# Intermediate Accounting

Submitted By necolewillis25
Words 296
Pages 2
Necole Willis

Homework Week 4

May 31, 2013

E 6-5

(a) \$30,000 X 4.96764 = \$149,029.20.

(b) \$30,000 X 8.31256 = \$249,376.80.

(c) (\$30,000 X 3.03735 X .50663 = \$46,164.38.

E 6-12

Building A—PV = \$600,000.

Building B—

Rent X (PV of annuity due of 25 periods at 12%) = PV

\$69,000 X 8.78432 = PV

\$606,118.08 = PV

Building C—

Rent X (PV of ordinary annuity of 25 periods at 12%) = PV

\$7,000 X 7.84314 = PV

\$54,901.98 = PV

Cash purchase price \$650,000.00

PV of rental income – 54,901.98

Net present value \$595,098.02

E 7-2

1. \$925,000.00

2. Checking account balance \$600,000

Overdraft (17,000)

Petty cash 300

Coin and currency 1,350

\$584,650

3. Checking account balance \$590,000

Certified check from customer 9,800

\$599,800

4. Checking account balance \$37,000

Money market mutual fund 48,000

\$85,000

5. Checking account balance \$700,000

\$700,900

E 7-5

(a) (1) June 3 Accounts Receivable—Chester 3,000

Sales 3,000

June 12 Cash 2,940

Sales Discounts (\$3,000 X 2%)…...

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