Intermediate Accounting

Price: $5 USD

Question description

1.) Q: A cash flow of $250,000 may be received by Lydia Nickels, Inc. in one year, two years or three years, with probabilities of 25%, 60% and 35% respectively. The rate of interest on default risk-free investments is 6%. What is the expected present value of Lydia Nickel's cash flow (in whole dollars)?

2.) Toro, Inc. paid $8,280 to renew its only insurance policy for three years on March 1, year 1, the effective date of the policy. At March 31, year 1, Toro's unadjusted trial balance showed a balance of $345 for prepaid insurance and $8,280 for insurance expense. What amounts should be reported for prepaid insurance and insurance expense in Toro's financial statements for the three months ended March 31, year 1?

3.) Jones, a consultant, keeps her accounting records on a cash basis. During year 2, Jones collected $140,000 in fees from clients. At December 31, year 1, Jones had account receivable of $24,000. At December 31, year 2 Jones had account receivable of $47,000 and unearned fees of $4,200. On an accrual basis, what was the ward's service revenue for year 2?

Studypool has helped 1,244,100 students
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1828 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors