Part 1,2, &3 Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FVof $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.)1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese$15,000 on the purchase date and the balance in six annual installments of $7,000 on each June 30 beginning June 30, 2022.Assuming that an interest rate of 12% properly reflects the time value of money in this situation, at what amount should Johnstonevalue the equipment?2. Johnstone needsto accumulate sufficient funds to pay a $450,000 debt that comes due on December 31, 2026. The company willaccumulate the funds by making five equal annual deposits to an account paying 5% interest compounded annually. Determine therequired annual deposit if the first deposit is made on December 31, 2021.3. On January 1, 2021, Johnstone leased an office building. Terms of the lease require Johnstone to make 20 annual lease paymentsof $125,000 beginning on January 1, 2021. A 12% interest rate is implicit in the lease agreement. At what amount should Johnstonerecord the lease liability on January 1, 2021, before any lease payments are made?Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese$15,000 on the purchase date and the balance in six annual installments of $7,000 on each June 30 beginning June 30, 2022.Assuming that an interest rate of 12% properly reflects the time value of money in this situation, at what amount shouldJohnstone value the equipment? (Round your final answers to nearest whole dollar amount.)Show lessATable values are based on:n =Cash FlowAmountPresent ValueInstallmentsDown PaymentValue of the equipment< Required 1Required 2 >

Down payment=15000 Annual cash outflows=7000

1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $15,000 on the purchase date and the balance in six annual installments of $7,000 on each June 30 beginning June 30, 2022. Assuming that an interest rate of 12% properly reflects the time value of money in this situation, at what amount should Johnstone value the equipment? fficio *450 0 00 er 21 2026 T he

1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $15,000 on the purchase date and the balance in six annual installments of $7,000 on each June 30 beginning June 30, 2022. Assuming that an interest rate of 12% properly reflects the time value of money in this situation, at what amount should Johnstone value the equipment? fficio *450 0 00 er 21 2026 T he

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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