer if things​ don't turn​ around."

​"That's crazy," Beth responds.​ "A lot of that overhead for things like order​ processing, deliveries, and sales calls would just be allocated to other customers if we dropped Mama Leone's. This report makes it look like​ we're losing money on Mama Leone's when​ we're not. In any​ case, I am sure you can do something to make its profitability look closer to what we think it is. No one doubts that Mama Leone's is a very good​ customer."

Requirements

Assume that Beth is partly correct in her assessment of the report. Upon further​ investigation, it is determined that 10 % of the order processing costs and 20 % of the delivery costs would not be avoidable if CRS were to drop Mama Leone's. Would CRS benefit from dropping Mama Leone's​? Show your calculations.

Beth​'s bonus is based on meeting sales targets. Based on the preceding information regarding gross margin​ percentage, what might Beth have done last quarter to meet her target and receive her​ bonus? How might CRS revise its bonus system to address​ this?

Should Jason rework the​ numbers? How should he respond to Beth​'s comments about making Mama Leone's look more​ profitable?

Using OLS estimation methodology, the study of Morelli and Smith (2015) uses a cross sectional data of 2490 cars for the year 2013 to estimate the factors affecting the price of automobiles in the state of California. The estimation results of regressing the price variable on a set of explanatory variables are shown in Model (1), where the numbers in parentheses are the robust standard errors of the coefficients.

????? = 5647.02 + 5.77 ????ℎ? + 23.64 ??? + 3573.09 ???????      (1)

              (1042.20)      (1.50)              (13.74)            (1230)

???_?^2= 0.65, ? = 2490

Where price is in U.S. dollars, weight is in pounds, mpg is the number of miles per gallon, and foreign is a dummy variable that takes 1 if the ith car is foreign and 0 if domestic.

1. Interpret the above results and discuss whether the signs and statistical significance of the coefficients are as expected.
2. What is the predicted price for a Buick Regal car that weights 3,450 lbs. and with 22 mpg? And what is the predicted price for a Toyota Corolla that weights 2,310 lbs.and with 18 mpg?
3. If in the year 2013 the actual price of Buick Regal was $25,500 and that of Toyota Corolla was $23,640, use the results of point (b) to determine whether your model over or under predicting the price of each car?
4. In one specification, the authors have included the length of the ith car, length, as an additional regressor to Model (1), where length is measured in inches. The resulting regression results are shown in Model (2) as follows,

              ????? = 5524.02 + 6.54 ????ℎ? + 22.73 ??? + 3568.11 ??????? − 93.48 ?????ℎ       (2)

   (1033.10) (4.85)               (13.68)             (1232)                      (32.87)

???_?^2 = 0.92, ? = 2490

If the F-statistic of the coefficients of the four included variables in Model (2) is equal to 54.32, does the inclusion of the variable length in Model (2) creates an econometric problem? Explain in details.

5. In one last specification of the model, the authors have included the size of the trunk of the ith car, trunk, as an additional regressor to Model (1), where trunk is measured in cubic feet. The resulting regression results are shown in Model (3) as follows,

               ????? = 5631.24 + 4.95 ????ℎ? + 25.99 ??? + 3650.22 ??????? + 88.31 ????? (3)

                         (1144.67)    (1.62)              (13.54)             (1285.29)                 (44.38)

???_?^2 = 0.75, ? = 2490

Suppose that the correlations between the variable trunk and the variables price, weight, mpg, and foreign are equal to 0.25, 0.49, -0.38, and -0.36, respectively. Based on these correlations, refer to Model (1) and discuss the direction of the bias of each coefficient of the three included variables. What is your opinion about including the variable trunk as an additional regressor in Model (3)? Does the inclusion of the variable trunk violate any of the OLS assumptions? Explain in details.

