Greavy Theater Production Company's partially completed worksheet as of December 31, 2018, follows.

GREAVY THEATER PRODUCTION COMPANY
Worksheet
December 31, 2018
Account Names	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	$     4,300
Accounts Receivable	5,900
Office Supplies	1,900
Prepaid Insurance	4,550
Equipment	30,000
Accumulated Depreciation - Equipment		$     7,600
Accounts Payable		3,600
Salaries Payable
Common Stock		21,950
Dividends	30,500
Service Revenue		77,000
Depreciation Expense - Equipment
Supplies Expense
Utilities Expense	5,500
Salaries Expense	27,500
Insurance Expense
Total	$ 110,150	$ 110,150

Adjustment data at December 31 follow:

• a. As of December 31, Greavy had performed $500 of service revenue but has not yet billed customers.
• b. At the end of the month, Greavy had$700 of office supplies remaining.
• c. Prepaid Insurance of $3,900 remained.
• d. Depreciation expense,$4,000.
• e. Accrued salaries expense of $200 that hasn't been paid yet.

Requirements

1. Complete the worksheet. Use letters a through e to label the five adjustments.
2. Journalize the adjusting entries.

Palermo Inc. purchased 80 percent of the outstanding stock of Salina Ranching Company, located in Australia, on January 1, 20X3. The purchase price in Australian dollars (A$) was A$200,000, and A$40,000 of the differential was allocated to plant and equipment, which is amortized over a 10-year period. The remainder of the differential was attributable to a patent. Palermo Inc. amortizes the patent over 10 years. Salina Ranching's trial balance on December 31, 20X3, in Australian dollars is as follows:$

$$\begin{array}{lrr} & \textbf{Debits} & \textbf{Credits}\\ \\ \text{Cash} & \text{A\$\hspace{5pt}44,100}\\ \text{Accounts Receivable (net)} &72,000\\ \text{Inventory} & 86,000\\ \text{Plant \& Equipment} & 240,000\\ \text{Accumulated Depreciation} && \text{A\$\hspace{5pt}60,000}\\ \text{Accounts Payable} && 53,800\\ \text{Payable to Palermo Inc.} && 10,800\\ \text{Interest Payable} &&3,000\\ \text{12\\\% Bonds Payable} &&100,000\\ \text{Premium on Bonds} &&5,700\\ \text{Common Stock} && 90,000\\ \text{Retained Earnings} &&40,000\\ \text{Sales} && 579,000\\ \text{Cost of Goods Sold} &330,000\\ \text{Depreciation Expense} & 24,000\\ \text{Operating Expenses} & 131,500\\ \text{Interest Expense} & 5,700\\ \text{Dividends Paid} &9,000\\ \hline \text{Total} & \underline{\underline{\text{A\$942,300}}} & \underline{\underline{\text{A\$942,300}}}\\ \end{array}$$

$$**Additional Information** 1. Salina Ranching uses average cost for cost of goods sold. Inventory increased by A\$20,000 during the year. Purchases were made uniformly during 20X3. The ending inventory was acquired at the average exchange rate for the year. 2. Plant and equipment were acquired as follows:$$

$$\begin{array}{lr} \textbf{Date} & \textbf{ Cost } \\ \\ \text{January 20X1} & \text{A\$180,000} \\ \text{January 1, 20X3} & 60,000 \\ \end{array}$$

$3. Plant and equipment are depreciated using the straight-line method and a 10-year life with no residual value.

4. The payable to Palermo is in Australian dollars. Palermo's books show a receivable from Salina Ranching of$6,480.

5. The 10-year bonds were issued on July 1, 20X3, for A$106,000. The premium is amortized on a straight-line basis. The interest is paid on April 1 and October 1.

