A car leadership just sold a luxury car to a customer. The purchase contract establishes a base price of $60,000 plus a contractual interest rate of 4% payable in 60-monthly installments of $1,105. Control of the car was transferred when the client signed the contract and drove off the lot . If the client had obtained separate financing (say a bank loan) for the purchase of the car. his interest rate would have been 6% Journalize in the perspective of the car leadership

Q: Koykoy is a sales agent of Mikoy Car Company. He was able to sell reposed car worth $648,000.00. He…

A: The sales commission is paid to a sales agent on the net selling price instead of the worth of the…

Q: Hopewell sells a line of goods under a six-month warranty. Any defect arising during that period is…

A: We have the following information: Hopewell has calculated that if all the goods sold in the last…

Q: On January 1, 2014, PC purchased a used cement truck from EC. The carrying value of the truck on…

A: As per IAS16, Property, plant, and equipment, When an asset is acquired under a deferred payment…

Q: Amanda Forsythe of Springfield, Missouri, must decide whether to buy or lease a car she has…

A: Financed charged is the cost of financed the item. Lease is the agreement in which one part gives…

Q: Jaguar sells its car at a price of RO 74,000. Ahmed made a 20% down payment. The loan is for 48…

A: Amount financed = Price of Car - Down payment = RO 74,000 - (RO 74,000*20%) = RO 74,000 - RO 14,800…

Q: One July 1, 2020 Bob signed an agreement to operate as a franchisee of abc co  for an initial…

A: Down payment in this case, is the initial or upfront amount that need to be made while entering into…

Q: On December 1, 20x4, ABC Co enters into a contract to deliver 10 cars to XYZ company which is to be…

A: As per the provision of PFRS 115 Revenue from contracts with customer. Revenue can be recognize as…

Q: A small businessman is about to acquire a machine whose price is $ 15,000 with VAT included. If the…

A: A. Payment in cash Cash payment = $15000(1-15%) = $ 12750   B. Installment to pay on credit Initial…

Q: To travel to his new job, Hassan is shopping for a new vehicle, and has noticed that many vehicle…

A: Loan is an agreement between two persons as lender (who gives money) and borrower (who takes money)…

Q: Jaguar sells its car at a price of RO 74,000. Ahmed made a 20% down payment. The loan is for 48…

A: Amount financed = Car price - down payment

Q: Denise Bunch is the sales manager for a tractor supply company. She earns an annual bonus based on…

A: Describe and explain whether the warranty accrual recommendation creates an ethical dilemma for…

Q: Brisk, Whisk and Frisk agree to sell construction tools for a period of one month. Brisk agrees to…

A: Sales…

Q: Cameron Bly is a sales manager for an automobile dealership. He earns a bonus each year based on…

A: Cameron Bly works as a sales manager at a car dealership. He receives a bonus based on revenue…

Q: Martin Ellingham is negotiating to buy a vacation cottage in Port WennThe seller of the cottage is…

A: In the calculation of Martin own closing, the insurance and title search fees would be bared by…

Q: Janet Foster bought a computer and printer at Computerland. The printer had a $780 list price with a…

A: Cash Discount: It is a discount  offered by a seller to a buyer  in order to  pay  an invoice before…

Q: A business man who owns a chain of fast foods needs to borrow 15,000 dollars to remodel his…

A:

Q: Assume that a carpenter borrowed $2,000 to be paid offin a year to finance a machine that would make…

A: The formula used to solve this problem: This is a type of simple interest problem. The final value…

Q: As the owner of a copy and print shop, you must collect 6 ½ % of the amount of each sale for sales…

A: Sale = 48,680 Sales tax rate = 6.50%

Q: A tree cutting business has an insurance policy to cover any damages caused during the tree cutting…

A: Given: Annual premium =$1500Covers in damages =$500000Probability of damage=0.002

Q: es for servicing cars under warranty. The entity's experience with warranty claims is that 60% of…

A: Warranty means where the company is undertaking to make good the loss which has been incurred due to…

Q: ABC Company, a department store operates a customer loyalty program.The entity grants program…

A: Given data, Sales =P10,000,000 Fair value of products sold =P9,000,000 Fair value of reward points…

Q: How much is the amount of provision for warranty in 2021?

