On January 22, Jefferson County Rocks Inc., a marble contractor, issued for cash 210,000 shares of $30 par common stock at $34, and on February 27, it issued for cash 15,000 shares of preferred stock, $9 par at $12.

Required:
Journalize the entries for January 22 and February 27.

Answer:

Jan. 22

Dr Cash $7,140,000

Cr Common Stock $6,300,000

Cr Paid in capital in excess of par $840,000

Feb. 27

Dr Cash $180,000

Cr Preferred Stock $135,000

Cr Paid-In Capital in Excess of Par-Preferred $45,000

Explanation:

Preparation of the entries for January 22 and February 27.

Jan. 22

Dr Cash $7,140,000

(210,000*$34)

Cr Common Stock $6,300,000

(210,000*$30)

Cr Paid in capital in excess of par $840,000

($7,140,000-$6,300,000)

Feb. 27

Dr Cash $180,000

(15,000*$12)

Cr Preferred Stock $135,000

(15,000*$9)

Cr Paid-In Capital in Excess of Par-Preferred $45,000

($180,000-$135,000)

Mighty Manny, Incorporated manufactures ice scrapers and distributes them across the midwestern United States. Mighty Manny is incorporated and headquartered in Michigan. It has product sales to customers in Illinois, Indiana, Iowa, Michigan, Minnesota, and Wisconsin. It has sales personnel only where discussed. Determine the state in which Mighty Manny does not have sales and use tax nexus given the following scenarios: _____________
A) Mighty Manny is incorporated and headquartered in Michigan. It also has property, employees, sales personnel, and intangibles in Michigan.
B) Mighty Manny has a warehouse in Illinois.
C) Mighty Manny has independent sales representatives in Minnesota. The representatives distribute ice scraper-related items for over a dozen companies.
D) Mighty Manny has two customers in Wisconsin. Mighty Manny receives orders over the phone and ships goods to its customers using FedEx.

Imagine that in the current year the economy is in long-run equilibrium. Then the federal government reduces its purchases of goods by 50%. In the long run, what happens to the expected price level and what impact does this have on wage bargaining

Eva Company sells one product at a price of $25 per unit. Variable expenses are 40 percent of sales, and fixed expenses are $25,000. What is the sales dollars level required to break even

You own a small manufacturing business that produces widgets. You have spent $150,000 acquiring the fixed assets you need to produce widgets. Each widget costs you $2 to make and they sell for $15 each, so your variable cost is 13.3% of the overall revenue. At your current level of operating leverage, how many widgets must you sell to break even

On January 1, 2021, D Corp. granted an employee an option to purchase 6,500 shares of D's $3 par common stock at $19 per share. The options became exercisable on December 31, 2022, after the employee completed two years of service. The option was exercised on January 10, 2023. The market prices of D's stock were as follows: January 1, 2021, $36; December 31, 2022, $57; and January 10, 2023, $46. An option pricing model estimated the value of the options at $8 each on the grant date. For 2021, D should recognize compensation expense of:________
a. $ 0.
b. $26,000.
c. $117,000.
d. $19,500.

A retail operation sells computers. Each computer retails for $499. The monthly holding cost for each computer is $4. Placing an order costs $1000, regardless of the quantity of computers ordered. The monthly demand for computers at this operation is 320. Using the basic EOQ model, the economic order quantity is

Sunland Company is planning to sell 1000 buckets and produce 980 buckets during March. Each bucket requires 500 grams of plastic and one-half hour of direct labor. Plastic costs $10 per 500 grams and employees of the company are paid $18 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Sunland has 200 kilos of plastic in beginning inventory and wants to have 300 kilos in ending inventory. How much is the total amount of budgeted direct labor for March?

The Adams Corporation, a merchandising firm, has budgeted its activity for November according to the following information:
Sales at $450,000, all for cash.
Merchandise inventory on October 31 was $200,000.
The cash balance November 1 was $18,000.
Selling and administrative expenses are budgeted at $60,000 for November and are paid for in cash.
Budgeted depreciation for November is $25,000.
The planned merchandise inventory on November 30 is $230,000.
The cost of goods sold is 70% of the selling price.
All purchases are paid for in cash.
There is no interest expense or income tax expense.
The budgeted cash receipts for November are:_____.
a. $315,000.
b. $450,000.
c. $135,000.
d. $475,000.

Question Instructions
- Answer all the questions provided.
- Show your calculations in detail and explain the rationale of your answers thoroughly.
- Calculators are allowed.

1. A kitchenware company asked 10 customers the number of times they used the specialty cooking equipment they bought from the company in the last month:

4 6 8 6 7 2 1 8 12 10

A) Calculate the mean number of uses in the last month.
[5 marks]

B) Calculate the standard deviation. Make sure to show your calculations.
[15 marks]


2. A drilling company has estimated a 60% chance of striking oil for their new well. A detailed test has been scheduled. Historically, 40% of successful wells have had detailed test, and 10% of unsuccessful wells have had detailed test.

