Night Flyer Pack'n Mail completed the following transactions during 2016:

Nov. 1. Paid $2,000 store rent covering the four-month period ending February 28, 2017. Nov. 1. Paid$12,500 insurance covering the five-month period ending March 31, 2017. Dec. 1. Collected $4,500 cash in advance from customers. The service revenue will be earned$1,500 monthly over the three-month period ending February 28, 2017. Dec. 1. Collected $9,000 cash in advance from customers. The service revenue will be earned$1,800 monthly over the five-month period ending April 30, 2017.

Requirements

1. Journalize the transactions assuming that N ight Flyer debits an asset account for prepaid expenses and credits a liability account for unearned revenues.
2. Journalize the related adjusting entries at December 31, 2016.
3. Post the journal and adjusting entries to the T-accounts, and show their balances at December 31, 2016. (Ignore the Cash account.)
4. Repeat Requirements 1-3. This time, debit an expense account for prepaid expenses and credit a revenue account for unearned revenues.
5. Compare the account balances in Requirements 3 and 4. They should be equal.

The Dow Jones Travel Index reported what business travelers pay for hotel rooms per night in major U.S. cities (The Wall Street Journal, January 16, 2004). The average hotel room rates for 20 cities are as follows:

$$\begin{matrix} \text{Atlanta} & \text{\$163} & \text{Minneapolis} & \text{\$125}\\ \text{Boston} & \text{177} & \text{New Orleans} & \text{167}\\ \text{Chicago} & \text{166} & \text{New York} & \text{245}\\ \text{Cleveland} & \text{126} & \text{Orlando} & \text{146}\\ \text{Dallas} & \text{123} & \text{Phoenix} & \text{139}\\ \text{Denver} & \text{120} & \text{Pittsburgh} & \text{134}\\ \text{Detroit} & \text{144} & \text{San Francisco} & \text{167}\\ \text{Houston} & \text{173} & \text{Seattle} & \text{162}\\ \text{Los Angeles} & \text{160} & \text{St. Louis} & \text{145}\\ \text{Miami} & \text{192} & \text{Washington, D.C.} & \text{207}\\ \end{matrix}$$

a. What is the mean hotel room rate? b. What is the median hotel room rate? c. What is the mode? d. What is the first quartile? e. What is the third quartile?

Businesses know that customers often respond to background music. Do they also respond to odors? Nicolas Gueguen and his colleagues studied this question in a small pizza restaurant in France on Saturday evenings in May. On one evening, a relaxing lavender odor was spread through the restaurant; on another evening, a stimulating lemon odor; a third evening served as a control, with no odor. The given table shows the amounts (in euros) that customers spent on each of these evenings. Compare the three distributions. Were both odors associated with increased customer spending?

$$\begin{array}{c} \begin{array}{c} \text{No Odor} \end{array} \\ \begin{array}{llllllllll} \hline 15.9 & 18.5 & 15.9 & 18.5 & 18.5 & 21.9 & 15.9 & 15.9 & 15.9 & 15.9 \\ \hline 15.9 & 18.5 & 18.5 & 18.5 & 20.5 & 18.5 & 18.5 & 15.9 & 15.9 & 15.9 \\ \hline 18.5 & 18.5 & 15.9 & 18.5 & 15.9 & 18.5 & 15.9 & 25.5 & 12.9 & 15.9 \\ \hline \end{array} \end{array}$$

$$\begin{array}{c} \begin{array}{c} \text{Lemon Odor} \end{array} \\ \begin{array}{llllllllll} \hline 18.5 & 15.9 & 18.5 & 18.5 & 18.5 & 15.9 & 18.5 & 15.9 & 18.5 & 18.5 \\ \hline 15.9 & 18.5 & 21.5 & 15.9 & 21.9 & 15.9 & 18.5 & 18.5 & 18.5 & 18.5 \\ \hline 25.9 & 15.9 & 15.9 & 15.9 & 18.5 & 18.5 & 18.5 & 18.5 & & \\ \hline \end{array} \end{array}$$

$$\begin{array}{c} \begin{array}{c} \text{Lavender Odor} \end{array} \\ \begin{array}{llllllllll} \hline 21.9 & 18.5 & 22.3 & 21.9 & 18.5 & 21.9 & 18.5 & 22.5 & 21.5 & 21.9 \\ \hline 21.5 & 18.5 & 25.5 & 18.5 & 18.5 & 21.9 & 18.5 & 18.5 & 24.9 & 21.9 \\ \hline 25.9 & 21.9 & 18.5 & 18.5 & 22.8 & 18.5 & 21.9 & 20.7 & 21.9 & 22.5 \\ \hline \end{array} \end{array}$$

