Accounting 221 - Quiz 1 help please
jrbave
acct-221_quiz-1.xlsProblem
| Review the discussion on present value from the textbook, and complete the following requirements (you will find it helpful to access the present value tables hyper-linked within the online version of the textbook). | |
| (a) | Prepare basic calculations showing the current value of a $25,000 sum to be received in 4 years. You may assume that 6% is the appropriate discount rate. For this requirement, do not refer to the present value table. |
| (b) | Verify your answer to part (a) by utilizing the appropriate present value factor from the applicable table. |
| (c) | Construct a table of basic calculations showing how much an annuity of $25,000 received at the end of each year for four years is worth today. Assume a 6% discount rate. For this requirement, you may refer to the present value table for $1 (but, do not utilize the annuity table). |
| (d) | Verify your answer to part (c) by utilizing the annuity present value factor from the applicable table. |
&R&"Myriad Web Pro,Bold"&20B-13.03
B-13.03
Worksheet
| (a) 6% interest, and 4 periods: | ||||||||
| (b) 6% interest, and 4 periods: | ||||||||
| The present value factor from the table is | ||||||||
| (c) | ||||||||
| Year | Present Value Factor From Table | Payment | Value of Payment at beginning of 1st Year | |||||
| 1 (amount will be received in 1 year) | $25,000 | $ - 0 | ||||||
| 2 (amount will be received in 2 years) | $25,000 | - 0 | ||||||
| 3 (amount will be received in 3 years) | $25,000 | - 0 | ||||||
| 4 (amount will be received in 4 years) | $25,000 | - 0 | ||||||
| $ - 0 | ||||||||
| (d) 6% interest, and 4 periods: | ||||||||
| The present value factor from the annuity table is |
&L&"Myriad Web Pro,Bold"&12Name:
Date: Section: &R&"Myriad Web Pro,Bold"&20B-13.03
B-13.03
The formula in excel is:
= 25000 * (1/1.06 ^ 4)
Note the symbol (^) that is used to raise a value to a power
14.03 problem
| Prepare journal entries to record each of the following independent stock issue situations. | ||
| (a) | Sherri Hui Corporation issued 100,000 shares of $1 par value common stock. The issue price was $30 per share. | |
| (b) | Ariana Corporation issued 50,000 shares of no par common stock for $10 per share. | |
| (c) | Laser Golf issued 40,000 shares of $100 par value preferred stock. The issue price was $102 per share. | |
| (d) | Charleston Industries issued 5,000 shares of $5 par value common stock for land with a fair value of $75,000. |
&R&"Myriad Web Pro,Bold"&20B-14.03
B-14.03
14.03 worksheet
| GENERAL JOURNAL | |||||
| Date | Accounts | Debit | Credit | ||
| (a) | |||||
| To record issue of 100,000 shares of $1 par value common stock at $30 per share | |||||
| (b) | |||||
| To record issue of 50,000 shares of no par value common stock at $10 per share | |||||
| (c) | |||||
| To record issue of 40,000 shares of $100 par value preferred stock at $102 per share | |||||
| (d) | |||||
| To record issue of 5,000 shares of $5 par value common stock for land with a fair value of $75,000 |
&L&"Myriad Web Pro,Bold"&12Name:
Date: Section: &R&"Myriad Web Pro,Bold"&20B-14.03
B-14.03
15.03 problem
| Melanie Mielke Construction Corporation is considering the appropriate accounting for two unrelated events during the year. The first event related to the effects of a labor strike that resulted in a work stoppage on a major construction project. $2,000,000 of building material that was left exposed to weather conditions during the strike was lost. The second event was a $3,000,000 unrealized gain on available-for-sale securities that continue to be held as an investment. |
| Melanie Mielke's annual sales were $9,000,000, at a gross margin of 15%. Selling expenses totaled $300,000, and administrative expenses totaled $800,000. Mielke is subject to a 30% income tax rate. |
| Prepare the 20XX income statement for Melanie Mielke Construction Corporation. |
&R&"Myriad Web Pro,Bold"&20B-15.03
B-15.03
15.03 Worksheet (3)
| MELANIE MIELKE CONSTRUCTION COMPANY | ||||
| Income Statement | ||||
| For the Year Ending December 31, 20XX | ||||
| Sales | $ - | |||
| Cost of goods sold | - | |||
| Gross profit | $ - | |||
| Operating expenses | ||||
| $ - | ||||
| - | ||||
| - | - | |||
| Loss from continuing operations before tax benefit | $ - | |||
| Income tax benefit from operating loss | - | |||
| Net loss | $ - | |||
| Other comprehensive income | ||||
| $ - | ||||
| - | ||||
| - | ||||
| Comprehensive income | $ - |
&L&"Myriad Web Pro,Bold"&12Name:
Date: Section: &R&"Myriad Web Pro,Bold"&20B-15.03
B-15.03
