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I am struggling with these questions and trying to comprehend them. I do not need help with Problem 5-5, but I need guidance on the
I am struggling with these questions and trying to comprehend them. I do not need help with Problem 5-5, but I need guidance on the rest! Thank You!
Problem 5-1 If I deposit $600 in the bank today and the bank pays interest of 6% compounded annually, how much will I have 3 years from today? Problem 5-2 If Mark Jr. deposited $2,000 in the bank today at 6%, how much would he have 8 years from today? Problems 5-3 If Malcolm deposits $300 in an account that pays interest annually at 12%, how much will he have in 2 years? Problem 5-4 If Jamil deposits $400 in an account at 8% that pays interest semi-annually, how much will she have in 2 years? Problem 5-5 Chris's Beamer Biz, Inc. Year 3 - 20X3 (See website for beginning balances) During the third year she paid the money she owed for last year's merchandise and received the money due her from last year's sales. Also, during the third year she bought 15 Beamers and sold four. The Beamers cost her $46,000 each and she sold them for $66,000 apiece. Terms for purchasing and selling the Beamers remain the same. She paid rent of $17,000, which represented the current year's rent plus the rent she owed at the end of the prior year plus January of next year's rent. She paid cash wages of $30,000 and utilities of $3,000. She issued 100 new shares of common stock on September 15 for $10,000 in exchange for a billboard sign which she expects to last 10 years and then be worth $1,000. On October 15 she took out a three-year insurance policy for $10,800. She expenses the insurance at $300 per month. She paid her annual interest to Uncle Phil. She paid the taxes she owed at the end of last year. At the end of the year she owed wages of $3,000 and taxes for the year (tax rate remains 30%). At December 31, she paid a dividend of $12,000. So how did she do the third year? (Prepare Journal Entries, T-Accounts, and Financial Statements) Problem 5-6 Jane will save for three years. The bank pays interest at 8% compounded semi-annually. How much will she have in three years if she deposits $1,000 today? Problem 5-7 For Jane (5-6), what if the bank paid interest annually? Problem 5-8 How much will you have in three years if you put $100 in the bank today and the bank pays A) 8% compounded annually? B) 16% compounded quarterly? C) 12% compounded semi-annually? D) 24% compounded quarterly? Problem 5-9 How much do I need to deposit in the bank today at 12% compounded quarterly so that I will have $100,000 one year from today? Problem 5-10 How much do I need to invest today at 4% compounded annually in order to have $1,000,000 five years from today? Problem 5-11 How much do I need to put in the bank today in order to have $10,000 two years from today if interest is 8% compounded semi-annually? Problem 5-12 Bobcat Betty's Fudge Sandwich Biz, Year 2 - 20X2 Bought 24,000 sandwiches at $1.00 each on account (on credit). Paid the beginning Accounts Payable. She also paid $23,000 on this years' purchases. She sold 24,000 sandwiches at $2 each. She paid wages of $12,000 plus she owed her workers $1,000 at the end of the year. On January 1 she purchased the cart she had been renting for $12,000 cash. She estimated the cart would last 12 years and then be worthless. She paid parking fees of $2,350 ($150 per month plus last year's accrual, plus Jan 20X3). Business has been so good that Betty decided to expand. She got a loan from her parents (interest free) of $16,000. She then purchased a second cart for $14,000 on January 1" that she expects will last for ten years and then be worth $1,000. Betty also sold another 100 shares of stock for $5,000 on October 1s to provide additional working capital. Taxes for the prior year were paid and taxes for the current year will be paid next year (same rate as last year). Prepare financial statements Step by Step Solution
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