A) Given that this well has been scheduled for a detailed test, what is the probability that the well will be successful? Use Bayes’ Theorem.
[10 marks]


B) Would you say that the probability of successful drilling and the probability of having a detailed test are independent? Explain your answer using probabilities.
[10 marks]


3. Answer the following questions in no more than 3-4 lines for each one:

A) Why do you think investigating sample is more efficient for statistical control than investigating an entire population?
[5 marks]

B) What sample size is large enough to assume that the sampling distribution of proportion is normally distributed?
[5 marks]


C) Can 100% confidence level be used to determine a population parameter?
[5 marks]


D) What happens to confidence intervals when the confidence level is increased?
[5 marks]





4. A company claims that the average consumer buys 50 bars of chocolate in a calendar year Suppose a random sample of 100 consumers displayed the following statistics regarding the number of chocolate bars consumed in a year: X-bar=40, S=25.

A) What are the null and alternative hypotheses to determine if the number of chocolates consumed in a year is actually more or less than 50?
[5 marks]


B) What would be the value of the test statistic in this case?
[5 marks]


C) Considering that a confidence level of 5% for a normally distributed sample corresponds to a statistic score of ±1.96, what is your inference of the outcome in (B)?
[5 marks]

D) Explain briefly what are the Type I and Type II errors.
[5 marks]


5. A research group is trying to predict the performance of students on final exams based on the amount of time students study during the year. They use the following data:

SST = 110.00
SSR = 90.25
n = 200

A) Determine the coefficient of determination r2 and interpret its meaning.
[8 marks]


B) Determine the standard error of the estimate.
[7 marks]

C) How useful do you think this regression model is for predicting the performance of students on exams by the variation of the time spent studying?
[5 marks]

A portfolio is worth $902,654 and has a duration of 5.77 years. The futures price for a June Treasury note futures contract is 115 and each contract is for the delivery of bonds with a face value of 100,000. On the delivery date the duration of the cheapest to deliver bond is 4.36 years. To hedge the interest rate risk, how many June T note futures do you have to enter short positions on

Onini, Inc. produces one product with two production levels: 20,000 units and 80,000 units. At each production level, Onini's per-unit costs for Costs A, B, and C are:
Cost A (per unit) Cost B (per unit) Cost C (per unit)
Production = 20,000 $12.00 $15.00
$20.00
Production = 80,000 $12.00 $11.25
$5.00
What type of cost is each?
A. Cost A is variable, Cost B is mixed, and Cost C is fixed.
B. Cost A is fixed, Cost B is variable, and Cost C is mixed
C. Cost A s variable, Cost B is fixed, and Cost C is mixed.
D. Cost A is fixed, Cost B is mixed, and Cost C is variable.

systems play a key role in helping organizations achieve goals, which are set forth in a(n) statement. Computers can be used by people at all levels of an organization. Workers use information systems to produce and manipulate information. Managers depend on information systems to supply data that is essential for long-term planning and short-term tactical planning. Transaction systems provide an organization with a way to collect, display, modify, or cancel transactions. These systems encompass activities such as general accounting, inventory tracking, and ecommerce. information systems typically build on the data collected by a TPS to produce reports that managers use to make the business decisions needed to solve routine, structured problems. A decision system helps workers and managers make non-routine decisions by constructing decision models that include data collected from internal and external sources. A(n) system is designed to analyze data and produce a recommendation or decision based on a set of facts and rules called a(n) base. These facts and rules can be written using an expert system shell or a programming language. A(n) engine evaluates the facts and rules to produce answers to questions posed to the system. Using a technique called logic, these systems can deal with imprecise data and problems that have more than one solution.

Janice is the sole owner of Catbird Company. In the current year, Catbird had operating income of $100,000, a long-term capital gain of $15,000, and a charitable contribution of $5,000. Janice withdrew $70,000 of profit from Catbird. How should Janice report this information on her individual tax return if Catbird Company is: An LLC? An S corporation? A C corporation?

The Clean Air Act (CAA) of 1970 did all of the following except _____.


establish the National Ambient Air Quality Standards (NAAQS)

introduce motor vehicle emissions controls

create State Improvement Plans (SIP) to promote better air quality

reduce the federal government's enforcement authority

Once the adjusting entries are posted, the adjusted trial balance is prepared to a. verify that the debits and credits are in balance b. verify that the net income (loss) is correct for the period c. verify the correct flow of accounts into the financial statements d. verify that the net income correctly flows into the statement of stockholders' equity from the income statement

Suppose you are thinking of starting your own small business. Consider how your accounting profit is different than your economic profit.

1. Accounting profit is different than economic profit because:

a. economic profit is only important to economists and does not apply to the actual decision to launch a new business.
b. accounting profit includes all financial and opportunity costs of starting a business.
c. economic profit is what is reported on your tax return.
d. accounting profit ignores the opportunity cost of launching a new business

2. b. After doing your research, you are confident that you will make an accounting profit if you launch the business but feel it is very unlikely that you will make an economic profit. In this case, you__________ start the business.

