The financial year for Drip Dry Cleaning Services ends on 30 June. Using the following information, make the necessary adjusting entries at year-end. Ignore GST. Ignore Narration. 1. On 15 February,...

The financial year for Drip Dry Cleaning Services ends on 30 June. Using the following information,
make the necessary adjusting entries at year-end. Ignore GST. Ignore Narration.
1. On 15 February, Danielle Drip’s business borrowed $16 000 from Northern Bank at 8% interest.
The principal and interest are payable on 15 August.
2. Drip Dry Cleaning Services purchased a 1-year insurance policy on 1 March of the current year for
$660. A 3-year policy was purchased on 1 November of the previous year for $2700. Both
purchases were recorded by debiting Prepaid Insurance.
3. The business has two part-time employees who each earn $220 a day. They both worked the last
3 days in June for which they have not yet been paid.
4. On 1 June, the Highup Hotel paid the business $2100 in advance for doing their dry cleaning for
the next 3 months. This was recorded by a credit to Unearned Dry Cleaning Revenue.
5. The supplies account had a $280 debit balance on 1 July. Supplies of $1560 were purchased during
the year and $190 of supplies are on hand as at 30 June.
Required:
Prepare the necessary adjusting entries at 30 June

Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an
additional $20,000 to that account. You earned 8%, compounded semi-annually, for the first ten years,
and 6.5%, compounded annually, for the last five years.
Required:
a) What is the effective annual interest rate (EAR) you would get for your investment in the first 10
years?
b) How much money do you have in your account today?
c) If you wish to have $85,000 now, how much should you have invested 15 years ago?