Chapter 11, Problem 2COP

1.

To determine

Prepare the necessary journal entries and adjusting entries of Company O.

Explanation of Solution

Journal: Journal is the method of recording monetary business transactions in chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system.

Rules of Debit and Credit: Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

• Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.
• Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

Prepare journal entries of Company O for the given transaction as follows:

Date		Accounts title and explanation	Ref.	Debit ($)	Credit ($)
January 1	a.	Salaries and wages payable		1,600
		Cash			1,600
		(To record accrued salaries and wages paid to employees)
January 2	b.	Vehicles		10,000
		Cash			10,000
		(To record the vehicles purchased for cash)
January 3	c.	Withheld income taxes payable		500
		FICA payable		600
		Cash			1,100
		(To record payroll withholdings and employer contribution)
January 4	d.	Dividends(2)		3,075
		Dividends payable			3,075
		(To record the dividends declared by board of directors)
January 5	e.	Allowance for doubtful accounts		950
		Accounts receivable			950
		(To record uncollectable amounts written off)
January 6	f.	Accounts receivables		27,825
		Sales revenue(3)			26,250
		Sales tax payable(4)			1,575
		(To record sales made on account and sales tax charged)
		Cost of goods sold(5)		11,725
		Inventory			11,725
		(To record the amount of inventory written off against the cost of goods sold)
January 7	g.	Sales tax payable		500
		Cash			500
		(To record sales tax collected from customer)
January 8	h.	Cash		2,400
		Treasury stock			2,400
		(To record the 300 treasury stock purchased at $8 each)
January 9	i.	Cash		8,500
		Accounts receivable			8,500
		(To record the cash received from the customer)
January 10	j.	Dividends payable		3,075
		Cash			3,075
		(To record the dividends paid to stockholders)
January 11	k.	Inventory		4,410
		Accounts payable			4,410
		(To record the inventory purchased on account)
January 12	l.	Depreciation expense(7)		200
		Accumulated depreciation - Equipment			200
		(To record the depreciation expense incurred during year)
		Cash		23,000
		Accumulated depreciation-Equipment(8)		2,600
		Equipment			25,000
		Gain on disposal(9)			600
		(To record the sale of equipment and the gain from the sales)
January 13	m.	Salaries and wages expense		2,000
		Payroll tax expense (10)		200
		Withheld income tax payable			250
		FICA payable (11)			300
		Unemployment tax payable			50
		Cash (12)			1,600
		(To record salaries and wages expense paid during the year)
January 14	n.	Notes payable		22,000
		Interest payable		495
		Interest expense		90
		Cash			22,585
		(To record cash paid to creditors along with interest)
January 27	o.	Accounts receivable		4,770
		Sales revenue (13)			4,500
		Sales tax payable (14)			270
		(To record sales made on account and sales tax charged)
		Cost of goods sold (15)		1,910
		Inventory			1,910
		(To record the amount of inventory written off against the cost of goods sold)
January 29	p.	Deferred revenue		3,750
		Sales revenue (16)			3,750
		(To record the sales revenue recognized during the year)
		Cost of goods sold (17)		1,575
		Inventory			1,575
		(To record the amount of inventory written off against the cost of goods sold)
January 30	q.	Cash		81,420
		Discount on bonds payable		8,580
		Bonds payable			90,000
		(To record the cash borrowed against the bonds)
January 31	r.	Depreciation expense (18)		380
		Accumulated depreciation-Vehicles			380
		(To record the depreciation expense incurred during the year)
January 31	s.	Bad debt expense(19)		693
		Allowance for doubtful accounts			693
		(To record the bad debt expense incurred during the year)
January 31	t.	Rent expense		1,600
		Prepaid rent			1,600
		(To record the rent expense incurred during the year)
January 31	u.	Salaries and wages expense		2,000
		Payroll tax expense (10)		200
		Withheld income tax payable			250
		FICA payable (11)			300
		Unemployment tax payable			50
		Salaries and wages payable			1,600
		(To record accrued salaries and wages expense during the year)
January 31	v.	Income tax expense		3,750
		Income tax payable			3,750
		(To record the income tax expense incurred during the current year)

Table (1)

Working note (1):

Calculate the number of outstanding share.