Bad Bad Benny: A True Story (Identifying Controls for a System) In the early 20th century, there was an ambitious young man named Arthur who started working at a company in Chicago as a mailroom clerk. He was a hard worker and very smart, eventually ending up as the president of the company, the James H. Rhodes Company. The firm produced steel wool and harvested sea sponges in Tarpon Springs, Florida for household and industrial use. The company was very successful, and Arthur decided that the best way to assure the continued success of the company was to hire trusted family members for key management positions—because you can always count on your family. Arthur decided to hire his brother Benny to be his Chief Financial Officer (CFO) and placed other members of the family in key management positions. He also started his eldest son, Arthur Junior (an accountant by training) in a management training program, hoping that he would eventually succeed him as president. As the company moved into the 1920s, Benny was a model employee; he worked long hours, never took vacations, and made sure that he personally managed all aspects of the cash function. For example, he handled the entire purchasing process—from issuing purchase orders through the disbursement of cash to pay bills. He also handled the cash side of the revenue process by collecting cash payments, preparing the daily bank deposits, and reconciling the monthly bank statement. The end of the 1920s saw the United States entering its worst Depression since the beginning of the Industrial Age. Because of this, Arthur and other managers did not get raises, and, in fact, took pay cuts to keep the company going and avoid layoffs. Arthur and other top management officials made ‘‘lifestyle’’ adjustments as well—for example, reducing the number of their household servants and keeping their old cars, rather than purchasing new ones. Benny, however, was able to build a new house on the shore of Lake Michigan and purchased a new car. He dressed impeccably and seemed impervious to the economic downturn. His family continued to enjoy the theater, new cars, and nice clothes. Arthur’s wife became suspicious of Benny’s good fortune in the face of others’ hardships, so she and Arthur hired an accountant to review the books. External audits were not yet required for publicly held companies, and the Securities and Exchange Commission (SEC) had not yet been formed (that would happen in 1933–1934). Jim the accountant was eventually able to determine that Benny had diverted company funds to himself by setting up false vendors and having checks mailed to himself. He also diverted some of the cash payments received from customers and was able to hide it by handling the bank deposits and the reconciliation of the company’s bank accounts. Eventually, Jim determined that Benny had embezzled about $500,000 (in 1930 dollars). If we assume annual compounding of 5% for 72 years, the value in today’s dollars would be about $17.61 million! Arthur was furious and sent Benny away. Arthur sold most of his personal stock holdings in the company to repay Benny’s embezzlement, which caused him to lose his controlling interest in the company and eventually was voted out of office by the Board of Directors. Jim, the accountant, wrote a paper about his experience with Benny (now referred to as ‘‘Bad Bad Benny’’ by the family). Jim’s paper contributed to the increasing call for required annual external audits for publicly held companies. Arthur eventually reestablished himself as a successful stockbroker and financial planner. Benny disappeared and was never heard from again.

1. Identify the five control weaknesses in Revenue and Purchase process.

2. Identify the five General controls Arthur should have implemented in the company.

3. From Chapter 13, identify the five internal control activities Arthur should have considered (or implemented) to thwart Benny’s bad behavior.

In your opinion is the US debt a problem for the United States or not? Given that monetary policy has an effect on interest rates, should monetary policy work with fiscal policy to reduce the impacts of debt? What are the pros and cons of monetary policy and fiscal policy working together? (Answer question based on the article below)

Article:

As Congress allocates trillions of dollars to support businesses and individuals impacted by the coronavirus pandemic, some project US debt skyrocketing to historical highs. This adds fuel to a long-running question: Does America’s growing debt load spell future trouble? In our view, focusing solely on the debt’s size doesn’t tell the whole story. By looking at the debt question differently, we think investors can defuse concerns about America’s allegedly ticking time bomb.

Even before the coronavirus dominated headlines, some worried about big deficits adding to America’s debt. In early May, US Treasury data show $25.1 trillion in total federal government debt outstanding. [i] While this figure includes intra-governmental holdings (i.e., money the government owes itself), even stripping this away leaves net public debt at a still-huge $19.1 trillion—nearly 2.5 times the amount on January 1, 2010. [ii]

In isolation, that big number doesn’t mean much. So to put this figure into perspective, many economists compare a country’s debt to its GDP. At the end of 2019, net public debt was 79.2% of US GDP—up from 52.3% a decade earlier and the biggest since the late 1940s. [iii] Moreover, coronavirus’ impact is almost assured to push the ratio far higher. Between Q1’s -4.8% annualized GDP decline (with worse likely in Q2) and rising debt as the government funds its coronavirus response, America’s debt-to-GDP ratio could exceed its post–World War II high of 106.1% in the not-so-distant future. [iv]

Large debt-to-GDP ratios inspire comparisons to countries like Greece, which defaulted multiple times in the past decade. But even these ratios alone don’t mean problems loom. What matters more: a country’s ability to meet interest payments. Governments don’t use GDP—an annual flow of economic activity—to meet those obligations. They use tax revenue. In fiscal year 2019, US interest payments accounted for about 10.8% of tax revenues. [v] This figure has been rising over the past 4 years, but it remains well below the 15%–18% range in effect during most of the 1980s–1990s. [vi] America had no trouble servicing its debt during these two decades. The economy boomed.

With Treasury yields historically low, many acknowledge financing debt today isn’t onerous—especially since the Treasury gets to refinance maturing debt at a cheaper rate. On May 5, 2010, the Treasury sold $24 billion in 10-year notes at a 3.51% interest rate. [vii] The Treasury effectively refinanced those at a mid-May 2020 auction of new 10-year notes. The interest rate? A far-lower 0.65%. [viii]

Which brings us to another point: Treasury bonds carry fixed rates, so rising rates don’t immediately threaten affordability. As of 12/31/2019, the weighted average maturity of US debt was nearly 70 months—higher than the 60-month historical average over the past 40 years. [ix] Hence, rates would need to rise significantly from here—and stay there for years as Treasury refinanced maturing bonds—to hit costs materially. That doesn’t seem likely today. Demand is strong, putting downward pressure on yields. With sovereign-debt yields low globally—Japan and Europe have lower rates than America—US debt remains more attractive in comparison.

Moreover, interest rates tend to move with inflation, and the latter looks unlikely to surge in the near future. Even after the spread widened between long and short rates since February’s end, the US yield curve is still around its flattest over the past 10 years. That weighs on bank lending and, relatedly, money supply growth—a key inflation component. When investors anticipate higher inflation to come, they will demand a higher premium to compensate for their loss in purchasing power. That isn’t likely to be the case with inflation benign. US debt could be on its way to making new records, but that doesn’t mean new problems will come with it.

Investing in stock markets involves the risk of loss and there is no guarantee that all or any capital invested will be repaid. Past performance is no guarantee of future returns. International currency fluctuations may result in a higher or lower investment return. This document constitutes the general views of Fisher Investments and should not be regarded as personalized investment or tax advice or as a representation of its performance or that of its clients. No assurances are made that Fisher Investments will continue to hold these views, which may change at any time based on new information, analysis or reconsideration. In addition, no assurances are made regarding the accuracy of any forecast made herein. Not all past forecasts have been, nor future forecasts will be, as accurate as any contained herein.

3-2

Almost all companies utilize some type of? year-end performance review for their employees. Human Resources? (HR) at a? university's Health Science Center provides guidelines for supervisors rating their subordinates. For? example, raters are advised to examine their ratings for a tendency to be either too lenient or too harsh. According to? HR, "if you have this? tendency, consider using a normal distribution —?10% of employees? (rated) exemplary,? 20% distinguished,? 40% competent,? 20% marginal, and? 10% unacceptable." Suppose you are rating an? employee's performance on a scale of 1? (lowest) to 100? (highest). Also, assume the ratings follow a normal distribution with a mean of 49 and a standard deviation of 15.

Complete parts a and b.

View a table of areas under the standardized normal curve.

z           .00        .01        .02        .03        .04        .05        .06        .07        .08        .09

.0         .0000    .0040    .0080    .0120    .0160    .0199    .0239    .0279    .0319    .0359

.1         .0398    .0438    .0478    .0517    .0557    .0596    .0636    .0675    .0714    .0753

.2         .0793    .0832    .0871    .0910    .0948    .0987    .1026    .1064    .1103    .1141

.3         .1179    .1217    .1255    .1293    .1331    .1368    .1406    .1443    .1480    .1517

.4         .1554    .1591    .1628    .1664    .1700    .1736    .1772    .1808    .1844    .1879

.5         .1915    .1950    .1985    .2019    .2054    .2088    .2123    .2157    .2190    .2224

.6         .2257    .2291    .2324    .2357    .2389    .2422    .2454    .2486    .2517    .2549

.7         .2580    .2611    .2642    .2673    .2704    .2734    .2764    .2794    .2823    .2852

.8         .2881    .2910    .2939    .2967    .2995    .3023    .3051    .3078    .3106    .3133

.9         .3159    .3186    .3212    .3238    .3264    .3289    .3315    .3340    .3365    .3389

1.0        .3413    .3438    .3461    .3485    .3508    .3531    .3554    .3577    .3599    .3621

1.1        .3643    .3665    .3686    .3708    .3729    .3749    .3770    .3790    .3810    .3830

1.2        .3849    .3869    .3888    .3907    .3925    .3944    .3962    .3980    .3997    .4015

1.3        .4032    .4049    .4066    .4082    .4099    .4115    .4131    .4147    .4162    .4177

1.4        .4192    .4207    .4222    .4236    .4251    .4265    .4279    .4292    .4306    .4319

1.5        .4332    .4345    .4357    .4370    .4382    .4394    .4406    .4418    .4429    .4441

1.6        .4452    .4463    .4474    .4484    .4495    .4505    .4515    .4525    .4535    .4545

1.7        .4554    .4564    .4573    .4582    .4591    .4599    .4608    .4616    .4625    .4633

1.8        .4641    .4649    .4656    .4664    .4671    .4678    .4686    .4693    .4699    .4706

1.9        .4713    .4719    .4726    .4732    .4738    .4744    .4750    .4756    .4761    .4767

2.0        .4772    .4778    .4783    .4788    .4793    .4798    .4803    .4808    .4812    .4817

2.1        .4821    .4826    .4830    .4834    .4838    .4842    .4846    .4850    .4854    .4857

2.2        .4861    .4864    .4868    .4871    .4875    .4878    .4881    .4884    .4887    .4890

2.3        .4893    .4896    .4898    .4901    .4904    .4906    .4909    .4911    .4913    .4916

2.4        .4918    .4920    .4922    .4925    .4927    .4929    .4931    .4932    .4934    .4936

2.5        .4938    .4940    .4941    .4943    .4945    .4946    .4948    .4949    .4951    .4952

2.6        .4953    .4955    .4956    .4957    .4959    .4960    .4961    .4962    .4963    .4964

2.7        .4965    .4966    .4967    .4968    .4969    .4970    .4971    .4972    .4973    .4974

2.8        .4974    .4975    .4976    .4977    .4977    .4978    .4979    .4979    .4980    .4981

2.9        .4981    .4982    .4982    .4983    .4984    .4984    .4985    .4985    .4986    .4986

3.0        .4987    .4987    .4987    .4988    .4988    .4989    .4989    .4989    .4990    .4990

3.1        .49903   .49906   .49910   .49913   .49916   .49918   .49921   .49924   .49926   .49929

3.2        .49931   .49934   .49936   .49938   .49940   .49942   .49944   .49946   .49948   .49950

3.3        .49952   .49953   .49955   .49957   .49958   .49960   .49961   .49962   .49964   .49965

3.4        .49966   .49968   .49969   .49970   .49971   .49972   .49973   .49974   .49975   .49976

3.5        .49977   .49978   .49978   .49979   .49980   .49981   .49981   .49982   .49983   .49983

3.6        .49984   .49985   .49985   .49986   .49986   .49987   .49987   .49988   .49988   .49989

3.7        .49989   .49990   .49990   .49990   .49991   .49991   .49992   .49992   .49992   .49992

3.8        .49993   .49993   .49993   .49994   .49994   .49994   .49994   .49995   .49995   .49995

3.9        .49995   .49995   .49996   .49996   .49996   .49996   .49996   .49996   .49997   .49997

a. What is the lowest rating you should give to an? "exemplary" employee if you follow the? university's HR? guidelines? --- ------ (Round to two decimal places as? needed.)

b. What is the lowest rating you should give to a? "competent" employee if you follow the? university's guidelines? ------- (Round to two decimal places as? needed.)

3- 3

Personnel tests are designed to test a job? applicant's cognitive? and/or physical abilities. A particular dexterity test is administered nationwide by a private testing service. It is known that for all tests administered last?year, the distribution of scores was approximately normal with mean 78 and standard deviation 8.4.

a. A particular employer requires job candidates to score at least 82 on the dexterity test. Approximately what percentage of the test scores during the past year exceeded 82??

b. The testing service reported to a particular employer that one of its job? candidate's scores fell at the 90th percentile of the distribution? (i.e., approximately 90?% of the scores were lower than the? candidate's, and only 10?% were? higher). What was the? candidate's score?

View a table of areas under the standardized normal curve.

z           0.00      0.01      0.02      0.03      0.04      0.05      0.06      0.07      0.08      0.09

0.0        0.0000   0.0040   0.0080   0.0120   0.0160   0.0199   0.0239   0.0279   0.0319   0.0359

0.1        0.0398   0.0438   0.0478   0.0517   0.0557   0.0596   0.0636   0.0675   0.0714   0.0753

0.2        0.0793   0.0832   0.0871   0.0910   0.0948   0.0987   0.1026   0.1064   0.1103   0.1141

0.3        0.1179   0.1217   0.1255   0.1293   0.1331   0.1368   0.1406   0.1443   0.1480   0.1517

0.4        0.1554   0.1591   0.1628   0.1664   0.1700   0.1736   0.1772   0.1808   0.1844   0.1879

0.5        0.1915   0.1950   0.1985   0.2019   0.2054   0.2088   0.2123   0.2157   0.2190   0.2224

0.6        0.2257   0.2291   0.2324   0.2357   0.2389   0.2422   0.2454   0.2486   0.2517   0.2549

0.7        0.2580   0.2611   0.2642   0.2673   0.2704   0.2734   0.2764   0.2794   0.2823   0.2852

0.8        0.2881   0.2910   0.2939   0.2967   0.2995   0.3023   0.3051   0.3078   0.3106   0.3133

0.9        0.3159   0.3186   0.3212   0.3238   0.3264   0.3289   0.3315   0.3340   0.3365   0.3389

1.0        0.3413   0.3438   0.3461   0.3485   0.3508   0.3531   0.3554   0.3577   0.3599   0.3621

1.1        0.3643   0.3665   0.3686   0.3708   0.3729   0.3749   0.3770   0.3790   0.3810   0.3830

1.2        0.3849   0.3869   0.3888   0.3907   0.3925   0.3944   0.3962   0.3980   0.3997   0.4015

