Glen Avon Inc. specializes in the production of telecommunication satellites. The company has

a 6-month fiscal end on December 31 and June 30. In 2004 the company decides to expand their

operations and finances it by issuing 4,000 bonds at a 14% coupon rate (annual). The bonds pay

interest on October 31 and April 30, and are due on April 30, 2019.

a. (3 points) Assuming the bonds are issued on April 30, 2004 at 104, record the journal

entry(ies) for the issue.

b. (5 points) Record the proper adjusting entry(ies) for the 6-month fiscal end on June 30, 2004.

c. (4 points) Record the interest payment on October 31, 2014.

d. (8 points) On November 30, 2014, the company purchases 90 percent of the bonds back at

110 plus accrued interest. Record the proper journal entry(ies) for the repurchase.

On November 30,2014(D) What amount should be debited for premium on bonds payable when you are repurchasing the bonds to take the premium account off of the books?

Glen Avon Inc. specializes in the production of telecommunication satellites. The company has a 6-month fiscal end on December 31 and June 30. In 2004 the company decides to expand their operations and finances it by issuing 4,000 bonds at a 14% coupon rate (annual). The bonds pay interest on October 31 and April 30, and are due on April 30, 2019. a. (3 points) Assuming the bonds are issued on April 30, 2004 at 104, record the journal entry(ies) for the issue. b. (5 points) Record the proper adjusting entry(ies) for the 6-month fiscal end on June 30, 2004. c. (4 points) Record the interest payment on October 31, 2014. d. (8 points) On November 30, 2014, the company purchases 90 percent of the bonds back at 110 plus accrued interest. Record the proper journal entry(ies) for the repurchase. On November 30,2014(D) What amount should be debited for premium on bonds payable when you are repurchasing the bonds to take the premium account off of the books? This date is 10 + years after the bonds were issued.

Marion Boats, Inc. (The following contains the only given information)

           Fred Cunningham was a fire truck salesman for may years, while Bill, his brother, worked as a book salesman for a major publishing house. Although they had done fairly well financially, they wanted to “be their own bosses,” so they decided to go into business together.

           They agreed that selling small fishing and recreational boats would be a good line for them to go into as both had been interested in fishing and boating for many years. Also, the small town Marion, Mississippi, where they lived, did not have any boat dealerships. The nearest dealer was some 95 miles away.

           After some searching, they chose a suitable site for their proposed operation. It was situated at a popular local dock. A dilapidated building which had been condemned by the local authorities stood on the site.

           At this point in time, the brothers decided to incorporate the business. The services of a lawyer were obtained to draw up the legal papers and to handle all aspects of the execution of the incorporation. The fee for this service was $800, and each of the brothers paid half of it.

           On October 1, 2005, Fred purchased 1,800 shares of the company’s stock for $72,000, and Bill purchased 500 shares for $20,000. The payment for legal services was considered part of these company’s shares could be made only at the prevailing book per share at the time of the sell his shares back to the company, this transaction would also be conducted at the prevailing book value of the shares. The brothers also agreed that they should each receive salaries of $24,000 per year at all times during which they were engaged in the company’s business on a full-time basis. Both knew this amount was less than they could earn in other jobs, but they realized a small salary was needed at this time to ensure that the dealership could pay its bill on time.

           On November 1, 2005 with the aid of a $40,000 bank loan and $32,000 of the company’s money, Fred purchased the property which had been selected. The same day, he left his job to devote his full attention to the new enterprise.

           First, Fred arranged to have the old building demolished. A cursory examination revealed there was nothing of any significance that could be salvaged, except for some building stone. Mr. Mahoney, the wrecker, agreed to clear the site for $7,000, provided he could have the stone. Otherwise, he would want $9,000. Fred was convinced he could get a better price for the stone, so he instructed Mr. Mahoney to clear the site and store the stone in a corner of it. This work was started immediately and completed before Christmas. Mr. Mahoney agreed to defer collection of payment until May 31, 2006.

           In the meantime, Fred got in touch with a large boat manufacturer, Sport Boats, Inc., who had previously indicated interest in the projected dealership. Fred asked Sport Boats for financial help to construct the buildings needed to carry on business. Sport Boats agreed to provide all the financing needed for the building through a loan repayable in 10 equal annual installments, provided Marion Boats sold only Sport Boats models. The loan carried an interest rate of 10% per year, payable from April 1, 2006. The first repayment, including interest, would fall due on March 31, 2007.

           On December 31, 2005, Sport Boats sent a check for $40,000 to get Marion Boats started. Fred deposited the check in the business’s bank account. The remainder of the loan would be forthcoming when the building was completed.

           Next, Fred arranged through a consulting architect for several construction companies to bid for the job. The lowest bidder was the Birkett and Snell Company. They agreed to construct the specified building for $124,000. On the advice of his architect, however, Fred decided to accept the Holmes Brothers Construction Company bid of $140,000; the architect believed Birkett and Snell was less reliable than Holmes in meeting promised completion dates.

           The construction was started immediately, Holmes promising completion by the end of March 2006. Progress payments on certificates from the architects were to be made at the end of January, the end of February, and the date of completion in amounts of $40,000, $40,000, and $60,000.

           During early 2006, Fred tried to obtain some orders for boats which he planned to deliver directly to customers from Sport Boat’s warehouse in Cleveland. Fred has some success with the model he had recently bought himself. Between January 1 and March 30, Fred sold 17 of this model at an average cash cost to Marion of $9,000. Nothing was paid to Sport Boats for these boats during the period. These 17 sales realized $183,600, whereof $58,000 represented trade-in allowances, $112,000 in cash, and the rest was outstanding at March 30. Fred sold all the trade-in boats for $54,800 cash before March 31. Previously, Bill and Fred agreed that the latter should receive $40 for every new boat sale as compensation for using his private boat as a display model.

