Kassahun enjoys listening to all types of music and owns countless CDs. Over the years, Kassahun has gained a local reputation for knowledge of music from classical to rap and the ability to put together sets of recordings that appeal to all ages. During the last several months, Kassahun served as a guest disc jockey on a local radio station. In addition, Kassahun has entertained at several friends’ parties as the host deejay.

On June 1, 2016, Kassahun established a proprietorship known as Music Depot. Using an extensive collection of music CDs, Kassahun will serve as a disc jockey on a fee basis for weddings, college parties, and other events. During June, Kassahun entered into the following transactions:

June 1. Deposited $8,000 in a checking account in the name of Music Depot.

2. Received $2,400 from a local radio station for serving as the guest disc jockey for June.

2. Agreed to share office space with a local real estate agency, Upstairs Realty. Music Depot will pay one-fourth of the rent. In addition, Music Depot agreed to pay a portion of the salary of the receptionist and to pay one-fourth of the utilities. Paid $750 for the rent of the office.

4. Purchased supplies (blank CDs, poster board, extension cords, etc.) from City Office Supply Co. for $350. Agreed to pay $100 within 10 days and the remainder by July 5, 2016.

6. Paid $600 to a local radio station to advertise the services of Music Depot twice daily for two weeks.

8. Paid $500 to a local electronics store for renting digital recording equipment.

12. Paid $250 (music expense) to Cool Music for the use of its current music demos to make various music sets.

13. Paid City Office Supply Co. $100 on account.

16. Received $400 from a dentist for providing two music sets for the dentist to play for her patients.

22. Served as disc jockey for a wedding party. The father of the bride agreed to pay $1,350 the 1st of July.

25. Received $500 from a friend for serving as the disc jockey for a cancer charity ball hosted by the local hospital.

29. Paid $240 (music expense) to Galaxy Music for the use of its library of music demos.

30. Received $1,000 for serving as disc jockey for a local club’s monthly dance.

30. Paid Upstairs Realty $400 for Music Depot’s share of the receptionist’s salary for June.

30. Paid Upstairs Realty $300 for Music Depot’s share of the utilities for June.

30. Determined that the cost of supplies on hand is $170.

30. Paid for miscellaneous expenses, $150.

30. Paid $800 royalties (music expense) to National Music Clearing for use of various artists’ music during the month.

30. Withdrew $200 of cash from Music Depot for personal use.

Instructions

1.     Indicate the effect of each transaction and the balances after each transaction, using the accounting equation

2.     Prepare an income statement for Music Depot for the month ended June 30, 2016.

3.     Prepare a statement of owner’s equity for Music Depot for the month ended June 30, 2016.

4.     Prepare a balance sheet for Music Depot as of June 30, 2016, and cash flow statement

Question 3 (8 marks) It is frequent in nature that animals express certain asymmetries in their behaviour patterns. It has been suggested that this might be nature's way of "breaking gridlocks that might occur if we were to act purely rationally (think: why does a beetle decide to move one way over another when put in a featureless bowl?). An interesting study regarding preferences was undertaken by Irish researchers in 2006. In the experiment, 240 volunteer students from Stanmillis University College in Belfast were asked to stand directly in front of a symmetrical doll's face and asked to kiss the doll on the cheek or lips; researchers then recorded whether the student tilted their head to the right or left when kissing the doll. Of the 240 students, 176 turned their head to the right and 64 turned their head to the left. You must analyse this data to see if there is an inbuilt preference in humans for the direction of head tilt when kissing. Provide working, reasoning or explanations and R. commands that you have used, as appropriate. 1. Calculate an estimate of the preference for humans turning their heads to the right when kissing using the above data, and provide an approximate 95% confidence interval for this estimate. Summarise/describe your results appropriately. [3 marks] 2. Test the hypothesis that there is no preference in humans for tilting their head to one particular side when kissing. Write down explicitly the hypothesis you are testing, and then calculate a p-value using the approximate approach for testing a Bernoulli population discussed in Lecture 5. What does this p-value suggest? [2 marks] 3. Using R, calculate an exact p-value to test the above hypothesis. What does this p-value suggest? Please provide the appropriate R. command that you used to calculate your p-value. [1 mark] 4. It is entirely possible that any preference for head turning to the right/left could be simply a product of right/left-handedness. To test this we the handedness of the 240 volunteers was also recorded. It was found that 210 of the participants were right-handed and 30 were left handed. Using the approximate hypothesis testing procedure for testing two Bernoulli populations from Lecture 5, test the hypothesis that the rate of right-handedness in the population from which the participants was drawn is the same as the preference for turning heads to the right when kissing. Summarise your findings. What does the p-value suggest? [2 marks]