P6-2 (Various Time Value Situations) Using the appropriate interest table, provide the solution to each of the following four questions by computing the unknowns.
(a) What is the amount of the payments that Ned Winslow must make at the end of each of 8 years to accumulate a fund of $90,000 by the end of the eighth year, if the fund earns 8% interest, compounded annually?
(b) Robert Hitchcock is 40 years old today and he wishes to accumulate $500,000 by his sixty-fifth birthday so he can retire to his summer place on Lake Hopatcong. He wishes to accumulate this amount by making equal deposits on his fortieth through his sixty-fourth birthdays. What annual deposit must Robert make if the fund will earn 12% interest compounded annually?
(c) Diane Ross has $20,000 to invest today at 9% to pay a debt of $47,347. How many years will it take her to accumulate enough to liquidate the debt?
(d) Cindy Houston has a $27,600 debt that she wishes to repay 4 years from today; she has $19,553 that she intends to invest for the 4 years. What rate of interest will she need to earn annually in order to accumulate enough to pay the debt?
Click here for the solution: (Various Time Value Situations) Using the appropriate interest table, provide the solution to each of the following four questions by computing the unknowns
Showing posts with label solution. Show all posts
Showing posts with label solution. Show all posts
Tuesday, April 12, 2016
Monday, July 6, 2015
Glorious Garden Lawn Service Practice Set Answer Key Solution
Glorious Garden Lawn Service
1. Prepare the entries using the list of transactions. Put them in the general journal.
2. Post the journal entries from the general journal to the general ledger.
3. Prepare a trial balance using the general ledger totals.
4. Complete the work sheet using the information for adjustments.
5. Prepare financial statements from the worksheet.
6. Make the adjusting journal entries in the general journal.
7. Post the adjustments to the general ledger.
8. Make the appropriate closing entries in the general journal.
9. Post the closing entries to the general ledger.
10. Prepare a post-closing trial balance.
NARRATIVE OF TRANSACTIONS
1) 7/1 Jay opened two accounts at Union State Bank, using $3000 of his own money. He deposited 2,500 in a checking account and $500 into savings.
2) 7/2 Jay borrowed $6,000 from his Aunt Emma and signed a note with 8% interest. Under the terms of the note, he must make payments of $250 plus accrued interest on the first day of each month. Jay put $4,500 into his checking account and $1,500 into savings.
3) 7/3 Jay purchased a 2004 Nissan pickup truck by writing a check for $4,820.
4) 7/3 Jay purchased insurance for the pickup truck at a cost of $150 per month. He paid for the month of July.
5) 7/3 Jay established a cell phone account for the business. The phone was free, and he paid $75 for the first month's service.
AND SO ON
30) 7/24 A check for $150 was received from Mrs. Sanchez as partial payment on the work Jay completed on July 14.
31) 7/24 Jay charged (on his VISA) another $65 for landscaping supplies.
32) 7/25 Mrs. Yee paid Jay $140 to mow, weed, and put new mulch in her garden beds.
33) 7/26 Jay wrote for $85 for more fuel for his truck and mower.
34) 7/27 Jay purchased an additional $45 of office supplies.
35) 7/30 Jay paid another $75 on his account at Lovell Home & Garden.
7/31 Now that Jay has completed his first month in business he wants to prepare financial statements. He has gathered the information needed to make adjustments for the mother ended July 31.
Information for Adjustments
AI) Jay estimates that his truck will last four years and have an estimated salvage value of $500. ( Jay is using straight-line depreciation for all assets.)
A2)The lawn mower and tools should last three years, with no salvage value.
A3) Jay needs to accrue one month’s interest on his loan from Aunt Emma.
A4) By July 31, Jay had mowed Mr. Adams’ yard three of the six agreed-upon times.
A5, A6 & A7) As of July 31, Jay had $25 of office supplies, $75 of landscaping supplies, and 200 advertising flyers still on hand.
A8) Jay’s bank statement showed that his savings account had earned $5 in interest revenue.
Click here for the solution: Glorious Garden Lawn Service Practice Set Answer Key Solution
1. Prepare the entries using the list of transactions. Put them in the general journal.
2. Post the journal entries from the general journal to the general ledger.
3. Prepare a trial balance using the general ledger totals.
4. Complete the work sheet using the information for adjustments.
5. Prepare financial statements from the worksheet.
6. Make the adjusting journal entries in the general journal.
7. Post the adjustments to the general ledger.
8. Make the appropriate closing entries in the general journal.
9. Post the closing entries to the general ledger.
10. Prepare a post-closing trial balance.
NARRATIVE OF TRANSACTIONS
1) 7/1 Jay opened two accounts at Union State Bank, using $3000 of his own money. He deposited 2,500 in a checking account and $500 into savings.
