President Company purchased merchandise from Captain Corporation on September 30, 2024. Payment was made in the form of a noninterest-bearing note requiring President to make six annual payments of $5,400 on each September 30, beginning on September 30, 2027. Required: Calculate the amount at which President should record the note payable and corresponding purchase on September 30, 2024, assuming that an interest rate of 9% properly reflects the time value of money in this situation.
President Company purchased merchandise from Captain Corporation on September 30, 2024. Payment was made in the form of a noninterest-bearing note requiring President to make six annual payments of $5,400 on each September 30, beginning on September 30, 2027. Required: Calculate the amount at which President should record the note payable and corresponding purchase on September 30, 2024, assuming that an interest rate of 9% properly reflects the time value of money in this situation.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:President Company purchased merchandise from Captain Corporation on September 30, 2024. Payment was made in the form of a
noninterest-bearing note requiring President to make six annual payments of $5,400 on each September 30, beginning on September
30, 2027.
Required:
Calculate the amount at which President should record the note payable and corresponding purchase on September 30, 2024,
assuming that an interest rate of 9% properly reflects the time value of money in this situation.
Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. Round your
intermediate calculations to the nearest whole dollar. (FV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1)
Amount recorded
S
24.224
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