Ayako had a part-time job working at a sushi restaurant. She calculated the average amount of sushi sold per week to be 2000. She decided to find out if there was a relationship between the day of the week and the amount of sushi sold. Her observations are given in the table.

$$\begin{matrix} \text{ } & \text{<1700} & \text{1700-2300} & \text{>2300} & \text{Totals}\\ \text{Monday-Wednesday} & \text{38} & \text{55} & \text{52} & \text{145}\\ \text{Thursday-Friday} & \text{39} & \text{65} & \text{55} & \text{159}\\ \text{Saturday-Sunday} & \text{43} & \text{60} & \text{63} & \text{166}\\ \text{Totals} & \text{120} & \text{180} & \text{170} & \text{470}\\ \end{matrix}$$

Perform a $\chi^{2}$ test, at the 5% significance level, to determine whether the amount of sushi sold is independent of the day of the week. a. State the null hypothesis and the alternative hypothesis. b. Show that the expected frequency of selling over 2300 sushi on Monday-Wednesday is 52.4. c. Write down the number of degrees of freedom. d. Write down the $\chi_{\text {calc }}^{2}$ value for this data. The critical value is 9.488. e. Using the critical value or the p-value, comment on your result.

Newly formed concrete pipes are usually cured first overnight by steam in a curing kiln maintained at a temperature of $45^{\circ} \mathrm{C}$ before the pipes are cured for several days outside. The heat and moisture to the kiln is provided by steam flowing in a pipe whose outer diameter is $12 \mathrm{~cm}$. During a plant inspection, it was noticed that the pipe passes through a $10-\mathrm{m}$ section that is completely exposed to the ambient air before it reaches the kiln. The temperature measurements indicate that the average temperature of the outer surface of the steam pipe is $82^{\circ} \mathrm{C}$ when the ambient temperature is $8^{\circ} \mathrm{C}$. The combined convection and radiation heat transfer coefficient at the outer surface of the pipe is estimated to be $35 \mathrm{~W} / \mathrm{m}^{2} \cdot{ }^{\circ} \mathrm{C}$. Find the amount of heat lost from the steam during a $10-\mathrm{h}$ curing process that night. Steam is supplied by a gas-fired steam generator that has an efficiency of $85$ percent, and the plant pays $\$ 1.20$ /therm of natural gas ( $1 \mathrm{~therm}$ $=105,500 \mathrm{~kJ})$. If the pipe is insulated and $90$ percent of the heat loss is saved as a result, Find the amount of money this facility will save a year as a result of insulating the steam pipes. Assume that the concrete pipes are cured $110$ nights a year. State your assumptions. $T_{\text {air }}=8^{\circ} \mathrm{C}$.

The ABC Company runs two shifts, from 8:00 am to midnight. Backups and system maintenance are performed between midnight and 8:00 am. For each of the following scenarios, determine whether the company’s current backup procedures enable it to meet its recovery objectives, and explain why:

c. Scenario 3: Company makes daily differential backups Monday through Friday at 3:00 a.m. each night. Company makes full backup weekly, on Saturdays, at 1:00 p.m.

• Recovery time objective 5 6 hours
• Time to do full backup 5 4 hours
• Time to restore from full backup 5 3 hours
• Time to do differential daily backups 5 1 hour on Monday, increasing by 30 minutes each successive day
• Time to restore differential daily backup 5 30 minutes for Monday, increasing by 15 minutes each successive day

On November 30, the end of the current fiscal year, the following information is available to assist Allerton Company’s accountants in making adjusting entries:

a. Allerton’s Supplies account shows a beginning balance of $2,350. Purchases during the year were$4,218. The end-of-year inventory reveals supplies on hand of $1,397.

b. The Prepaid Insurance account shows the following on November 30:

$$\begin{array}{lr} \text{Beginning balance} & \$4,720\\ \text{July 1} & 4,200\\ \text{October 1} & 7,272\\ \end{array}$$

The beginning balance represents the unexpired portion of a one-year policy purchased in September of the previous year. The July 1 entry represents a new one-year policy, and the October 1 entry represents additional coverage in the form of a three-year policy.

c. The following table contains the cost and annual depreciation for buildings and equipment, all of which Allerton purchased before the current year:

$$\begin{array}{lrr} \textbf{Account} & \textbf{Cost} & \textbf{Annual Depreciation}\\ \\ \text{Buildings} & \$298,000 & \$16,000\\ \text{Equipment} & 374,000& 40,000\\ \end{array}$$

d. On October 1, the company completed negotiations with a client and accepted an advance of $18,600 for services to be performed monthly for a year. The$18,600 was credited to Unearned Services Revenue.

e. The company calculated that, as of November 30, it had earned $7,000 on an$11,000 contract that would be completed and billed in January.

f. Among the liabilities of the company is a note payable in the amount of $300,000. On November 30, the accrued interest on this note amounted to$18,000.

g. On Saturday, December 2, the company, which is on a six-day workweek, will pay its regular employees their weekly wages of $15,000.

h. On November 29, the company completed negotiations and signed a contract to provide services to a new client at an annual rate of$23,000.