6. The dividends were declared and paid on April 1.

7. Exchange rates were as follows:

$$\begin{array}{lr} & \textbf{A\$ \hspace{10pt} \$} \\ \text{January 20X1} & 1 = 0.93\\ \text{August 20X1} & 1 = 0.88\\ \text{January 1, 20X3} & 1 = 0.70\\ \text{April 1, 20X3} & 1 = 0.67\\ \text{July 1, 20X3} & 1 = 0.64\\ \text{December 31, 20X3} & 1 = 0.60\\ \text{20X3 average} & 1 = 0.65\\ \end{array}$$

Assume that the Australian dollar (AS) is the functional currency and that Palermo uses the fully adjusted equity method for accounting for its investment in Salina Ranching. A December 31, 20X3, trial balance for Palermo Inc. follows. Use this translated trial balance for completing this problem.

$$\begin{array}{lrr} \textbf{Item} & \textbf{Debit} & \textbf{Credit}\\ \\ \text{Cash} & \$\hspace{10pt}38,000\\ \text{Accounts Receivable (net)} & 140,000\\ \text{Receivable from Salina Ranching} & 6,480\\ \text{Inventory} & 128,000\\ \text{Plant \& Equipment} &500,000\\ \text{Investment in Salina Ranching} & 152,064\\ \text{Cost of Goods Sold} & 600,000\\ \text{Depreciation Expense} & 28,000\\ \text{Operating Expenses} & 204,000\\ \text{Interest Expense} & 2,000\\ \text{Dividends Declared} & 50,000\\ \text{Translation Adjustment} & 22,528\\ \text{Accumulated Depreciation} && \$\hspace{10pt}90,000\\ \text{Accounts Payable} && 60,000\\ \text{Interest Payable} && 2,000\\ \text{Common Stock} &&500,000\\ \text{Retained Earnings, January 1, 20X3} &&179,656\\ \text{Sales} && 1,000,000\\ \text{Income from Subsidiary} &&39,416\\ \hline \text{Total} & \underline{\underline{\$1,871,072}} & \underline{\underline{\$1,871,072}}\\ \end{array}$$

Required

Prepare a comprehensive consolidation worksheet as of December 31, 20X3.

For the past several years, Jeff Horton has operated a part-time consulting business from his home. As of April 1, 2019, Jeff decided to move to rented quarters and to operate the business, which was to be known as Rosebud Consulting, on a full-time basis. Rosebud Consulting entered into the following transactions during April:

Apr. 1. The following assets were received from Jeff Horton: cash, $20,000; accounts receivable,$14,700; supplies, $3,300; and office equipment,$12,000. There were no liabilities received.

1.Paid three months’ rent on a lease rental contract, $6,000.

2.Paid the premiums on property and casualty insurance policies,$4,200.

4.Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $9,400.

5.Purchased additional office equipment on account from Smith Office Supply Co.,$8,000.

6.Received cash from clients on account, $11,700.

10.Paid cash for a newspaper advertisement,$350.

12.Paid Smith Office Supply Co. for part of the debt incurred on April 5, $6,400.

12.Provided services on account for the period April 1–12,$21,900.

14.Paid receptionist for two weeks’ salary, $1,650.

Record the following transactions on Page 2 of the journal:

17.Received cash from cash clients for fees earned during the period April 1–16,$6,600.

18.Paid cash for supplies, $725.

20.Provided services on account for the period April 13–20,$16,800.

24.Received cash from cash clients for fees earned for the period April 17–24, $4,450.

26.Received cash from clients on account,$26,500.

27.Paid receptionist for two weeks’ salary, $1,650.

29.Paid telephone bill for April,$540.

30.Paid electricity bill for April, $760.

30.Received cash from cash clients for fees earned for the period April 25–30,$5,160.

30.Provided services on account for the remainder of April, $2,590.

30.Jeff withdrew$18,000 for personal use.

Instructions

1. Journalize each transaction in a two-column journal starting on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.)

$$\begin{array}{llll} 11 & \text { Cash } & 31 & \text { Jeff Horton, Capital } \\ 12 & \text { Accounts Receivable } & 32 & \text { Jeff Horton, Drawing } \\ 14 & \text { Supplies } & 41 & \text { Fees Earned } \\ 15 & \text { Prepaid Rent } & 51 & \text { Salary Expense } \\ 16 & \text { Prepaid Insurance } & 52 & \text { Supplies Expense } \\ 18 & \text { Office Equipment } & 53 & \text { Rent Expense } \\ 19 & \text { Accumulated Depreciation-Office Equipment } & 54 & \text { Depreciation Expense } \\ 21 & \text { Accounts Payable } & 55 & \text { Insurance Expense } \\ 22 & \text { Salaries Payable } & 59 & \text { Miscellaneous Expense }\\ 23 & \text { Unearned Fees } \end{array}\\$$

2. Post the journal to a ledger of four-column accounts.
3. Prepare an unadjusted trial balance.
4. At the end of April, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6).

a. Insurance expired during April is $350.

b. Supplies on hand on April 30 are$1,225.

c. Depreciation of office equipment for April is $400.

d. Accrued receptionist salary on April 30 is$275.

e. Rent expired during April is $2,000.

f. Unearned fees on April 30 are$2,350.

5. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet.
6. Journalize and post the adjusting entries. Record the adjusting entries on Page 3 of the journal.
7. Prepare an adjusted trial balance.
8. Prepare an income statement, a statement of owner’s equity, and a balance sheet.
9. Prepare and post the closing entries. Record the closing entries on Page 4 of the journal. Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry.
10. Prepare a post-closing trial balance.

Kenseth Corporation’s unadjusted trial balance at December 1, 2014, is presented below.

$$\begin{array}{lccc} &\underline{\textbf{Debit}}&\underline{\textbf{Credit}}\\[5pt] \text{Cash}&\text{\$\hspace{14pt}22,000}\\ \text{Accounts Receivable}&\text{\hspace{19pt}36,800}\\ \text{Notes Receivable}&\text{\hspace{19pt}10,000}\\ \text{Interest Receivable}&\text{\hspace{42pt}0}\\ \text{Inventory}&\text{\hspace{19pt}36,200}\\ \text{Prepaid Insurance}&\text{\hspace{24pt}3,600}\\ \text{Land}&\text{\hspace{19pt}20,000}\\ \text{Buildings}&\text{\hspace{14pt}150,000}\\ \text{Equipment}&\text{\hspace{19pt}60,000}\\ \text{Patent}&\text{\hspace{24pt}9,000}\\ \text{Allowance for Doubtful Accounts}&&\text{\$\hspace{27pt}500}\\ \text{Accumulated Depreciation—Buildings}&&\text{\hspace{19pt}50,000}\\ \text{Accumulated Depreciation—Equipment}&&\text{\hspace{19pt}24,000}\\ \text{Accounts Payable}&&\text{\hspace{19pt}27,300}\\ \text{Salaries and Wages Payable}&&\text{\hspace{42pt}0}\\ \text{Notes Payable (due April 30, 2015)}&&\text{\hspace{19pt}11,000}\\ \text{Income Taxes Payable}&&\text{\hspace{42pt}0}\\ \text{Interest Payable}&&\text{\hspace{42pt}0}\\ \text{Notes Payable (due in 2020)}&&\text{\hspace{19pt}35,000}\\ \text{Common Stock}&&\text{\hspace{19pt}50,000}\\ \text{Retained Earnings}&&\text{\hspace{19pt}63,600}\\ \text{Dividends}&\text{\hspace{19pt}12,000}\\ \text{Sales Revenue}&&\text{\hspace{14pt}900,000}\\ \text{Interest Revenue}&&\text{\hspace{42pt}0}\\ \text{Gain on Disposal of Plant Assets}&&\text{\hspace{42pt}0}\\ \text{Bad Debt Expense}&\text{\hspace{42pt}0}\\ \text{Cost of Goods Sold}&\text{\hspace{14pt}630,000}\\ \text{Depreciation Expense}&\text{\hspace{42pt}0}\\ \text{Income Tax Expense}&\text{\hspace{42pt}0}\\ \text{Insurance Expense}&\text{\hspace{42pt}0}\\ \text{Interest Expense}&\text{\hspace{42pt}0}\\ \text{Other Operating Expenses}&\text{\hspace{19pt}61,800}\\ \text{Amortization Expense}&\text{\hspace{42pt}0}\\ \text{Salaries and Wages Expense}&\underline{\text{\hspace{14pt}110,000}}&\underline{\text{\hspace{45pt}}}\\ \text{Total}&\underline{\underline{\text{\$\hspace{1pt}1,161,400}}}&\underline{\underline{\text{\$\hspace{1pt}1,161,400}}}\\ \end{array}$$

The following transactions occurred during December.

