A company purchased new equipment for $31,000 with a two-year installment note requiring 5% interest. The required monthly payment is $1,360. For the first month’s payment, what is the amount to record for interest expense? a. $120.b. $129.c. $68.d. $155.

Q: A warehouse was bought for PHP 10,000,000 downpayment and 15 quarterly payment of PHP 3,120,000…

A: Cash value is the total value of the asset including down payment and installment. It includes…

Q: Winter Break Inc. obtained a $600,000 loan for a new building valued as $1,100,000. Theloan contract…

A: Solution: Interest rate every quarter = 9% / 4                                             = 2.25%…

Q: The company purchased equipment and agreed to make payments of $5,400 at the end of each year for…

A: Present value is the current amount which is expected to be received or incurred by investors over…

Q: A businessman bought a delivery van costing P 35,000 payable in ten semiannual payments, each…

A: Van cost (PV) = P35,000 Interest rate = 26% Semi annual interest rate (r) = 26%/2 = 13% Number of…

Q: 2. A man bought an equipment consisting Php 60,000 payable in 12 quarterly payment, each installment…

A: Cash price (PV) = P 60,000 Number of quarterly payments (n) = 12 Interest rate = 24% Quarterly…

Q: Zetix borrowed $20,000 on a one-year, 10 percent note payable from the local bank on March 1.…

A: Notes Payable: Notes payable is a liability account where a borrower records a written promise to…

Q: On October 1, Bandor Company sold land (that cost $30,000) on credit for $35,000. The buyer issued…

A: Date Accounts title and explanation Debit ($) Credit ($) 1-Oct Note receivable $35,000…

Q: a. How many payments are required to settle the loan? _________payments b. Fill in the partial…

A: Loan is financial agreement where a person (lender) lends lump-sum money to other person (borrower)…

Q: A company borrowed P45,200 from a savings and loan association that charges 14% converted quarterly.…

A: Let us make an amortization table to solve the question. Please note the formula used to calculate…

Q: A contractor bought a concrete mixer at P150,000 if paid in cash. The mixer may also be purchased by…

A: The annual payments to be made at the beginning of the year can be calculated with the help of…

Q: A company purchased two new delivery vans for a total of $250,000 on January 1, Year 1. The compang…

A: Purchase of delivery vans total cost=$250,000 Payment made in cash=$40,000 Note to be paid in…

Q: General Computers Inc. purchased a computer server by taking a loan of $33,000 at 3.50% compounded…

A: Amount of loan “L”= $33,000 Rate = 3.5% compounded semi-annually Semi-annual rate “r” = 3.5%/2 =…

Q: On December 1, Martin Company signed a $5,000 3-month 6% note payable, with the principle plus…

A: Interest accrued at December 31 on the note = Face value of the note x rate of interest x no. of…

Q: Compute the interest expense due each month. Show the journal entry to recognize the interest…

A: Introduction:   A short-term notes payable is a promise to pay the amount of loan at a fixed rate…

Q: A contractor bought a concrete mixer at P 150,000 if paid in cash. The mixer may also be purchased…

A: Cost of mixer (PV) = P 150,000 Interest rate (r) = 8% Period (n) = 5 Years Annual payment = P

Q: A factory operator bought a Diesel generator set for P1,000.000.00 and agreed to pay the supplier…

A: Note: It is assumed that the Price at which Diesel Generator was bought is P1,000,000 and…

Q: A man bought an equipment costing P65,000 payable in 10 quarterly payments, each installment payable…

A: Loan amount (PV) = P 65000 Number of quarterly payments (n) = 10 Annual interest rate = 24%…

Q: A company purchases equipment with a $20,000 note payable. The note is to be paid in $5,000 annual…

A: Long-term notes payable: Long-term notes payable represent a legal and written promise made by the…

Q: January 3 Purchased equipment for $55000, paying $45000 in cash and signing a 10000, 4-month, 10%…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: At the beginning of April of the current year, Nickel Pork Corp. borrowed 1,000,000 for 1 yr from…

A: Part (1)   Date Particulars  Amount (Dr) Amount (Cr) 01-Apr Bank A/c Dr  880100     Finance…

Q: Langara Woodcraft borrowed money to purchase equipment. The loan is repaid by making payments of…

A: The loan amount is the present value of the annuity payment made in repayment schedule of the loan.…

Q: Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank…

A: Given: Loan taken on Sep 20=$680000Annual interest rate =3.4% Payable in =8 months i.e. on May 20

