For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would cause the trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much.

a. The payment of an insurance premium of $5,400 for a three-year policy was debited to Prepaid Insurance for$5,400 and credited to Cash for $4,500.

b. A payment of$270 on account was debited to Accounts Payable for $720 and credited to Cash for$720.

c. A purchase of supplies on account for $1,600 was debited to Supplies for$1,600 and debited to Accounts Payable for $1,600.

Solve the application problem. Assume no insurance or shipping charges.

An invoice is dated January 18 and offers terms of 6/10, 4/20, 1/30, n/50. Find (a) the three final discount dates and (b) the net payment date.

You are deciding whether to purchase a car for $\$ 18,000$ or to accept a lease agreement. The lease entails a $\$ 1000$ initial fee plus monthly payments of $\$ 240$ for $36$ months. Under the lease agreement, you are responsible for service on the car and insurance. At the end of the lease, you may purchase the car for $\$ 9000$. a. Should the cost of service and insurance determine which option you choose? b. Does the total cost of purchasing the car at the end of the lease agreement exceed the cost of purchasing the car at the outset? c. What are some possible advantages of leasing the car?

Insurance records indicate that the proportion of cars on the road that are more than x years old is approximated by the integral $\int_{x}^{\infty} 0.21 e^{-0.21 t} d t$. Find the proportion of cars that are more than 5 years old.

Rich Castillo Company incurs the following expenditures in buying a truck: cash price $30,000, accident insurance$2,000, sales taxes $2,100, motor vehicle license$100, and painting and lettering $400. What is the cost of the truck?

A woman invested money received from an insurance settlement for 7 months at $5 \%$ simple interest. If she received $\$ 1254.17$ interest on her investment during this time, find the amount that she invested. (Round to the nearest dollar.)

Brandi Dulin has $500 / 1000 / 500$ vehicle insurance. She has a $\$ 250$ deductible on comprehensive and a $\$ 1,000$ deductible on collision. Brandi had an at-fault crash into two motorcycles in a heavy downpour. Damion and Keisha, drivers of the motorcycles, were injured. Damion's medical expenses were $\$ 198,500$ and Keisha's medical expenses were $\$ 375.840$. Their motorcycles required $\$ 4.987$ and $\$ 7,515$, respectively, to repair. Brandi's vehicle had $\$ 2,875$ in damages but she had no injuries. How much will the insurance company be responsible for paying and to whom? How much, if any, will Brandi be responsible for paying?

Each of the following sentences contains a misplaced modifier. Correct each sentence by first circling the misplaced modifier and then drawing an arrow to show where it should go in the sentence. With his back to the camera the photograph of the man was useless to the insurance investigator.

A shipper charges $\$ 1.75$ per pound to deliver a $3$-pound package. Insurance costs an additional $\$ 0.45$ per $\$ 100$, or fraction of $\$ 100$ of value. The company values its parcel at $\$ 350$. What is the total cost to ship the package?

Ricardo’s Mexican Restaurants incurred salary expense of $65,000 for 2012. The payroll expense includes employer FICA tax of 7.65%, in addition to state unemployment tax of 5.4% and federal unemployment tax of 0.8%. Of the total salaries,$17,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,060), life insurance (cost to the company,$350), and retirement benefits (cost to the company, 7% of salary expense).

Requirement

1. Journalize Ricardo’s expenses for employee benefits and for payroll taxes. Explanations are not required.

Solve the application problem. Assume no insurance or shipping charges.

An invoice with terms of 4/15, 3/20, 1/30, n/60 is dated September 4. Find (a) the three final discount dates and (b) the net payment date.

For the following errors which are considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would cause the trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much.

a. The payment of an insurance premium of $\$ 5,400$ for a three-year policy was debited to Prepaid Insurance for $\$ 5,400$ and credited to Cash for $\$ 4,500$.

b. A payment of $\$ 270$ on account was debited to Accounts Payable for $\$ 720$ and credited to Cash for $\$ 720$.

c. A purchase of supplies on account for $\$ 1,600$ was debited to Supplies for $\$ 1,600$ and debited to Accounts Payable for $\$ 1,600$.

Ramon pays a 10% insurance fee for each piece of jewelry in his store. He then prices the item for sale at 150% of his total cost. Write a composite function for the price of an item with an original cost of c dollars.

See the discussed Example before.

A frame home and its contents are located in zone $1$ and are insured for $\$ 150,000$. Find the total annual insurance premium if the insured has a credit rating of $\mathrm{OCC}$ and chooses a deductible of $\$ 1,000$.