1.3        0.4032   0.4049   0.4066   0.4082   0.4099   0.4115   0.4131   0.4147   0.4162   0.4177

1.4        0.4192   0.4207   0.4222   0.4236   0.4251   0.4265   0.4279   0.4292   0.4306   0.4319

1.5        0.4332   0.4345   0.4357   0.4370   0.4382   0.4394   0.4406   0.4418   0.4429   0.4441

1.6        0.4452   0.4463   0.4474   0.4484   0.4495   0.4505   0.4515   0.4525   0.4535   0.4545

1.7        0.4554   0.4564   0.4573   0.4582   0.4591   0.4599   0.4608   0.4616   0.4625   0.4633

1.8        0.4641   0.4649   0.4656   0.4664   0.4671   0.4678   0.4686   0.4693   0.4699   0.4706

1.9        0.4713   0.4719   0.4726   0.4732   0.4738   0.4744   0.4750   0.4756   0.4761   0.4767

2.0        0.4772   0.4778   0.4783   0.4788   0.4793   0.4798   0.4803   0.4808   0.4812   0.4817

2.1        0.4821   0.4826   0.4830   0.4834   0.4838   0.4842   0.4846   0.4850   0.4854   0.4857

2.2        0.4861   0.4864   0.4868   0.4871   0.4875   0.4878   0.4881   0.4884   0.4887   0.4890

2.3        0.4893   0.4896   0.4898   0.4901   0.4904   0.4906   0.4909   0.4911   0.4913   0.4916

2.4        0.4918   0.4920   0.4922   0.4925   0.4927   0.4929   0.4931   0.4932   0.4934   0.4936

2.5        0.4938   0.4940   0.4941   0.4943   0.4945   0.4946   0.4948   0.4949   0.4951   0.4952

2.6        0.4953   0.4955   0.4956   0.4957   0.4959   0.4960   0.4961   0.4962   0.4963   0.4964

2.7        0.4965   0.4966   0.4967   0.4968   0.4969   0.4970   0.4971   0.4972   0.4973   0.4974

2.8        0.4974   0.4975   0.4976   0.4977   0.4977   0.4978   0.4979   0.4979   0.4980   0.4981

2.9        0.4981   0.4982   0.4982   0.4983   0.4984   0.4984   0.4985   0.4985   0.4986   0.4986

3.0        0.4987   0.4987   0.4987   0.4988   0.4988   0.4989   0.4989   0.4989   0.4990   0.4990

3.1        0.49903 0.49906 0.49910 0.49913 0.49916 0.49918 0.49921 0.49924 0.49926 0.49929

3.2        0.49931 0.49934 0.49936 0.49938 0.49940 0.49942 0.49944 0.49946 0.49948 0.49950

3.3        0.49952 0.49953 0.49955 0.49957 0.49958 0.49960 0.49961 0.49962 0.49964 0.49965

3.4        0.49966 0.49968 0.49969 0.49970 0.49971 0.49972 0.49973 0.49974 0.49975 0.49976

3.5        0.49977 0.49978 0.49978 0.49979 0.49980 0.49981 0.49981 0.49982 0.49983 0.49983

3.6        0.49984 0.49985 0.49985 0.49986 0.49986 0.49987 0.49987 0.49988 0.49988 0.49989

3.7        0.49989 0.49990 0.49990 0.49990 0.49991 0.49991 0.49992 0.49992 0.49992 0.49992

3.8        0.49993 0.49993 0.49993 0.49994 0.49994 0.49994 0.49994 0.49995 0.49995 0.49995

3.9        0.49995 0.49995 0.49996 0.49996 0.49996 0.49996 0.49996 0.49996 0.49997 0.49997

a. Approximately ----?% of the test scores during the past year exceeded 82. ?(Round to one decimal place as? needed.)

b. The? candidate's score was ----. (Round to the nearest whole number as? needed.)

In response to requests from customers, S. Rey will begin selling computer software. The company will extend credit terms of 1/10, n/30, FOB shipping point, to all customers who purchase this merchandise. However, no cash discount is available on consulting fees. Additional accounts (Nos. 119, 413, 414, 415, and 502) are added to its general ledger to accommodate the company’s new merchandising activities. Also, Business Solutions does not use reversing entries and, therefore, all revenue and expense accounts have zero beginning balances as of January 1, 2018. Its transactions for January through March follow:

Jan. 4 The company paid cash to Lyn Addie for five days’ work at the rate of $175 per day. Four of the five days relate to wages payable that were accrued in the prior year.
5 Santana Rey invested an additional $25,000 cash in the company.
7 The company purchased $6,600 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7.
9 The company received $2,688 cash from Gomez Co. as full payment on its account.
11 The company completed a five-day project for Alex’s Engineering Co. and billed it $5,470, which is the total price of $6,820 less the advance payment of $1,350.
13 The company sold merchandise with a retail value of $4,400 and a cost of $3,510 to Liu Corp., invoice dated January 13.
15 The company paid $710 cash for freight charges on the merchandise purchased on January 7.
16 The company received $4,180 cash from Delta Co. for computer services provided.
17 The company paid Kansas Corp. for the invoice dated January 7, net of the discount.
20 Liu Corp. returned $700 of defective merchandise from its invoice dated January 13. The returned merchandise, which had a $280 cost, is discarded. (The policy of Business Solutions is to leave the cost of defective products in cost of goods sold.)
22 The company received the balance due from Liu Corp., net of both the discount and the credit for the returned merchandise.
24 The company returned defective merchandise to Kansas Corp. and accepted a credit against future purchases. The defective merchandise invoice cost, net of the discount, was $486.
26 The company purchased $10,000 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB destination, invoice dated January 26.
26 The company sold merchandise with a $4,600 cost for $5,810 on credit to KC, Inc., invoice dated January 26.
31 The company paid cash to Lyn Addie for 10 days’ work at $175 per day.
Feb. 1 The company paid $2,565 cash to Hillside Mall for another three months’ rent in advance.
3 The company paid Kansas Corp. for the balance due, net of the cash discount, less the $486 amount in the credit memorandum.
5 The company paid $410 cash to the local newspaper for an advertising insert in today’s paper.
11 The company received the balance due from Alex’s Engineering Co. for fees billed on January 11.
15 Santana Rey withdrew $4,750 cash from the company for personal use.
23 The company sold merchandise with a $2,550 cost for $3,410 on credit to Delta Co., invoice dated February 23.
26 The company paid cash to Lyn Addie for eight days’ work at $175 per day.
27 The company reimbursed Santana Rey for business automobile mileage (1,000 miles at $0.32 per mile).
Mar. 8 The company purchased $2,850 of computer supplies from Harris Office Products on credit, invoice dated March 8.
9 The company received the balance due from Delta Co. for merchandise sold on February 23.
11 The company paid $860 cash for minor repairs to the company’s computer.
16 The company received $5,260 cash from Dream, Inc., for computing services provided.
19 The company paid the full amount due to Harris Office Products, consisting of amounts created on December 15 (of $1,130) and March 8.
24 The company billed Easy Leasing for $9,157 of computing services provided.
25 The company sold merchandise with a $2,102 cost for $2,870 on credit to Wildcat Services, invoice dated March 25.
30 The company sold merchandise with a $1,048 cost for $2,360 on credit to IFM Company, invoice dated March 30.
31 The company reimbursed Santana Rey for business automobile mileage (300 miles at $0.32 per mile).

The following additional facts are available for preparing adjustments on March 31 prior to financial statement preparation:

The March 31 amount of computer supplies still available totals $2,205.
Three more months have expired since the company purchased its annual insurance policy at a $2,472 cost for 12 months of coverage.
Lyn Addie has not been paid for seven days of work at the rate of $175 per day.
Three months have passed since any prepaid rent has been transferred to expense. The monthly rent expense is $855.
Depreciation on the computer equipment for January 1 through March 31 is $1,060.
Depreciation on the office equipment for January 1 through March 31 is $400.
The March 31 amount of merchandise inventory still available totals $594.

Required:

1. Prepare journal entries to record each of the January through March transactions.

One Product Corp. (OPC) incorporated at the beginning of last year. The balances on its post-closing trial balance prepared on December 31, at the end of its first year of operations, were:

The following information is relevant to the first month of operations in the following year:

• OPC sells its inventory at $150 per unit, plus sales tax of 6%. OPC’s January 1 inventory balance consists of 180 units at a total cost of $12,760. OPC’s policy is to use the FIFO method, recorded using a perpetual inventory system.
• The $1,700 in Prepaid Rent relates to a payment made in December for January rent this year.
• The equipment was purchased on July 1 of last year. It has a residual value of $1,000 and an expected life of five years. It is being depreciated using the straight-line method.
• Employee wages are $4,000 per month. Employees are paid on the 16th for the first half of the month and on the first day of the following month for the second half of each month. Withholdings each pay period include $250 of income taxes and $150 of FICA taxes. These withholdings and the employer’s matching contribution are paid monthly on the second day of the following month. In addition, unemployment taxes of $50 are accrued each pay period, and will be paid on March 31.
• Deferred Revenue is for 30 units ordered and paid for in advance by two customers in late December. One order of 25 units is to be filled in January, and the other will be filled in February.
• Notes Payable arises from a three-year, 9 percent bank loan received on October 1 last year.
• The par value on the common stock is $2 per share.
• Treasury Stock arises from the reacquisition of 500 shares at a cost of $8 per share.

