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) (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 $26,000 on the purchase date and the balance in five annual installments of $9,000 on each June 30 beginning June 30, 2022. Assuming that an interest rate of 11% properly reflects the time value of money in this situation, at what amount should Johnstone value the equipment? Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese$26,000 on the purchase date and the balance in five annual installments of $9,000 on each June 30 beginning June 30,2022. Assuming that an interest rate of 11% properly reflects the time value of money in this situation, at what amountshould Johnstone value the equipment? (Round your final answers to nearest whole dollar amount.)Table values are based on:n =Cash FlowInstallmentsDown Paymenti=$$AmountValue of the equipment511%9,00026,000Present ValueShow less

It has been given that there is a down payment as well as the instalment of $9,000 each year at the…

Answered: On June 30, 2021, the Johnstone Company…

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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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) (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 $26,000 on the purchase date and the balance in five annual installments of $9,000 on each June 30 beginning June 30, 2022. Assuming that an interest rate of 11% properly reflects the time value of money in this situation, at what amount should Johnstone value the equipment?

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