2) 7/2 Jay borrowed $6,000 from his Aunt Emma and signed a note with 8% interest. Under the terms of the note, he must make payments of $250 plus accrued interest on the first day of each month. Jay put $4,500 into his checking account and $1,500 into savings.
3) 7/3 Jay purchased a 2004 Nissan pickup truck by writing a check for $4,820.
4) 7/3 Jay purchased insurance for the pickup truck at a cost of $150 per month. He paid for the month of July.
5) 7/3 Jay established a cell phone account for the business. The phone was free, and he paid $75 for the first month's service.
AND SO ON
30) 7/24 A check for $150 was received from Mrs. Sanchez as partial payment on the work Jay completed on July 14.
31) 7/24 Jay charged (on his VISA) another $65 for landscaping supplies.
32) 7/25 Mrs. Yee paid Jay $140 to mow, weed, and put new mulch in her garden beds.
33) 7/26 Jay wrote for $85 for more fuel for his truck and mower.
34) 7/27 Jay purchased an additional $45 of office supplies.
35) 7/30 Jay paid another $75 on his account at Lovell Home & Garden.
7/31 Now that Jay has completed his first month in business he wants to prepare financial statements. He has gathered the information needed to make adjustments for the mother ended July 31.
Information for Adjustments
AI) Jay estimates that his truck will last four years and have an estimated salvage value of $500. ( Jay is using straight-line depreciation for all assets.)
A2)The lawn mower and tools should last three years, with no salvage value.
A3) Jay needs to accrue one month’s interest on his loan from Aunt Emma.
A4) By July 31, Jay had mowed Mr. Adams’ yard three of the six agreed-upon times.
A5, A6 & A7) As of July 31, Jay had $25 of office supplies, $75 of landscaping supplies, and 200 advertising flyers still on hand.
A8) Jay’s bank statement showed that his savings account had earned $5 in interest revenue.
Click here for the solution: Glorious Garden Lawn Service Practice Set Answer Key Solution
Saturday, June 27, 2015
Puckett Co. has office furniture that cost $75,000 and that has been depreciated $50,000
Problem 10-6A (P10-6A) Puckett Co. has office furniture that cost
$75,000 and that has been depreciated $50,000. Record the disposal under
the following assumptions
(a) it was scrapped as having no value
(b) it was sold for 21,000
(c) it was sold for $31,000
Click here for the solution: Puckett Co. has office furniture that cost $75,000 and that has been depreciated $50,000
(a) it was scrapped as having no value
(b) it was sold for 21,000
(c) it was sold for $31,000
Click here for the solution: Puckett Co. has office furniture that cost $75,000 and that has been depreciated $50,000
Saturday, May 9, 2015
ACC 225 Week Seven (Week 7) Solution
ACC 225
Week Seven (Week 7) Solution
CheckPoint: Accounting Information Systems and Special Journals
• Resource: Fundamental Accounting Principles, pp. 289, 290, and 291
• Due Date: Day 5 [Individual] forum
• Complete Quick Study questions QS 7-1 and QS 7-3 on p. 289, and Exercises 7-1, 7-4, 7-7, and 7-10 on pp. 290-291.
Click here for the solution: ACC 225 Week Seven (Week 7) Solution
CheckPoint: Accounting Information Systems and Special Journals
• Resource: Fundamental Accounting Principles, pp. 289, 290, and 291
• Due Date: Day 5 [Individual] forum
• Complete Quick Study questions QS 7-1 and QS 7-3 on p. 289, and Exercises 7-1, 7-4, 7-7, and 7-10 on pp. 290-291.
Click here for the solution: ACC 225 Week Seven (Week 7) Solution
ACC 225 Week Five (Week 5) Solution
ACC 225 Week Five (Week 5) Solution
Discussion Question 2
• Due Date: Day 4 [Main] forum
• Post your response to the following: Read the BTN5-3 Ethics Challenge on p. 218 of the text. Discuss the ethics of what Amy is doing. Are there any consequences to her actions? How does the store account for Amy’s returns?
CheckPoint: Inventory Systems and Calculating Revenues, Expenses, and Income
• Resource: Fundamental Accounting Principles, pp. 206, 208, and 209.
• Due Date: Day 5 [Individual] forum
• Complete Quick Study question QS 5-8 on p. 206 and Exercises 5-9 and 5-13 on pp. 208-209.
• Post your answers as an attachment.
Discussion Question 2
• Due Date: Day 4 [Main] forum
• Post your response to the following: Read the BTN5-3 Ethics Challenge on p. 218 of the text. Discuss the ethics of what Amy is doing. Are there any consequences to her actions? How does the store account for Amy’s returns?