$\begin{array}{c}\begin{array}{l}\text{Number of }\\ \text{outstanding shares }\end{array}\}\text{= }\left[\left(\frac{\text{Total common stock}}{\text{Par value per share}}\right)-\text{Treasury share purchased}\right]\\ =\left[\frac{\$13,300}{2}\right]-500\text{ shares}\\ \text{=6,650 shares}-500\text{ shares}\\ =6,150\text{ shares}\end{array}$

Working note (2):

Calculate the amount of dividends:

Number of outstanding shares is 6,150 shares (1).

Dividends per share are $0.50.

$\begin{array}{c}\text{Dividends = Number of outstanding share}\times \text{Cash dividends per share}\\ \text{=6,150 shares}\times \text{\$0}\text{.50}\\ \text{=\$3,075}\end{array}$

Working note (3):

Calculate the amount of sales revenue:

$\begin{array}{c}\text{Sales revenue = Sales value of inventory per unit}\times \text{Total inventory sold}\\ \text{=\$150 per unit}\times \text{175 units}\\ \text{=\$26,250}\end{array}$

Working note (4):

Calculate the value of sales tax payable.

$\begin{array}{c}\text{Sales tax payable = Sales value of invetory}\times \text{Percentage of sales tax}\\ \text{=\$26,250 (3)}\times \frac{6}{100}\\ =\$1,575\end{array}$

Working note (5):

Calculate the cost of goods sold:

Inventory per unit is $67 per unit $\left(\frac{\$12,060}{180\text{ units}}\right)$.

Units delivered are 175 units.

$\begin{array}{c}\text{Cost of goods sold = Units delivered}\times \text{Inventory cost per unit}\\ \text{=175 units}\times \text{\$67 per units}\\ \text{=\$11,725}\end{array}$

Working note (6):

Calculate the value of annual depreciation expense:

$\begin{array}{c}\text{Depreciation expense = }\frac{\text{Purchase value of equipment }-\text{Residual value}}{\text{Expected life}}\\ =\frac{\$25,000-\$1,000}{5}\\ =\$4,800\text{ per year}\end{array}$

Working note (7):

Calculate the depreciation expense during the current year:

$\begin{array}{c}\begin{array}{l}\text{Current year}\\ \text{ depreciation expense}\end{array}\}\text{ = Annual depreciation expense (6)}\times \left[\frac{\text{Number of months used}}{\text{Total months in a year}}\right]\\ =\$4,800\times \frac{0.5\text{ (half of January month)}}{12}\\ =\$200\end{array}$

Working note (8):

Calculate the value of accumulated depreciation:

$\begin{array}{c}\text{Accumulated depreciation = }\left(\begin{array}{l}\text{Annual depreciation for prior year+}\\ \text{Current year depreciation expense (7)}\end{array}\right)\\ =\$2,400+200\\ =\$2,600\end{array}$

Working note (9):

Calculate the gain from sale of equipment:

$\begin{array}{c}\text{Gain from sale of equipment = }\left[\begin{array}{l}\text{Sales value }-\\ \left(\text{Purchase cost }-\text{ Accumulated depreciation}\right)\end{array}\right]\\ =\$23,000-\left(\$25,000-\$2,600\right)\\ =\$23,000-\$22,400\\ =\$600\end{array}$

Working note (10):

Calculate the amount of payroll tax expense:

$\begin{array}{c}\text{Payroll tax expense = FICA tax+Unemployment tax}\\ \text{=\$150+\$50}\\ \text{=\$200}\end{array}$

Working note (11):

Calculate the value of FICA payable:

$\begin{array}{c}\text{FICA payable = Employee contribution tax + Employer contribution tax}\\ \text{=\$150+\$150}\\ \text{=\$300}\end{array}$

Working note (12):

Calculate the value of cash paid behalf of salaries and wages expenses:

$\begin{array}{c}\text{Amount of cash =}\left(\begin{array}{l}\text{Gross pay}-\text{Withheld income taxes}-\\ \text{FICA employer contribution}\end{array}\right)\\ =\$2,000-\$250-\$150\\ =\$1,600\end{array}$

Working note (13):

Calculate the amount of sales revenue:

