Richard e-mailed me that he and monica differed about the impact of his extra spending over the past 15 years. he calculated it at about $3,000 a year. he said the total cost of $45,000 was well within his capability to make up. monica said the cost was much higher and asked that they compute it. they had been offered an investment of $20,000 that would pay $70,000 in 20 years. they want to know if they should take it. finally, richard could sign up for an annuity at work. it would cost $100,000 at age 65 and provide payments of $8,000 per year over his expected 17-year life span. he wants to know if it is attractive. the appropriate market rate of return on investments is 7 percent after tax. calculate what the $3,000-per-year deficit, had it been invested, would have amounted to at the end of the 15-year period.

Sheldon has the following year-end account balances: accounts receivable, $5,000; supplies, $12,000; equipment, $18,000; accounts payable, $17,000; stockholders’ equity, $43,000. the cash account balance was not available at year-end. given the account balances listed, the balance in the cash account should be?

For each separate case below, follow the 3-step process for adjusting the prepaid asset account at december 31. step 1: determine what the current account balance equals. step 2: determine what the current account balance should equal. step 3: record the december 31 adjusting entry to get from step 1 to step 2. assume no other adjusting entries are made during the year. a. prepaid insurance. the prepaid insurance account has a $4,700 debit balance to start the year. a re- view of insurance policies and payments shows that $900 of unexpired insurance remains at year-end. b. prepaid insurance. the prepaid insurance account has a $5,890 debit balance at the start of the year. a review of insurance policies and payments shows $1,040 of insurance has expired by year-end. c.prepaidrent.onseptember1ofthecurrentyear,thecompanyprepaid$24,000 for 2 years of rentfor facilities being occupied that day. the company debited prepaid rent and credited cash for $24,000.

Suppose that a monopolistically competitive restaurant is currently serving 260 meals per day (the output where mr