1. What will be the balance on September 1, 2016 in a fund which is accumulated by making $8,000 annual deposits each September 1 beginning in 2009, with the last deposit being made on September 1, 2016? The fund pays interest at 8% compounded annually.
2. If $5,000 is deposited annually starting on January 1, 2010 and it earns 8%, what will the balance be on December 31, 2017?
3. Korman Company wishes to accumulate $300,000 by May 1, 2018 by making 8 equal annual deposits beginning May 1, 2010 to a fund paying 8% interest compounded annually. What is the required amount of each deposit?
4. What amount should be recorded as the cost of a machine purchased December 31, 2010, which is to be financed by making 8 annual payments of $6,000 each beginning December 31, 2011? The applicable interest rate is 8%.
5. Jenks Company financed the purchase of a machine by making payments of $18,000 at the end of each of five years. The appropriate rate of interest was 8%. The future value of one for five periods at 8% is 1.46933. The future value of an ordinary annuity for five periods at 8% is 5.8666. The present value of an ordinary annuity for five periods at 8% is 3.99271. What was the cost of the machine to Jenks?
ACC 330: Fall 16
Prof. Barker
6: Bank Reconciliation.
The following information is available for the Avisa Company for the month of November:
a. On November 30, after all transactions have been recorded, the balance in the company's Cash account has a balance of $27,202.
b. The company's bank statement shows a balance on November 30 of $29,279.
c. Outstanding checks at November 30 include check #3030 in the amount of $1,525 and check #3556 in the amount of $1,459.
d. A credit memo included with the bank statement indicates that the bank collected $780 on a noninterest-bearing note receivable for Avisa. The bank deducted a $10 collection fee, and credited the remainder of $770 to Avisa's account.
e. A debit memo included with the bank statement shows a $67 NSF check from a customer, J. Brown.
f. A deposit placed in the bank's night depository on November 30 totaled $1,675, and did not appear on the bank statement.
g. Examination of the checks on the bank statement with the entries in the accounting records reveals that check #3445 for the payment of an account payable was correctly written for $2,450, but was recorded in the accounting records as $2,540.
h. Included with the bank statement was a debit memorandum in the amount of $25 for bank service charges. It has not been recorded on the company's books.
Based on the above information, prepare the November bank reconciliation and journal entries for the Avisa Company.
ACC 330: Fall 16
Prof. Barker
7: Entries for bad debt expense.
A trial balance before adjustment included the following:
Debit Credit
Accounts receivable$80,000
Allowance for doubtful accounts730
Sales$340,000
Sales returns and allowances8,000
Prepare the adjusting entries to record bad debt expense, assuming that the estimate of uncollectibles is determined by taking (1) 5% of gross accounts receivable and (2) 1% of net sales.
What is the balance in the allowance for doubtful account (ADA) and the Net Realizable Value (NRV) under each of the estimates used above?