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)

On January 2, 2020, Bonita Industries began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2021. Expenditures for the construction were as follows: January 2, 2020 $ 609000 September 1, 2020 1802400 December 31, 2020 1802400 March 31, 2021 1802400 September 30, 2021 1203000 Bonita Industries borrowed $3400000 on a construction loan at 12% interest on January 2, 2020. This loan was outstanding during the construction period. The company also had $13320000 in 9% bonds outstanding in 2020 and 2021.The interest capitalized for 2020 was: A)$505656 B)$108882 C)$145176 D)$289368

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?

[The following information applies to the questions displayed below] On January 1, 2021, Gundy Enterprises purchases an office building for $162,000, paying $42,000 down and borrowing the remaining $120,000, signing a 8%, 10-year mortgage. Installment payments of $1,455.93 are due at the end of each month, with the first payment due on January 31, 2021. Required: 1. Record the purchase of the building on January 1, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the purchase of the building.

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…

Megamind Inc. purchases equipment for $250000. They pay $50,000 cash and the supplier finances the remainder with a note. Terms are 2 years, no installment payments, full amount paid at the end of the 2 years, interest rate of 2%. Megamind’s interest rate for debt of a similar risk profile is 5%. Record the entries required for 2022 and 2023. The equipment was purchased on January 1, 2022. Show all steps. Use Date, Cash, Interest, Difference, and PV as headings for Amortization Schedule. Show and explain the difference between Net method and Gross Method.

Red Company desires to finance its P300,000 inventory. Funds are required for 4 months. Under consideration is a warehouse receipt loan at an annual interest rate of 17 percent, with an 85 percent advance against the inventory’s value. The warehousing cost is P5,000 for the 4-month period. Determine the financing cost.

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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