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Art [367]
3 years ago
10

On January 1, 2021, the Montgomery Company agreed to purchase a building by making six payments. The first three are to be $37,0

00 each, and will be paid on December 31, 2021, 2022, and 2023. The last three are to be $52,000 each and will be paid on December 31, 2024, 2025, and 2026. Montgomery borrowed other money at a 11% annual rate. (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: 1. At what amount should Montgomery record the note payable and corresponding cost of the building on January 1, 2021
Business
1 answer:
ki77a [65]3 years ago
7 0

Answer:

cost of the building = $183,331.14

Explanation:

we have to calculate the present value of all the future annual payments using the 11% discount rate:

$37,000 x 2.4437 (PVIFA, 11%, 3 periods) = $90,416.90

($52,000 x 2.4437) / (1 + 11%)³ = $92,914.24

total present value = $183,331.14

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Sveta_85 [38]

Answer:

The cost of good sold should not be on a firm's balance sheet under current liabilities.

Hence, the correct option is 1. Cost of Goods sold

Explanation:

Current Liabilities : The current liabilities are the short term liabilities which is occur for less than one year. It is a short term obligations which the firm has ti pay within one year.

It includes accounts payable, bills payable, income tax payable, accrued expenses,  etc.

In the given question, the Accounts payable, Short-term notes payable to the bank, Accrued wages, and Accrued payroll taxes are current liabilities while cost of goods sold is an expense for a company which is not shown in the balance sheet.

The cost of good sold is shown in the income statement.

Thus, the cost of good sold should not be on a firm's balance sheet under current liabilities.

Hence, the correct option is 1. Cost of Goods sold

6 0
3 years ago
Zero coupon bonds: Diane Carter is interested in buying a five-year zero coupon bond with a face value of $1,000. She understand
tatyana61 [14]

Answer:

The answer is $649.93

Explanation:

price = M / (1 + i)^n

M= 1000

i= 0.09

n= 5

Therefore value of the zero coupon bond is 1000/ 1.09^5 = $649.93

3 0
3 years ago
What is a company's authorized share capital? ​
nadezda [96]

Answer:

Authorized share capital is the number of stock units (shares) that a company can issue as stated in its memorandum of association or its articles of incorporation. Authorized share capital is often not fully used by management in order to leave room for future issuance of additional stock in case the company needs to raise capital quickly. Another reason to keep shares in the company treasury is to retain a controlling interest in the business.

6 0
3 years ago
A ______________ is an organized way of continually gathering and analyzing data to get information to help marketing managers m
Nata [24]
The answer is "marketing information system"
5 0
4 years ago
Select the correct answer. What direction does the relationship between supply and price take? A. slopes upward B. parallel to t
weeeeeb [17]

Answer:

A. slopes upward

Explanation:

(I will include a picture in the attachment to help with the explanation)

Slope upward represent the increase in quantity as  the price goes up.

As the price of a product is increased,  the potential profit that the producer can generate is also higher. Because of this, they become motivated to supply more product for the customers. They will increase their production output and increase the amount of distributions to the market.

This is why the slope will become upward like the picture above.

8 0
3 years ago
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