Question
1) On December 31, Morell Paper Inc. is repaid $225,000 for a zero-interest, note receivable signed 3 years ago. On the same day, the company
1) On December 31, Morell Paper Inc. is repaid $225,000 for a zero-interest, note receivable signed 3 years ago. On the same day, the company also accrues the $4,200 interest earned for the year. Record both the note repayment and interest accrual into journal entries.
2) Vonn Shipping currently has $274,600 in an employee pension fund that earns 12% annual interest (compounded quarterly). The company will withdraw $16,214 at the end of each quarter. How many years will it take to deplete the fund?
3) Rease Shampoos wants to make end-of-year deposits into a 9% investment fund for 7 years. How much should the deposits be if the company wants to accumulate $675,000?
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