In 1968 president Johnson announced:

Baillie Power leased high-tech electronic equipment from Courtney Leasing on January 1, 2021. Courtney purchased the equipment f

Sholpan [36]

Answer:

Beginning Installment Interest Ending

1 144,605.00 20,000 0 124,605

2 124,605.00 20,000 3,738.15 108,343

3 108,343.15 20,000 3,250.29 91,593

4 91,593.44 20,000 2,747.80 74,341

5 74,341.25 20,000 2,230.24 56,571

6 56,571.48 20,000 1,697.14 38,269

7 38,268.63 20,000 1,148.06 19,417

8 19,416.69 20,000 582.50 0

Journal entries:

Cash 20,000 debit

lease receivables 124,605 debit

Lease Equipment 144,605 credit

--Jan 1st

cash 20,000 debit

interest revenue 3,738.15 credit

--March 31st

cash 20,000 debit

interest revenue 3,250.29 credit

lease receivables 16749.71 credit

--June 30th

cash 20,000 debit

interest revenue 2,747.80 credit

lease receivables 17252.20 credit

--Sep 30th

cash 20,000 debit

interest revenue 2,230.24 credit

lease receivables 17,769.76 credit

--Dec 31st

Explanation:

<em><u>Present value of the lease payment:</u></em>

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 20,000

time 8 (eight quarters)

rate 0.03 (12% annual --> divided among four quarters = 3%)

$20000 \times \frac{1-(1+0.03)^{-8} }{0.03} = PV\\$

PV $144,605.6591

We build the table starting from the present value. Then, we subtract hte installment and in the second period we start doing interest calculations

(not in the firt one as it is being paid in the present thus, no interest accrued)

8 0

3 years ago

Rita Gonzales won the $53 million lottery. She is to receive $2.2 million a year for the next 20 years plus an additional lump s

guajiro [1.7K]

Answer:

PV= $17,365,776.86

Explanation:

Giving the following information:

Cf= 2,200,000

Number of years= 20

Discount rate= 12%

Additional lump sum= 9,000,000

First, we need to calculate the future value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual cash flow

FV= {2,200,000*[(1.12^20) - 1]} / 0.12 + 9,000,000

FV= $167,515,373.4

Now, the present value:

PV= FV/(1+i)^n

PV= 167,515,373.4/1.12^20

PV= $17,365,776.86

7 0

4 years ago

Truzan Creations, one of the leading names in the handicraft industry, recently launched a new artifact in the market. The compa

pentagon [3]

Answer:

A) Forecasting models

Explanation:

Forecasting models -

It is the method of making prediction of the future , based on the data of the present and the past , and by analyzing the trends .

For example , the estimation of some variable of interest at for some future date .

Uncertainty and risk are the center of the forecasting , it is a good practice , which indicates the degree of uncertainty to forecasts .

Hence , from the data of the question , the correct answer is Forecasting models .

8 0

3 years ago

Consumer often rely on rules of thumb to make speedy decisions when weighing the merits of competing brads

brilliants [131]

Answer:

im sorry i need point for a quiz so sorry

7 0

4 years ago

The CFO of Ward Enterprises is setting up a new activity-based costing system. He has currently finished identifying activities

horrorfan [7]

Answer:

a. Identify a cost driver associated with each activity.

Explanation:

While setting up the new activity based costing system he presently completed the identification of the activities and the cost of overhead is associated with each kind of activity

Now the next step in the activity based costing is to have a identification of the cost driver that associated with each kind of activity

Here cost driver means number of machine hours, number of machine setups, etc

Therefore the first option is correct

6 0

3 years ago