Ajax Corporation has hired Brad O'Brien as its new president. Terms included the company's agreeing to pay retirement benefits of $18,600 at the end of each semiannual period for 10 years. This will begin in 3,285 days. If the money can be invested at 8% compounded semiannually, what must the company deposit today to fulfill its obligation to Brad? (Please use the following provided Table and Table 12.3.) (Use 365 days a year. Do not round intermediate calculations. Round your answer to the nearest cent.) Deposit amount 124,779.35
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- Ajax Corporation has hired Brad O'Brien as its new president. Terms included the company's agreeing to pay retirement benefits of $18,800 at the end of each semiannual period for 12 years. This will begin in 4,015 days. If the money can be invested at 8% compounded semiannually, what must the company deposit today to fulfill its obligation to Brad? (Use Table and Table 12.3.) Note: Use 365 days a year. Do not round intermediate calculations. Round your answer to the nearest cent. Deposit amount 95,193.14On July 1, 2008, your new employer Ford Motor Company deposits $5000 into your money market account, as part of your employment bonus. The account pays interest at 5% per year. You expect to withdraw an equal annual amount each year for the following 10 years. Identify the symbols and their values.At the end of 2022, the following information is available for Great Adventures.• Additional interest for five months needs to be accrued on the $30,000, 6% loan obtained on August 1, 2021. Recall that annual interest is paid each July 31.• Assume that $10,000 of the $30,000 loan discussed above is due next year.• By the end of the year, $20,000 in gift cards have been redeemed. The company had sold gift cards of $25,000 during the year and recorded those as Deferred Revenue.• Great Adventures is a defendant in litigation involving a biking accident during one of its adventure races. The company believes the likelihood of payment occurring is probable, and the estimated amount to be paid is $12,000.• For sales of MU watches, Great Adventures offers a warranty against defect for one year. At the end of the year, the company estimates future warranty costs to be $4,000.Required:1. Record each of the transactions above on December 31, 2022.2. If the likelihood of payment for the…
- An individual entering the workforce plans to make monthly contributions to a retirement account in the amount of $250 beginning at the end of next month and continuing for the next 40 years. (a) If the retirement account earns 8% compounded monthly, find the amount expected in the retirement account at the end of 40 years. Round to the nearest penny. (b) If the retirement account charges a maintenance fee of 2% each year, the net interest rate earned by the retiree becomes 6%. Find the amount expected in the retirement account. Round to the nearest penny. (c) Compare the answers from part (a) and part (b) above to determine the total percent lost by the retiree due to the fee. Round your answer to two decimal places. % lostA bank employee passed the ICWA examination and his salary was raised by P30,000 starting from the end of year 1. At an interest rate of 6% semiannually, what is the present value of P30,000 per year over his remaining 20 years of service? Using the formula attached...Could you help me solve this accounting homework problem for me? and please show all your work so I can understand it On January 1, 2020, TPM Inc. acquires a piece of equipment for a list price of $300,000. It pays$20,000 immediately and writes a note for the remainder. Annual interest of 3% is due everyDecember 31st, and the principal of the note is payable in 6 years.TPM’s incremental borrowing rate is 6%, while the seller’s incremental borrowing rate is 7%.TPM is a public company. It depreciates its equipment using the diminishing balance method at15%. The equipment’s residual value is $40,000 at the end of its useful life. 1) Prepare all required journal entries for the years 2020 and 2021.2) Determine the Asset’s net book value on January 1, 2024.3) Determine the note payable carrying value on January 1, 2024.
- On January 1, 2020, KOO Inc. got a credit line from a bank worth 5,000,000. The credit line would require an annual fee of 50,000 and an interest of 1% per month. On March 1, 2020, 3,000,000 is used up and will be paid the next year 2021. The annual fee will be paid every January 25 and the interest will be paid every 25th of the following month. KO0 Inc. paid the necessary payments on time. What is the total interest payable relating to the credit line as of December 31, 2020?On December 31, 2023, ABC company borrows $480,000 from the First Bank to start a business. The loan requires quarterly payments for 10 years and the interest rate on the loan is 12%. ABC company's quarterly payment is:At the end of 2022, the following information is available for Great Adventures. Additional interest for five months needs to be accrued on the $32,200, 6% loan obtained on August 1, 2021. Recall that annual interest is paid each July 31. Assume that $12,200 of the $32,200 loan discussed above is due next year. By the end of the year, $20,000 in gift cards have been redeemed. The company had sold gift cards of $27,200 during the year and recorded those as Deferred Revenue. Great Adventures is a defendant in litigation involving a biking accident during one of its adventure races. The company believes the likelihood of payment occurring is probable, and the estimated amount to be paid is $14,200. For sales of MU watches, Great Adventures offers a warranty against defect for one year. At the end of the year, the company estimates future warranty costs to be $6,200. No Date General Journal Debit Credit 1 Dec 31 Interest Expense 805 Interest Payable 805…
- Jayne Company presently pays its employees at the end of each week. The weekly payroll totals $500,000. If Jayne Company were to extend the pay period so as to pay its employees 1 week later throughout an entire year, the employees would in effect be "lending" the firm how much for the year? And if Jayne company gets a discount loan at a 12 percent interest rate. They borrow $100,000 for one year. What is the effective interest rate?Jason Horton works for Chevron as a welder on offshore drilling rigs. His retirement plan contributions are $3800 at the beginning of each 6-month period. Assume that the account grows at 6% compounded semiannually for 15 years. Find the (a) future value of the annuity and (b) the interest earned. * $52,547.60; $9,447.60 $9,947.60; $55,547.60 $55,547.60; $9,947.60 Other:On December 1, 2021, your company borrowed $48,000, a portion of which is to be repaid each year on November 30. Specifically, your company will make the following principal payments: 2022, $6,400; 2023, $9,600; 2024, $12,800; and 2025, $19,200. Show how this loan will be reported in the December 31, 2022 and 2021 balance sheets, assuming principal payments will be made when required. Balance Sheet (Partial) As of December 31 2022 2021 Total Liabilities