INTERMEDIATE ACCOUNTING 17E - UNC CHARL
INTERMEDIATE ACCOUNTING 17E - UNC CHARL
17th Edition
ISBN: 9781119631828
Author: Kieso
Publisher: WILEY
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Chapter 6, Problem 1BE
To determine

Future value: A nominal value of an asset or investment at a specific period with an assumed interest rate is termed future value. Future value can be computed by multiplying the amount invested at the present with a future value factor.

Given scenario: It is given that Person CS invests $15,000 at present. This earns an interest of 8%, which is compounded annually.

To find: To find the growth of the investment in the next 3 years.

To determine

To find: To find the growth of the investment in the next 3 years if the investment is compounded semi-annually.

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AWQ Inc. was incorporated two years ago by issuing 5,000 shares of common stock at $400 each and borrowing $240,000 from a bank on a long-term note. Last year, AWQ reported net income of $20,000 and paid a cash dividend of $1,800. Last year, the company also borrowed an additional $320,000 from the bank. What was the total assets on AWQ's balance sheet at the end of the year last year?
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