SME Ads Inc. (SME) Steven Monahan owns SME Ads Inc., an advertising agency. At present, the company focuses on advertising only. However, Steven plans to expand the company's focus to include all the major elements of an organization's promotional mix. Steven feels that expanding the focus in such a way will allow the firm to meet customer needs in a more coordinated fashion. Currently, the firm organizes its work according to the media being used. Steven believes this is the most effective way to subdivide advertising. Since television is the most widely used advertising medium, the company spends most of its time on television advertising. SME knows what it takes to get the job done, and it is committed to success. Refer to SME Ads Inc. In developing the advertising campaign for a client, in which of the following steps should SME include the important selling points or features of the client's products?
A) Identifying and analyzing the industry.
B) Defining the advertising objectives.
C) Creating the advertising platform.
D) Determining the advertising appropriation.
E) Developing the media plan.

convertible bonds meaning

Consider the following financial statement information for the Hop Corporation:
Item
Beginning Ending Inventory $11,100 $12,100
Accounts receivable 6,100 6,400
Accounts payable 8,300 8,700
Net sales $91,000
Cost of goods sold 71,000
Calculate the operating and cash cycles

Jack, Jill and Maritza are employed as sales persons for Deuce Hardware Supplies. None was hired for a definite period and each has an excellent sales record. Jack was terminated because Don Deuce, the president of Deuce Hardware, decided that customers were more likely to spend more if the sales person was an attractive woman, rather than a man. Jill was terminated for cheating on her expense account. Assuming only these facts, explain, separately whether Jack or Jill has any claim against Deuce Hardware.

All of the following are weaknesses of the payback period: _________

a. it uses cash flows, not income,
b. it is easy to use.
c. it ignores all cash flows after the payback period.
d. it ignores the time value of money.

What are the most relevant cultural values affecting the consumption of each of the following?
Describe how and why these values are particularly important.
Milk
Fast food

COTB MC Qu. 8-31 (Static) Assume a company is preparing a... Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects credit sales of $50,000 and $60,000, respectively. The company expects to collect 40% of its credit sales in the month of the sale and the remaining 60% in the following month. What amount of accounts receivable would the company report in its balance sheet at the end of the second month

Mount Company has budgeted the following unit sales: 2019 Units January 8,000 February 10,000 March 9,000 The finished goods units on hand on December 31, 2018, was 1,000 units. It is the company's policy to maintain a finished goods inventory at the end of each month equal to 10% of next month's anticipated sales. Instructions: Prepare a production budget for February of 2019.

Swifty Co. uses the gross method to record sales made on credit. On July 1, 2020, it made sales of 69,000 with terms 2/10 n/30. On July 9, 2020, Swifty received full payment for the July 1 sale. Prepare the required journal entries for Swifty Co.

Suppose during 2022 that Cypress Semiconductor Corporation reported net cash provided by operating activities of $96,447,240, cash used in investing of $46,576,080, and cash used in financing of $7,957,440. In addition, cash spent for fixed assets during the period was $27,888,840. No dividends were paid. Calculate free cash flow. (Show a negative free cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Use in your own words, what is corporate debt ?

Carbon Composite Poles manufactures fishing poles that have a price of $125.00. It has costs of $90.00. A competitor is introducing a new fishing pole that will sell for $110.00. Management believes it must lower the price to $110.00 to compete in the highly cost-conscious fishing pole market. Marketing department believes that the new price will allow Carbon to maintain the current sales level of 200,000 poles per year. Required: a) What is the target cost for the new price if target operating income is 25 % of sales

An appliance store sells 500 units of a particular type of dishwasher each year. The demand for this product is essentially constant throughout the year. The store orders its products from a regional supplier, and it typically takes two weeks for the dishwashers to arrive after an order has been placed. Each time an order is placed, an ordering cost of $1,000 is incurred. Each dishwasher costs the hardware store $300 and retails for $550. The store's annual cost of capital is estimated to be 7% per year.
Using the economic order quantity (EOQ) formula, determine the optimal order quantity

Firms HL and LL are identical except for their leverage ratios and the interest rates they pay on debt. Each has $25 million in invested capital, has $5 million of EBIT, and is in the 40% federal-plus-state tax bracket. Firm HL, however, has a debt-to-capital ratio of 55% and pays 11% interest on its debt, whereas LL has a 20% debt-to-capital ratio and pays only 10% interest on its debt. Neither firm uses preferred stock in its capital structure.
1. Calculate the return on invested capital (ROIC) for each firm. Round your answers to two decimal places.
ROIC for firm LL is %
ROIC for firm HL is %
2. Calculate the rate of return on equity (ROE) for each firm. Round your answers to two decimal places.
ROE for firm LL is %
ROE for firm HL is %
3. Observing that HL has a higher ROE, LL's treasurer is thinking of raising the debt-to-capital ratio from 20% to 60%, even though that would increase LL's interest rate on all debt to 15%. Calculate the new ROE for LL. Round your answer to two decimal places.