$\begin{array}{c}\text{Sales revenue = Sales value of inventory per unit}\times \text{Total inventory sold}\\ \text{=\$150 per unit}\times 30\text{ units}\\ \text{=\$4,500}\end{array}$

Working note (14):

Calculate the value of sales tax payable:

$\begin{array}{c}\text{Sales tax payable = Sales value of invetory}\times \text{Percentage of sales tax}\\ \text{=\$4,500 (13)}\times \frac{6}{100}\\ =\$270\end{array}$

Working note (15):

Calculate the cost of goods sold:

Inventory per unit for first 5 units is $67 per unit $\left(\frac{\$12,060}{180\text{ units}}\right)$.

Inventory per unit for last 25 units is $63 per unit $\left(\frac{\$4,410}{70\text{ units}}\right)$.

Units delivered are 30 units.

$\begin{array}{c}\text{Cost of goods sold = Units delivered}\times \text{Inventory cost per unit}\\ \text{=}\left(\text{5 units}\times \text{\$67 per unit}\right)+\left(25\text{ units}\times \text{\$63 per unit}\right)\\ =\$335+\$1,575\\ =\$1,910\end{array}$

Working note (16):

Calculate the value of deferred revenue:

$\begin{array}{c}\text{Unearned revenue = Sales price per unit}\times \text{Number of unit}\\ \text{=\$150 per unit}\times \text{25 units}\\ \text{=\$3,750}\end{array}$

Working note (17):

Calculate the cost of goods sold:

Inventory per unit for last 25 units is $63 per unit $\left(\frac{\$4,410}{70\text{ units}}\right)$

Units delivered is 25 units

$\begin{array}{c}\text{Cost of goods sold = Units delivered}\times \text{Inventory cost per unit}\\ \text{=}\left(25\text{ units}\times \text{\$63 per unit}\right)\\ =\$1,575\\ =\$1,575\end{array}$

Working note (18):

Calculate the value of annual depreciation expense:

$\begin{array}{c}\text{Depreciation expense = }\left[\begin{array}{l}\left(\frac{\text{Purchase value of vehicle }-\text{Residual value}}{\text{Total number of miles}}\right)\times \\ \text{Number of miles during the year}\end{array}\right]\\ =\frac{\$10,000-\$0}{50,000\text{ miles}}\times 1,900\text{ miles}\\ =\$380\end{array}$

Working note (19):

Calculate the value of bad debt expenses:

$\begin{array}{c}\text{Bad debt expense = }\left(\begin{array}{l}\text{Accounts receivable (opening)}-\\ \text{Allowances for bad and doubtful debts+}\\ \text{Sales revenue from 175 units}-\\ \text{Cash received from customer+}\\ \text{Sales revenue from 25 units}\end{array}\right)\times \text{Allowances perecentage}\\ =\left(\$8,250-\$950+\$27,825-8,500+\$4,770\right)\times \frac{2}{100}\\ =\$31,395\times \frac{2}{100}\\ =\$628\end{array}$

$\begin{array}{c}\text{Bad debt expense = Bad debts}-\left(\begin{array}{l}\text{Allowances for bad and doubtful debts (opening)}-\\ \text{Allowances for bad and doubtful debts (current)}\end{array}\right)\\ =\$628-\left(\$885-\$950\right)\\ =\$628+\$65\\ =\$693\end{array}$

2.

To determine

Post the journal entries to T-accounts and prepare adjusted trial balance of Company O.

Explanation of Solution

T-account: T-account refers to an individual account, where the increases or decreases in the value of specific asset, liability, stockholder’s equity, revenue, and expenditure items are recorded.

This account is referred to as the T-account, because the alignment of the components of the account resembles the capital letter ‘T’.’ An account consists of the three main components which are as follows:

1. (a) The title of the account
2. (b) The left or debit side
3. (c) The right or credit side

Adjusted trial balance: Adjusted trial balance is a summary of all the ledger accounts, and it contains the balances of all the accounts after the adjustment entries are journalized, and posted.

