Acct 550 Wk 4

E6-5

FV-AD = 5,000 (FVD-OA20,12%)1.12

FV-AD = 5.000 72.05244) 1.12

FV-AD = 403,494

FV-0A =5000(FVD-OA20,12%)

FV-OA = 5000 (72.05244)

FV-OA = 360,262

E6-12

Building A

PV = $600.000

Building B

PV = $606,118.08

Building C

PV=$595,098

Building C is the answer it has the smallest PV

E7-2

1. Cash balance of $925,000. The checking account balance shouldbe reported as cash. The certificates of deposit of $1,400,000 investment, the cash advance to subsidiary of $980,000 should be a receivable, and the utility depositof $180 should be identified as a receivable from the gas company.

2. Cash balance is $484,650

Checking account balance $500,000

Overdraft (17,000)

Petty cash 300

Coin and currency 1,350

$484,650

Restricted cash is as noncurrent.

Cash balance is $599,800 computed as follows:

Checking account balance $590,000

Certified check from customer 9,800

$599,800

The check for $11,000 should be a receivable.

Cash restricted should be described in a note indicating the type of arrangement and amount. Postage stamps on hand are reported as part of office supplies inventory or prepaid expenses.

4. Cash balance is $90,000

Checking account balance $42,000

Money market mutual fund 48,000

$90,000

The NSF check received should be reported as a receivable.

5. Cash balance is $700,900 computed as follows:

Checking account balance . $700,000

Cash advance received from customer 900

$700,900

Cash restricted for future plant expansion of $500,000 is reported as a noncurrent asset. Short-term Treasury bills of $180, reported as a temporary investment. Cash advance received from customer of $900 should reported as a liability; cash advance of $7,000 to company executive e reported as a receivable; refundable deposit of $26,000 reported as a receivable.

E7-5

(A)

1. June 3 Accounts Receivable—Arquette 2,000

Sales...