Q: A factory operator bought a diesel generator set for P 10,000.00 and agreed to pay the dealer…

A: Present Value of annuity refers to the present value of all the future payments of and series of…

Q: Frank's Machine Shop purchased a computer to use in tuning encines. To finance the purchase, the…

A: The loan borrowed from a lender can be repaid in regular equal payments. These regular payments…

Q: On January 1, 20x1, HYBE acquired a machine by using a 3%, P4,000,000 note due on January 1, 20x4.…

A: The initial recognition of the note payable will be recorded at present value of payments discounted…

Q: Lukas Center acquired a new Laser Machine worth ₱580,000.00. The center plans to pay 35% advance…

A: Using Excel PMT Function

Q: Tricana Corporation borrowed $75,000.00 at 3% compounded monthly for 14 years to buy a warehouse.…

A: Borrowed amount is $75,000.00 Interest rate is 3% compounded monthly Time period is 14 years To…

Q: On September 1, Kennedy Company loaned $126,000, at 11% annual interest, to a customer. Interest and…

A: Solution: Adjusting entries are journal entries usually made at the end of an accounting period to…

Q: A company acquires assets recorded at $240,000 by paying $120,000 cash and taking on a 12 year…

A: Loan =240000-120000=120000/24=$5000 So instalment $5000 semi annual…

Q: An employee obtained a loan of P11,000 at the rate of 7% compounded annually in order to build a…

A: An amortisation schedule contains opening balance, payment , interest charged and closing…

Q: Kavra Corporation purchased a building by signing a $150,000 long-term mortgage with monthly…

A: Given, Loan Amount = $ 150,000 Monthly payments  = $ 2,000 Rate of Interest = 12% per annum = 12% /…

Q: On January 1 of this year, Shannon Company completed the following transactions (assume a 9% annual…

A: SOLUTION- PRESENT VALUE = FUTURE VALUE / (1+i)^n   PRESENT VALUE FACTOR  @ 9%. YEARS PRESENT…

Q: General Computers Inc. purchased a computer server by taking a loan of $32,500 at 3.75% compounded…

A: Here, Loan Amount is $32,500 Semi Annual Payment is $2,300 Interest Rate is 3.75% Compounding Period…

Q: Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank…

A: Journal: Recording of a business transactions in a chronological order.

Q: A company purchased new equipment for $31,000 with a two-year installment note requiring 5%…

A: Notes payable: Notes Payable is a written promise to pay a certain amount on a future date, with…

Q: On December 1, a company signed a $6,000, 90-day, 5% note payable, with principal plus interest due…

A: Answer:   Option b.

Q: An entrepreneur bought a used heavy equipment for Rp. 96,000,000 on January 1, 2003. The…

A: Loan payment is calculated using Present value of annuity formula which is given as follows PV =…

Q: Don James purchased a new automobile for $14,000. Don made a cash down payment of $3,500 and agreed…

A: The amount of the required monthly payment can be calculated using the financial calculator with…

Q: During the current year, Gardner Home Center sold 800 power washers for $350 each. The power washers…

A: Warranty Liability: Estimated liability is an exact dollar amount of debt or obligation which is…

Q: On January 1, a company purchases equipment with a $5,000 down payment and $5,000 due on January 1…

A: Down payment on January 1 = $ 5000 Interest rate = 8 % Due of next 5 years of each year $ 5000.…

Q: On july 1, Shady creek resort borrowed 290,000 cash by signing a 10 year, 10% installment note…

A: Interest expense  is the amount of interest accrued during  period

Q: Tricana Corporation borrowed $79,000.00 at 3% compounded quarterly for 8 years to buy a warehouse.…

A: The loan here is an amortized loan. An amortized loan is that loan in which interest is charged on…

Q: Bright Inc. acquired a debt of $252,000. Acme agrees to repay the loan with payments of $13,500 made…

A: Here, Debt Amount is $252,000 Loan Payment is $13,500 Payment Period (p)  is the end of every three…

Q: On October 22 the company signed a $450,000 10 years 5% note to purchase equipment. The note will be…

A: Journal entry refers to an entry that is made to record a transaction that is financial in nature.…

Q: Braddy Machinery sold some equipment for $8,500 and established a promissory note requiring 6.50%…

A: Frist we need to calculate maturity value of promissory note by using this formula Maturity value…

Q: A man owes Php 10,000 with interest at 8% payable semi-annually. Payments are at the beginning of…

A: Loan amount (P) = Php. 10,000 Annual interest rate = 8% Semi annual interest rate (R) = 8%/2 = 4%…