Accounting Essay

1184 Words May 11th, 2014 5 Pages
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
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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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