Laln 03 Group 3)
Sam paid $24,000 as a down payment towards a house purchase and received a mortgage from a
bank for the rest. He paid $1380 at the end of every month for 30 years at an interest rate of 3.6%
compounded monthly to settle mortgage. What was the purchase price of his house?
a $303,533.29
b. $327,533.29
c.
$237,355.29
o

In its first year of operations, sunland company recognized $30,000 in service revenue, $8,100 of which was on account and still outstanding at year-end. the remaining $21,900 was received in cash from customers. the company incurred operating expenses of $18,600. of these expenses, $12,880 were paid in cash; $5,720 was still owed on account at year-end. in addition, sunland prepaid $3,270 for insurance coverage that would not be used until the second year of operations. (a) calculate the first year's net earnings under the cash basis of accounting, and the first year's net earnings under the accrual basis of accounting.