The adjusted trial balance for Tybalt Construction as of December 31, 2015, follows.

$$\begin{array}{c} \textbf{TYBALT CONSTRUCTION}\\ \text{Adjusted Trial Balance}\\ \text{December 31, 2015}\\ \end{array}$$

No.	Account Title	Debit	Credit
101	Cash	$5,000
104	Short-term investments	23,000
126	Supplies	8,100
128	Prepaid insurance	7,000
167	Equipment	40,000
168	Accumulated depreciation—Equipment		$ 20,000
173	Building	150,000
174	Accumulated depreciation—Building		50,000
183	Land	55,000
201	Accounts payable		16,500
203	Interest payable		2,500
208	Rent payable		3,500
210	Wages payable		2,500
213	Property taxes payable		900
233	Unearned professional fees		7,500
251	Long-term notes payable		67,000
301	O. Tybalt, Capital		126,400
302	O. Tybalt, Withdrawals	13,000
401	Professional fees earned		97,000
406	Rent earned		14,000
407	Dividends earned		2,000
409	Interest earned		2,100
606	Depreciation expense—Building	11,000
612	Depreciation expense—Equipment	6,000
623	Wages expense	32,000
633	Interest expense	5,100
637	Insurance expense	10,000
640	Rent expense	13,400
652	Supplies expense	7,400
682	Postage expense	4,200
683	Property taxes expense	5,000
684	Repairs expense	8,900
688	Telephone expense	3,200
690	Utilities expense	4,600
	Totals	$411,900	$411,900

O. Tybalt invested $\$ 5,000$ cash in the business during year 2015 (the December 31,2014 , credit balance of the O. Tybalt, Capital account was $\$ 121,400$ ). Tybalt Construction is required to make a $\$ 7,000$ payment on its long-term notes payable during 2016.

1. Prepare the income statement and the statement of owner's equity for the calendar year 2015 and the classified balance sheet at December 31, 2015.
2. Prepare the necessary closing entries at December 31, 2015.
3. Use the information in the financial statements to compute these ratios: (a) return on assets (total assets at December 31, 2014, was $\$ 200,000$ ), (b) debt ratio, (c) profit margin ratio (use total revenues as the denominator), and $(d)$ current ratio. Round ratios to three decimals for parts $a$ and $c$, and to two decimals for parts $b$ and $d$.

On December 31, Dehning, Inc .. borrowed $500,000 on an 8%. 10-year mortgage note payable. The note is to be repaid in equal quarterly installments of$18,278 (beginning March 31). c. Record each of the transactions from part a in the financial statement effects template.

a. Create a text file containing the following data (without the headings):

$$\begin{array}{|l|l|l|} \hline \text { Car Number } & \text { Miles Driven } & \text { Gallons of Gas Used } \\ \hline 54 & 250 & 19 \\ \hline 62 & 525 & 38 \\ \hline 71 & 123 & 6 \\ \hline 85 & 1322 & 86 \\ \hline 97 & 235 & 14 \\ \hline \end{array}$$

b. Write a C++ program that reads the data in the file created in previous Exercise and displays the car number, miles driven, gallons of gas used, and miles per gallon (mpg) for each car. The output should contain the total miles driven, total gallons of gas used, and average mpg for all cars. These totals should be displayed at the end of the output report.

Refer to the data in QS 16-11.
1. How much cash is paid to acquire inventory during year 2017?
2. How much cash is paid for "other expenses" during year 2017? (Hint: Check prepaid expenses and wages payable.)

On January 1, 2016, Nantucket Ferry borrowed $14,000,000 cash from BankOne and issued a four-year,$14,000,000, 6% note. Interest was payable annually on December 31. Prepare the journal entries for both firms to record interest at December 31, 2016.

Josh and Kelly McKay began operations of their furniture repair shop (Furniture Refinishers, Inc.) on January 1, 2012. The annual reporting period ends December 31. The trial balance on January 1, 2013, was as follows:

$$\begin{array}{|l|c|c|} \hline \textbf { Account Titles} & \textbf { Debit } & \textbf { Credit }\\ \hline \text { Cash } & \$ 5,000 & \\ \hline \text { Accounts receivable } & 4,000 & \\ \hline \text { Supplies } & 2,000 & \\ \hline \text { Small tools } & 6,000 & \\ \hline \text { Equipment } & & \\ \hline \text { Accumulated depreciation (on equipment) } & & \\ \hline \text { Other assets (not detailed to simplify) } & 9,000 & \\ \hline \text { Accounts payable } & & \$ 7,000 \\ \hline \text { Notes payable } & & \\ \hline \text { Wages payable } & & \\ \hline \text { Interest payable } & & \\ \hline \text { Income taxes payable } & & \\ \hline \text { Unearned revenue } & & \\ \hline \text { Contributed capital (15,000 shares) } & & 15,000 \\ \hline \text { Retained earnings } & & 4,000 \\ \hline \text { Service revenue } & & \\ \hline \text { Depreciation expense } & & \\ \hline \text { Wages expense } & & \\ \hline \text { Interest expense } & & \\ \hline \text { Income tax expense } & & \\ \hline \text { Remaining expenses (not detailed to simplify) } & & \\ \hline \textbf { Totals } & \textbf { \$26,000 } & \textbf { \$26,000 } \\ \hline \end{array}$$

Transactions during 2013 follow:

a. Borrowed $20,000 cash on July 1, 2013, signing a one-year, 10 percent note payable.

b. Purchased equipment for$18,000 cash on July 1, 2013.

c. Sold 5,000 additional shares of capital stock for cash at $1 market value per share at the beginning of the year. d. Earned$70,000 in revenues for 2013, including $14,000 on credit and the rest in cash.

e. Incurred remaining expenses of$35,000 for 2013, including $7,000 on credit and the rest paid with cash.

f. Purchased additional small tools,$3,000 cash.

g. Collected accounts receivable, $8,000.

h. Paid accounts payable,$11,000.

i. Purchased $10,000 of supplies on account.

j. Received a$3,000 deposit on work to start January 15, 2014.

k. Declared and paid a cash dividend, $10,000.

Data for adjusting entries:

l. Supplies of$4,000 and small tools of $8,000 were counted on December 31, 2013 (debit Remaining Expenses).

m. Depreciation for 2013,$2,000.

n. Interest accrued on notes payable (to be computed).

o. Wages earned since the December 24 payroll but not yet paid, $3,000.

p. Income tax expense was$4,000, payable in 2014.

Required:

1. Set up T-accounts for the accounts on the trial balance and enter beginning balances.

2. Prepare journal entries for transactions ( a ) through ( k ) and post them to the T-accounts.

3. Journalize and post the adjusting entries ( l ) through ( p ).

4. Prepare an income statement (including earnings per share), statement of stockholders’ equity, balance sheet, and statement of cash flows.

5. Journalize and post the closing entry.

6. Compute the following ratios for 2013 and explain what the results suggest about the company:

a. Current ratio

b. Total asset turnover

c. Net profit margin

Trevor Moore opened a law office on April 1, 2017. During the first month of operations, the business completed the following transactions:

Apr. 1. Moore contributed $76,000 cash to the business, Trevor Moore, Attorney. The business issued common stock to Moore. 3. Purchased office supplies,$400, and furniture, $2,200, on account. 4. Performed legal services for a client and received$900 cash. 7. Purchased a building with a market value of $120,000, and land with a market value of$29,000. The business paid $45,000 cash and signed a note payable to the bank for the remaining amount. 11. Prepared legal documents for a client on account,$800. 15. Paid assistant's semimonthly salary, $1,230. 16. Paid for the office supplies purchased on April 3 on account. 18. Received$2,800 cash for helping a client sell real estate. 19. Defended a client in court and billed the client for $1,500. 25. Received a bill for utilities,$650. The bill will be paid next month. 28. Received cash on account, $1,700. 29. Paid$4,800 cash for a 12-month insurance policy starting on May 1. 29. Paid assistant's semimonthly salary, $1,230. 30. Paid monthly rent expense,$1,100. 30. Paid cash dividends of $2,000.

Requirements

1. Record each transaction in the journal, using the following account titles: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Furniture; Building; Land; Accounts Payable; Utilities Payable; Notes Payable; Common Stock; Dividends; Service Revenue; Salaries Expense; Rent Expense; and Utilities Expense. Explanations are not required.
2. Open the following four-column accounts including account numbers: Cash, 101; Accounts Receivable, 111; Office Supplies, 121; Prepaid Insurance, 131; Furniture, 141; Building, 151; Land, 161; Accounts Payable, 201; Utilities Payable, 211; Notes Payable, 221; Common Stock, 301; Dividends, 311; Service Revenue, 411; Salaries Expense, 511; Rent Expense, 521; and Utilities Expense, 531.
3. Post the journal entries to four-column accounts in the ledger, using dates, account numbers, journal references, and posting references. Assume the journal entries were recorded on page 1 of the journal.
4. Prepare the trial bal.ance of Trevor Moore, Attorney, at April 30, 2017.

