pls answer the follow question Pina Ltd. purchased a used truck from Trans Auto Sales Inc. Pina paid a $4,500 down payment and signed a note that calls for 36payments of $1,047.00 at the end of each month. The stated rate of interest in the note is 4%. As an incentive for entering into thecontract, Trans has agreed to forgive the first two payments under the lease.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.(a)What was the purchase price of the used truck excluding the incentive given? (For calculation purposes, use 5 decimal places asdisplayed in the factor table provided. Round final answers to 2 decimal places, e.g. 5,275.25. Round interest rate per month to 4 decimalplaces, e.g. 1.5792%.)Purchase price of the used truckLA

The cost of acquiring an asset is called the purchase price and the down payment is the initial…

Answered: Pina Ltd. purchased a used truck from…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 19P

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Falk Enterprises borrowed $8,500 at 6.25% compounded semiannually to purchase a new forklift. The loan agreement stipulates regular semiannual payments of $1,576 (except for a smaller final payment) be made over the next three years. Prepare the full amortization schedule for the loan. Calculate the total interest paid. (Round your Intermedlate calculations and final answers to 2 declmal places. Leeve no cells blank - be certaln to enter "0" wherever required.) Payment number Interest portion $ Principal portion $ Principal balance $ 8,500.00 Payment $ nts 1. eBook 4. Print Total: References Mc Graw Hill connect W
Stellar Corporation purchased equipment and in exchange signed a two-year promissory note. Thenote requires Stellar to make a single payment of $100,000 in two years. Stellar has other promissory notes that charge interest at the annual rate of 5 percent.Required:1. Compute the present value of the note, rounded to the nearest dollar, using Stellar’s typicalinterest rate of 5 percent.2. Show the journal entry to record the equipment purchase (round to the nearest dollar).
Delaney Company leases an automobile with a fair value of $10,000 from Simon Motors, Inc., on the following terms. 1. Non-cancelable term of 50 months. 2. Rental of $200 per month at the beginning of each month. (The present value at 0.5% per month is $8,873.) 3. Estimated economic life of the automobile is 60 months. 4. Delaney's incremental borrowing rate is 6% a year (0.5% a month). Simon's implicit rate is unknown. Instructions a. What is the present value of the lease payments to determine the lease liability? b. Record the lease on Delaney's books at the commencement date. c. Record the first month's lease payment (at commencement of the lease). d. Record the second month's lease payment. e. Record the first month's depreciation on Delaney's books (assume straight-line).
AB leases 100 desk phones for use in one of its offices. The contract term states that there will be an annual rental payment of R9 000 for eight years. The lease arrangement begins on 1 July 20x0. As an incentive to AB, no payment is required in the first year. The desk phones are to be classified as low-value items.Prepare the correct debit or credit entry that would be required in Entity AB’s income statement for the year ended 30 June 20x1 in respect of the above transaction.
Valley Produce received $50,000 in vendor financing at 7.8% compounded semiannually for the purchase of harvesting machinery. The contract requires equal annual payments for seven years to repay the debt. Construct the amortization schedule for the debt. How much interest will be paid over the seven-year term? (Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "O" wherever required.) Payment number 0 1 2 4567 Payment $ Total: Interest portion $ Principal portion $ Principal balance $ 50,000.00
General Computers Inc. purchased a computer server for $57,500. It paid 35.00% of the value as a down payment and received a loan for the balance at 10.50% compounded semi-annually. It made payments of $2,450.35 at the end of every quarter to settle the loan. a. How many payments are required to settle the loan? 0 payments Round up to the next payment b. Fill in the partial amortization schedule for the loan, rounding your answers to two decimal places. Payment Number Payment Interest Portion Principal Portion Principal Balance 0 $37,375.00 1 $0.00 $0.00 $0.00 $0.00 2 $0.00 $0.00 $0.00 $0.00 : : : : : :
General Computers Inc. Purchased a computer server for $72,000. It paid 30.00% of the value as a down payment and received a loan for the balance at 7.50 compounded semi annually. It made payments of $2,650.32 at the end of every quarter to settle the loan. A. How many payments are required to settle the loan? compounded
Murray Countertops borrowed $6500 at an annual rate of 8% to buy a used forklift. Murray amortized the loan in 4 annual payments Prepare an amortization schedule, using the amortization table, for the loan and use it to answer the questions. Click here to view page 1 of the Amortization Table. Click here to view page 2 of the Amortization Table. The amount of interest for the first payment period is $ 520 (Round to the nearost cent as needed) The portion of the second payment that is applied to reduction of the principal is $
Southtown Corporation purchased equipment and in exchange signed a two-year promissory note.The note requires Southtown to make a single payment of $100,000 in two years. Southtown hasother promissory notes that charge interest at the annual rate of 6 percent.Required:1. Compute the present value of the note, rounded to the nearest dollar, using Southtown’s typical interest rate of 6 percent.2. Show the journal entry to record the equipment purchase (round to the nearest dollar).3. Show the adjusting journal entry at the end of the first year to record interest on the note.
General Computers Inc. purchased a computer server for $70,000. It paid 35.00% of the value as a down payment and received a loan for the balance at 4.50% compounded semi-annually. It made payments of $2,850.75 at the end of every quarter to settle the loan. a. How many payments are required to settle the loan? payments Round up to the next payment b. Fill in the partial amortization schedule for the loan, rounding your answers to two Question 3 of 7 b. Fill in the partial amortization schedule for the loan, rounding your answers to two decimal places. Payment Number 0 1 2 Payment Interest Portion Principal Portion Principal Balance $45,500.00 11

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