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Intermediate Accounting

In: Business and Management

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

Building C is more advantageous

E 7-2

1. $925,000.00

2. Checking account balance $600,000

Overdraft (17,000)

Petty cash 300

Coin and currency 1,350


3. Checking account balance $590,000

Certified check from customer 9,800


4. Checking account balance $37,000

Money market mutual fund 48,000


5. Checking account balance $700,000

Cash advance received from customer 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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