The following items were taken from the accounting records of Minnesota Satellite Telephone Corporation (MinnSat) for the year ended December 31, 2011 (dollar amounts are in thousands):

$$\begin{array}{|cc} \text { Accounts payable } & \cdots \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots \cdots\cdots\cdots\cdots& \$ 65,600 \\ \text { Accrued expenses payable (other than interest) } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 11,347 \\ 6^{3/4} \% \text{Bonds payable, due Feb. 1, 2012} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 100,000 \\ 8^{1/2} \%\text{Bonds payable, due June 1,2012} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots &250,000 \\ \text { Discount on bonds payable } (8^{1/2} \% \text{bonds of 2012}) & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 260 \\ 11 \% \text { Bonds payable, due June 1, 2021} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 300,000 \\ \text { Premium on bonds payable } (11\% \text{bonds of 2012}) & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 1,700\\ \text { Accrued interest payable} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 7,333 \\ \text { Bond interest expense } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots& 61,000\\ \text { Other interest expense } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots \cdots\cdots\cdots& 17,000 \\ \text { Notes payable (short-term) } & \cdots\cdots\cdots\cdots\cdots\cdots \cdots\cdots\cdots& 110,000\\ \text {Lease obligations—capital leases} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots &23,600\\ \text {Pension obligation} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 410,000 \\ \text {Unfunded obligations for postretirement benefits other than pensions } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 72,000\\ \text { Deferred income taxes} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 130,000 \\ \text { Income tax expense } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 66,900\\ \text {Income tax payable } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 17,300 \\ \text {Operating income} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 280,800 \\ \text { Net income } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots& 134,700 \\ \text {Total assets } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots \cdots\cdots\cdots& 2,093,500 \\ \end{array}$$

Other Information

1. The $63 / 4$ percent bonds due in February 2012 will be refinanced in January 2012 through the issuance of $\$ 150,000$ in 9 percent, 20-year bonds payable.
2. The $8 \frac{1}{2}$ percent bonds due June 1,2012 , will be repaid entirely from a bond sinking fund.
3. MinnSat is committed to total lease payments of $\$ 14,400$ in 2012 . Of this amount, $\$ 7,479$ is applicable to operating leases, and $\$ 6,921$ to capital leases. Payments on capital leases will be applied as follows: $\$ 2,300$ to interest expense and $\$ 4,621$ to reduction in the capitalized lease payment obligation.
4. MinnSat's pension plan is fully funded with an independent trustee.
5. The obligation for postretirement benefits other than pensions consists of a commitment to maintain health insurance for retired workers. During 2012, MinnSat will fund $\$ 18,000$ of this obligation.
6. The $\$ 17,300$ in income tax payable relates to income taxes levied in 2011 and must be paid on or before March 15,2012 . No portion of the deferred tax liability is regarded as a current liability.

Instructions
c. Compute as of December 31, 2011, the company's (1) debt ratio and (2) interest coverage ratio.

Golden Inc. issues $4 million, 5-year, 10% bonds at 102, with interest payable annually on January 1. The straight-line method is used to amortize bond premium.

(a) Prepare the journal entry to record the sale of these bonds on January 1, 2017.

During the current month, the following errors occurred in recording transactions in the purchases journal or in posting from it. d. The Accounts Payable column of the purchases journal was overstated by $3,600. How will each error come to the bookkeeper’s attention, other than by chance discovery?

The file sizes, in megabytes, of 30 songs on an MP3 player are shown below. If you make a histogram using intervals of 50-59, 60-69, 70-79, 80-89, and 90-99, which interval has the greatest bar?

50,99,98,58,61,70,86,51,65,73,81,97,50,66,76,83,55,67,78,90,54,52,63,73,77,92,76,55,60,66

A 50-59

B 60-69

C 70-79

D 80-89

In the GNOME desktop, click the Activities menu and select the LibreOffice Writer icon. Type a line of your choice within the document, select the File menu, and choose Print. Is printer1 listed as the default printer? Click OK to print one copy of your document. Close the LibreOffice Writer window and click Close without saving when prompted.

To help ensure that packages contain at least the stated weight of 12 ounces, a cereal manufacturer wants the filling machine set to $12.5$ ounces. For a random sample of boxes, the weights (in ounces) are listed in file XR14078. At the $0.10$ level of significance, does the filling machine seem to have "drifted" from the desired setting? Identify and interpret the $p$-value for the test.

Look at the House Selling Prices OR data file on the book's website to conduct a multiple regression analysis of y = selling price of home, $x_1$ = size of home, $x_2$ = number of bedrooms, $x_3$ = number of bathrooms.

Show all steps of the F test that selling price is independent of these predictors. Explain how to obtain the F statistic from the mean squares in the ANOVA table.