Answer Key to Quiz 5

Answer Key to Quiz 5 - lose. 1) $12,718,049...

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Answer Key to Quiz 5 1a) B. (.02/(1-.02))*365/20 = .372 1b) C. Purchase entry DR Inventory 100,000 CR AP 100,000 DR AP 100,000 CR Inventory 2,000 CR Cash 98,000 2) D. 360,000 + (18,000*4,000*.005) – 310,000 – 5,000 = 405,000 3) D. 4) D. 5a) A. 40,000,000/(1.08^20) = $8,581,928.30 5b) E. $8,581,928.30*(1.08^10) = $18,527,739.53 5c) C. 40,000,000 – 8,581,928,30 = 31,418,072 6) D. Key wording is that Van Winkle does NOT believe it is probably that they will
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Unformatted text preview: lose. 1) $12,718,049 10,000,000/(1.04^20) = 4,563,869 600,000*13.5903 (from table) = 8,154,180 4,563,869 + 8,154,180 = 12,718,049 2) At Issue: DR Cash 12,718,049 CR Bonds Payable 12,718,049 DR Interest Expense 508,722 DR Bonds Payable 91,278 CR Cash 600,000 DR Interest Expense 505,076 DR Bonds Payable 94,924 CR Cash 600,000...
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This note was uploaded on 06/11/2008 for the course ACC 471 taught by Professor Winkle during the Winter '08 term at University of Michigan.

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Answer Key to Quiz 5 - lose. 1) $12,718,049...

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