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Crank
2 years ago
11

A self-employed person deposits $2,000 annually in a retirement account (called a Keogh or H.R. 10 plan) that earns 8 percent. U

se Appendix A and Appendix C to answer the questions. Round your answers to the nearest dollar. How much will be in the account when the individual retires at the age of 65 if the savings program starts when the person is age 40
Business
1 answer:
lana [24]2 years ago
6 0

Answer:

$146,212.00  

Explanation:

PMT which is the annual savings is $2000

Rate  is 8%

The annual savings would last for 25 years(65-40)

FVIFA FACTOR=(1+r)^n-1/r

r=8%

n=25

FVIFA FACTOR=(1+8%)^25-1/8%

FVIFA FACTOR=(1.08)^25-1/0.08

FVIFA FACTOR=(6.848475196-1)/0.08=73.106

Amount in the account at retirement=PMT*FVIFA FACTOR

Amount in the account at retirement=$2000*73.106=$146,212.00  

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A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's una
wlad13 [49]

Answer:

$3,355

Explanation:

Accounts receivables = $ 352,000

Debit Allowance for uncollectible accounts = 630

Net Sales = $797,000

The company estimates that 0.5% of net credit sales are uncollectible

Estimates of uncollectible receivables

= 0.5% × $797,000

=$3985

This is the total amount to be recognized at the end of the year as Bad Debts Expense. Since a debit of $630 has been recognized already, additional debit required

= 3985 - 630

= $3,355

The amount to be debited to Bad Debts Expense when the year-end adjusting entry is prepared is $3,355.

5 0
3 years ago
Leisure Enterprise’s total cost of producing speedboats is given by TC = 10 Q 3 – 4 Q 2 + 25 Q + 500. On the basis of this infor
Anastasy [175]

Answer:

The marginal cost of producing the 25th speedboat is 18,575.

Explanation:

Note that the given Leisure Enterprise’s total cost (TC) of producing speedboats is correctly stated as follows:

TC = 10Q^3 - 4Q^2 + 25^Q + 500 …….………….. (1)

Where Q represents the quantity of speedboats produced.

To obtain the marginal cost (MC) of producing speedboats, equation (1) is differentiated with respect to Q as follows:

MC = dTC/dQ = 30Q^2 - 8Q + 25 ………………… (2)

Finding the marginal cost (MC) of producing the 25th speedboat implies that Q = 25.

Substituting Q = 25 into equation (2), we have:

MC = (30 * 25^2) - (8 * 25) + 25 = 18,575

Therefore, the marginal cost of producing the 25th speedboat is 18,575.

4 0
3 years ago
Culver Company has the following securities in its portfolio on December 31, 2017. None of these investments are accounted for u
SIZIF [17.4K]

Answer:

unrealized loss (OCI)            500 debit

trading securities- wallace 5,200 debit

      trading securities gordon                4.200 credit

     trading securities - martin                 1,600 credit

cash                           66,300 debit

loss on investment     6,900 debit

   trading securities - gordon         73,200 credit

--to record sale of gordon securties --

trading securities earnhart corp 53,800 debit

                         cash                                53,800 credit

--to record purchase of earnhart--

unrelized loss(OCI)  7,100  debit

trading securities earnhart corp 3,700 credit

trading securities- wallace        3,400 credit

-- 2018 year-end adjustment--

Explanation:

gordon 77,600 - 73,200 =    (4,100)

wallace 172,900 - 167,700 = 5,200

martin 63,500 - 65,100 =   <u>  (1,600)  </u>

         Total adjustment           (500)

We will declare as other comprehensive incoem the unrealized loss of 500 dollar for the period

At sale date we compare the proceeds and the cost to check for the earning or losses:

1,500 shares x $45 each less 1,200 fees = 66,300

                        gordon shares book value <u>(73,200)</u>

                       loss on investment                 6,900

Earnhart corp:

700 shares x $75 each plus 1,300 fees: 53,800

year-end adjusting 2018

earnhart 50,100 - 53,800 = (3,700)

wallace 61,700 - 65,100 =    (3,400)

martin   167,700 - 167,700 = <u>         0</u>

unrealized loss                    (7,1 00)

3 0
3 years ago
A business owner would most likely create a cooperative instead of buying a franchise because
Alina [70]
A business owner would most likely create a cooperative instead of buying a franchise because:
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<span>- stringent restrictions on going out of business may be established for franchisees</span>
7 0
3 years ago
Read 2 more answers
During the current year, the Town of Salo Alto recorded the following transactions related to its property taxes: Levied propert
Annette [7]

Question Completion:

Prepare the journal entries.

Answer:

Town of Salo Alto

Journal Entries:

Debit Property Taxes Receivable $3,300,000

Credit Unearned Property Taxes $3,300,000

To record the levying of property taxes.

Debit Uncollectible Expense $66,000

Credit Allowance for Uncollectible Property Taxes $66,000

To record the 2% allowance for uncollectible taxes.

Debit Cash $2,987,500

Credit Property Taxes Receivable $2,987,500

To record the collection of current property taxes.

Debit Cash $28,900

Credit Deferred Inflows of Resources $26,500

Credit Interest and Penalties $2,400

To record the collection of delinquent taxes with interest and penalties.

Debit Penalties and Interest Receivable $3,750

Credit Interest and Penalties $3,100

Credit Allowance for uncollectible $650

To record penalties and interest imposed.

Debit Deferred Inflows of Resources $312,500

Credit Property Taxes Receivable $312,500

To re-classify uncollected taxes as delinquent.

Explanation:

The ASC 606, as applicable to GASB, specifies when property tax revenues should be recognized in government-wide financial statements.  Governmental revenue, e.g. property tax revenue, should be considered as revenue in the current period if it can be collected within that period or sixty days after the current period.  If it cannot be so collected, it needs to be re-classified as delinquent.

8 0
3 years ago
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