GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
17th Edition
ISBN: 9781260218831
Author: Libby
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 9, Problem 9.8AP
To determine
Complete the fund accumulation schedule.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
On January 1, 2018, you deposited $5,500 in a savings account. The account will earn 8 percent annual compound interest, which will
be added to the fund balance at the end of each year.
Required:
1. What will be the balance in the savings account at the end of 7 years?
2. What is the total interest for the 7 years?
3. How much interest revenue did the fund earn in 2018 and in 2019?
Show Transcribed Text
A sinking fund amounting to $21,000 is to be created by making payments at the beginning of every year for 6 years. Interest earned by the fund is 5.9% compounded annually. Determine the size of the penodic payment and
compute the interest earned during the fourth payment interval. Verify your answer by checking the sinking fund schedule.
The size of the payment is S
An engineer wishes to set up a special fund by making uniform semiannual end-of-period depositsfor 20 years. The fund is to provide P25,000 at the end of each of the last five years of the 20-yearperiod. The interest is 8% compounded semiannually.Note: Make a cashflow diagram.
Chapter 9 Solutions
GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
Ch. 9 - Prob. 1QCh. 9 - Prob. 2QCh. 9 - Prob. 3QCh. 9 - Prob. 4QCh. 9 - Prob. 5QCh. 9 - Prob. 6QCh. 9 - Prob. 7QCh. 9 - Define deferred revenue. Why is it a liability?Ch. 9 - Prob. 9QCh. 9 - Define working capital. How is working capital...
Ch. 9 - Prob. 11QCh. 9 - When a company signs a capital lease, does it...Ch. 9 - Prob. 13QCh. 9 - Define annuity.Ch. 9 - Prob. 15QCh. 9 - Prob. 16QCh. 9 - What is the present value factor for an annuity of...Ch. 9 - The university golf team needs to buy a car to...Ch. 9 - Which of the following best describes accrued...Ch. 9 - Prob. 4MCQCh. 9 - A company is facing a lawsuit from a customer. It...Ch. 9 - Which of the following transactions would usually...Ch. 9 - How is working capital calculated? a. Current...Ch. 9 - Prob. 8MCQCh. 9 - SmallFish Company borrowed 100,000 at 8% interest...Ch. 9 - Prob. 10MCQCh. 9 - Prob. 9.1MECh. 9 - Computing and Interpreting Accounts Payable...Ch. 9 - Prob. 9.3MECh. 9 - Prob. 9.4MECh. 9 - Prob. 9.5MECh. 9 - Prob. 9.6MECh. 9 - Prob. 9.7MECh. 9 - Prob. 9.8MECh. 9 - Prob. 9.9MECh. 9 - Computing the Present Value of an Annuity What is...Ch. 9 - Prob. 9.11MECh. 9 - Prob. 9.12MECh. 9 - Prob. 9.1ECh. 9 - Recording Payroll Costs Paul Company completed the...Ch. 9 - Prob. 9.3ECh. 9 - Recording a Note Payable through Its Time to...Ch. 9 - Prob. 9.5ECh. 9 - Prob. 9.6ECh. 9 - Prob. 9.7ECh. 9 - Prob. 9.8ECh. 9 - Reporting Contingent Liabilities Jones Soda is a...Ch. 9 - Prob. 9.10ECh. 9 - Prob. 9.11ECh. 9 - Prob. 9.12ECh. 9 - Computing Four Present Value Problems On January 1...Ch. 9 - Prob. 9.14ECh. 9 - Prob. 9.15ECh. 9 - Prob. 9.16ECh. 9 - Prob. 9.17ECh. 9 - Prob. 9.18ECh. 9 - Prob. 9.19ECh. 9 - Prob. 9.20ECh. 9 - Prob. 9.21ECh. 9 - Prob. 9.22ECh. 9 - Prob. 9.23ECh. 9 - Prob. 9.24ECh. 9 - Recording and Reporting Current Liabilities LO9-1...Ch. 9 - Prob. 9.2PCh. 9 - Prob. 9.3PCh. 9 - Recording and Reporting Accrued Liabilities and...Ch. 9 - Prob. 9.5PCh. 9 - Prob. 9.6PCh. 9 - Prob. 9.7PCh. 9 - Prob. 9.8PCh. 9 - Prob. 9.9PCh. 9 - Prob. 9.10PCh. 9 - Prob. 9.11PCh. 9 - Prob. 9.12PCh. 9 - Prob. 9.13PCh. 9 - Prob. 9.14PCh. 9 - ALTERNATE PROBLEMS AP9-1 Recording and Reporting...Ch. 9 - Prob. 9.2APCh. 9 - Prob. 9.3APCh. 9 - Prob. 9.4APCh. 9 - Prob. 9.5APCh. 9 - Prob. 9.6APCh. 9 - Prob. 9.7APCh. 9 - Prob. 9.8APCh. 9 - Prob. 9.1CONCh. 9 - Annual Report Cases Finding Financial Information...Ch. 9 - Finding Financial Information Refer to the...Ch. 9 - Prob. 9.3CPCh. 9 - Prob. 9.4CPCh. 9 - Prob. 9.5CP
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Carla Vista Company has decided to begin accumulating a fund for plant expansion. The company deposited $93,000 in a fund on January 2, 2018. Carla Vista will also deposit $47,000 annually at the end of each year, starting in 2018. The fund pays interest at 4% compounded annually. Click here to view the factor table. What is the balance of the fund at the end of 2022 (after the 2022 deposit)? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 2 decimal places, e.g. 52.75.) Fund balance $arrow_forwardPayments of $4,000 are made into a fund at the beginning of each year for ten years. The fund is invested at an annual effective rate of i. The interest generated is reinvested at 13%. The total accumulated value at the end of the ten years is $110,000. Find i. (Round your answer to two decimal places.)arrow_forwardSouthern Land Company plans to raise $200,000 over a 2-year period so they can purchase a parcel of land. In order to obtain this amount, the company has decided to make quarterly investments into a sinking fund that will earn 8% per year compounded quarterly for the next 2 years. Using the sinking fund table, calculate the amount of each quarterly sinking fund payment required to raise $200,000 in 2 years.arrow_forward