January Transactions

1. On 1/01, OPC paid employees’ salaries and wages that were previously accrued on December 31.
2. A truck is purchased on 1/02 for $10,000 cash. It is estimated this vehicle will be used for 50,000 miles, after which it will have no residual value.
3. Payroll withholdings and employer contributions for December are remitted on 1/03.
4. OPC declares a $0.50 cash dividend on each share of common stock on 1/04, to be paid on 1/10.
5. A $975 customer account is written off as uncollectible on 1/05.
6. On 1/06, recorded sales of 175 units of inventory on account. Sales tax is charged but not yet collected or remitted to the state.
7. Sales taxes of $500 that had been collected and recorded in December are paid to the state on 1/07.
8. On 1/08, OPC issued 300 shares of treasury stock for $2,400.
9. Collections from customers on account, totaling $13,043, are recorded on 1/09.
10. On 1/10, OPC distributes the $0.50 cash dividend declared on January 4. The company’s stock price is currently $5 per share.
11. OPC purchases on account and receives 70 units of inventory on 1/11 for $4,480.
12. The equipment purchased last year for $31,000 is sold on 1/15 for $30,000 cash. Record depreciation for the first half of January prior to recording the equipment disposal.
13. Payroll for January 1-15 is recorded and paid on 1/16. Be sure to accrue unemployment taxes and the employer’s matching share of FICA taxes.
14. Having sold the equipment, OPC pays off the note payable in full on 1/17. The amount paid is $23,099, which includes interest accrued in December and an additional $93 interest through January 17.
15. On 1/27, OPC records sales of 30 units of inventory on account. Sales tax is charged but not yet collected or remitted.
16. A portion of the advance order from December (25 units) is delivered on 1/29. No sales tax is collected on this transaction because the customer is a U.S. governmental organization that is exempt from sales tax.
17. To obtain funds for purchasing new equipment, OPC issued bonds on 1/30 with a total face value of $95,000, stated interest rate of 5 percent, annual compounding, and six-year maturity date. OPC received $85,944 from the bond issuance, which implies a market interest rate of 7 percent.
18. On 1/31, OPC records units-of-production depreciation on the vehicle (truck), which was driven 2,000 miles this month.
19. OPC estimates that 2% of the ending accounts receivable balance will be uncollectible. Adjust the applicable accounts on 1/31, using the allowance method.
20. On 1/31, adjust for January rent expired.
21. Accrue January 31 payroll on 1/31, which will be payable on February 1. Be sure to accrue unemployment taxes and the employer’s matching share of FICA taxes.
22. Accrue OPC’s corporate income taxes on 1/31, estimated to be $4,120

Prepare all January journal entries and adjusting entries for items (a)–(v). Review the 'General Ledger' and the adjusted 'Trial Balance' Tabs to see the effect of the transactions on the account balances. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Part 1:

Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2017. She is 45 years old and has been divorced for four years. Reba rents out a small apartment building in Colorado Springs, Colorado. In 2017, Reba received $30,000 of rental payments from tenants and she incurred $19,500 of expenses associated with the rental. They had been living in Colorado for the past 15 years, but ever since her divorce, Reba has been wanting to move back to Georgia to be closer to her family. Luckily, in November 2016, a teaching position opened up and Reba and Heather decided to make the move.

Reba and her daughter Heather (20 years old at the end of 2017) moved to Georgia in December 2016 and purchased a home for $80,000. In 2017, Reba paid $2,000 for home mortgage interest and $1,500 in real estate taxes on this same home.

Heather decided to continue living at home with her mom, and she started attending school full-time in January 2017 at a nearby university. She was awarded a $3,000 taxabll tuition scholarship this year, and Reba helped out by paying the remaining $500 tuition and $700 textbook cost. If possible, Reba thought it would be best to claim the education credit for these expenses.

Reba wasn’t sure if she would have enough items to help her benefit from itemizing on her tax return. However, she kept track of several expenses this year that she thought might qualify if she was able to itemize. Reba paid $2,800 in state income taxes via withholding from her paycheck and $6,500 in cash charitable contributions during 2017. She also paid the following medical-related expenses for her and Heather:

Insurance premiums

$

$4,795

Medical care expenses

$1,100

Prescription medicine

$350

Nonprescription medicine

$100

New contact lenses for Heather

$200

A few years ago, Reba acquired several investments with her portion of the divorce settlement. In 2017, she reported the following income from her investments: $2,200 of interest income from ABC, Inc. corporate bonds and $1,500 interest income from City of Denver municipal bonds. Overall, Reba’s stock portfolio appreciated by $12,000.

Heather reported $3,200 of interest income in 2017 from corporate bonds she received as gifts from her father over the last several years. This was Heather’s only source of income for the year. Reba provides more than one-half of Heather’s support.