A: Number of Cars Sold in a Year                                     = 500 Number of Cars which can be…

Q: A customer approached the Islamic bank for a vehicle lease and was informed of the total cost of the…

A: Banks are the financial institutions which provide services of deposit, lending, investment and…

Q: ron prentice bought goods from shelly katz. on may 8, shelly gave ron a time extension on his bill…

A: Firstly, we will find the maturity value: Principal $3,000 +Interest (3,000*.08*180/360) 120…

Q: A new civil servant is confused about choosing an alternative to procure a motorbike that costs…

A: Here, Cost of Bike is $128,761,000 Down Payment to Dealer is $5,000,000 Monthly Installment to…

Q: A man purchased a car with a cash price of P700,000.00. He was able to negotiate with the seller to…

A: Given: Car Value = P700,000 Down payment = 20% Number of months to repay "n" = 48 Monthly interest…

Q: Clara operates a specialized financial services business in Toronto. She's currently considering…

A: Total Cost = $110,000 +$16,000 = 126000

Q: To support herself while attending school, Daun Deloch sold stereo systems to other students. During…

A: Calculations: Purchases = $ 165000 Sales = $ 310000 Warranty expenses = 4% of sales amount…

Q: An enterprising engineer purchased a fleet of second-hand trucks for Php78,000. Payment was made by…

A: The following formula is to be used here: Monthly payment=Price-Intermediate…

Q: Kiner Equipment Company sells computers for P2,000 each and also gives cach customer a 2-year…

A: Warranty liability refers to the account of liability under which firm reports the amount of the…

Q: To purchase $13,600 worth of lab equipment for his business, Omar made a down payment of $1200 and…

A: Often, in order to acquire assets a huge amount of money will have to be paid. When the amount is…

Q: Sulaiman just graduated from his study last year. Currently, he started working with one company in…

A: Purchase Cost Leasing Cost Down Payment              RM        4,900.00 Security Deposit RM 860…

Q: ia Company’s liabilities are $65,000 and its equity is $45,000. On January 3, Lumia purchases and…

A: Total Assets = Liabilities + Equity On Jan 1  Lumia Company’s liabilities are $65,000 and its equity…

Q: Kiner Equipment Company sells computers for P2,000 each and also gives cach customer a 2-year…

A: When a company sells products to its customers, often a warranty is provided as an additional…

Q: Complete Electronics Inc. sells a point - of - sale computer with a two- year service contract.…

A: REVENUE IS THE TOTAL AMOUNT OF INCOME GENERATED BY THE SALE OF GOODS AND SERVICES RELATED TO THE…

Q: a. What is the total cost of the delivery van including purchase price, sales tax, and documentation…

A: Loan to value (LTV) ratio = amount of loan/value or cost of the van

Q: Cuyos, Inc., a dealer of household appliances, sells washing machines at an average price of P8,100.…

A: Current liability is described as the obligation which is to be paid within a period of one year.…

Q: Robert Carre financed his office furniture through the furniture dealer fromwhich he bought it. The…

A: Calculation of the original monthly payment is shown: Formulation is shown: To open the "PMT…

Q: Al paid $700 for a vehicle at Honest Bob's Cars. Al signed a $500 instalment agreement after paying…

A: After discounts and allowances have been subtracted from the gross selling value, the asset's worth…

Q: Westinghouse Company, a producer of washing machines, sells o various customers. It has a contract…

A: "A performance obligation is a guarantee in a contract with a customer to transfer an asset (such…

Q: Carmella purchased a refrigerator under a conditional sale contract that required 24 monthly…

A: Given, Monthly payments $70.26 Term is 24 months Rate is 15% compounded annually. The payment…

Q: Phillamone Berry has a car loan with a company that refunds interest using the rule of 78 when loans…

A: The interest is charged on the outstanding amount. The loan is to be paid over a specified duration…

Q: What is the approximate contract consideration allocated to the discount?

A: When a machine is sold, various services are provided with the same such as maintenance or…

Q: John went to the Friendly Pay Day Loan Centre and borrowed $10,000. John signed a contract to pay 2%…

A: Usury laws determine the maximum legal interest rate that is chargeable for different types of loans…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.