- Find the amount of each payment to be made into a sinking fund so that enough will be present to accumulate the following amount. Payments are made at the end of each period. The interest rate given is per period. $49,000; money earns 4% compounded semiannually for 13.5 yearsarrow_forwardConsider an amount of 25,000 in a fund today. October 25, 2022. DETERMINE ITS value on the specified date given: 1. January 25, 2024 at 3.42% annual effective interestarrow_forwardsinking fund is established such that $12,000 will be available to replace a facility at the end of 10 years. At the end of 4 years, following the fourth uniform payment , management decides to retire the facility at the end of 9 years of life. At an interest rate of 6 percent, compounded annually, what are the payments during the first 4 and last 5 years?arrow_forward
- A sinking fund amounting to $21,000 is to be created by making payments at the beginning of every year for 6 years. Interest earned by the fund is 5.9% compounded annually. Determine the size of the penodic payment and compute the interest earned during the fourth payment interval. Verify your answer by checking the sinking fund schedule. The size of the payment is S. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) Complete the table, rounding each entry to the nearest cent. (Do not include the $ symbol in your answers.) Periodic Payment Interval Number Payment Interval Interest Increase in Payment (Beginning) Balanye at End of Payment Interval Fund i=5.9% 1 2. 3. 4. Enter your answer in each of the answer boxesarrow_forwardDeposits of $6000 are put into a fund at the end of each month for the next 9 years. At the end of the 9th year, month payments from the fund commence, and continue forever. If i, = 6.71 %, find the size of these payments. Answer: 4966.24arrow_forward2. On January 1 of the current year, Southwest Inc. adopts a plan to accumulate funds for environmental improvements to occur 4.5 years in the future, at an estimated cost of $2,000,000. Southwest plans to make four equal annual deposits in a fund that earns interest at 10% compounded annually. The first deposit is made on July 1 of the current year. Compute the amount of the annual deposit. 3. Hanks Inc. establishes a debt retirement fund to retire debt of $72,820. Hanks makes three equal annual contributions of $20,000, starting on January 1 of the current year. The fund earns interest at 10%, compounded annually. The $72,820 debt must be paid on December 31, three years later. What is the balance of the fund at December 31 in three years? 4. Gold Inc. invests $10,000 today in a mutual fund. Gold anticipates leaving this fund alone for 12 years. The fund is increased each year-end by specified compound interest rates as follows: years 1 to 4 inclusive,8%; 5 to 8 inclusive, 9%; and 9…arrow_forward
- Recent sales of some real estate and record profits make it possible for a manufacturer to set aside $1,200,000 in a fund to be used for modernization and remodeling. How much can be withdrawn from this fund at the beginning of each half-year for the next 6 years if the fund earns 7.5%, compounded semiannually? (a) Decide whether the problem relates to an ordinary annuity or an annuity due. (b) Solve the problem. (Round your answer to the nearest cent.)arrow_forwardMark deposit $1,000,000 in a fund today, the conditions for payment to Mark are a fixed amount for 10 years, starting 10 years from today and additionally $5,000 for 5 more years. There is an annual interest rate of 5% per annum in which the fund accumulates and each payment is made at the end of the year. What is the fixed amount?arrow_forwardOn January 15, 2012, Dolan Corp. adopted a plan to accumulate funds for environmental improvements beginning July 1, 2016, at an estimated cost of $5,000,000. Dolan plans to make four equal annual deposits in a fund that will earn interest at 10% compounded annually. The first deposit was made on July 1, 2012. Future value factors are as follows: Future value of 1 at 10% for 5 periods 1.61 Future value of ordinary annuity of 1 at 10% for 4 periods 4.64 Future value of annuity due of 1 at 10% for 4 periods 5.11 Dolan should make four annual deposits of Group of answer choices $889,522. $978,474. $1,077,586. $1,250,000.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
What is Budgeting? | Budgetary control | Advantages & Limitations of Budgeting; Author: Educationleaves;https://www.youtube.com/watch?v=INnPo0QPXf4;License: Standard youtube license