Zach Taylor is settling a $20,000 loan due today by making 6 equal
annual payments of $4,727.53. (Use the tables below.)
Alan Jackson invests $20,000 at 8% annual interest, leaving the
money invested without withdrawing any of the interest for 8 years.
At the end of the 8 years, Alan withdraws the accumulated amount of
money.
Guillen, Inc. began work on a $7,000,000 contract in 2014 to
construct an office building. Guillen uses the completed-contract
method. At December 31, 2014, the balances in certain accounts were
Construction in Process $1,715,000; Accounts Receivable $240,000;
and Billings on Construction in Process $1,000,000.
Lazaro Inc. sells goods on the installment basis and uses the
installment-sales method. Due to a customer default, Lazaro
repossessed merchandise that was originally sold for $800, resulting
in a gross profit rate of 40%. At the time of repossession, the
uncollected balance is $520, and the fair value of the repossessed
merchandise is $275
Morlan Corporation is preparing its December 31, 2014, financial
statements. Two events that occurred between December 31, 2014,
and March 10, 2015, when the statements were issued, are described
below.
Foley Corporation has seven industry segments with total revenues as
follows.
Operating profits and losses for the seven industry segments of Foley
Corporation are: