# Answer the Following Accounting Questions

1: Nick has a revolving department store credit card account with an annual percentage
rate of 15%. Last month’s balance on the account was \$423.78. During the current month,
he made purchases totaling \$123.42 and made a payment of \$100. The store uses the
unpaid balance method. According to this information, what must be the amount of the

2: What is the future value of an ordinary annuity of \$12,000 per year, for three years, at
9% interest compounded annually? A. \$39,337.20 C. \$36,000.00 B. \$39,240.00 D.
\$14,442.75
Following is the formula to calculate future value of annuity
Future value of annuity = Cash flows * Future value interest factor
F.V.A = cash flows * (FVIF)

3: On a balance sheet, the accounts of notes payable, salaries payable, and taxes payable
would fall under the category of

4: A company purchased an air conditioning system for \$10,200. The shipping charges on
the system were \$875, and the setup costs were \$1,250. The system is expected to last for
five years and has a residual value of \$2,000. If you use the straight-line method to
calculate the depreciation for this air conditioning system, what would be the annual
depreciation?

5: Which of the following are the four elements that are included in the total amount of a
mortgage payment?