Answer:
First find the present value of the lease. Payments are constant and fixed so this is an annuity. As it is to be paid from the beginning, it is an Annuity due.
= Annuity * Present value interest factor of annuity due, 5 years, 7%.
= 37,400 * 4.3872
= $164,081
Date Account Details Debit Credit
Dec. 31, 2019 Lease Receivable $164,081
Cost of goods sold $104,800
Sales $164,081
Inventory $104,800
Date Account Details Debit Credit
Dec. 31, 2019 Cash $37,400
Lease Receivable $37,400
Answer:
orange juice 0.80 dollar
Bagel 1 dollar
coffe 0.60 dollar
Explanation:
We construct the equation system:
We subtract one from another to get an expression without C:
1.5A+1.2B+C - (A+B+C) = 3 - 2.40
0.5A + 0.2B = 0.6
Then, we solve in the first part to express B as an expression of A
considering the coffe is worth half of the new cost of A
C = 1.5A / 2 = 0.75A
A + B + C = 2.40
A + B + 0.75A = 2.40
B = 2.40 - 1.75A
And now we replace in the other expression to get A:
0.5A + 0.2(2.40 - 1.75A) = 0.6
0.5A - 0.35A + 0.48 = 0.60
0.15A = 0.12
A = 0.12/0.15 = 0.8
Now we solve for C:
C = 0.75A = 0.6
Last, for B:
A + B + C = 2.40
0.8 + B + 0.6 = 2.40
B = 2.40 - 0.8 - 0.6 = 1