Determine the annual premium. Use the table.

$$\scriptstyle\begin{array}{c}\\ \text{Annual Premiums per \$1,000}\\ \text{of Life Insurance: 5-Year Term}\\\begin{array}{|c|c|c|} \hline \text { Age } & \text { Male } & \text { Female } \\ \hline 18-30 & \$3.21 & 52.77 \\ \hline 35 & \$ 3.51 & \$ 2.98 \\ \hline 40 & \$4.25 & \$ 3.47 \\ \hline 45 & \$ 5.42 & \$ 4.60 \\ \hline 50 & \$ 7.59 & \$ 6.27 \\ \hline 55 & \$ 11.45 & \$ 8.58 \\ \hline 60 & \$ 17.19 & \$ 12.62 \\ \hline \end{array}\\ \scriptstyle\text{Minimum amount is \$50,000}\\ \end{array}$$

Joni Hauck wants to purchase a $65,000, 5-year term life insurance policy. She is 25 years old.

Derrick Hoffman owns Hoffman Accounting Service. Hoffman Accounting Service uses the following accounts. Cash Accts. Pay.—Nash Supply Sales Accts. Rec.—Jon Roe Derrick Hoffman, Capital Miscellaneous Expense Supplies Derrick Hoffman, Drawing Utilities Expense Prepaid Insurance Transactions: Sept. 1. Received cash from owner as an investment, $2,000.00. 4. Paid cash for insurance,$300.00. 5. Paid cash for supplies, $100.00. 6. Bought supplies on account from Nash Supply,$230.00. 11. Paid cash on account to Nash Supply, $115.00. Prepare two T accounts for each transaction. On each T account, write the account title of one of the accounts affected by the transaction.

Amanda and Blake have found a house, which owing to a depressed real estate market costs only $201,500. They will put$22,000 down and finance the remainder with a 30-year mortgage loan at 3% interest (compounded monthly). (a) How much is their monthly loan payment? (b) How much interest will they pay in the second payment? (c) They will also have the following expenses: property taxes of $2100, homeowners' insurance of$1625, and $290 mortgage insurance (in case one of them dies before the loan is repaid, a requirement of the bank). These annual amounts are paid in 12 installments and added to the loan payment. What is their full monthly cost? (d) If they can afford$1200 per month, can Amanda and Blake afford the house?

Paul Lopez has a 5-year term life insurance policy with $125,000 coverage. He is 50 years old. What is his annual premium?$

$$\scriptstyle\begin{array}{c}\\ \text{Annual Premiums per \$1,000}\\ \text{of Life Insurance: 5-Year Term}\\\begin{array}{|c|c|c|} \hline \text { Age } & \text { Male } & \text { Female } \\ \hline 18-30 & \$3.21 & 52.77 \\ \hline 35 & \$ 3.51 & \$ 2.98 \\ \hline 40 & \$4.25 & \$ 3.47 \\ \hline 45 & \$ 5.42 & \$ 4.60 \\ \hline 50 & \$ 7.59 & \$ 6.27 \\ \hline 55 & \$ 11.45 & \$ 8.58 \\ \hline 60 & \$ 17.19 & \$ 12.62 \\ \hline \end{array}\\ \scriptstyle\text{Minimum amount is \$50,000}\\ \end{array}$$

$

Gloria Traxell is paid $800 for a 40-hour workweek and time-and-a-half for hours above 40.

Return to the Gloria Traxell payroll situation in exercise above. Traxell’s employer, College of San Bernardino, pays all the standard payroll taxes plus benefits for the employee retirement plan (5% of total pay), health insurance ($113 per employee per month), and disability insurance ($8 per employee per month).

Requirements

1. Journalize salary expense and payment for College of San Bernardino related to the employment of Gloria Traxell.
2. Journalize benefits expense for College of San Bernardino related to the employment of Gloria Traxell.
3. Journalize employer payroll taxes for College of San Bernardino related to the employment of Gloria Traxell.

