Handy Hardware Corporation's unadjusted trial balance and accounting forms are given in the Working Papers.

Instructions:

1. Using the following information, journalize the adjusting entries for the current year ended December 31.

Adjustment Information, December 31

Estimated uncollectible accounts based on aging accounts receivable         $ 13,832.96 
Accrued interest income                                                          630.00 
Merchandise inventory                                                        162,569.00
Supplies inventory                                                             3,695.00
Value of prepaid insurance                                                     8,360.00
Annual depreciation expense equipment                                         13,034.00 
Accrued interest expense                                                         600.00 
Prepaid rent income earned                                                     4,000.00

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 2016, 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 2016 is $50,000 and$54,000 at the end of 2017. Calculate the accumulated postretirement benefit obligation at the end of 2016 and 2017 and the service cost for 2016 and 2017 as pertaining to Lukawitz.

You are curious as to how much Rhonda and Steve made in their business last year. You do not have all the data, but you know that most of their expenses relate to buying the sweaters and having them monogrammed. You know they paid themselves $\$ 50,000$ each and you know the rent, utilities, insurance, and a benefit package for the business was about $\$ 20,000$. About how much do you think they made "before taxes" last year? If they must make their payment to the venture capital firm, and then pay $50$ percent in taxes, what was their increase in cash last year?

The Herndons bought a lot several years ago for $\$ 22,000$. On the lot they own, they are now building a home that will cost $\$ 140,000$. The Herndons will pay for the home by taking $\$ 25,000$ from savings and borrowing the rest. First-year expenses are estimated to be: mortgage interest, $\$ 9,100$; depreciation, $2.25 \%$ of the home's cost; property taxes, $\$ 2,890$; insurance, $\$ 645$; lost interest income, $\$ 720$; maintenance, $\$ 1,350$; and utilities, $\$ 1,900$. Income tax savings are estimated to be $\$ 3,025$. a. What will be the Herndon's cost of owning the home in the first year? b. What will be the net cost of home ownership in the first year?

Paul's Plumbing charges a flat fee of $\$ 50$ per service call plus an hourly rate of $\$ 42.50$. This means that cost is a function of the hours the job takes to complete plus the flat fee.

(a) Write this relationship in equation form;

(b) find the cost of a service call that takes $2 \frac{1}{2} \mathrm{hr}$;

(c) determine the number of hours the job took if the charge came to $\$ 262.50$;

(d) determine the domain and range of the function in this context, if your insurance company has agreed to pay for all charges over $\$ 500$ for the service call.

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

C. Balance Sheet (simple—unclassified)

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

$$\begin{array}{lcc} &\textbf{Debit}&\textbf{Credit}\\[5pt] \text{Cash}&\text{\$\hspace{5pt}55,200}\\ \text{Accounts Receivable}&\text{\hspace{10pt}30,200}\\ \text{Prepaid Insurance}&\text{\hspace{15pt}6,000}\\ \text{Land}&\text{\hspace{10pt}30,000}\\ \text{Accounts Payable}&&\text{\$\hspace{5pt}14,300}\\ \text{Salaries Payable}&&\text{\hspace{15pt}6,100}\\ \text{Common Stock}&&\text{\hspace{10pt}26,000}\\ \text{Retained Earnings}&&\text{\hspace{10pt}38,900}\\ \text{Dividends}&\text{\hspace{10pt}16,500}\\ \text{Service Revenue}&&\text{\hspace{5pt}211,850}\\ \text{Insurance Expense}&\text{\hspace{10pt}24,000}\\ \text{Salaries Expense}&\text{\hspace{5pt}128,350}\\ \text{Miscellaneous Expense}&\underline{\text{\hspace{15pt}6,900}}&\underline{\text{\hspace{39pt}}}\\ &\underline{\underline{\text{\$\hspace{1pt}297,150}}}&\underline{\underline{\text{\$\hspace{1pt}297,150}}}\\ \end{array}$$

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.

Use either the critical-value approach or the P-value approach to perform the required hypothesis test. Response Insurance collects data on seat-belt use among U.S. drivers. Of 1000 drivers 25-34 years old, 27% said that they buckle up, whereas 330 of 1100 drivers 45-64 years old said that they did. At the 10% significance level, do the data suggest that there is a difference in seat-belt use between drivers 25-34 years old and those 45-64 years old? [SOURCE: USA TODAY Online]

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.

Lettie just got her driver's license. Her friends soon nicknamed her "Leadfoot" because she is always going 80 mph on the freeway even though the speed limit is 65 mph. a. At this speed, how long will it take her to travel 50 miles? b. How long would it take her if she drove the 50 miles at 65 mph? c. Speeding tickets carry fines of about $200 and usually increase the cost of insurance. If Lettie gets a ticket on this trip, then what would be her cost per minute of time saved?

List the errors you find in the following balance sheet. Prepare a corrected balance sheet.

$$\begin{array}{lrlr} \text { Accounts Payable } & \$ 18,500 & \text { Prepaid Insurance } & \$ 19,200 \\ \text { Accounts Receivable } & 78,250 & \text { Prepaid Rent } & 18,000 \\ \text { Accumulated Depreciation-Equipment } & 103,300 & \text { Retained Earnings } & 509,000 \\ \text { Capital Stock } & 100,000 & \text { Salaries Payable } & 8,500 \\ \text { Cash } & ? & \text { Supplies } & 5,350 \\ \text { Equipment } & 300,000 & \text { Unearned Fees } & 9,000 \\ \text { Land } & 290,000 & & \end{array}$$

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.

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.

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 28, 2019, 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.