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The trial balance of Creative Child Care does not balance:
CREATIVE CHILD CARETrial BalanceAugust 31, 2017
Account TitleCashAccounts ReceivableOffice SuppliesPrepaid InsuranceEquipmentAccounts PayableNotes PayableCommon StockDividendsService RevenueSalaries ExpenseRent ExpenseTotalBalanceDebit$6,8407,2001,20030084,3005,5603,800700$109,900Credit$3,10047,00050,00010,000$110,100
The following errors are detected: a. Cash is understated by $1,400. b. A $3,900 debit to Accounts Receivable was posted as a credit. c. A $1,300 purchase of office supplies on account was neither journalized nor posted. d. Eguipment was incorrectly transferred from the ledger as$84,300. It should have been transferred as $76,500. e. Salaries Expense is overstated by $300. f. A $200 cash payment for advertising expense was neither journalized nor posted. g. A $240 cash dividend was incorrectly journalized as $2,400. h. Service Revenue was understated by $4,500. i. A 12-month insurance policy was posted as a $1,800 credit to Prepaid Insurance. Cash was posted correctly. Prepare the corrected trial balance as of August 31, 2017. Journal entries are not required.
The Chaplinsky Publishing Company is considering two mutually exclusive expansion plans. Plan A calls for the expenditure of $40 million on a large-scale, integrated plant that will provide an expected cash flow stream of $6.4 million per year for 20 years. Plan B calls for the expenditure of $12 million to build a somewhat less efficient, more labor-intensive plant that has an expected cash flow stream of $2.72 million per year for 20 years. Chaplinsky's required rate of return is 10 percent.
Calculate each project's NPV, IRR, and MIRR.