           At the end of March, the building was completed. However, there was an additional charge of $2,4000 for materials, which Marion had to pay according to the provisions of the building contract. At the same time, the architect’s bill for $2,600 arrived.

           Fred sent the progress payments to the builder as previously arranged, making the January payment with $40,000 of the company’s money and the February payment with the Sport Boats loan. On March 31, the last $60,000 progress payment and the $2,400 materials surcharge were paid. The $40,000 bank loan plus interest of $2,000 was repaid by check on March 30.

           On March 30, Bill quit his job with the publishing house and joined Marion on a full-time basis. At Bill’s request, it was agreed that financial statements would be prepared, to allow the two brothers to see where they stood at the end of March. Sport Boats asked that a portion of the amount under the building contract, and Fred accepted this arrangement on behalf of Marion. The two brothers agreed that they would invite Mr. William Hurley, an accountant who was a mutual friend of theirs, to prepare the accounts.

Questions

1. As Mr. Hurley, prepare journal entries to record the events that have taken place in the business up to March 31, 2006.

2. From these journal entries, prepare a balance sheet as of March 31, 2006, and an income statement for the operation period to that date.

3. Based on your financial statements, what is the value of each brother’s equity in the company?

4. Using the cash account data, prepare a statement showing the receipts and disbursement of cash during the period from the formation of the business until March 31, 2006.

Question 3 :

A package delivery company is contemplating building a new shipping center. The most recent shipping center, 10,000 square feet large, was built in 2005, at a cost of $500,000. The new shipping center will be 15,000 square feet large. Using the power-sizing cost-estimating model, estimate the cost of building a new shipping center now, using the assumptions below to construct a weighted cost index value for 2005 and for today. Use 0.90 for the cost-capacity factor. The dollar cost of building a shipping center can be broken down into the cost of labor (20%), materials (35%), and equipment (45%). The cost index for labor is 120 in 2005, and 150 today. The cost index for materials is 180 in 2005 and 170 today. The cost index for equipment is 140 in 2005 and 200 today.

Question 4 Milana just deposited $10,000 in her account. Assuming the annual interest rate is 8%, how many years will it take before her account balance reaches $23,000? (Please make sure you use the time value of money Excel functions)

Minta Corporation is a leading manufacturer of sports apparel, shoes, and equipment. The company’s 2017 financial statements contain the following information ($ in millions):

A note disclosed that the allowance for uncollectible accounts had a balance of $27 million and $51 million at the end of 2017 and 2016, respectively. Bad debt expense for 2017 was $48 million. Assume that all sales are made on a credit basis.
Required:
1. What is the amount of gross (total) accounts receivable due from customers at the end of 2017 and 2016?
2. What is the amount of bad debt write-offs during 2017?
3. Analyze changes in the gross accounts receivable account to calculate the amount of cash received from customers during 2017.
4. Analyze changes in net accounts receivable to calculate the amount of cash received from customers during 2017.
______________________________________________________________________________________________________

1.

2.

4.

I only need the solution for 5.130

The Christmas Bird Count (CBC) is an annual tradition in Lexington, Massachusetts. A group of volunteers counts the number of birds of different species over a 1-day period. Each year, there are approximately 30–35 hours of observation time split among multiple volunteers. The following counts were obtained for the Northern Cardinal (or cardinal, in brief) for the period 2005–2011.

Year Number

2005 76

2006 47

2007 63

2008 53

2009 62

2010 69

2011 62

5.126 What is the mean number of cardinal birds per year observed from 2005 to 2011?

5.127 What is the standard deviation (sd) of the number of cardinal birds observed?

5.128 What is the probability of observing at least 60 cardinal birds in 2012? (Hint: Apply a continuity correction where appropriate.)

The observers wish to identify a normal range for the number of cardinal birds observed per year. The normal range will be defined as the interval (L, U), where L is the largest integer ≤ 15th percentile and U is the smallest integer ≥ 85th percentile.
5.129 If we make the same assumptions as in Problem 5.128, then what is L? What is U?

5.130 What is the probability that the number of cardinal birds will be ≥ U at least once on Christmas day during the 10-year period 2012–2021? (Hint: Make the same assumptions as in Problem 5.128.)

1. Zacks Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for December.

When the company prepared its planning budget at the beginning of December, it assumed that 25 customers would have been served. However, only 23 customers were served during December.

Required:

Prepare a performance report showing and interpreting the company’s activity and revenue and spending variances for December. Indicate in each case whether the variance is favorable (F) or unfavorable (U) that includes:

a. The Planning Budget

b. The Flexible Budget

c. Activity Variances

d. Revenue and Spending Variances

e. Explain the meaning of this report.

​India's Current Account. Use the following balance of payments data for India from the​ IMF. What is​ India's current account balance for years 2007​, 2008​, and 2014​?

1) Using the excel data file “US violent crime” which shows the violent crime rate in the US from 1960 to 2012:

(20 pts) Make a time series plot of the data

(5 pts each 25 pts total) Determine the following: Mean, Median, Standard deviation, Q1 and Q3. (25 pts)

Make a histogram of the data. Hint the year is not used, you need to determine how many years fall into each of the classes.

(7) What are your thoughts on the time series plot, i.e. trends etc.?

(8) Thoughts on the histogram i.e. shape of distribution etc.?

[Excel sheet]

a) Using the 1949 oil price and the 1969 oil price, compute the annual growth rate in oil prices during the 20 yr period. b) Compute the growth rate between 1969 & 1989 and between 1989 & 2017. c) given the price in 2017 and your growth rate between 1989 and 2017 compute the future price of oil in 2020 & 2025.