ACCT 301B Fall 2008 Midterm A Answers

ACCT 301B Fall 2008 Midterm A Answers - ACCT 301B Fall 2008...

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ACCT 301B Fall 2008 Midterm A Answers 1 Given: Retail sales tax % 6% Retailer keeps % of sales taxes collected 3% Sales (including sales taxes) 148,400 Find: sales tax payable to nearest dollar Answer: Sales (before sales taxes) $140,000.00 Sales taxes $8,400.00 Sales tax payable $8,148.00 2 Given: Redemption cost 2007 $2,500,000.00 Percentage will be redeemed 90% Liability for redemptions 2005 $7,500,000.00 Redemption cost 2006 $3,400,000.00 Find: Liability for stamp redemption Answer: $6,350,000.00 3 Given: Face value of bonds $600,000.00 Stated annual interest rate 8% Bonds sold for $553,600 Effective annual interest rate 10% Times per year interest paid 2.00 Find: interest expense, effective-interest method Answer: First six months $27,680.00 Second six months $27,864.00 $55,544.00 4 Given: Face value of bonds $10,000,000.00 Stated annual interest rate 8.00% Times per year interest paid 2 Bonds issued at 96.00 Bonds called $7,000,000.00 Bonds called at 102.00 Percentage of time to maturity at call
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This note was uploaded on 11/08/2011 for the course ECON 102 taught by Professor Smith during the Spring '11 term at Saddleback.

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