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nadya68 [22]
3 years ago
9

Your parents invested $1000 into an account when you were born. The account has an interest rate of 6% and compounds monthly (12

times per year). Calculate how much the account would be worth on your 20th birthday if no other activity took place.
Business
1 answer:
Gelneren [198K]3 years ago
8 0

Answer:

$3,310.20

Explanation:

The applicable formula in this case is

A = P x ( 1 + r )^ n

Where A= amount after 20 years

P is principle amount= $1000

r is interest rate = 6 % or 0.06 per year: monthly interest = 0.06/12

n is number of periods = 12 months x 20 years

A = $1000 x ( 1 + 0.005) ^240

A = $1000x (1.005) ^ 240

A =$1000 x 3.31020447580

A =$3,310.2044

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In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales. 1. Ivan
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Answer:

Requirement: Prepare the entry to record the sales transactions and related taxes.

1.   Date      Account Titles and Explanation     Debit     Credit

   Apr. 10   Cash                                                 $30,975

                        Sales Revenue                                          $29,500

                        Sales Tax Payable                                     $1,475

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2. Date      Account Titles and Explanation    Debit     Credit

   Apr. 15   Cash                                                 $18,530

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                        Sales Tax Payable                                     $1,530

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<u></u>

<u>Workings</u>

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  Credit Allowance for doubtful accounts            $32,727.6

b) Debit Bad debt expense                                    $37,017.6  

  Credit Allowance for doubtful accounts            $37,017.6

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