None Blossom Inc. developed a new sales gimmick to help sell its inventory of new automobiles. Because many new car buyers needfinancing, Blossom offered a low downpayment and low car payments for the first year after purchase. It believes that this promotionwill bring in some new buyers.On January 1, 2025, a customer purchased a new $38,200 automobile, making a downpayment of $1,640. The customer signed a noteindicating that the annual rate of interest would be 8% and that quarterly payments would be made over 3 years. For the first year,Blossom required a $400 quarterly payment to be made on April 1, July 1, October 1, and January 1, 2026. After this one-year period,the customer was required to make regular quarterly payments that would pay off the loan as of January 1, 2028.Click here to view factor tables.(a)Your answer is partially correct.Prepare a note amortization schedule for the first year. (Round answers to 0 decimal places, e.g. 38,548. Enter negative amounts usingeither a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)CashPaid400InterestExpense731400738SAChange inCarrying Value of NoteCarryingValue ofNote3656033136891338372294007453453757440075135137925

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Answered: Blossom Inc. developed a new sales…

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 1RP

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Pharoah Inc. developed a new sales gimmick to help sell its inventory of new cars. Because many new car buyers need financing. Pharoah offered a low down payment at the time of purchase and low car payments for the first year after purchase. It believes that this promotion will bring in some new buyers. On January 1, 2023, a customer purchased a new $34,900 automobile, making a down payment of $1,500. The customer signed a note indicating that the annual rate of interest would be 8% and that quarterly payments would be made over 3 years. For the first year, Pharoah required a $490 quarterly payment to be made on April 1, July 1, October 1, and January 1, 2024. After this one-year period. the customer was required to make regular quarterly payments that would pay off the loan as of January 1, 2026. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Prepare a note amortization schedule for the first year. (Round…
Good-Deal Inc. developed a new sales gimmick to help sell its inventory of new automobiles. Because many new car buyers need financing, Good-Deal offered a low downpayment and low car payments for the first year after purchase. It believes that this promotion will bring in some new buyers. On January 1, 2020, a customer purchased a new $33,000 automobile, making a downpayment of $1,000. The customer signed a note indicating that the annual rate of interest would be 8% and that quarterly payments would be made over 3 years. For the first year, Good-Deal required a $400 quarterly payment to be made on April 1, July 1, October 1, and January 1, 2021. After this one-year period, the customer was required to make regular quarterly payments that would pay off the loan as of January 1, 2023. Instructions a. Prepare a note amortization schedule for the first year. b. Indicate the amount the customer owes on the contract at the end of the first year. c. Compute the amount of the new…
Pretty Feet Inc. developed a new sales gimmick to help sell its inventory of new automobiles.Because of many new car buyers need financing, Pretty Feet offered a low downpayment andlow car payments for the first year of purchase. It believes that this promotion will bring insome new buyers.On January 1, 2017, a customer purchased a new P25,000 automobile, making a downpaymentof P1,000. The customer signed a note indicating that the annual interest rate of interest wouldbe 8% and that quarterly payments would be made over 3 years. For the first year, Pretty Feetrequired a P300 quarterly payment to be made on April 1, July 1, October 1, and January 1,2018. After this one-year period, the customer was required to make regular quarterlypayments that would pay off the loan as of January 1, 2019.Required:(a) Prepare a note amortization schedule for the first year.(b) Indicate the amount the customer owes on the contract at the end of the first year.(c) Compute the amount of the new quarterly…
Your answer is partially correct. Nash Taco Palace sells 320 gift cards at $60 per gift card and 160 of the gift cards are redeemed by year-end. Nash estimates that it will have 10% breakage on its gift cards. Prepare the entry for the gift card redemption and the expected breakage for the gift cards in the current year. (Ignore Cost of Goods Sold.) (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List oll debit entries before credit entries. Round intermediate calculations to 4 decimal places, eg. 0.2456 and final answers to 0 decimal places, eg. 5,125) Account Titles and Explanation Unearned Gift Card Revenue Sales Revenue Sales Revenue (Breakage) eTextbook and Media. Debit Credit 9600
