The company purchased equipment and agreed to make payments of $5,400 at the end of each year for the next 8 years The company will record the purchase price of the equipment at the present value of the payments The company can borrow money at 5% interest  Assume annual compound  Determine the present value of the payments?

Q: A property was purchased for $7876.00 down and payments of $983.00 at the end of every month for 6…

A: Down Payment = 7876 Monthly Payment = 983 Number of payments = N = 72 (6 years in months) Interest =…

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

A: Usually, notes payable is to be treated as a current liability for the organization but as per the…

Q: b. A manufacturing company intends to purchase a new equipment costing GH¢ 2m. The money required to…

A: The sinking fund refers to the fund arrangement which is made to arrange future payments. In this…

Q: On January 1, Whispering Corporation issues a $140,000, 10-year non-interest-bearing note to Camden…

A: Journal entry - It refers to the process where the business transactions are recorded in the books…

Q: Company A borrows P2,000,000 from Bank at 12% interest to be paid at the end of each year for 15…

A: Hi there, thanks for posting the questions. But as per our Q&A guidelines, we must answer the…

Q: A company borrowed at 7.21% compounded annually to purchase equipment, agreeing to make payments of…

A: Time values tell that money received today is of more worth than that of receiving the exact amount…

Q: Teari Company purchased a machine on September 1, 2021. The purchase agreement required Teari to pay…

A: Calculation of Fair value of machinery on September 1, 2021 is as follows: Resultant table:

Q: A $660,000 townhome in Richmond Hill was purchased with a down payment of 20% of the amount. A…

A: Given That: Cost of Townhome=$660000 Down payment = 20% Down payment amount = 20% of…

Q: Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest…

A: A debt payable seems to be a promissory note that has been written. A borrower acquires a fixed sum…

Q: Company A borrows $2,000,000 from Bank at 12% interest to be paid at the end of each year for 15…

A: EMI or monthly mortgage payments are the fixed amount paid by the borrower to the lender that…

Q: ABC Realty sold a piece of land for P250,000. A down payment of P50,000 was made and the remainder…

A: Present Value of Loan = Present Value Factor x Cash Flow during the period

Q: Aggie Company is going to trade-in an old piece of equipment for new equipment. The following is…

A: Calculate financed amount:

Q: Today, Cari purchased a car worth P1.5 million. A down payment of P150,000.00 has been made, and the…

A: Amortization of Loan  Calculation of Equalized Payment ( instalment )

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: Sharapova Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the…

A: The amortization table and the journal entry for the first year payment of Sharapova Inc are as…

Q: LEW Company purchased a machine at a price of $100,000 by signing a note payable, which requires a…

A: Present value factor at 2 year for $1 = Machine cost / Payment to be made = $100,000 / $123,210 =…

Q: A company has to replace a present facility after 15 years at an outlay of ETB. 5,00,000. It plans…

A: The Future Value of the annuity is the total value of all the payments which is occurred regularly…

Q: A $310,000 house in Hamilton was purchased with a down payment of 20.00% of its value and a 20 year…

A: Since Half yearly compounding , effective annual interest rate(EAR) will be, EAR = (1+APR/n)^n-1…

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

A: In order to find the loan amount or the balance one has to deduct the advance payment from the…

Q: A vacation property was bought by making semi-annual payments of S7500.00 for seven years. If the…

A: In order to calculate the purchase price of the property, we will use the future value function in…

Q: A certain amount was invested on 2021 such that it generated a periodic payment of $10,000 at the…

A: The present value of the annuity due is the current worth of a cash flow series received or paid at…

Q: On January 1, 2020, Aggie Company purchased a building for $65,000, making a cash down payment of…

A: Given, Cost of building = $65000 Cash down payment = $5000 Notes Payable = $65000-$5000=$60000…

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: Corporation borrowed $80,000.00 at 11​% compounded semi-annually for 14 years to buy a warehouse.…

A: Amortization table is a schedule which shows periodic lease or loan payments. The periodic payment…

Q: Temple Corporation purchased a piece of real estate, paying $4,000,000 cash and financing $7,000,000…

A: Every monthly instalment includes the Principle amount and Interest amount. Payment of Principle…

Q: Kirk Company purchased equipment by making a down payment of P400, 000 and issuing a note payable…

A: Capitalized cost of the equipment = Down payment + Present value of Note + Shipping charges +…

Q: On January 1 of this year, Shannon Company completed the following transactions (assume a 10% annual…

A: Working:  Annual payment (P) = $40,000  Number of years (n) = 10 years  Rate of interest (r) = 10% =…

Q: A farmer bought an equipment costing P12, 000. The equipment may be purchased by installment for 5…

A: Cost of equipment (PV) = P 12,000 Interest rate (r) = 8% Number of annual payment (n) = 5 Years…

Q: A property was purchased for ​$3861.00 down and payments of ​$1170.00 at the end of every six months…

A: purchase price of the property = downpayment +principal of loan monthly payment…

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: On January 1 of this year, Shannon Company completed the following transactions (assume a 10% annual…

A: Present Value = Future Value1+in   Present Value Factor @ 10% Year Present Value Factor @10% 1…

Q: Kirk Company purchased equipment by making a down payment of P400,000 and issuing a note payable for…

A: Capitalized cost of the equipment = Down payment + Present value of Note + Shipping charges +…

Q: Determine the amount of the periodic payments needed To pay off the following purchases. Payments…

A: Given information : Particulars Option 1 Option 2 Option 3 Purchase price 1205 26565 65500…

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: On September 1, 2021, Confused Company purchased a machine. The purchase agreement required Confuse…

A: Fair value of future payments can be calculated by using present value rates. If the payment is…

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

A: Amortization means the expensed off the asset account over the life of an asset.

Q: Electro Corporation bought a new machine and agreed to pay for it in equal annual installments of…

A: The fixed assets such as machinery are recorded in the books of account are recorded in the books at…

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: A man paid 10% down payment of P200, 000.00 for a house and lot and agreed to pay the balance on…

A: Borrowings are the liability that used to finance the requirement of the funds. The borrower needs…

Q: A $290,000 house in Hamilton was purchased with a down payment of 20.00% of its value and a 20 year…

A: Here,

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: A property was purchased for $5374.00 down and payments of $1534.00 at the end of every month for 9…

A: Down payment (DP) = $ 5374 Monthly payment (P) = $ 1534 Period = 9 Years Number of monthly payments…

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

A: Quarterly payment will be computed using : = Total amount to be paid / Present Value of Annuity (n%,…

Q: ABC Marketing sold an item worth 200,000 for 250,000. As agreed 20,000 will the down payment while…

A: A loan amortization schedule is a schedule prepared to know the annual payments, annual interest…

Q: Purchased a $180,000 machine on January 1 of this year for $36,000 cash. A five-year note is signed…

A: Present Value of Note = Cost of Machine - Cash Down Payment Present Value of Note = Annual Annuity…