Chapter 9

# Chapter 9 - CHAPTER 9 CHAPTER 9 BRIEF EXERCISE 9-5 If...

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CHAPTER 9 CHAPTER 9 BRIEF EXERCISE 9-5 If simple interest at Bank 1, then the amount would be \$1,250 [\$1,000 + (\$1,000 × 0.05 × 5 years)]. If compound interest at Bank 2, then the amount would be \$1,276 (\$1,000 × 1.276) from Table 9-1 where n = 5, i = 5%. BRIEF EXERCISE 9-6 \$5,000 × 3.170 (from Table 9-4 where n = 4, i = 10%) = \$15,850 BRIEF EXERCISE 9-7 \$14,275/\$5,000 = 2.855 table value From Table 9-4, the value of 2.855 for 4 periods corresponds with an interest rate of 15%. EXERCISE 9-3 JACKIE COMPANY BALANCE SHEET DECEMBER 31, 2010 Current liabilities: Accounts payable \$ 24,400 Notes payable, 10%, due June 2, 2011 \$1,000 Less: Discount on notes payable 150 850 Current maturities of long-term debt 6,900 Other accrued liabilities: Interest payable \$3,010 Wages payable 6,000 Unearned revenue 4,320 13,330 Income taxes payable 61,250 Total current liabilities \$106,730 1

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CHAPTER 9 EXERCISE 9-5 1. KRUSE BALANCE SHEET DECEMBER 31, 2010 Current liabilities: Accounts payable \$ 55,000 Notes payable, 12%, due in 60 days
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## This note was uploaded on 04/14/2011 for the course ACCT 2101 taught by Professor Christianwurst during the Spring '08 term at Temple.

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Chapter 9 - CHAPTER 9 CHAPTER 9 BRIEF EXERCISE 9-5 If...

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