Dec.  2 Purchased equipment for $16,000, plus sales taxes of$800 (paid in cash).
      2 Kenseth sold for $3,500 equipment which originally cost$5,000. Accumulated depreciation on this equipment at January 1, 2014, was $1,800; 2014 depreciation prior to the sale of equipment was$825.
     15 Kenseth sold for $5,000 on account inventory that cost$3,500.
     23 Salaries and wages of $6,600 were paid.

Adjustment data:

1. Kenseth estimates that uncollectible accounts receivable at year-end are$4,000.
2. The note receivable is a one-year, 8% note dated April 1, 2014. No interest has been recorded.
3. The balance in prepaid insurance represents payment of a $3,600, 6-month premium on September 1, 2014.
4. The building is being depreciated using the straight-line method over 30 years. The salvage value is$30,000.
5. The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The salvage value is 10% of cost.
6. The equipment purchased on December 2, 2014, is being depreciated using the straight-line method over 5 years, with a salvage value of $1,800.
7. The patent was acquired on January 1, 2014, and has a useful life of 9 years from that date.
8. Unpaid salaries at December 31, 2014, total$2,200.
9. Both the short-term and long-term notes payable are dated January 1, 2014, and carry a 10% interest rate. All interest is payable in the next 12 months.
10. Income tax expense was $15,000. It was unpaid at December 31.

Instructions

(a) Prepare journal entries for the transactions listed above and adjusting entries.

Circle the BEST answer.
Which site is used to take an infant's temperature?
a Oral site
b Rectal site
c Axillary site
d Tympanic membrane site

All cells contain an enzyme called peptidyl-tRNA hydrolase, and cells that are deficient in the enzyme grow very slowly. What is the probable function of the enzyme and why is it necessary?

What is the difference between an allosteric site and an active site?

During elongation, which site in the ribosome represents the location where the codon is being read?

a. P site

b. E site

c. A site

d. small ribosomal subunit

______ inhibitor binds to a site on the enzyme that is not the active site.

Galaxy Theater Production Company's partially completed worksheet as of December 31, 2018, follows.

Adjustment data at December 31 follow:

• a. As of December 31, Galaxy had performed $900 of service revenue but has not yet billed customers.
• b. At the end of the month, Galaxy had$500 of office supplies remaining.
• c. Prepaid Insurance of $600 remained.
• d. Depreciation expense,$4,200.
• e. Accrued salaries expense of $150 that hasn't been paid yet.

Requirements

1. Complete the worksheet. Use letters a through e to label the five adjustments.
2. Journalize the adjusting entries.

For the past two editions of the textbook, this case has followed the financial condition of Detroit, Michigan. As this text goes to print, Detroit has emerged from bankruptcy and in accordance with Michigan Public Act 181 of 2014, it is currently monitored by the Detroit Financial Review Commission for compliance with the Plan of Adjustment. In the 2016 CAFR, Detroit indicates that its debt rating has actually been upgraded from the time the last edition of the textbook was published, when its debt had received a junk bond rating of Caa2 from Moody’s.

Currently the debt is rated as B2, which puts the uninsured debt in the below investment grade category. The audit of the 2015–2016 financial reports, conducted by Plante and Moran, provided Detroit with an unmodified opinion. As discussed in the MD&A, Detroit is making progress toward a sounder financial footing. Bonded debt decreased by $5.8 billion in the fiscal year as a result of eliminated, restructured, and new debt associated with the bankruptcy restructuring.

Use the information from the table of selected 10-year trend data and the Detroit CAFR report for the year ended June 30, 2016 to complete this assignment.

Required

After completing your trend analysis in part a and providing your opinion in part b, refer to the section entitled Analyzing Government-wide Financial Statements. At the end of that section, a number of warning indicators concerning fiscal distress are listed. Using indicators from that list, does your opinion in b change? Why or why not?

Visit an Internet auction site. How does the site work? What are the advantages and disadvantages of using this site?

What is the difference between same-site and second-site revertants?

In this exercise, use the statement below as the map provided.

Site A: -2.7m

Site B: $-\dfrac{21}{9}$m

Site C: -2.27m

Site D: $-\dfrac{20}{7}$m

Archaeologists are excavating a new Site E. On a number line, the depth of Site E is in between the depths of Site A and Site B. What is a possible depth of Site E?