Required

1. Prepare adjusting entries for each item listed above.

2. Explain how the conditions for revenue recognition are applied to transactions e and h.

Prepare a table with the following headings for a monthly bank reconciliation dated September 30.

$$\begin{matrix} \text{Bank Balance} & \quad & \text{Book Balance} & \quad & \text{Not Shown on the Reconciliation}\\ \text{Add} & \text{Deduct} & \text{Add} & \text{Adjust}\\ \end{matrix}$$

For each item 1 through 12, place an x in the appropriate column to indicate whether the item should be added to or deducted from the book or bank balance, or whether it should not appear on the reconciliation. If the book balance is to be adjusted, place a Dr. or Cr. in the Adjust column to indicate whether the Cash balance should be debited or credited. At the left side of your table, number the items to correspond to the following list. 1. NSF check from customer is returned on September 25 but not yet recorded by this company. 2. Interest earned on the September cash balance in the bank. 3. Deposit made on September 5 and processed by the bank on September 6. 4. Checks written by another depositor but charged against this company’s account. 5. Bank service charge for September. 6. Checks outstanding on August 31 that cleared the bank in September. 7. Check written against the company’s account and cleared by the bank; erroneously not recorded by the company’s recordkeeper. 8. Principal and interest on a note receivable to this company is collected by the bank but not yet recorded by the company. 9. Checks written and mailed to payees on October 2. 10. Checks written by the company and mailed to payees on September 30. 11. Night deposit made on September 30 after the bank closed. 12. Special bank charge for collection of note in part 8 on this company’s behalf.

Students in two basic Spanish classes were required to learn 50 new vocabulary words. One group of 45 students received the list on Monday and studied the words all week. Statistics summarizing this group's scores on Friday's quiz are given. The other group of 25 students did not get the vocabulary list until Thursday. They also took the quiz on Friday after "cramming" Thursday night. Then, when they returned to class the following Monday they were retested-without advance warning. Both sets of test scores for these students are shown.

$$\begin{align*} &\text{Group 1}\\ \hline &\text{Fri.}\\ &\text{Number of students = 45}\\ &\text{Mean = 43.2 (of 50)}\\ &\text{StDev = 3.4}\\ &\text{Students passing (score ~ 40) = 33\\\%} \end{align*}$$

Did the week-long study group have a mean score significantly higher than that of the overnight crammers?

S.R. is a 59-year-old man who comes to the clinic because his wife complains "my snoring is difficult to live with."

After interviewing S.R., you note the following: S.R. is under considerable stress. He owns his own business. The stress of overseeing his employees, meeting deadlines, and carrying out negotiations has led to poor sleep habits. He sleeps 3 to 4 hours per night. He keeps himself going by drinking 2 quarts ( 2 liters) of coffee and smoking three to four packs of cigarettes per day. He has gained 50 pounds $(22.5 \mathrm{~kg})$ over the 2 years, leading to a current weight of 250 pounds ( $114 \mathrm{~kg}$ ). He tells you he has difficulty staying awake, wakes up with headaches on most mornings, and has midmorning somnolence. He says he is depressed and irritable most of the time and reports difficulty concentrating and learning new things. He has been involved in three auto accidents in the past year.

S.R.s vital signs are 164/90, 92, 18, and $\mathrm{SpO}_2$ 90% on room air. His examination findings are normal, except for a few bruises over the right side of the rib cage. You inquire about the bruises, and S.R. reports that his wife jabs him with her elbow several times every night. In her own defense, the wife states, "Well, he stops breathing and I get worried, so I jab him to make him start breathing again. If I don't jab him, I find myself listening for his next breath and I can't go to sleep."You suspect sleep apnea.

The primary care provider examines S.R. and documents a long soft palate, recessed mandible, and medium-sized tonsils. S.R. undergoes an overnight home screening study, which shows 143 episodes of desaturation ranging from 68% to 76% with episodes of apnea. He is tentatively diagnosed with obstructive sleep apnea (OSA), and a full sleep study is ordered.

The polysomnogram confirms S.R.'s diagnosis of OSA. At his 6-week follow-up visit, he reports he has lost 8 pounds $(3.6 \mathrm{~kg}$ ), but there has been little improvement in his symptoms. He says that he fell asleep while driving to work and wrecked his car. He wants to discuss further treatment options.

