Question 1 Preparing Financial Statements Financial data for Safety Hire as of 30 June 2019 are:
$ 63000
170000
40 000
Accounts receivable
Equipment hire income
Accounts payable
Michael Donato, capital
Cash at bank
Mortgage payable
Building
$ 75000
30000
75 000
Wages expense
Advertising expense
Land
Hire equipment
Loan payable
Electricity expense
Telephone expense
45000
130 000
85000
50000
18000
7500
Required:
Prepare an income statement for the month of June and a balance sheet in account format
for Safety Hire as at 30 June 2019.
in
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Suppose that jim plans to borrow money for an education at texas a& m university. jim will need to borrow $25,000 at the end of each year for the next five years (total=$125,000). jim wishes his parents could pay for his education but they can’t. at least, he qualifies for government loans with a reduced interest rate while he is in school. he has a special arrangement with aggiebank to lend him the money at a subsidized rate of 1% over five years without having to make a payment until the end of the fifth year. however, at the end of the fifth year, jim agrees to pay off the loan by borrowing from longhorn bank. longhorn bank will lend him the money he needs at an annual interest rate of 6%. jim agrees to pay back the longhorn bank with 20 annual payments and the payments will be uniform (equal annual payments including principal and interest). (i) calculate how much money jim has to borrow at the end of 5 years to pay off the loan with aggiebank. a. $121,336 b. $127,525 c. $125,000 d. $102,020 e. none of the above