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

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

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.

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

$$\begin{array}{} \begin{array}{}\text{Sex} \end{array}& \begin{array}{}\text{Age} \end{array}& \begin{array}{}\text{Policy type}\end{array}& \begin{array}{}\text{Rate classification} \end{array}& \begin{array}{}\text{Face Value}\end{array}& \begin{array}{}\text{Annual premium}\end{array}&\\ \text{Female}&30&\text{Whole-life}&\text{NT}&\$200,000 \end{array}$$

Two people decide to open a business reconditioning toner cartridges for copy machines. They rent a building for $7000/year and estimate that building maintenance, taxes, and insurance will cost$6500/year. Each person wants to make $12/h in the first year and will work 10 h per day for 260 days of the year. Assume that it costs$28 to restore a cartridge and that the restored cartridge can be sold for $45. Write a linear function for the total cost C to operate the business and restore n cartridges during the first year, not including the hourly wage the owners wish to earn.

Imagine you are a provider of portfolio insurance. You are establishing a four-year program. The portfolio you manage is currently worth $100 million, and you promise to provide a minimum return of 0%. The equity portfolio has a standard deviation of 25% per year, and T-bills pay 5% per year. Assume for simplicity that the portfolio pays no dividends (or that all dividends are reinvested). a. What fraction of the portfolio should be placed in bills? What fraction in equity? b. What should the manager do if the stock portfolio falls by 3% on the first day of trading?

An actuary studying the insurance preferences of automobile owners makes the following conclusions: (i) An automobile owner is twice as likely to purchase collision coverage as disability coverage. (ii) The event that an automobile owner purchases collision coverage is independent of the event that he or she purchases disability coverage. (iii) The probability that an automobile owner purchases both collision and disability coverages is 0.15. What is the probability that an automobile owner purchases neither collision nor disability coverage? Choose one of the following. (a) 0.18 (b) 0.33 (c) 0.48 (d) 0.67 (e) 0.82

An insurance company employs agents on a commission basis. It claims that in their first-year agents will earn a mean commission of at least $40,000 and that the population standard deviation is no more than$6,000. A random sample of nine agents found for commission in the first year,

$$\sum_{i=1}^9 x_i=333 \text { and } \sum_{i=1}^9\left(x_i-\bar{x}\right)^2=312$$

where $x_i$ is measured in thousands of dollars and the population distribution can be assumed to be normal. Test, at the $5 level, the null hypothesis that the population mean is at least$40,000.

Timberlake Company owns equipment with a cost of $165,000 and an accumulated depreciation of$60,000 that can be sold for $82,000, less a 6% sales commission. Alternatively, the equipment can be leased by Timberlake Company for five years for a total of$84,600, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Timberlake Company on the equipment would total $7,950 over the five years. Prepare a differential analysis on March 23, 2014, as to whether Timberlake Company should lease (Alternative 1) or sell (Alternative 2) the equipment.

Ramirez Company has the following data for the weekly payroll ending January 31.

Instructions

(b) Prepare the journal entries to record the payroll and Ramirez’s payroll tax expense.

Presented below is information related to Gonzales Corporation the month of January 2020.

$$\begin{array}{lrrllrrr} \text{Cost of goods sold}&&\$208,000&\hspace{10pt}&\text{Salaries and wages expense}&&\$61,000\\ \text{Delivery expense}&&7,000&\hspace{10pt}&\text{Sales discounts}&&8,000\\ \text{Insurance expense}&&12,000&\hspace{10pt}&\text{Sales returns and allowances}&&13,000\\ \text{Rent expense}&&20,000&\hspace{10pt}&\text{Sales revenue}&&350,000\\ \end{array}$$

Prepare the necessary closing entries.

Below is the complete list of accounts of Cobras Incorporated and the related balance at the end of March. All accounts have their normal debit or credit balance. Supplies, $1,000; Buildings,$55,000; Salaries Payable, $500; Common Stock,$35,000; Accounts Payable, $2,200; Utilities Expense,$3,700; Prepaid Insurance, $1,200; Service Revenue,$19,500; Accounts Receivable, $4,200; Cash,$3,500; Salaries Expense, $6,400; Retained Earnings,$17,800. Required: Prepare a trial balance with the list of accounts in the following order: assets, liabilities, stockholders' equity, revenues, and expenses.

Rapid Delivery, Inc. is considering the purchase of an additional delivery vehicle for $\$ 38,000$ on January $1$, $2010$. The truck is expected to have a five-year life with an expected residual value of $\$ 5,000$ at the end of five years. The expected additional revenues from the added delivery capacity are anticipated to be $\$ 60,000$ per year for each of the next five years. A driver will cost $\$ 43,000$ in $2010$ , with an expected annual salary increase of $\$ 2,000$ for each year thereafter. The insurance for the truck is estimated to cost $\$ 4,000$ per year.

Is the additional truck a good investment based on your analysis?

Jerrod Company owns a machine with a cost of $305,000 and an accumulated depreciation of$45,000 that can be sold for $231,000, less a 5% sales commission. Alternatively, the machine can be leased by Jerrod Company for three years for a total of$243,000, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Jerrod Company on the machine would total $16,900 over the three years. Prepare a differential analysis on January 12, 2014, as to whether Jerrod Company should lease (Alternative 1) or sell (Alternative 2) the machine.

The following revenue and expense account balances were taken from the ledger of Wholistic Health Services Co, after the accounts had been adjusted on February 29, 2016, the end of the fiscal year:

$$\begin{array}{lrlr}\text { Depreciation Expense } & \$ 7,500 & \text { Service Revenue } & \$ 448,400 \\ \text { Insurance Expense } & 3,000 & \text { Supplies Expense } & 2,750 \\ \text { Miscellaneous Expense } & 8,150 & \text { Utilities Expense } & 33,900 \\ \text { Rent Expense } & 54,000 & \text { Wages Expense } & 360,000\end{array}$$

Prepare an income statement.