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Gomez Co. had the following transactions in the last two months of its year ended December 31 .

Nov. 1 Paid 1,800cashforfuturenewspaperadvertising.1,800 cash for future newspaper advertising.~1Paid1 Paid 2,460 cash for 12 months of insurance through October 31 of the next year.        ~~~~~~~ 30 Received $3,600 cash for future services to be provided to a customer. Dec. 1 Paid3,000cashforaconsultantsservicestobereceivedoverthenextthreemonths.3,000 cash for a consultant's services to be received over the next three months. ~$ 15 Received 7,950cashforfutureservicestobeprovidedtoacustomer.7,950 cash for future services to be provided to a customer.~$31 Of the advertising paid for on November1,200worthisnotyetused.1,200 worth is not yet used. ~$ 31 A portion of the insurance paid for on November 1 has expired. No adjustment was made in November to Prepaid Insurance.        ~~~~~~~ 31 Services worth 1,500arenotyetprovidedtothecustomerwhopaidonNovember30.1,500 are not yet provided to the customer who paid on November 30 .~31OnethirdoftheconsultingservicespaidforonDecember1havebeenreceived.31 One-third of the consulting services paid for on December 1 have been received.~$31 The company has performed$3300 of services that the customer paid for on December 15.

Required

  1. Prepare entries for these transactions under the method that records prepaid expenses as assets and records unearned revenues as liabilities. Also prepare adjusting entries at the end of the year.
  2. Prepare entries for these transactions under the method that records prepaid expenses as expenses and records unearned revenues as revenues. Also prepare adjusting entries at the end of the year.

Analysis Component 3. Explain why the alternative sets of entries in requirements 1 and 2 do not result in different financial statement amounts.

Question

Use the data in the table, which shows the average annual salaries (both in thousands of dollars) for librarians and postsecondary library science teachers in the United States for 12 years.

Librarians, xLibrary science teachers, y49.156.650.957.652.959.754.761.655.764.356.467.057.070.057.270.857.673.358.172.458.973.059.972.3\begin{matrix} \text{Librarians, x} & \text{Library science teachers, y}\\ \text{49.1} & \text{56.6}\\ \text{50.9} & \text{57.6}\\ \text{52.9} & \text{59.7}\\ \text{54.7} & \text{61.6}\\ \text{55.7} & \text{64.3}\\ \text{56.4} & \text{67.0}\\ \text{57.0} & \text{70.0}\\ \text{57.2} & \text{70.8}\\ \text{57.6} & \text{73.3}\\ \text{58.1} & \text{72.4}\\ \text{58.9} & \text{73.0}\\ \text{59.9} & \text{72.3}\\ \end{matrix}

Construct a scatter plot for the data. Do the data appear to have a positive linear correlation, a negative linear correlation, or no linear correlation? Explain.

Solution

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Scatterplot\textbf{Scatterplot}

Librarians is on the horizontal axis and Library science teachers is on the vertical axis.

 jmlirjtet mjretm lijretm lrejtj erjtl jrljtlr jlktjrl jtrlj ljr litelrj tlretm ermthmre hmtlrel thmrleht hlirht lhr\text{\color{white} jmlirjtet mjretm lijretm lrejtj erjtl jrljtlr jlktjrl jtrlj ljr litelrj tlretm ermthmre hmtlrel thmrleht hlirht lhr}

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