1. In Red Square, Inc., constructs commemorative statues. Recently the company did a custom job for a customer, Stahlin, and received a zero coupon note as remuneration for their services. The job was completed on 1-1-9, and the note was received on the same day (also delivery occurred then). The face amount of the note was $ 25,000. and the note will be paid years on 1-1-15, for the face amount. The customer would normally borrow for 8% interest annually. Prepare the journal entry to record the 1-1-9 transaction. six the exact same facts as in 1, except that the coupon is 2% (not zero) paid annually, the journal entry. The One that got Away, Inc., leased a cruise ship under a lease containing a transfer of title provision at the conclusion of the lease (the corporation thus will include the ship as an asset on its books at the present value of the lease payments). The lease was entered into on 1-1-9, and the initial payment (annual payments are$500,000.) on the lease is immediately due and is paid on that day. The remaining 19 payments on the lease (all that will be paid for the asset) will be paid on the first of the year each year for another 19 years (the last payment will be on 1- 1-28). Since the company normally borrows at 8% what will be the initial carrying value of the equipment? Rumours of War, Inc., recently purchased a printing press to publish a newspaper. The company will be making installment payments to finance the purchase. The purchase was on 1-1-9, and the equipment was immediately put into use, and the payments ($ 6,500. a year) will be made annually, once a year at the end of each year, 12-31-9 being the first date of payment. The last payment will be made on 12-31-18. Since the company normally borrows at 8%, what will be the initial carrying value of the equipment? Write up an amortization schedule for a note of face value $ 100,000. that has a three year term, annual payments of 8,000 (8% coupon), and that is discounted to yield 10%. 3. 4. 5