You are the aOcountant for Maly's Organzing Solutonn The company has been negutiating with various car...
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You are the aOcountant for Maly's Organzing Solutonn The company has been negutiating with various car dealrs in an aftempt to get the best deal on a iw ur m hemepainsmapager provides you wth a Surnmery of theoe offers and asks you to analyze thom to delormine tve best anangement The opsoms avalable are to IPay S30 000 cash I Issue an interost trea note tor $33600 repavable in 24 aqual monthly rstallments i issue a 9% nole for 529.000 repayable in 24 equal monthly instalments For ecar loan. Moly's Organizing's bank wil charge the company a nominal rate of 6% per arum payable monthly Requirements a. Analyze the offers in terms of the cost of the purchase expressed in present value terms. b. Independent of requirement (a), prepare the journal entry to record i) the purchase of the automobile assuming that Molly's Organizing issued the $29,000 note, and ii) the first payment on the loan. You are the aOcountant for Maly's Organzing Solutonn The company has been negutiating with various car dealrs in an aftempt to get the best deal on a iw ur m hemepainsmapager provides you wth a Surnmery of theoe offers and asks you to analyze thom to delormine tve best anangement The opsoms avalable are to IPay S30 000 cash I Issue an interost trea note tor $33600 repavable in 24 aqual monthly rstallments i issue a 9% nole for 529.000 repayable in 24 equal monthly instalments For ecar loan. Moly's Organizing's bank wil charge the company a nominal rate of 6% per arum payable monthly Requirements a. Analyze the offers in terms of the cost of the purchase expressed in present value terms. b. Independent of requirement (a), prepare the journal entry to record i) the purchase of the automobile assuming that Molly's Organizing issued the $29,000 note, and ii) the first payment on the loan.
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Answer rating: 100% (QA)
a Based on the below calculation table present value of option iii is 2994094 Refer column PV of EMI ... View the full answer
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
Posted Date:
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