Reba had $10,000 of federal income taxes withheld by her employer in 2017. Reba did not make any estimated payments. Reba had qualifying insurance for purposes of the Affordable Care Act (ACA) (She is not subject to a “lack of health care insurance” penalty).

Part 2: In addition to the information in Part 1, now also assume the following for 2017:

The $19,500 of expenses associated with Reba renting out a small apartment building is comprised of the following items: $5,500 depreciation, $6,500 property taxes, $3,000 insurance, $1,000 repairs, and $3,500 utilities. Reba will report this information and the $30,000 of rental payments received from tenants on Schedule E.

Reba is a also a part-time chef who has developed a new way to prepare great tasting, low-carbohydrate meals using fresh ingredients. She teaches cooking classes during the summer months when she is not teaching and reports this activity as a sole proprietorship on Schedule C using a principal business code of 611000 in Box B. Activity for the year included: gross receipts = $15,670, food supplies = $3,850, legal expenses = $900, office expense = $410, advertising = $800, and the purchase of a portable convection oven on June 15 used 100% for business purposes = $1,300 (claim the largest depreciation deduction possible). Reba uses the cash basis of accounting for tax purposes. In addition, Reba occasionally uses her personal car for business. Assume that Reba maintains a mileage log showing that she drove her car a total of 10,000 miles during the year including 900 miles for business purposes. Reba does not maintain a home office.

Reba had two stock transactions during the year: 1) Sold 5,000 shares of LMN Corp. common stock for $110,000 on May 5. The shares were originally purchased for $60 each on August 7, 2013. Reba decided to sell the LMN stock before the market price dropped any lower. 2) Sold 900 shares of Home Depot, Inc. common stock for $150 per share on April 21, 2017. The shares were inherited from Reba’s Aunt on March 21, 1997. We will discuss in class how to determine the basis of these shares.

Reba borrowed $25,000 from a broker to purchase investment assets including stocks and bonds. During the year, she paid the broker $1,750 of interest related to this loan.

complete the spreadsheet belwo

income

salary

taxable interest

non taxable interest

business income schedule c

capital gain or loss

rental real estate

total income

less adjustments for agi

deductible part of self employment tax

adjusted gross income

itemized deductions

medical and dental

taxes

interest

gift to charity

total itemized deductions

less itemized deduction or standard deduction

less exemptions

taxable income

tax less credits

education credit

plus other taxes

self employment tax

less payments

federal income tax witheld

refund / tax due

4. The following is excerpted form an article about a U.S. Treasury auction of one-month bills that resulted in a zero-percent yield.

     When was the last time you invested in something that you knew wouldn’t make money? In the market equivalent of shoveling cash under the mattress, hordes of buyers were so eager on Tuesday to park money in the world’s safest investment, United States government debt, they agreed to accept a zero-percent rate of return. The news sent a sobering signal: in these troubled economic times, when people have lost vast amounts on stocks, bonds and real estate, making an investment that offers security but no gain is tantamount to coming out ahead.

     Investors accepted the zero-percent rate in the government’s auction Tuesday of $30 billion worth of short-term securities that mature in four weeks. Demand was so great even for no return that the government could have sold four times as much. In addition, for a brief moment, investors were willing to take a small loss for holding another ultra-safe security, the already-issued three-month Treasury bill.

     In these times, it seems, the abnormal has now become acceptable. As America’s debt and deficit spiral from a parade of billion dollar bailouts and stimulus packages, fund managers, foreign governments and big retail investors reckon they will get more peace of mind by stashing their cash, rather than putting it toward any of the higher-yielding risk that is entailed in stocks, corporate bonds and consumer debt.

     “The last time this happened was the Great Depression, when people are willing to accept no return on their money, or possibly even a negative return,” said Edward Yardeni, an independent analyst. “If people are so busy during the day just protecting the cash they have, it’s not a good sign.”

     There are several explanations for the flight to safety in the bond market. The world of short-term money market funds, for instance, is still reeling from troubles at the Reserve Primary Fund, a money market fund frozen in September after it lost money on investments in Lehman Brothers. Since then, individual and large investors have put more than $200 billion into money funds that only invest in safe Treasury bills. At the same time, investors have withdrawn nearly $400 billion from prime funds. Many investors are also pulling money out of mutual funds and hedge funds, forcing portfolio managers to sell more risky assets and hold Treasuries, which are easier to sell. [“Investors Buy U.S. Debt at Zero Percent,” Vikas Bajaj and Michael Grynbaum; NYT, 12-10-2008]

(a) Why is a zero yield on treasury bills equivalent to putting currency under the mattress? How could the existence of money market funds committed to invest in only treasury bills explain why the short-term yields could be negative?

(b) How could you determine if investors are expecting deflation over the next several months? What are the implications for risk premiums on bank time deposits? Carefully explain.