Finance Answers

Mother Zeta has two types of deposits. Deposits of both the magnitude of the first two deposits. The first deposit rate 10% p.a. and 12% second deposit. If the total interest earned from the two deposits of Rp 33.4 million a year, how much of each deposit?

Tia saving of Rp 2,000,000 on January 1, 2010 at a bank which provides a simple interest of 9% p.a. If she expects to have savings amounting to Rp 4,000,000 for travel and shopping to Singapore in the new year January 1, 2011, how much savings she had deposited again on July 1, 2010?

On January 1, 2010, Mr. Amat, small traders, wanted to expand the grocery store. For that purpose he borrowed money from a bank ABC is Rp 1,000,000 with interest at 16%. On April 1, 2010, he paid back the loan of Rp 350,000, later on August 1, 2010 he paid Rp 200,000, and on October 1, 2010 amounted to Rp 400,000. How the rest of the payment must he completed on January 1, 2011, if the interest is calculated daily?

John buys a video game for $300. After using it for 2 years, he expects to sell it for
$20. If i = 10%, the annual worth in dollars is
Answer
a. 20 (F/P, 10%, 2) - 300(A/P, 10%, 2)
b. 280 + 10% of 300.
c. 20 (F/A, 10%, 2) - 300(P/A, 10%, 2)
d. 300(P/A, 10%, 2) - 20 (F/A, 10%, 2)

Northwest Financial Services was organized on April 1 of the current year. On April 2,
Northwest prepaid $4,500 to the city for taxes (license fees) for the next 12 months and
debited the prepaid taxes account. Northwest is also required to pay in January an annual tax (on property) for the previous calendar year. The estimated amount of the property tax for the current year (April 1 to December 31) is $21,375.
a. Journalize the two adjusting entries required to bring the accounts affected by the
two taxes up to date as of December 31, the end of the current year.
b. What is the amount of tax expense for the current year?

Canyon Realty Co. pays weekly salaries of $3,700 on Friday for a five-day workweek
ending on that day. Journalize the necessary adjusting entry at the end of the accounting
period assuming that the period ends (a) on Wednesday and (b) on Thursday.

The balance in the unearned fees account, before adjustment at the end of the year, is
$112, 790. Of these fees, $69,735 have been earned. In addition, $13, 200 of fees have
been earned but have not been billed. Journalize the adjusting entries (a) to adjust the
unearned fees account and (b) to record the accrued fees.

The prepaid insurance account had a balance of $5,400 at the beginning of the
year. The account was debited for $6,000 for premiums on policies purchased
during the year. Journalize the adjusting entry required at the end of the year for
each of the following situations: (a) the amount of unexpired insurance applicable
to future periods is $1,000; (b) the amount of insurance expired during the year is
$10,400.

For the year ending November 30, 2010, Towson Medical Services Co. mistakenly omitted adjusting entries for (1) $1,430 of supplies that were used, (2) unearned revenue of
$11,150 that was earned, and (3) insurance of $6,000 that expired. Indicate the combined
effect of the errors on (a) revenues, (b) expenses, and (c) net income for the year ended
November 30, 2010.

Derby Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies;
Office Equipment; Accounts Payable; Terri Burell, Capital; Terri Burell, Drawing; Fees
Earned; Rent Expense; Advertising Expense; Utilities Expense; Miscellaneous Expense.
Journalize the following selected transactions for March 2009 in a two-column journal and posting to T account. Journal entry explanations may be omitted.
Mar. 1. Paid rent for the month, $3,000.
2. Paid advertising expense, $1,800.
5. Paid cash for supplies, $900.
6. Purchased office equipment on account, $12,300.
10. Received cash from customers on account, $4,100.
15. Paid creditor on account, $1,200.
27. Paid cash for repairs to office equipment, $500.
30. Paid telephone bill for the month, $180.
31. Fees earned and billed to customers for the month, $26,800.
31. Paid electricity bill for the month, $315.
31. Withdrew cash for personal use, $2,000.