Present Values Use Present Value Tables or your calculator to complete the requirements below. Phillips Enterprises signed notes to make the following two purchases on January 1, 2020: new piece of equipment for $60,000, with payment deferred until December 31, 2021. The appropriate interest rate is 9% compounded annually. small building from Richter Construction. The terms of the purchase require a $75,000 payment at the end of each quarter, beginning March 31, 2020, and ending June 30, 2022. The appropriate interest rate is 2% per quarter. Required: Round your answers to the nearest cent, if rounding is required. 1.  Complete the information needed to prepare a cash flow diagrams for these two purchases. a. n =  years   i =  % per year Amount of Payment or Deposit 1/1/20 12/31/21   Unknown present value amount  $ b. n =  quarters   i =  % per quarter   Amount of Payment or Deposit 1/1/20 3/31/20 6/30/20 9/30/20   6/30/22 Unknown present value amount  $ $ $ . . . $     2.  Prepare the entries to record these purchases in Phillips' journal. 2020 Jan. 1 Equipment        Notes Payable        (Record purchase of equipment)     2020 Jan. 1 Building        Notes Payable        (Record purchase of building)       3.  Prepare the cash payment and interest expense entries for Purchase b at March 31, 2020, and June 30, 2020. If an amount box does not require an entry, leave it blank. March 31, 2020 Interest Expense        Notes Payable        Cash        (Record loan payment)     June 30, 2020 Interest Expense        Notes Payable        Cash        (Record loan payment)       4.  Prepare the adjusting entry for Purchase a at December 31, 2020. Dec. 31, 2020 Interest Expense        Notes Payable        (Record accrued interest expense)

A property is available for sale that could normally be financed with a fully amortizing $80,200 loan at a 10 percent rate with monthly payments over a 25-year term. Payments would be $728.78 per month. The builder is offering buyers a mortgage that reduces the payments by 50 percent for the first year and 25 percent for the second year. After the second year, regular monthly payments of $728.78 would be made for the remainder of the loan term.   Required: a. How much would you expect the builder to have to give the bank to buy down the payments as indicated? b. Would you recommend the property be purchased if it was selling for $5,000 more than similar properties that do not have the buydown available?

IvanhoeFurniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $10,500,000 on January 1, 2020. Ivanhoe expected to complete the building by December 31, 2020. Ivanhoe has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2019   $4,200,000 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021   3,150,000 Long-term loan-11% interest, payable on January 1 of each  year. Principal payable on January 1, 2024   2,100,000   Assume that Ivanhoe completed the office and warehouse building on December 31, 2020, as planned at a total cost of $10,920,000, and the weighted-average amount of accumulated expenditures was $7,560,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and…

Cullumber Excavating Inc. is purchasing a bulldozer. The equipment has a price of $99,800. The manufacturer has offered a payment plan that would allow Cullumber to make 10 equal annual payments of $19,900.00, with the fırst payment due one year after the purchase. How much total interest will Cullumber pay on this payment plan? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Total interest $4

The Strug Company purchased office furniture and equipment for $8,600 and agreed to pay for the purchase by making five annual installment payments beginning one year from today. The installment payments include interest at 8%. What is the required annual installment payment? Note: Use tables, Excel, or a financial calculator (EV of $1. PV of $1, EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) Multiple Choice $1,994 $1720 $1,466 $2.154

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At the end of 2022, the following information is available for Great Adventures.   Additional interest for five months needs to be accrued on the $32,200, 6% loan obtained on August 1, 2021. Recall that annual interest is paid each July 31. Assume that $12,200 of the $32,200 loan discussed above is due next year. By the end of the year, $20,000 in gift cards have been redeemed. The company had sold gift cards of $27,200 during the year and recorded those as Deferred Revenue. Great Adventures is a defendant in litigation involving a biking accident during one of its adventure races. The company believes the likelihood of payment occurring is probable, and the estimated amount to be paid is $14,200. For sales of MU watches, Great Adventures offers a warranty against defect for one year. At the end of the year, the company estimates future warranty costs to be $6,200.   No Date General Journal Debit Credit 1 Dec 31 Interest Expense 805       Interest Payable   805…

Webster Mining is considering the purchase of a new sorting machine. The quote consists of quarterly payments of $17,000 for 8 years at an annual interest rate of 6% (APR with quarterly compounding).  If the first payment begins one quarter after date of purchase. What is the purchase price of the equipment?

Subject - account  Please help me.  Thankyou.

LCD Industries purchased a supply of electronic components from Entel Corporation on November 1, 2024. In payment for the $24.7 million purchase, LCD issued a 1-year installment note to be paid in equal monthly payments at the end of each month. The payments include interest at the rate of 24%. Required: 1. & 2. Prepare the journal entries for LCD’s purchase of the components on November 1, 2024 and the first installment payment on November 30, 2024. 3. What is the amount of interest expense that LCD will report in its income statement for the year ended December 31, 2024?