A physician performs medical services for a patient on October 20; the total bill for the medical services was $200. The patient makes a co-pay of$20 on October 20, and the insurance company pays the remaining balance of $180 on November 19. On what date(s) will the physician record the revenue for those medical services provided on October 20?

a.$200 of revenue on October 20 b. $20 of revenue on October 20 and$180 of revenue on November 19 c. $200 of revenue on November 19 d.$180 of revenue on October 20 and the remaining $20 on November 19

Select one example of adaptive creativity and explain why it is not 'innovatively creative'.

$$\begin{array}{|l|l|} \hline \textbf { Adaptive creativity examples } & \textbf { Innovative creativity examples } \\ \hline \text { Cameras in mobile phones } & \text { VolP (e.g. Skype) } \\ \hline \text { ATMs } & \text { Online banking and insurance } \\ \hline \text { iPad mini } & \text { iTunes } \\ \hline \text { Airbus A380 } & \text { Jet airliners } \\ \hline \text { Flat beds in business class } & \text { Low-cost airlines } \\ \hline \end{array}$$

Solve the problemx.

Three years ago Martha Spencer, owner of The Doll (a) House, lost control of her car while trying to find her cell phone and forced another driver (b) off the road. The court awarded $\$28,000$ to the driver of the other car and $\$8000$ to a passenger of the other car. Spencer had limits of $15 / 30$. (a) Find the amount the insurance company paid. (b) Find the amount Spencer had to pay.

$$\text{(a)}\qquad\underline{\qquad\qquad\qquad\qquad}$$

$$\text{(b)}\qquad\underline{\qquad\qquad\qquad\qquad}$$

On January 14, the end of the first bi-weekly pay period of the year, Rockin Company’s payroll register displayed that its employees earned $14,000 of sales salaries. Withholdings from the employees’ salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%,$2,600 of federal income taxes, $309 of medical insurance deductions, and$120 of union dues. No employee earned more than $7,000 in this first period. Prepare the journal entry to record Rockin Company’s January 14 (employee) payroll expenses and liabilities.

Describe the cycle approach to segmenting an audit and how the auditor conducts financial statement audits using the cycle approach.

Prince Distribution Inc. has an unfunded postretirement benefit plan. Medical care and life insurance benefits are provided to employees who render 10 years service and attain age 55 while in service. At the end of 2018 , Jim Lukawitz is 31 . He was hired by Prince at age 25 (6 years ago) and is expected to retire at age 62 . The expected postretirement benefit obligation for Lukawitz at the end of 2018 is $\$ 50,000$ and $\$ 54,000$ at the end of 2019. Calculate the accumulated postretirement benefit obligation at the end of 2018 and 2019 and the service cost for 2018 and 2019 , as pertaining to Lukawitz.

Janice Wong receives an annual salary of $42,536, which is paid weekly. Her normal work week is 40 hours, and she is paid time and a half for all overtime. She is single and claims two withholding allowances. Her deductions include FICA, Medicare, federal withholding, state disability insurance, state withholding at 4.4%, credit union payments of$125, retirement deductions of $75, association dues of$12, and a Diabetes Association contribution of $25. Find the federal withholding using the percentage method for a week in which she works 52 hours.

From the following Company R adjusted trial balance, prepare the following:

E. Post-Closing Trial Balance

$$\begin{array}{c} \textbf{Adjusted Trial Balance} \end{array}$$

$$\begin{array}{lcc} &\textbf{Debit}&\textbf{Credit}\\[5pt] \text{Cash}&\text{\$\hspace{5pt}44,000}\\ \text{Accounts Receivable}&\text{\hspace{10pt}13,800}\\ \text{Prepaid Insurance}&\text{\hspace{15pt}6,400}\\ \text{Land}&\text{\hspace{10pt}16,000}\\ \text{Accounts Payable}&&\text{\$\hspace{5pt}14,900}\\ \text{Salaries Payable}&&\text{\hspace{15pt}4,500}\\ \text{Common Stock}&&\text{\hspace{10pt}31,000}\\ \text{Retained Earnings}&&\text{\hspace{10pt}10,200}\\ \text{Dividends}&\text{\hspace{10pt}12,000}\\ \text{Service Revenue}&&\text{\hspace{10pt}86,000}\\ \text{Insurance Expense}&\text{\hspace{15pt}7,600}\\ \text{Salaries Expense}&\text{\hspace{10pt}32,000}\\ \text{Miscellaneous Expense}&\underline{\text{\hspace{10pt}14,800}}&\underline{\text{\hspace{39pt}}}\\ &\underline{\underline{\text{\$\hspace{1pt}146,600}}}&\underline{\underline{\text{\$\hspace{1pt}146,600}}}\\ \end{array}$$

Buying real estate to rent is an option that has higher risk than some other investments. However, the returns can be good. Assume you have purchased a single-family home that you intend to rent. The house will rent for $\$750$ per month. You will have the following expenses:

• Monthly mortgage $\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,$ $\$390$
• Monthly insurance $\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,$ $\$60$
• Taxes every 6 months $\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,$ $\$340$
• Repairs (yearly estimate) $\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,$ $\$500$
• Monthly lawn care or snow removal $\,\,\,\,\,\,\,\,\,$ $\$100$

Calculate the total yearly expenses you will have for the rental property.

Use Table discussed earlier to find the annual premium of each of the following life insurance policies:

$$\begin{array}{} \begin{array}{}\text{Sex} \end{array}& \begin{array}{}\text{Age} \end{array}& \begin{array}{}\text{Policy type}\end{array}& \begin{array}{}\text{Rate classification} \end{array}& \begin{array}{}\text{Face Value}\end{array}& \begin{array}{}\text{Annual premium}\end{array}&\\ \text{Male}&25&20-\text{year level term}&\text{T}&\$150,000 \end{array}$$

Assuming the following Adjusted Trial Balance, re-create the Post-Closing Trial Balance that would result after all closing journal entries were made and posted:

$$\begin{array}{c} \textbf{Adjusted Trial Balance} \end{array}$$

$$\begin{array}{lcc} &\textbf{Debit}&\textbf{Credit}\\[5pt] \text{Cash}&\text{\$\hspace{5pt}5,450}\\ \text{Accounts Receivable}&\text{\hspace{10pt}4,700}\\ \text{Supplies}&\text{\hspace{18pt}250}\\ \text{Prepaid Insurance}&\text{\hspace{10pt}1,250}\\ \text{Salaries Payable}&&\text{\$\hspace{13pt}650}\\ \text{Common Stock}&&\text{\hspace{10pt}5,000}\\ \text{Retained Earnings}&&\text{\hspace{18pt}750}\\ \text{Dividends}&\text{\hspace{10pt}1,400}\\ \text{Service Fee Revenue}&&\text{\hspace{5pt}17,300}\\ \text{Salaries Expense}&\text{\hspace{10pt}9,050}\\ \text{Supplies Expense}&\text{\hspace{10pt}1,000}\\ \text{Insurance Expense}&\underline{\text{\hspace{18pt}600}}&\underline{\text{\hspace{34pt}}}\\ &\underline{\underline{\text{\$\hspace{1pt}23,700}}}&\underline{\underline{\text{\$\hspace{1pt}23,700}}}\\ \end{array}$$

$$\begin{matrix} \text{Estimated uncollectible accounts based} & \text{}\\ \text{on aging accounts receivable} & \text{\$ 3,697.32}\\ \text{Accrued interest income} & \text{137.50}\\ \text{Merchandise inventory} & \text{45,058.15}\\ \text{Supplies inventory} & \text{126.00}\\ \text{Jalue of prepaid insurance} & \text{1,535.80}\\ \text{Annual depreciation expense- equipment} & \text{2,250.00}\\ \text{Accrued interest expense} & \text{277.58}\\ \text{Prepaid rent income earned} & \text{1,000.00}\\ \end{matrix}$$

Journalize the income tax adjustment and post it to the T accounts.

$$\begin{matrix} \text{Estimated uncollectible accounts based} & \text{}\\ \text{on aging accounts receivable} & \text{\$ 3,796.00}\\ \text{Accrued interest income} & \text{80.00}\\ \text{Merchandise inventory} & \text{98,996.13}\\ \text{Supplies inventory} & \text{401.25}\\ \text{Jalue of prepaid insurance} & \text{600.00}\\ \text{Annual depreciation expense- equipment} & \text{7,345.00}\\ \text{Accrued interest expense} & \text{150.00}\\ \text{Prepaid rent income earned} & \text{2,000.00}\\ \end{matrix}$$

Journalize the income tax adjustment and post it to the T accounts.

In the equation $P = B \times R$, $P = \text{part}$, $B = \text{base, or whole}$, and $R = \text{rate, or percent}$. Use the following forms of the equation to solve the application problems.

$P = B \times R\\[10pt]$

$$B = \dfrac{P}{R}\\[10pt]$$

$$R = \dfrac{P}{B}\\[10pt]$$

You will first need to read the problem carefully to determine whether base, part, or rate is unknown. Round rates to the nearest tenth of a percent.

In a recent insurance company study of boaters who had lost items overboard, 88 boaters or 8% said that they lost their cell phones. Find the total number of boaters in the survey.