Answer the following questions. Hint: Use the accounting equation.

a. On January $1$, Lumia Company’s liabilities are $\$60,000$ and its equity is $\$40,000$. On January $3$, Lumia purchases and installs solar panel assets costing $\$10,000$. For the panels, Lumia pays $\$4,000$ cash and promises to pay the remaining $\$6,000$ in six months. What is the total of Lumia’s assets after the solar panel purchase?

Underline the correct form of the modifier in parentheses in each sentence. Then, identify the underlined modifier by writing P for positive degree, C for comparative degree, or S for superlative degree.

This abandoned house is (spooky, spookier).

Use L'Hopital's Rule to determine the comparative rates of increase of the functions $f(x)=x^m, \quad g(x)=e^{n x}$, and $h(x)=(\ln x)^n$ where $n>0, m>0$, and $x \rightarrow \infty$.
$\lim _{x \rightarrow \infty} \dfrac{(\ln x)^n}{x^m}$

Your examination of the records of a company that follows the cash basis of accounting tells you that the company’s reported cash-basis earnings in 2014 are $33,640. If this firm had followed accrual-basis accounting practices, it would have reported the following year-end balances.

$$\begin{array}{lcc} \text{}&\underline{\textbf{2014}}&\underline{\textbf{2013}}\\ \text{Accounts receivable}&\text{\$\hspace{1pt}3,400}&\text{\$\hspace{1pt}2,800}\\ \text{Supplies on hand}&\text{\hspace{7pt}1,300}&\text{\hspace{7pt}1,460}\\ \text{Unpaid wages owed}&\text{\hspace{7pt}2,000}&\text{\hspace{7pt}2,400}\\ \text{Other unpaid expenses}&\text{\hspace{7pt}1,400}&\text{\hspace{7pt}1,100}\\ \end{array}$$

Instructions

Determine the company’s net earnings on an accrual basis for 2014. Show all your calculations in an orderly fashion.

City Hospital, a nonprofit organization, estimates that it can save $28,000 a year in cash operating costs for the next 10 years if it buys a special-purpose eye testing machine at a cost of$110,000. No terminal disposal value is expected. City Hospital’s required rate of return is 14%. Assume all cash flows occur at year-end except for initial investment amounts. City Hospital uses straight-line depreciation. 1. Calculate the following for the special-purpose eye-testing machine: a. Net present value b. Payback period c. Internal rate of return d. Accrual accounting rate of return based on net initial investment e. Accrual accounting rate of return based on average investment 2. What other factors should City Hospital consider in deciding whether to purchase the special-purpose eye-testing machine?

Identify the degree of comparison of the underlined modifier by writing P for positive degree, C for comparative degree, or S for superlative degree.

This recipe is $\underline{\text{simpler}}$ than the other one because there are fewer steps.

Accounting has its own vocabulary and basic relationships. Match the accounting terms at the left with the corresponding definition or meaning at the right.

$$\begin{matrix} \text{\_\_\_\_ 1. Debit } & \text{ A. Always an asset }\\ \text{ \_\_\_\_ 2. Expense} & \text{B. Side of an account where increases are recorded}\\ \text{\_\_\_\_ 3. Net income } & \text{C. Record of transactions }\\ \text{\_\_\_\_ 4. Ledger } & \text{D. The cost of operating a business; a decrease in stockholder’s equity}\\ \text{\_\_\_\_ 5. Posting} & \text{E. Grouping of accounts }\\ \text{\_\_\_\_ 6. Normal balance } & \text{F. Copying data from the journal to the ledger }\\ \text{\_\_\_\_ 7. Payable } & \text{G. Revenues – Expenses }\\ \text{ \_\_\_\_ 8. Journal } & \text{H. Always a liability}\\ \text{\_\_\_\_ 9. Receivable } & \text{I. Left side of an account}\\ \text{\_\_\_\_ 10. Owners’ equity } & \text{ J. Assets – Liabilities }\\ \end{matrix}$$

Recognizing The Three Degrees of Comparison. Identify the degree of comparison of each underlined modifier by writing $P$ for positive, $C$ for comparative, or $S$ for superiative on the line. The lecture hall is $\underline{larger}$ than the lounge.

Use a computer to graph the function using various domains and viewpoints. Get a printout of one that, in your opinion, gives a good view. If your software also produces level curves, then plot some contour lines of the same function and compare with the graph. $f(x, y)=\left(1-3 x^{2}+y^{2}\right) e^{1-x^{2}-y^{2}}$

Use the Second Fundamental Theorem of Calculus to find F’(x). F(x) = ∫ _0^x t cos t dt

How many significant figures are there in each of the following values? 0.003840

What are some of the advantages and disadvantages of these personal letters as historical documents? For example, what insights do they provide that more formal documents, such as the Declaration of Independence, do not? How are the letters useful or limited in their historical value? How does the identity of the writer influence the content? Draw upon your chart to cite examples from the letters to prove your points.

Pam and John are partners in PJ's partnership, having capital balances of $120,000 and$40,000, respectively, and share income in a ratio of 3 : 1. Gerry is to be admitted into the partnership with a 20 percent interest in the business.

Required

First record Gerry's admission into the partnership and then specify and briefly explain why the accounting method used in that situation is GAAP or non-GAAP.

• Gerry invests $50,000, and goodwill is to be recorded.

Pam and John are partners in PJ's partnership, having capital balances of $120,000 and$40,000, respectively, and share income in a ratio of 3 : 1. Gerry is to be admitted into the partnership with a 20 percent interest in the business.

Required

First record Gerry's admission into the partnership and then specify and briefly explain why the accounting method used in that situation is GAAP or non-GAAP.

• Gerry invests $35,000, and goodwill is to be recorded.