• Claymore Corporation maintains its book on a cash basis. During 2021, the company collected $825,000 in fees from its clients and paid $512,000 in expenses. You are able to determine the following information about accounts receivable, supplies, prepaid rent, salaries payable, and interest payable:

	January 1, 2021	December 31, 2021
Accounts receivable	$110,000	$120,000
Supplies	15,000	18,000
Prepaid rent	12,000	11,000
Salaries payable	16,500	14,200
Interest payable	4,000	5,500

In addition, 2021 depreciation expense on office equipment is $55,000.

Required:

Determine accrual-basis net income for 2021.

Section B:

The accounting system of Carlton and Sons consists of a general journal (GJ), a cash receipts journal (CR), a cash disbursements journal (CD), a sales journal (SJ), and a purchases journal (PJ). For each of the following, indicate which journal should be used to record the transaction.

Transaction	Journal
1. Received interest on a loan.	________
2. Received cash for services to be provided next month.	________
3. Purchased equipment for cash.	________
4. Purchased merchandise on account.	________
5. Sold merchandise on credit (the sale only, not the cost of the merchandise).	________
6. Sold merchandise for cash (the sale only, not the cost of the merchandise).	________
7. Paid advertising bill.	________
8. Recorded accrued salaries payable.	________
9. Paid bill for utilities usage.	________
10. Recorded depreciation expense.	________
11. Sold equipment for cash.	________
12. Collected cash from customers on account.	________
13. Paid employee salaries.	________
14. Paid interest on a loan.

What is the Present Value of $5,500 received in 5 years? An appropriate interest rate is 8% $3,743.21 $1,209.99 $5,500.00 $3,409.00