A Trust Fund Is Being Set Up by a Single

question 110

Short Answer

A trust fund is being set up by a single payment so that at the end of 30 years there will be $20,000 in the fund.If the interest rate is 8% compounded quarterly,how much money should be paid initially into the trust fund?

Differentiate between transactions that should be recorded in general and special journals.

Identify the purposes and types of accounting journals.

Understand the procedures for recording transactions in special and general journals.

Recognize the order and system of processing sales, collections, and adjustments in accounting systems.

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Definitions:

Liability

The condition of having legal accountability, especially regarding debts or legal duties.

Contractually Agreed Upon Fee

A fee that parties have explicitly decided upon within a contract for services or goods.

Damages

Monetary compensation required to be paid as a remedy for a breach of contract or a tortious act.

Sarbanes-Oxley Act

A U.S. federal law established to protect investors by improving the accuracy and reliability of corporate disclosures.