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 answers to 0 decimal places, eg. 5,275.)

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 answers to 0 decimal places, eg. 5,275.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The direct-mail marketing company ABG buys a customer list for € 5.000 (e.g. a list of personal and other data of women who gave birth in the ABG Maternity Hospital in March 20X0). ABG expects that the catalog will be usable for 3 years, but the greatest return on the catalog will be in the first year after acquisition. How will the €5,000 be recognised and how will you deal with it after the initial recognition?
please answer with explanation thnku
Honda Motor Company is considering offering a $2,100 rebate on its minivan, lowering the vehicle's price from $30,900 to $28,800. The marketing group estimates that this rebate will increase sales over the next year from 39,100 to 56,800 vehicles. Suppose Honda's profit margin with the rebate is $5,090 per vehicle. If the change in sales is the only consequence of this decision, what are its costs and benefits? Is it a good idea? Hint: View this question in terms of incremental profits. The cost of the rebate will be $ million. (Round to one decimal place.)
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Ethics Case Electronics, Inc. is a high-volume, wholesale merchandising company. Most of its inventory turns over four or five times a year. The company has had 50 units of a particular brand of computers on hand for over a year. These computers have not sold and probably will not sell unless they are discounted 60 to 70%. The accountant is carrying them on the books at cost and intends to recognize the loss when they are sold. This way, she can avoid a significant write-down in inventory on the current year’s financial statements. 1. Is the accountant correct in her treatment of the inventory? Why or why not? 2. If the computers cost $1,000 each and their market value is 40% of their cost, journalize the entry necessary for the write-down. 3. In groups of three or four, make a list of reasons why inventories of electronic equipment might have to be written down.
bBramble Corporation builds in-home theater systems. Bramble’s business is growing quickly. Therefore, the CEO, Paul Bramble, decides to purchase three new trucks on September 20, 2017. The terms of acquisition for each truck are described below. 1. The first truck’s list price is $16,380. Bramble exchanges home theater equipment from its inventory for the truck. The home theater equipment cost Molitor $10,140. Bramble normally sells the equipment for $15,405. Bramble uses a perpetual inventory system. 2. The second truck has a list price of $17,160. Bramble makes a down payment of $3,900 cash on this truck and signs a zero-interest-bearing note with a face amount of $13,260. Payment of the note is due September 20, 2018. Bramble would normally have to pay interest at a rate of 8% for such a borrowing. 3. The list price of the third truck is $14,976. This truck is acquired in exchange for 936 shares of common stock in Bramble Corporation. The stock has a par value per…
Assume Costco wants to compete with large manufacturers of golf bags. Costco begins selling a new model of golf bag in its stores for $150. The bag comes with a coupon that customers may mail in to receive a free box of one dozen Kirkland (Costco's brand) golf balls. Each dozen golf balls cost Costco $9.50 to produce and $1.50 to mail to the customer. Kirkland estimates that 40% of the customers who buy a golf bag will mail in the coupon for the free golf balls. During the first quarter of 2020 Costco sold 12,000 golf bags. During that time, 1,000 customers mailed in their coupons and Costco sent them their golf balls. What is the rebate expense and liability, respectively, shown on Costco's financial statements at the end of the first quarter of 2020?
The Riteway Ad Agency provides cars for its sales staff. In the past, the company has always purchased its cars from a dealer and then sold the cars after three years of use. The company’s present fleet of cars is three years old and will be sold very shortly. To provide a replacement fleet, the company is considering two alternatives: Purchase alternative: The company can purchase the cars, as in the past, and sell the cars after three years of use. Ten cars will be needed, which can be purchased at a discounted price of $30,000 each. If this alternative is accepted, the following costs will be incurred on the fleet as a whole: Annual cost of servicing, taxes, and licensing $ 4,600 Repairs, first year $ 2,500 Repairs, second year $ 5,000 Repairs, third year $ 7,000 At the end of three years, the fleet could be sold for one-half of the original purchase price. Lease alternative: The company can lease the cars under a three-year lease contract. The lease…
Please do not give solution in image format ?
You sell $5 million dollars' worth of delivery trucks to Walmart on account and offer them a 2% discount if they pay within 15 days, with the invoice due after 45 days (2/15, n/45). Unfortunately, Walmart returns all of the trucks after one week because they discover that the model you sold them is not approved for use in California. Which of the following is part of the correct journal entry to make at the time that Walmart returns the trucks? DEBIT to Sales Returns of $5 million CREDIT to Sales Discount of $100,000 CREDIT to Accounts Receivable of $4.9 million CREDIT to Sales Revenue of $5 million
DJC Ltd., which uses IFRS, operates a coffee shop and began a promotion to increase the sales of its dark roast coffee in December 20X1. Every time that a customer buys a cup of this type of coffee for $2.00 each in December, the customer gets a coupon for 1 free mini cookie that usually sells for $.40 each and costs the company $.20 to produce. Customers cannot use or redeem the coupons until January 20X2. In December 20X1, the company sold 2,800 cups of dark roast coffee. Management expects customers will redeem 90% of the coupons based on many promotions like this that the company has had in the past. In the blank box below, please provide the amount asked for (when entering amounts please do not use commas, negative signs or dollar signs or cents - please round your answer to the nearest dollar). Blank 1: The sales revenue for the dark roast coffee in the month of December 20X1.
Suppose a certain car manufacturer's incentive program designed to reduce inventory of certain low-selling models offers a $9,000 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 $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 price? Round to the nearest tenth of a…