Suppose a certain car manufacturer's incentive program designed to reduce inventory of certain low-selling models offers a $8,000 extra dealer incentive for each of these vehicles that the dealer moved into its rental or service fleets. As the accountant for a dealership with a number of these vehicles left in stock, your manager has asked you to calculate certain invoice figures. The normal trade discount from this car manufacturer is 19%. If the average sticker price (list price) of these remaining vehicles at your dealership is $24,500, calculate the following. (a) What is the amount of the trade discount, including the incentive (in $)? $ (b) What is the trade discount rate (in percent)? Round to the nearest tenth of a percent. % (c) What is the net price (invoice price) to your dealership (in $)? $ (d) If the cars were then sold from the fleets at $1,000 over "invoice" (net price), what is the total percentage savings to the consumer based on the list…
Suppose a certain car manufacturer's incentive program designed to reduce inventory of certain low-selling models offers a $8,000 extra dealer incentive for each of these vehicles that the dealer moved into its rental or service fleets. As the accountant for a dealership with a number of these vehicles left in stock, your manager has asked you to calculate certain invoice figures. The normal trade discount from this car manufacturer is 17%. If the average sticker price (list price) of these remaining vehicles at your dealership is $26,500, calculate the following. (a) What is the amount of the trade discount, including the incentive (in $)? %24 (b) What is the trade discount rate (in percent)? Round to the nearest tenth of a percent. % (c) What is the net price (invoice price) to your dealership (in $)? (d) If the cars were then sold from the fleets at $1,000 over "invoice" (net price), what is the total percentage savings to the consumer based on the list price? Round to the nearest…
Suppose a certain car manufacturer's incentive program designed to reduce inventory of certain low-selling models offers a $8,000 extra dealer incentive for each of these vehicles that the dealer moved into its rental or service fleets. As the accountant for a dealership with a number of these vehicles left in stock, your manager has asked you to calculate certain invoice figures. The normal trade discount from this car manufacturer is 17%. If the average sticker price (list price) of these remaining vehicles at your dealership is $26,500, calculate the following. (a) What is the amount of the trade discount, including the incentive (in $)? (b) What is the trade discount rate (in percent)? Round to the nearest tenth of a percent. (c) What is the net price (invoice price) to your dealership (in $)? (d) If the cars were then sold from the fleets at $1,000 over "invoice" (net price), what is the totapercentage savings to the consumer based on the list price? Round to the nearest tenth of…
Umatilla Bank and Trust is considering giving Novak Corp. a loan. Before doing so, it decides that further discussions with Novak’s accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end balance of $261,940. Discussions with the accountant reveal the following. 1. Novak shipped goods costing $55,800 to Hemlock Company FOB shipping point on December 28. The goods are not expected to reach Hemlock until January 12. The goods were not included in the physical inventory because they were not in the warehouse. 2. The physical count of the inventory did not include goods costing $97,720 that were shipped to Novak FOB destination on December 27 and were still in transit at year-end. 3. Novak received goods costing $25,980 on January 2. The goods were shipped FOB shipping point on December 26 by Yanice Co. The goods were not included in the physical count. 4. Novak shipped goods costing $54,080 to Ehler of Canada FOB…
Urmila
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Suppose a certain car manufacturer's incentive program designed to reduce inventory of certain low-selling models offers a $6,000 extra dealer incentive for each of these vehicles that the dealer moved into its rental or service fleets. As the accountant for a dealership with a number of these vehicles left in stock, your manager has asked you to calculate certain invoice figures. The normal trade discount from this car manufacturer is 16%. If the average sticker price (list price) of these remaining vehicles at your dealership is $28,500, calculate the following. (a) What is the amount of the trade discount, including the incentive (in $)? (b) What is the trade discount rate (in percent)? Round to the nearest tenth of a percent. (c) What is the net price (invoice price) to your dealership (in $)? (d) If the cars were then sold from the fleets at $1,000 over "invoice" (net price), what is the total percentage savings to the consumer based on the list price? Round to the…
Suppose a certain car manufacturer's incentive program designed to reduce inventory of certain low-selling models offers a $8,000 extra dealer incentive for each of these vehicles that the dealer moved into its rental or service fleets. As the accountant for a dealership with a number of these vehicles left in stock, your manager has asked you to calculate certain invoice figures. The normal trade discount from this car manufacturer is 16%. If the average sticker price (list price) of these remaining vehicles at your dealership is $26,500, calculate the following. ( a)What is the amount of the trade discount, including the incentive (in $)? $ 12240. (b)What is the trade discount rate (in percent)? Round to the nearest tenth of a percent. 46.2 % (c)What is the net price (invoice price) to your dealership (in $)? $ (d)If the cars were then sold from the fleets at $1,000 over "invoice" (net price), what is the total percentage savings to the consumer based on the…

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