Accounting Essay

Accounting Essay

6–3 What is the future value of $7,540 at the end of 7 periods at 8% compounded interest? What is the present value of $7,540 due 9 periods hence, discounted at 11%? What is the future value of 15 periodic payments of $7,540 each made at the end of each period and compounded at 10%? What is the present value of $7,540 to be received at the end of each of 18 periods, discounted at 5% compound interest? 6–6 Dwayne Wade Company recently signed a lease for a new office building, for a lease period of 12 years. Under the lease agreement, a security deposit of $14,840 is made, with the deposit to be returned at the expiration of the lease, with interest compounded at 10% per year. What amount will the company receive at the time the lease ... Show more content on Helpwriting.net ...What are each of Clarence's contributions to the fund? 6–16 Jasper Parnevik borrowed $95,430 on March 1, 2012. This amount plus accrued interest at 12% compounded semiannually is to be repaid March 1, 2022. To retire this debt, Alex plans to contribute to a debt retirement fund five equal amounts starting on March 1, 2017, and for the next 4 years. The fund is expected to earn 10% per annum. How much must be contributed each year by Jasper Parnevik to provide a fund sufficient to retire the debt on March 1, 2022? 6–1 On January 1, 2014, Fishbone Corporation sold a building that cost $261,100 and that had accumulated depreciation of $107,300 on the date of sale. Fishbone received as consideration a $250,600 non–interest–bearing note due on January 1, 2017. There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a note of this type on January 1, 2014, was 10%. At what amount should the gain from the sale of the building be reported? On January 1, 2014, Fishbone Corporation purchased 320 of the $1,000 face value, 10%, 10–year bonds of Walters Inc. The bonds mature on January 1, 2024, and pay interest annually beginning January 1, 2015. Fishbone purchased the bonds to yield 11%. How much did Fishbone pay for the bonds? Fishbone Corporation bought a new machine and agreed to pay for it in equal annual installments of $5,670 at the end of each of the next 10 years. Assuming that

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