The ledger of Columbia, Inc. on March 31, 2014, includes the following selected accounts before adjusting entries.

$$\begin{array}{lcc} &\underline{\textbf{Debit}}&\underline{\textbf{Credit}}\\[3pt] \text{Supplies}&\text{\hspace{5pt}2,500}\\ \text{Prepaid Insurance}&\text{\hspace{5pt}2,400}\\ \text{Equipment}&\text{30,000}\\ \text{Unearned Service Revenue}&&\text{10,000}\\ \end{array}$$

An analysis of the accounts shows the following.

 1. Insurance expires at the rate of $300 per month.
 2. Supplies on hand total$900.
 3. The equipment depreciates $200 per month.
 4. During March, services were performed for two-fifths of the unearned service revenue.

Prepare the adjusting entries for the month of March.

$$\begin{array}{c} \small \textbf{ANNUAL PREMIUMS PER \$1000}\\ \small \textbf{OF LIFE INSURANCE: 5-YR. TERM}\\ \end{array}$$

$$\begin{array}{c c c} \small\textbf{AGE} & \small\textbf{MALE} &\small \textbf{FEMALE}\\ 18 & \$~~2.64 & \$~~1.85\\ 20 & ~~~~2.70 &~~~~ 1.91\\ 25 & ~~~~3.01 & ~~~~2.05\\ 30 & ~~~~3.20 & ~~~~2.26\\ 35 & ~~~~3.83 & ~~~~2.99 \\ 45 & ~~~~8.86 & ~~~~6.36\\ 50 & ~~~14.10 & ~~~~9.26\\ 55 & ~~~23.45 &~~ 13.87 \end{array}$$

Use the table above to find the annual premium for a 5-year term policy.

Joni Hauck wants to purchase a $15,000, 5-year term life insurance policy. She is 25 years old. What is her annual premium?

"Income statement preparation Adam and Arin Adams have collected their personal income and expense information and have asked you to put together an income and expense statement for the year ended December 31, 2015. The following information is received from the Adams family.

b. Did the Adams family have a cash surplus or cash deficit?"

Vicki Dirkel paid $\$ 5,700$ for her car. Her annual payments for insurance, gas, oil, repairs, and other expenses total $\$ 1,600$. The car depreciates $8 \%$ a year. Gerri could have earned $\$ 57$ interest on her investment in the car. What was her total annual cost of operating the car?

David and Helen Voss have a combined monthly net income of $4750. Their records show that for last year they paid$10,789.20 in mortgage payments, $281 for insurance premiums, and$2085 in real estate taxes. In addition, they had the expenses shown. What was their average monthly housing cost for last year? Was it within the FHA recommendation?

Find the amount to be paid by the insurance company in each of these situations. Use the table on the previous page to help you.

$$\begin{aligned} \begin{array}{lcc} \textbf{Policy Year in Which Death Occurs} && \textbf{Years of Mortgage} && \textbf{Amount of Morgage}\\ 10 && 15 && \$40,000 \end{array} \end{aligned}$$

Suppose the value of your new car is reduced by half every year that you own it. You paid $20,000 for your new car. For insurance purposes, a vehicle is considered scrap when its value falls below$500. After how many years will your new car be considered scrap?

The National Insurance Crime Bureau reports that Honda Accords, Honda Civics, and Toyota Camrys are the cars most frequently reported stolen, while Ford Tauruses, Pontiac Vibes, and Buick LeSabres are stolen least often. Is it reasonable to say that there’s a correlation between the type of car you own and the risk that it will be stolen?

Hullett Houpt is purchasing a home for $\$ 197,000$. He will finance the mortgage for $15$ years and pay $4 \%$ interest on the loan. He makes a down payment that is $20\%$ of the purchase price. Use the table discussed before as needed. Houpt's annual taxes are $2,364 and his annual homeowner's insurance is$\$1,758$.

Find the down payment.