CheckPoint: Inventory Systems and Calculating Revenues, Expenses, and Income
• Resource: Fundamental Accounting Principles, pp. 206, 208, and 209.
• Due Date: Day 5 [Individual] forum
• Complete Quick Study question QS 5-8 on p. 206 and Exercises 5-9 and 5-13 on pp. 208-209.
• Post your answers as an attachment.
Click here for the solution: ACC 225 Week Five (Week 5) Solution
Tuesday, April 28, 2015
Continuing Cookie Chronicle (CCC1) Solution Natalie Koebel spent much of her childhood learning the art of cookie-making from her grandmother
Continuing Cookie Chronicle
CCC1 Natalie Koebel spent much of her childhood learning the art of cookie-making from her grandmother. They spent many happy hours mastering every type of cookie imaginable and later devised new recipes that were both healthy and delicious. Now at the start of her second year in college, Natalie is investigating possibilities for starting
her own business as part of the entrepreneurship program in which she is enrolled. A long-time friend insists that Natalie has to include cookies in her business plan. After a series of brainstorming sessions, Natalie settles on the idea of operating a cookie-making school. She will start on a part-time basis and offer her services in people’s homes. Now that she has started thinking about it, the possibilities seem endless. During the fall, she will concentrate on holiday cookies. She will offer group sessions (which will probably be more entertainment than education) and individual lessons.
Natalie also decides to include children in her target market. The first difficult decision is coming up with the perfect name for her business. She settles on “Cookie Creations,” and then moves on to more important issues.
Instructions
(a) What form of business organization—proprietorship, partnership, or corporation— do you recommend that Natalie use for her business? Discuss the benefits and weaknesses of each form that Natalie might consider.
(b) Will Natalie need accounting information? If yes, what information will she need and why? How often will she need this information?
(c) Identify specific asset, liability, revenue, and expense accounts that Cookie Creations will likely use to record its business transactions.
(d) Should Natalie open a separate bank account for the business? Why or why not?
(e) Natalie expects she will have to use her car to drive to people’s homes and to pick up supplies, but she also needs to use her car for personal reasons. She recalls from her first-year accounting course something about keeping business and personal assets separate. She wonders what she should do for accounting purposes. What do you recommend?
Click here for the solution: Continuing Cookie Chronicle (CCC1) Solution
CCC1 Natalie Koebel spent much of her childhood learning the art of cookie-making from her grandmother. They spent many happy hours mastering every type of cookie imaginable and later devised new recipes that were both healthy and delicious. Now at the start of her second year in college, Natalie is investigating possibilities for starting
her own business as part of the entrepreneurship program in which she is enrolled. A long-time friend insists that Natalie has to include cookies in her business plan. After a series of brainstorming sessions, Natalie settles on the idea of operating a cookie-making school. She will start on a part-time basis and offer her services in people’s homes. Now that she has started thinking about it, the possibilities seem endless. During the fall, she will concentrate on holiday cookies. She will offer group sessions (which will probably be more entertainment than education) and individual lessons.
Natalie also decides to include children in her target market. The first difficult decision is coming up with the perfect name for her business. She settles on “Cookie Creations,” and then moves on to more important issues.
Instructions
(a) What form of business organization—proprietorship, partnership, or corporation— do you recommend that Natalie use for her business? Discuss the benefits and weaknesses of each form that Natalie might consider.
(b) Will Natalie need accounting information? If yes, what information will she need and why? How often will she need this information?
(c) Identify specific asset, liability, revenue, and expense accounts that Cookie Creations will likely use to record its business transactions.
(d) Should Natalie open a separate bank account for the business? Why or why not?
(e) Natalie expects she will have to use her car to drive to people’s homes and to pick up supplies, but she also needs to use her car for personal reasons. She recalls from her first-year accounting course something about keeping business and personal assets separate. She wonders what she should do for accounting purposes. What do you recommend?
Click here for the solution: Continuing Cookie Chronicle (CCC1) Solution
ACC 225 Week One (Week 1) Solution
ACC 225
Axia College of University of Phoenix (UoP)
Financial Accounting
Larson, K. D., Wild, J. J., & Chiappetta B. (2005). Fundamental accounting principles (17th ed.)
ACC 225 Week One (Week 1) Solution
Exercises: Accounting and Business Organizations
Financial Accounting
Larson, K. D., Wild, J. J., & Chiappetta B. (2005). Fundamental accounting principles (17th ed.)
ACC 225 Week One (Week 1) Solution
Exercises: Accounting and Business Organizations
- Resource: Fundamental Accounting Principles, p. 30
- Due Date: Day 5
- Post your answers to Exercises 1-1 and 1-4
Click here for the solution: ACC 225 Week One (Week 1) Solution
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