T-accounts of company O are as follows:

Prepare adjusted trial balance of Company O as follows:

Company O
Adjusted Trial balance
January 31
Account titles	Debit($)	Credit($)
Cash	$94,360
Accounts Receivable	31,395
Allowance for Doubtful Accounts		$628
Inventory	1,260
Prepaid Rent	0
Equipment	0
Vehicles	10,000
Accumulated Depreciation—Equipment		0
Accumulated Depreciation—Vehicles		380
Accounts Payable		4,410
Sales Tax Payable		1,845
FICA Payable		600
Withheld Income Taxes Payable		500
Unemployment Taxes Payable		400
Salaries and Wages Payable		1,600
Deferred Revenue		750
Note Payable		0
Interest Payable		0
Income Taxes Payable		3,750
Dividends Payable		0
Bonds Payable		90,000
Discount on Bonds Payable	8,580
Common Stock		13,300
Additional Paid-In Capital, Common		19,210
Treasury Stock	1,600
Retained Earnings		4,120
Dividends	3,075
Sales Revenue		34,500
Cost of Goods Sold	15,210
Salaries and Wages Expense	4,000
Rent Expense	1,600
Bad Debt Expense	693
Depreciation Expense	580
Payroll Tax Expense	400
Interest Expense	90
Income Tax Expense	3,750
Gain on Disposal		600
Totals	$176,593	$176,593

Table (2)

Conclusion

Therefore, the total of debit, and credit columns of adjusted trial balance is $176,593 and agreed.

3.

To determine

Prepare an income statement, statement of stockholders’ equity and classified balance sheet at the end of January.

Explanation of Solution

Income statement: This is the financial statement of a company which shows all the revenues earned and expenses incurred by the company over a period of time.

Statement of stockholder's equity: This statement reports the beginning stockholder's equity and all the changes which led to ending stockholder's equity. Additional capital, net income from income statement is added to and drawings or dividends are deducted from beginning stockholder's equity to arrive at the end result, closing balance of stockholder's equity.

Classified balance sheet: This is the financial statement of a company which shows the grouping of similar assets and liabilities under subheadings.

Prepare an income statement of Company O as follows:

Company O
Income Statement
For the Month Ended January 31
	$
Sales Revenue	$34,500
Less: Cost of Goods Sold	15,210
Gross Profit	19,290
Less: Salaries and Wages Expense	4,000
Rent Expense	1,600
Bad Debt Expense	693
Depreciation Expense	580
Payroll Tax Expense	400
Loss (Gain) on Disposal	(600)
Income from Operations	12,617
Less: Interest Expense	90
Income before Income Tax Expense	12,527
Less: Income Tax Expense	3,750
Net Income	$8,777

Table (3)

Prepare a statement of stockholder’s equity of Company O as follows:

Company O
Statement of Stockholders’ Equity
For the Month Ended January 31
	Common Stock	Additional Paid-In Capital, Common	Retained Earnings	Treasurystock
	$	$	$	$
Beginning	13,300	19,210	4,120	4,000
Stock Issuances	-	-	-	(2,400)
Net Income	-	-	8,777	-
Dividends: Common	-	-	(3,075)	-
Ending	13,300	19,210	9,822	1,600

Table (4)

Prepare a classified balance sheet of Company O as follows:

Company O
Balance Sheet
At January 31
Assets:	$
Current Assets:
Cash	94,360
Accounts Receivable	31,395
Allowance for Doubtful Accounts	(628)
Inventory	1,260
Total Current Assets	126,387
Vehicles	10,000
Accumulated Depreciation	(380)
Total Assets	136,007
Liabilities and Stockholders’ Equity :
Liabilities
Current Liabilities:
Accounts Payable	4,410
Sales Tax Payable	1,845
Salaries and Wages Payable	1,600
FICA Payable	600
Withheld Income Taxes Payable	500
Unemployment Taxes Payable	400
Deferred Revenue	750
Income Taxes Payable	3,750
Total Current Liabilities (a)	13,855
Bonds Payable	90,000
Discount on Bonds Payable	(8,580)
Total Liabilities	95,275
Stockholders’ Equity
Common Stock	13,300
Additional Paid-In Capital, Common Stock	19,210
Retained Earnings	9,822
Treasury Stock	(1,600)
Total Stockholders’ Equity  (b)	40,732
Total Liabilities and Stockholders’ Equity  $\left(\text{a}+\text{b}\right)$	136,007

Table (5)

4.

To determine

Calculate the total payroll cost for January of Company O’s.

Explanation of Solution

Payroll tax: The costs incurred by an employer to pay the employee for his labor, including other employee benefits, plus the payroll taxes the employer pays to the government, are called payroll tax.

Company O’s total payroll cost is as follows:

Total payroll cost includes the salaries and wages expense and payroll tax expense.

Therefore, the total payroll cost is $4,400 (20).

Working note (20):

Calculate the value of total payroll cost:

$\begin{array}{c}\text{Total payroll cost = Salaries and wages expense+Payroll tax expense}\\ \text{=\$4,000+\$400}\\ \text{=\$4,400}\end{array}$

5.

To determine

Describe whether the carrying value of bond is increased or decreased after recording the interest in February.

Explanation of Solution

Bonds: Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

Describe whether the carrying value of bond is increased or decreased after recording the interest in February as follows:

The carrying value of the bond would increase after recording the interest in February because the interest expense of the bond will be greater than the interest payment. The difference between the interest expense and interest payment is recorded as a deduction in the discount on bonds payable and it is contra-liability account. Hence, the decrease in contra-liability account would increase the carrying value of bond reported on the balance sheet.

6.

To determine

State the interest payment that the company needs to pay annually on the bond.

Explanation of Solution

Interest: Interest is the amount charged on the principal value, for the privilege of borrowing money. Interest is to be paid by the borrower, and to be received by the lender.

Calculate the amount of interest payment as follows:

Face value of bond is$90,000

Interest rate is 5%

Length of time is 1 year (12monts)

$\begin{array}{c}\text{Interest payment = Face value of bond}\times \text{Interest rate}\times \text{Time period}\\ \text{=\$90,000}\times \frac{5}{10}\times \frac{12}{12}\\ =\$4,500\end{array}$

Conclusion

Therefore, the interest payment of bond (annually) is $4,500.

7.

To determine

Compute the recognized gain or loss on the issuance of treasury stock on January 8.

Explanation of Solution

Treasury Stock:  It refers to the shares that are reacquired by the corporation that are already issued to the stockholders, but reacquisition does not signify retirement.

Compute the recognized gain or loss on the issuance of treasury stock on January 8 as follows:

In this case, no gain or losses are reported on the balance sheet for the treasury stock issued. Usually, the treasury stock is shown under the stockholder’s equity on the balance sheet as a contra entry. The gain or loss from the reissuance of treasury stock is recorded under the additional paid-in capital, and the reissuance is not reported in the income statement because they are not considered as profit-making activities.

8.

To determine

Prepare the journal entry for stock dividends.

Explanation of Solution

Stock Dividend: Stock dividend refers to the dividends that are paid in the form of additional shares to stockholders rather than the cash.

Prepare the journal entry for stock dividends as follows:

When a 30% of stock dividends would be considered as a larger stock dividend:

Date	Accounts title and explanation	Ref.	Debit ($)	Credit ($)
	Retained earnings (-SE) (21)		3,690
	Common stock (+SE)			3,690
	(To record the stock dividend paid to stockholder’s)

Table (6)

• Retained earnings are a component of stockholder’s equity and it decreases the value of stockholder’s equity by $3,690. Hence, debit the retained earnings accounts for $3,690.
• Common stock is component of stockholder’s equity and it increases the value of stockholder’s equity by $3,690. Hence, credit the common stock accounts for $3,690.

Working note (21):

Calculate the amount of stock dividends:

$\begin{array}{c}\text{Stock dividends = }\left(\begin{array}{l}\text{Outstanding common shares}\times \text{Par value per share}\\ \times \text{Percentage of stock dividends}\end{array}\right)\\ =6,150\text{ shares}\times \text{\$2}\times \frac{30}{100}\\ =\$3,690\end{array}$

9.

To determine

Prepare the journal entry for stock dividends.

Explanation of Solution

Stock Dividend: Stock dividend refers to the dividends that are paid in the form of additional shares to stockholders rather than the cash.

Prepare the journal entry for stock dividends as follows:

When a 10% of stock dividends would be considered as a small stock dividend:

Date	Accounts title and explanation	Ref.	Debit ($)	Credit ($)
	Retained earnings (-SE) (22)		3,075
	Common stock (+SE)(23)			1,230
	Addition paid in capital			1,845
	(To record stock dividend paid to stockholder’s)

Table (7)

• Retained earnings are a component of stockholder’s equity and it decreases the value of stockholder’s equity by $3,075. Hence, debit the retained earnings accounts for $3,075.
• Common stock is component of stockholder’s equity and it increases the value of stockholder’s equity by $1,230. Hence, credit the common stock accounts for $1,230.
• Additional paid in capital is component of stockholder’s equity and it increases the value of stockholder’s equity by $1,845. Hence, credit the additional paid in capital accounts for $1,845.

Working note (22):

Calculate the amount of stock dividends utilized from retained earnings:

$\begin{array}{c}\text{Stock dividends = }\left(\begin{array}{l}\text{Outstanding common shares}\times \text{Stock per share}\\ \times \text{Percentage of stock dividends}\end{array}\right)\\ =6,150\text{ shares}\times \text{\$5}\times \frac{10}{100}\\ =\$3,075\end{array}$

Working note (22):

Calculate the amount of stock dividends transfer to common stock:

$\begin{array}{c}\text{Stock dividends = }\left(\begin{array}{l}\text{Outstanding common shares}\times \text{Stock per share}\\ \times \text{Percentage of stock dividends}\end{array}\right)\\ =6,150\text{ shares}\times \text{\$2}\times \frac{10}{100}\\ =\$1,230\end{array}$

10.

To determine

Show the way in which the total bond issuance proceeds of $81,420 were computed in item (q) by calculating the present value of (a) face value of investment and (b) the annual interest payment.

Explanation of Solution

Present value: Present value refers to the present worth of the money that is received in future in a lump sum or as series of cash flows at a specified interest rate. When these future sums of money are discounted at a higher rate, the present value of the future cash flows gets lower.

(a) Face value of bond:

Particulars	Amount ($)
Face value of bond (a)	$90,000
PV factor at an annual market rate of 7% for 6 periods (b)	0.66634
Present value of face value of principal $\left(\text{a}\right)\text{×}\left(\text{b}\right)$	$59,971

Table (8)

Therefore, the present value of principle amount of bond is $59,971.

(b) Annual interest payment:

Particulars	Amount ($)
Interest payments amount (a)(24)	$4,500
PV factor at an annual market rate of 7% for 6 periods (b)	4.76654
Present value of interest payments $\left(\text{a}\right)\text{×}\left(\text{b}\right)$	$21,449

Table (9)

Therefore, the interest payment of bond is $21,449.

Working note (24):

Calculate the amount of annual interest payment:

$\begin{array}{c}\text{Interest payament = Face value of bond}\times \text{Interest rate}\times \text{Time period}\\ \text{=\$90,000}\times \frac{5}{10}\times \frac{12}{12}\\ =\$4,500\end{array}$

11.

To determine

State the single lump sum amount that the company would have to invest now to reach $98,000 in three years.

Explanation of Solution

Present value: Present value refers to the present worth of the money that is received in future in a lump sum or as series of cash flows at a specified interest rate. When these future sums of money are discounted at a higher rate, the present value of the future cash flows gets lower.

Compute the present value of the given investment as follows:

Particulars	Amount ($)
Face value of investment (a)	$98,000
Present factor of 7% for 3 periods (b)	0.81630
Present value of investment $\left(\text{a}\right)\text{×}\left(\text{b}\right)$	$79,997

Table (10)

Conclusion

Therefore, the present value of investment is $79,997.

12.

To determine

State the amount of cash that the company needs to invest equally at the end of each of the next three years to save $98,000.

Explanation of Solution

Future amount of single sum: The future amount of single sum is the sum of original amount and compound interest earned on the amount till a particular future date.

Future value of given investment is as follows:

Particulars	Amount ($)
Face value of investment (a)	$98,000
Future annuity of 7% for 3 periods (b)	3.21490
Future value of single sum annually $\left(\frac{\left(\text{a}\right)}{\left(\text{b}\right)}\right)$	$30,483

Table (11)

Conclusion

Therefore, the future value of single sum of investment annually is $30,483 per year.