onsider the following account starting balances and journal transactions involving these accounts. Use T-accounts to record the starting balances and organize the offsetting entries for the transactions. The starting balance of Accounts Payable is $2,400 The starting balance of Cash is $14,700 The starting balance of Debt is $3,700 The starting balance of Inventory is $3,800 Date Accounts and Explanation Debit Credit Feb 10 Inventory 16 Accounts Payable 16 Bought manufacturing supplies on credit Feb 11 Cash 62 Debt 62 Borrowed money from bank Feb 12 Accounts Payable 5 Cash 5 Paid money owed to supplier What is the final amount in Debt

Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.