32948 3000000 rounded pres ent value of an annuity due

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Unformatted text preview: 948 = $3,000,000 (rounded) pres ent value of an annuity due of $1: n = 6, i = 5% 2. Rec eivable at Dec ember 31, 2013 Initial balanc e, June 30, 2013 June 30, 2013 reduc tion Dec . 31, 2013 reduc tion Rec eivable $3,000,000 (562,907)* (441,052)** Dec ember 31, 2013 rec eivable $1,996,041 The rec eivable replac es the $2,500,000 building on the balanc e s heet. Inc ome effec t for y ear ended Dec ember 31, 2013 June 30, 2013 interes t revenue Dec . 31, 2013 interes t revenue $ 0* 121,855** Interes t revenue for 2013 $ 121,855 Sales revenue* Cos t of goods s old* Inc ome effec t 3,000,000 (2,500,000) $ 621,855 Calculations : June 30, 2013* Leas e rec eivable (pres ent value c alc ulated above) Cos t of goods s old (les s or’s c os t) Sales revenue (pres ent value c alc ulated above) Inventory of equipment (les s or’s c os t) Cas h (leas e pay ment) Leas e rec eivable ezto.mhecloud.mcg r aw- hill.com/hm_accounting .tpx?todo= pr intviewSing le 3,000,000 2,500,000 3,000,000 2,500,000 562,907 562,907 2/3 2/25/14 Assig nment Pr int View Leas e rec eivable Dec ember 31, 2013** Cas h (leas e pay ment) Leas e rec eivable (differenc e) Interes t revenue (5% × [$3,000,000 – 562,907]) ezto.mhecloud.mcg r aw- hill.com/hm_accounting .tpx?todo= pr intviewSing le 562,907 562,907 441,052 121,855 3/3...
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