Answer:
Entries are shown below.
Explanation:
To record the journal entries, we first need to calculate interest payment and principal as per the present value. This is done below:
PV Factor Present Value
Interest Payment $6,400 1.7125 $10,960
Principal $80,000 0.8116 $64,928
$75,888
<u>Journal Entries</u>
Date Particular Debit ($) Credit ($) Working
Jan 1, 2020 Note Receivable 80,000
Discount on Receivable 4,112
Land 75,888
Dec 31, 2020 Cash 6,400
Discount on Receivable 1,948 (8348-6400)
Interest Revenue 8,348 (75888*11%)
Dec 31, 2021 Cash 6,400
Discount on Receivable 2,162 (4279-3600)
Interest Revenue 8,562
(75888+1,948)*11%
Dec 31, 2021 Cash 80,000
Notes Receivable 80,000
Answer:
A factor
Explanation:
A factor is the cost per thousand that is required to create the principal and interest payment necessary to pay off a loan.
Answer:
Option 2 is slightly better.
Explanation:
Giving the following information:
They’ve offered you two different salary arrangements. You can have $85,000 per year for the next two years, or you can have $74,000 per year for the next two years, along with a $20,000 signing bonus today.
To determine which of the options is better, we need to calculate the present value. To do this we will assume an interest rate of 10% per year compounded annually.
PV= FV*(1+i)^n
<u>Option 1:</u>
PV= 85000/1.10 + 85,000/1.10^2= $147,520.66
<u>Option 2</u>:
PV= 20,000 + 74,000/1.10 + 74,000/1.10^2= 148,429.7
Option 2 is slightly better.
Answer:
Last paragraph
Explanation:
Finally, Jeremey has also divided the problem into smaller parts, such as production costs, overheads, downtime expense, repair expenditure, and so on.