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jasenka [17]
3 years ago
8

Lincoln Company purchased merchandise from Grandville Corp. on September 30, 2018. Payment was made in the form of a noninterest

-bearing note requiring Lincoln to make six annual payments of $4,600 on each September 30, beginning on September 30, 2021. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)Required: Calculate the amount at which Lincoln should record the note payable and corresponding purchases on September 30, 2018, assuming that an interest rate of 11% properly reflects the time value of money in this situation. Amount recorded
Business
1 answer:
sattari [20]3 years ago
4 0

Answer:

Dr purchases $ 15,794.56  

Cr notes payable                        $ 15,794.56  

Explanation:

The present value of the annual payments of $4,600, starting in three years' time is computed as shown below:

PV of annual payments=$4600/(1+11%)^3+$4600/(1+11%)^4+$4600/(1+11%)^5+$4600/(1+11%)^6+$4600/(1+11%)^7+$4600/(1+11%)^8=$ 15,794.56  

The amount of purchases and notes payable is $ 15,794.56  

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Explanation:

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4 years ago
On December​ 31, 2018 the balance in Energy Exploration​ Company's Unearned Revenue account was a credit of $ 10 comma 000. In​
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Explanation:

Given that,

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3 years ago
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<h3>What is the IMC planning process?</h3>

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3 years ago
The Adapting to Change box reflects upon the use of Twitter and other social media sources to measure customer satisfaction. GM
erma4kov [3.2K]

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