S.R. and the provider decide to begin S.R. on continuous positive airway pressure (CPAP). The provider writes a prescription for CPAP.

Which member of the interprofessional team will likely be involved in S.R.'s care and how?

Don Otno has been researching software options but cannot decide among three alternatives. Don started his search at Computers Made Easy (CME) and almost wished he had looked no further. Steve Young, the manager of CME, appeared knowledgeable and listened attentively to Don’s problems, needs, and concerns. Steve had software and hardware that would, with a few exceptions, meet Don’s needs. Don could start using the system almost immediately. The system’s price was unexpectedly reasonable.

After three hours at Custom Designed Software (CDS), Don left convinced that they could produce exactly what he needed. Cost and time estimates were not established, but CDS assured him that the cost would be reasonable and that the software would be complete in a few months.

At Modified Software Unlimited (MSU), the owner said that customized software was very good but expensive and that canned software was inexpensive but rarely met more than a few needs. The best of both worlds could be achieved by having MSU modify the package that came closest to meeting Don’s needs.

Don returned to CME and asked Steve about customized and modified software. Steve expressed enough concerns about both that Don came full circle—to thinking canned software was best. That night, Don realized he could not make an objective decision. He was swayed by whichever vendor he was talking with at the time. The next morning he called you for help.

REQU a. List the advantages and disadvantages of each vendor’s approach.

Reread the identified passage. Then, respond to the question that follow.

Prowess was not mere talk, for the function of physical violence required real stamina. To fight on horseback or foot wearing 55 pounds of plate armor, to crash in collision with an opponent at full gallop while holding horizontal an eighteen-foot lance half the length of an average telephone pole, to give and receive blows with sword or battle-ax that could cleave a skull or slice off a limb at a stroke, to spend half of life in the saddle through all weathers and for days at a time, was not a weakling's work. Hardship and fear were part of it. "Knights who are at the wars ... are forever swallowing their fear," wrote the companion and biographer of Don Pero Niño, the "Unconquered Knight" of the late 14th century. "They expose themselves to every peril; they give up their bodies to the adventure of life in death. Moldy bread or biscuit, meat cooked or uncooked; today enough to eat and tomorrow nothing, little or no wine, water from a pond or a butt, bad quarters, the shelter of a tent or branches, a bad bed, poor sleep with their armor still on their backs, burdened with iron, the enemy an arrow-shot off. 'Ware! Who goes there? To arms! To arms!' With the first drowsiness, an alarm; at dawn, the trumpet. 'To horse! To horse! Muster! Muster!' As lookouts, as sentinels, keeping watch by day and by night, fighting without cover, as foragers, as scouts, guard after guard, duty after duty. 'Here they come! Here! They are so many-No, not as many as that-This way-that-Come this side-Press them there-News! News! They come back hurt, they have prisoners-no, they bring none back. Let us go! Let us go! Give no ground! On!' Such is their calling."

What central idea unifies this paragraph?

Paula, Sasha, and Yumiko live together. They want a system to determine who will wash the dinner dishes on any given night. Select all of the methods that are fair. a) Roll a standard number cube. If the result is 1 or 2, Paula does the dishes; if 3 or 4, Sasha, if 5 or 6, Yumiko. b) Roll a standard number cube. If the result is 1, Paula does the dishes; if 2, Sasha; if 4, Yumiko. If the result is 3, 5, or 6, roll again. c) Roll two standard number cubes. If the sum of the numbers that come up is less than 6, Paula washes the dishes; if the sum is 8. 9, or 12, Sasha; if the sum is 6 or 7, Yumiko. If the sum is 10 or 11, roll again. d) Write the name of each girl on a slip of paper, place the slips in a box, mix them up, and select one at random. The person whose name is selected does the dishes.

This problem refers to a colony of bats that flies out of a cave each night to eat insects. To estimate the colony's size, a naturalist counts samples of bats at different distances from the cave. The table gives n, her count per hectare, at a distance $r$ km from the cave. For instance, she counts 300 bats in one hectare at the cave's mouth, and 219 bats in one hectare one kilometer from the cave. The bat count r km from the cave is the same in all directions.

[Note that $1~ \mathrm { km } ^ { 2 } = 100 ~\text {hectares}$, written 100 ha.]

$$\begin{matrix} \text{r} & \text{0} & \text{1} & \text{2} & \text{3} & \text{4} & \text{5}\\ \text{n} & \text{300} & \text{219} & \text{160} & \text{117} & \text{85} & \text{62}\\ \end{matrix}$$

Give an underestimate of the number of bats between $3$ and $4$ km from the cave.