Question
1.
Cash: $ ________
Accounts Receivable: $ ________
Inventory: $ ________
Accounts Payable: $ ________
Notes Payable: $ ________
Unearned Revenue: $ ________
2. What is the future value of 22 periodic payments of $5,920 each made at the beginning of each period and compounded at 8%?
3. What is the present value of $3,640 to be received at the beginning of each of 30 periods, discounted at 5% compound interest?
4. What is the future value of 15 deposits of $3,080 each made at the beginning of each period and compounded at 10%? (Future value as of the end of the 15th period.)
Thank you very much for your help :)
1. Keane collected $4,000 on December 20, 2017 as a down payment for services to be performed in January, 2018. The company’s controller recorded the amount as revenue.
2. The inventory amount reported included $3,800 of merchandise that had been received on December 31, 2017 but for which no purchase invoices had been received or entered. Of this amount, $2,000 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10, n/30.
3. Sales for the first day in January 2018 in the amount of $10,200 were entered in the sales journal as of December 31, 2017. Of these, $5,800 were sales on account and the remainder were cash sales.
4. Cash, collected in December 2017, but entered as received in January 2018 totaled $4,100. Of this amount, $1,568 was received on account after cash discounts of 2% had been deducted; the remainder was collected for cash sales.
5. Cash of $4,400 received in January 2018 was entered as received in December 2017. This cash represented the proceeds of a bank loan that matures in July 2018.
6. January 2018 cash disbursements entered as of December 2017 included payments of accounts payable in the amount of $5,700, on which a cash discount of 1% was taken. Kieso, Intermediate Accounting, 16e Assignment Gradebook ORIONDownloadable eTextbook nt Practice Exercise 5-2 (Part Level Submission) The current assets and current liabilities sections of the balance sheet of Sandhill Co. appear as follows. Sandhill Co. Balance Sheet (Partial) As of December 31, 2017 $27,300 14,900 4,200 $46,400 Cash $18,600 Accounts payable Accounts receivable $38,400 Notes payable 1,000 37,400 Unearned revenue Less: Allowance for doubtful accounts Inventory Prepaid expenses Total current assets Total current liabilities 61,600 5,200 $122,800 The following errors in the corporation's accounting have been discovered:
Explanation / Answer
Answer 2:Future value at the end of 22nd period = P * { [ (1 + r)^23 - 1 / r] - 1}
= 5920 * { [ (1 + 0.08) ^ 23 - 1/ 0.08] - 1}
= 5920 * { [ 5.8715-1 / 0.08] - 1}
= 5920 * { [4.8715 / 0.08] - 1 }
= 5920 * { 60.8933 - 1}
= 354,568
Excel Formula = FV(Rate, nper, pmt, ,1)
Answer 3: PV = PVIFA (30 years, 5%) * Annuity Amount
= 16.1411 * 3640
= 58,753
Excel Formula = PV(Rate, nper, pmt, ,1)
Answer 4:
Future value at the end of 15th period = P * { [ (1 + r)^16 - 1 / r] - 1}
= 3080 * { [ (1 + 0.10) ^ 16 - 1/ 0.10] - 1}
= 3080 * { [ 4.5950-1 / 0.10] - 1}
= 3080 * { [3.5950 / 0.10] - 1 }
= 3080 * { 35.9497 - 1}
= 107645
