Examination Number (06044200)

ANSWERS TO EXAMINATION

1)

Bank Balance 2,950.00

Less outstanding ck# 124 (1,080.00)

Less outstanding ck# 138 (720.00)

Add deposit in transit 3,200.00

Adjusted Bank Balance 4,350.00

Book Balance 4,010.00

Less bank fee for checks (12.00)

Less bank fee for NSF (18.00)

Less ATM withdrawal (30.00)

Add Broom note collected 400.00

Adjusted Book Balance 4,350.00

2)

5E+7P = 85

P = 15-E

5E+7(15-E) = 85

5E+105-7E = 85

-2E = -20

E = 10

P = 5

3)

% age change = (1.59-1.10)/1.10 %

= 44.55%

4)

List price on Invoice with Chain Discount of 9/7= $5000*.98*.91*.93 =4146.87 Freight charges paid by Lee = $150

Total Payment = $4296.87

5)

Price Pat Sullivan sell to her customers = $85

Amount she paid to the trader = $85 – $ (45/100*85)

= $46.75

6)

Gross Salary= $1200.00

Less 6.2+1.45= 459.00

Less health insurance = 42.50

Federal Income Tax = 600.00 (10% gross salary)

Net Pay= $4899.00

7)

PrincipalInterestTotal

After 15 days, $8000 $26.30137$8026.30137

Less paid-2000

After 45 days $6026.301$39.625 6065.926365

-1000

5065.926365

After 60 days add interest$5065.92616.6551 = $5083

8)

Face value $5000.00

Add interest for 120 days 131.5068

Maturity value 5131.507

Less discount amount 79.71409

Proceeds to Bob $5051.79

9)

Value of 25000= 44896.41

Value of 40000 53603.83

Total value $98500.23

10)

Deposits made by Roger Fax semi annually = $900

Compounding rate = 6%

Number of deposits made by Roger after that= 0

After 8 years the balance in the account = (900(P/A, 6%, 14)) * (F/P, 6%, 16) = $24676.55

11)

Total money borrowed by Dick Hercher without any interest = $7000 Before the end of 14th Month the installments he has paid = $190 * 14

= $ 2660

So, final payment Dick will make = $7000 - $2660

= $4340

12)

Advertised Price 350,000

20% Down Payment 70,000

Loan Amount 280,000

Length of Loan25 Years

Monthly Principle & Interest (11%) $2,744.32

Total cost of Interest $543,294.98

13)

A.Net sales

Net sales = $ 20900 - $700 -$950

= $19250

B.Gross profit

Gross profit = $19250 - $7600

= $11650

C.Total operating expenses

Total Operating Expenses = $1288 + $600 + $1650 + $2900 + $900

= $7338

D.Net Income

Net Income = $11650 - $7338

= $4312

14)

Rate 0.2

At the end of year 1 20000

At the end of year 216000

15)

A.The number of paint sets in stock

Total paint sets in stock = 8 + 3 + 5 + 6 +10 – 21 = 11

B.The cost of ending inventory under LIFO

Total cost of inventory sold using LIFO = $14.5

C.The cost of ending inventory under FIFO

Total cost of inventory sold using FIFO = 8($1.25) + 3($1.50) + 5($2) + 5($2.50) =$37 Remaining Items cost = 1($2.50) + 10($3) = $32.50

D.The cost of ending inventory under Weighted Average

=$24

16)

Assessed value2000000

Tax rate 0.1051

Tax amount will be 210200

17)

Insurance Company20400 2400+10000+8000

Payment by Jim 12001000+200

18)

Total share’s = 200

Price for all shares = 200*$22.35 = $4470

After eight months,

Sale price of stock = (200*31.76) + 2% of $4470 = $6352 + $89.4 = $6441.40

19)

$159390 is the mean

$167500 is the median

20)

Price of Al’s garage = $300,000

Al has a fire insurance policy of $180,000 that contains an 80% coinsurance clause. If the damage is $210,000

The payment paid by insurance company would be 80% of $210,000 = $168,000 In the case of coinsurance requirement, the payment that should be paid by the insurance company =$180, 000 21)

Total cost of boat = $19,500 + $2500 =$22,000

Total monthly installments = 36

Per month installment = $22,000...