Answer:
PV= $10,030.27
Explanation:
Giving the following information:
Cash flow= $2,500
Lump sum= $4,000
i= 9%
n= 5
<u>First, we need to calculate the future value of the cash flows:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {2,500*[(1.09^4) - 1]} / 0.09
FV= 11,432.82
<u>Now, the total future value:</u>
FV= 11,432.82 + 4,000= 15,432.82
<u>Finally, the present value:</u>
PV= FV/(1+i)^n
PV= 15,432.82/1.09^5
PV= $10,030.27
Answer:
Report of the Independent Accountants
Explanation:
From the question we are informed about An investor who found the following in an annual report: "The financial statements, in our opinion, present fairly the financial position, operating results, and cash flows, in conformity with accounting principles generally accepted in the United States." The section which the annual report was fond by the investor is Report of the Independent Accountants. Independent Accountant's Report can be regarded as a report that encompass broad spectrum of work that has been carried out through an accountant of an independent firms. And this is usually carried for
charitable as well as commercial organisations in public as well as private sector.
Answer:
Part 1:
Account Debit Credit
Salary Expense $9,000
Salary Payable $9,000
Part 2:
Account Debit Credit
Salary Expense $12,000
Salary Payable $12,000
Explanation:
Part 1:
Wednesday (3rd day of the week)
Salary of week =$15,000
Salary of each day=$15,000/5
Salary of each day=$3,000
Salary on Wednesday=$3,000*3
Salary on Wednesday=$9,000
Journal Entry:
Account Debit Credit
Salary Expense $9,000
Salary Payable $9,000
Part 2:
Salary of week =$15,000
Salary of each day=$15,000/5
Salary of each day=$3,000
Salary on Wednesday=$3,000*4
Salary on Wednesday=$12,000
Journal Entry:
Account Debit Credit
Salary Expense $12,000
Salary Payable $12,000
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