fgd On April 1, 2016, John Vaughn purchased appliances fromthe Acme Appliance Company for $1,200. In order toincrease sales, Acme allows customers to pay ininstallments and will defer any payments for six months.John will make 18 equal monthly payments, beginningOctober 1, 2016. The annual interest rate implicit in thisagreement is 24%.Calculate the monthly paymentnecessary for John to pay for his purchases.

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Answered: On April 1, 2016, John Vaughn purchased…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 24Q: Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms...

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Similar questions

Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase, and 5% in the second month following the purchase. What are the cash payments if it made the following purchases in 2018?
Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?
On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
On April 1, 2018, John Vaughn purchased appliances from the Acme Appliance Company for $1,200. In order toincrease sales, Acme allows customers to pay in installments and will defer any payments for six months. Johnwill make 18 equal monthly payments, beginning October 1, 2018. The annual interest rate implicit in this agreement is 24%.Required:Calculate the monthly payment necessary for John to pay for his purchases.
jaydip
On January 1, 2016, the Montgomery Company agreed to purchase a building by making six payments. The first three are to be $25,000 each, and will be paid on December 31, 2016, 2017, and 2018. The last three are to be $40,000 each and will be paid on December 31, 2019, 2020, and 2021. Montgomery borrowed other money at a 10% annual rate. Required: 1. At what amount should Montgomery record the note payable and corresponding cost of the building on January 1, 2016? 2. How much interest expense on this note will Montgomery recognize in 2016?
Parker Young recently received his monthly MasterCard bill for the period June 1-30, 2017, and wants to verify the monthly finance charge calculation, which is assessed at a rate of 19% per year and based on ADBs, including new purchases. His outstanding balance, purchases, and payments are as follows: Previous balance: $256 Purchases: Payments: June 4 $117 June 21 $35 June 12 $79 June 20 $92 June 26 $72 What is his ADB for the period? (Use a table like the one in Exhibit 6.8 for your calculations.) Do not round intermediate calculations. Round the answer to 2 decimal places. What is his the finance charge for the period? (Use a table like the one in Exhibit 6.8 for your calculations.) Do not round intermediate calculations. Round the answer to 2 decimal places.
Otto Co. borrows money on April 30, 2019, by promising to make four payments of $13,000 each onNovember 1, 2019; May 1, 2020; November 1, 2020; and May 1, 2021. How much money is Otto able to borrow if the interest rate is 16%, compounded semiannually?
Meman
On January 1, 2006, Mr. Jones took out a loan amounting to $10,000. He then made annual repayments of $1,000 on the first day of 2007, 2008, and 2009. Additionally, on July 1, 2009, he made an extra payment of $5,000 and ceased any further repayments. Assuming the quarterly discount rate is 8%, calculate the remaining balance of Mr. Jones's loan as of January 1, 2015.
Haatim opened an RRSP deposit account on December 1, 2008, with a deposit of $2500. He added $2500 on October 1, 2010, and $2500 on February 1, 2012. How much is in his account on January 1, 2016, if the deposit earns 7.8% p.a. compounded monthly?
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