Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Accounting Problems ACC303 Chapter 6 Could you assist me with (6) problems 6-10, 6-14, 6-5, 6-8, 6-15, 6-21. I need a breakdown of how each

image text in transcribed

Accounting Problems ACC303 Chapter 6

Could you assist me with (6) problems 6-10, 6-14, 6-5, 6-8, 6-15, 6-21.I need a breakdown of how each problem is solved and completed by 6/11/16.

image text in transcribed 6/4/2016 Print Assignment: Homework Chapter 6 Part II ::false Brief Exercise 66 Steve Madison needs $254,000 in 10 years. (Use the tables below.) How much must he invest at the end of each year, at 12% interest, to meet his needs? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.) Investment amount $ http://edugen.wiley.com/edugen/shared/assignment/test/agprint.uni?titleType=false 1/14 6/4/2016 Print Assignment: Homework Chapter 6 Part II ::false Brief Exercise 610 Henry Quincy wants to withdraw $32,010 each year for 11 years from a fund that earns 8% interest. (Use the tables below.) http://edugen.wiley.com/edugen/shared/assignment/test/agprint.uni?titleType=false 2/14 6/4/2016 Print Assignment: Homework Chapter 6 Part II ::false http://edugen.wiley.com/edugen/shared/assignment/test/agprint.uni?titleType=false 3/14 6/4/2016 Print Assignment: Homework Chapter 6 Part II ::false How much must he invest today if the first withdrawal is at yearend? How much must he invest today if the first withdrawal takes place immediately? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.) First withdrawal at yearend First withdrawal immediately $ $ http://edugen.wiley.com/edugen/shared/assignment/test/agprint.uni?titleType=false 4/14 6/4/2016 Print Assignment: Homework Chapter 6 Part II ::false Brief Exercise 614 Amy Monroe wants to create a fund today that will enable her to withdraw $27,480 per year for 7 years, with the first withdrawal to take place 5 years from today. (Use the tables below.) If the fund earns 11% interest, how much must Amy invest today? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.) Investment amount $ http://edugen.wiley.com/edugen/shared/assignment/test/agprint.uni?titleType=false 5/14 6/4/2016 Print Assignment: Homework Chapter 6 Part II ::false Exercise 65 (Part Level Submission) Using the appropriate interest table, compute the present values of the periodic amounts, due at the end of the designated periods. (a) (Use the table below.) $52,320 receivable at the end of each period for 7 periods compounded at 12%. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Present value $ (b) (Use the table below.) http://edugen.wiley.com/edugen/shared/assignment/test/agprint.uni?titleType=false 6/14 6/4/2016 Print Assignment: Homework Chapter 6 Part II ::false $52,320 payments to be made at the end of each period for 17 periods at 9%. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Present value $ (c) (Use the tables below.) http://edugen.wiley.com/edugen/shared/assignment/test/agprint.uni?titleType=false 7/14 6/4/2016 Print Assignment: Homework Chapter 6 Part II ::false $52,320 payable at the end of the seventh, eighth, ninth, and tenth periods at 12%. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Present value $ Exercise 68 (Part Level Submission) Clarence Weatherspoon, a super salesman contemplating retirement on his fiftyfifth birthday, decides to create a fund on an 8% basis that will enable him to withdraw $28,500 per year on June 30, beginning in 2018 and continuing through 2021. To develop this fund, Clarence intends to make equal contributions on June 30 of each of the years 2014-2017. (a) (Use the table below.) http://edugen.wiley.com/edugen/shared/assignment/test/agprint.uni?titleType=false 8/14 6/4/2016 Print Assignment: Homework Chapter 6 Part II ::false How much must the balance of the fund equal on June 30, 2017, in order for Clarence Weatherspoon to satisfy his objective? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Balance of the fund equal on June 30, 2017 $ (b) (Use the table below.) http://edugen.wiley.com/edugen/shared/assignment/test/agprint.uni?titleType=false 9/14 6/4/2016 Print Assignment: Homework Chapter 6 Part II ::false What are each of Clarence's contributions to the fund? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Clarence's contributions to the fund $ Exercise 611 (Part Level Submission) Sosa Excavating Inc. is purchasing a bulldozer. The equipment has a price of $106,000. The manufacturer has offered a payment plan that would allow Sosa to make 10 equal annual payments of $17,999, with the first payment due one year after the purchase. (a) How much total interest will Sosa pay on this payment plan? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Total interest $ (b) Sosa could borrow $106,000 from its bank to finance the purchase at an annual rate of 10%. (Use the table below.) Should Sosa borrow from the bank or use the manufacturer's payment plan to pay for the equipment? Exercise 615 Andrew Bogut just received a signing bonus of $1,000,000. His plan is to invest this payment in a fund that will earn 10%, compounded annually. (Use the tables below.) http://edugen.wiley.com/edugen/shared/assignment/test/agprint.uni?titleType=false 10/14 6/4/2016 Print Assignment: Homework Chapter 6 Part II ::false If Bogut plans to establish the AB Foundation once the fund grows to $3,138,430, how many years until he can establish the foundation? years Instead of investing the entire $1,000,000, Bogut invests $300,000 today and plans to make 9 equal annual investments into the fund beginning one year from today. What amount should the payments be if Bogut plans to establish the $3,138,430 foundation at the end of 9 years? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Payments $ Exercise 621 Keith Bowie is trying to determine the amount to set aside so that he will have enough money on hand in 4 years to overhaul the engine on his vintage used car. While there is some uncertainty about the cost of engine overhauls in 4 years, by conducting some research online, Keith has developed the following estimates. Engine Overhaul Probability http://edugen.wiley.com/edugen/shared/assignment/test/agprint.uni?titleType=false 11/14 6/4/2016 Print Assignment: Homework Chapter 6 Part II ::false Estimated Cash Outflow Assessment $270 10 % 510 30 % 720 50 % 780 10 % (Use the tables below.) How much should Keith Bowie deposit today in an account earning 8%, compounded annually, so that he will have enough money on hand in 4 years to pay for the overhaul? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) http://edugen.wiley.com/edugen/shared/assignment/test/agprint.uni?titleType=false 12/14 6/4/2016 Print Assignment: Homework Chapter 6 Part II ::false Deposit amount $ IFRS Multiple Choice Question 02 Martin Industries maintains its accounting records using IFRS. The company purchases equipment with a price of $400,000. The manufacturer has offered a payment plan that would allow Martin to make 10 equal annual payments of $49,316, with the first payment due one year after the purchase. How much total interest will Martin pay on this payment plan? $160,000 $93,160 $49,316 $40,000 IFRS Multiple Choice Question 05 Moore Industries manufactures exercise equipment. Recently the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company's exercise equipment. After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing $3,000,000 of 11% bonds on March 1, 2014, due on March 1, 2029, with interest payable each March 1 and September 1. At the time of issuance, the market interest rate for similar financial instruments is 10%. What is the selling price of the bonds? $3,330,000 $2,536,455 $1,904,664 $3,230,594 IFRS Multiple Choice Question 06 Reegan Company owns a trade name that was purchased in an acquisition of Hamilton Company. The trade name has a book value of $1,800,000, but according to IFRS, it is assessed for impairment on an annual basis. To perform this impairment test, Reegan must estimate the fair value of the trade name. It has developed the following cash flow estimates related to the trade name based on internal information. Each cash flow estimate reflects Reegan's estimate of annual cash flows over the next 7 years. The trade name is assumed to have no residual value after the 7 years. (Assume the cash flows occur at the end of each year.) Probability Assessment 30% 50% 20% Cash Flow Estimate $240,000 365,000 425,000 Reegan determines that the appropriate discount rate for this estimation is 6%. To the nearest dollar, what is the estimated fair value of the trade name? $1,800,000 $ 339,500 $1,030,000 $1,895,218 IFRS Multiple Choice Question 07 Jamison Company uses IFRS for its financial reporting. It produces machines that sell globally. All sales are accompanied by a oneyear warranty. At the end of the year, the company has the following data: 3,000 units were sold during the year. The trend over the past five years has been that 4% of the machines were defective in some way and had to be repaired. Of this 4%, half required a full replacement at a cost of $3,000 per unit and half were able to be repaired at an average cost of $300. What is the expected value of the warranty cost provision? http://edugen.wiley.com/edugen/shared/assignment/test/agprint.uni?titleType=false 13/14 6/4/2016 Print Assignment: Homework Chapter 6 Part II ::false $180,000 $360,000 $396,000 $198,000 IFRS Multiple Choice Question 08 Maxim Company leased an office under a fiveyear contract, which has been accounted for as an operating lease. Faced with the downturn in the economy, the viable company decided to sublease the office. However, they have had no luck with this effort and the landlord will not allow the lease to be cancelled. The payments are $8,000 per year and there are four years left on the lease. The company's most recent interest rate for financing from a bank is 6%. The riskfree rate on government bonds is 4%. What is the provision for the lease under IFRS? $27,721 $29,040 $30,096 $32,000 http://edugen.wiley.com/edugen/shared/assignment/test/agprint.uni?titleType=false 14/14

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray Garrison, Theresa Libby, Alan Webb

10th Canadian edition

978-1259024900

More Books

Students also viewed these Accounting questions

Question

4. What is the goal of the others in the network?

Answered: 1 week ago

Question

2. What we can learn from the past

Answered: 1 week ago