Future Value of an Ordinary Annuity of 1 FO,n,i=i(1+i)n1 Chart of Accounts CHART OF ACCOUNTS Cordova Company General Ledger ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Equipment 184 Machine 198 Accumulated Depreciation LIABILITIES 211 Accounts Payable 221 Notes Payable 222 Discount on Notes Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable EQUITY 311 Common Stock 312 Preferred Stock 314 Additional Paid-In Capital on Preferred Stock 331 Retained Earnings REVENUE 411 Sales Revenue EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense Future Value of 1 fn,i=(1+i)n \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline n & 1.5% & 4.0% & 4.5% & 5.0% & 5.5% & 6.0% & 7.0% & 8.0% & 9.0% & 10.0% & 12.0% & 14.0% & 16.0% & 18.0% \\ \hline 1 & 1.015000 & 1.040000 & 1.045000 & 1.050000 & 1.055000 & 1.060000 & 1.070000 & 1.080000 & 1.090000 & 1.100000 & 1.120000 & 1.140000 & 1.160000 & 1.180000 \\ \hline 2 & 1.030225 & 1.081600 & 1.092025 & 1.102500 & 1.113025 & 1.123600 & 1.144900 & 1.166400 & 1.188100 & 1.210000 & 1.254400 & 1.299600 & 1.345600 & 1.392400 \\ \hline 3 & 1.045678 & 1.124864 & 1.141166 & 1.157625 & 1.174241 & 1.191016 & 1.225043 & 1.259712 & 1.295029 & 1.331000 & 1.404928 & 1.481544 & 1.560896 & 1.643032 \\ \hline 4 & 1.061364 & 1.169859 & 1.192519 & 1.215506 & 1.238825 & 1.262477 & 1.310796 & 1.360489 & 1.411582 & 1.464100 & 1.573519 & 1.688960 & 1.810639 & 1.938778 \\ \hline 5 & 1.077284 & 1.216653 & 1.246182 & 1.276282 & 1.306960 & 1.338226 & 1.402552 & 1.469328 & 1.538624 & 1.610510 & 1.762342 & 1.925415 & 2.100342 & 2.287758 \\ \hline 6 & 1.093443 & 1.265319 & 1.302260 & 1.340096 & 1.378843 & 1.418519 & 1.500730 & 1.586874 & 1.677100 & 1.771561 & 1.973823 & 2.194973 & 2.436396 & 2.699554 \\ \hline 7 & 1.109845 & 1.315932 & 1.360862 & 1.407100 & 1.454679 & 1.503630 & 1.605781 & 1.713824 & 1.828039 & 1.948717 & 2.210681 & 2.502269 & 2.826220 & 3.185474 \\ \hline 8 & 1.126493 & 1.368569 & 1.422101 & 1.477455 & 1.534687 & 1.593848 & 1.718186 & 1.850930 & 1.992563 & 2.143589 & 2.475963 & 2.852586 & 3.278415 & 3.758859 \\ \hline 9 & 1.143390 & 1.423312 & 1.486095 & 1.551328 & 1.619094 & 1.689479 & 1.838459 & 1.999005 & 2.171893 & 2.357948 & 2.773079 & 3.251949 & 3.802961 & 4.435454 \\ \hline 10 & 1.160541 & 1.480244 & 1.552969 & 1.628895 & 1.708144 & 1.790848 & 1.967151 & 2.158925 & 2.367364 & 2.593742 & 3.105848 & 3.707221 & 4.411435 & 5.233836 \\ \hline 11 & 1.177949 & 1.539454 & 1.622853 & 1.710339 & 1.802092 & 1.898299 & 2.104852 & 2.331639 & 2.580426 & 2.853117 & 3.478550 & 4.226232 & 5.117265 & 6.175926 \\ \hline 12 & 1.195618 & 1.601032 & 1.695881 & 1.795856 & 1.901207 & 2.012196 & 2.252192 & 2.518170 & 2.812665 & 3.138428 & 3.895976 & 4.817905 & 5.936027 & 7.287593 \\ \hline 13 & 1.213552 & 1.665074 & 1.772196 & 1.885649 & 2.005774 & 2.132928 & 2.409845 & 2.719624 & 3.065805 & 3.452271 & 4.363493 & 5.492411 & 6.885791 & 8.599359 \\ \hline 14 & 1.231756 & 1.731676 & 1.851945 & 1.979932 & 2.116091 & 2.260904 & 2.578534 & 2.937194 & 3.341727 & 3.797498 & 4.887112 & 6.261349 & 7.987518 & 10.147244 \\ \hline 15 & 1.250232 & 1.800944 & 1.935282 & 2.078928 & 2.232476 & 2.396558 & 2.759032 & 3.172169 & 3.642482 & 4.177248 & 5.473566 & 7.137938 & 9.265521 & 11.973748 \\ \hline 16 & 1.268986 & 1.872981 & 2.022370 & 2.182875 & 2.355263 & 2.540352 & 2.952164 & 3.425943 & 3.970306 & 4.594973 & 6.130394 & 8.137249 & 10.748004 & 14.129023 \\ \hline 17 & 1.288020 & 1.947900 & 2.113377 & 2.292021 & 2.484802 & 2.692773 & 3.158815 & 3.700018 & 4.327633 & 5.054470 & 6.866041 & 9.276464 & 12.467685 & 16.672247 \\ \hline 18 & 1.307341 & 2.025817 & 2.208479 & 2.406619 & 2.621466 & 2.854339 & 3.379932 & 3.996019 & 4.717120 & 5.559917 & 7.689966 & 10.575169 & 14.462514 & 19.673251 \\ \hline 19 & 1.326951 & 2.106849 & 2.307860 & 2.526950 & 2.765647 & 3.025600 & 3.616528 & 4.315701 & 5.141661 & 6.115909 & 8.612762 & 12.055693 & 16.776517 & 23.214436 \\ \hline 20 & 1.346855 & 2.191123 & 2.411714 & 2.653298 & 2.917757 & 3.207135 & 3.869684 & 4.660957 & 5.604411 & 6.727500 & 9.646293 & 13.743490 & 19.460759 & 27.393035 \\ \hline 21 & 1.367058 & 2.278768 & 2.520241 & 2.785963 & 3.078234 & 3.399564 & 4.140562 & 5.033834 & 6.108808 & 7.400250 & 10.803848 & 15.667578 & 22.574481 & 32.323781 \\ \hline 22 & 1.387564 & 2.369919 & 2.633652 & 2.925261 & 3.247537 & 3.603537 & 4.430402 & 5.436540 & 6.658600 & 8.140275 & 12.100310 & 17.861039 & 26.186398 & 38.142061 \\ \hline 23 & 1.408377 & 2.464716 & 2.752166 & 3.071524 & 3.426152 & 3.819750 & 4.740530 & 5.871464 & 7.257874 & 8.954302 & 13.552347 & 20.361585 & 30.376222 & 45.007632 \\ \hline 24 & 1.429503 & 2.563304 & 2.876014 & 3.225100 & 3.614590 & 4.048935 & 5.072367 & 6.341181 & 7.911083 & 9.849733 & 15.178629 & 23.212207 & 35.236417 & 53.109006 \\ \hline 25 & 1.450945 & 2.665836 & 3.005434 & 3.386355 & 3.813392 & 4.291871 & 5.427433 & 6.848475 & 8.623081 & 10.834706 & 17.000064 & 26.461916 & 40.874244 & 62.668627 \\ \hline 26 & 1.472710 & 2.772470 & 3.140679 & 3.555673 & 4.023129 & 4.549383 & 5.807353 & 7.396353 & 9.399158 & 11.918177 & 19.040072 & 30.166584 & 47.414123 & 73.948980 \\ \hline 27 & 1.494800 & 2.883369 & 3.282013 & 3.733456 & 4.244401 & 4.822346 & 6.213868 & 7.988061 & 10.245082 & 13.109994 & 21.324881 & 34.389906 & 55.000382 & 87.259797 \\ \hline 28 & 1.517222 & 2.998703 & 3.429700 & 3.920159 & 4.477843 & 5.111687 & 6.648838 & 8.627106 & 11.167140 & 14.420994 & 23.883866 & 39.204493 & 63.800444 & 102.966560 \\ \hline 29 & 1.539981 & 3.118651 & 3.584036 & 4.116136 & 4.724124 & 5.418388 & 7.114257 & 9.317275 & 12.172182 & 15.863093 & 26.749930 & 44.693122 & 74.008515 & 121.500541 \\ \hline 30 & 1.563080 & 3.243398 & 3.745318 & 4.321942 & 4.983951 & 5.743491 & 7.612255 & 10.062657 & 13.267678 & 17.449402 & 29.959922 & 50.950159 & 85.849877 & 143.370638 \\ \hline \end{tabular} Required: 1. Determine the cost of the machine. What principle guides the determination of the cost of the machine? 2. Prepare the journal entry to record the acquisition of the machine. 3. Next Level How would your answer change, if at all, if the $280,000 cash price were not available? 2. Prepare the journal entry to record the acquisition of the machine on January 1. General Journal Instructions How does grading work? Present Value of an Ordinary Annuity of 1 p Present Value of Annuity Due p1(1+i)n11+1 pn,i=(1+i)n1 Future Value of an Ordinary Annuity of 1 FO,n,i=i(1+i)n1 Chart of Accounts CHART OF ACCOUNTS Cordova Company General Ledger ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Equipment 184 Machine 198 Accumulated Depreciation LIABILITIES 211 Accounts Payable 221 Notes Payable 222 Discount on Notes Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable EQUITY 311 Common Stock 312 Preferred Stock 314 Additional Paid-In Capital on Preferred Stock 331 Retained Earnings REVENUE 411 Sales Revenue EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense Future Value of 1 fn,i=(1+i)n \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline n & 1.5% & 4.0% & 4.5% & 5.0% & 5.5% & 6.0% & 7.0% & 8.0% & 9.0% & 10.0% & 12.0% & 14.0% & 16.0% & 18.0% \\ \hline 1 & 1.015000 & 1.040000 & 1.045000 & 1.050000 & 1.055000 & 1.060000 & 1.070000 & 1.080000 & 1.090000 & 1.100000 & 1.120000 & 1.140000 & 1.160000 & 1.180000 \\ \hline 2 & 1.030225 & 1.081600 & 1.092025 & 1.102500 & 1.113025 & 1.123600 & 1.144900 & 1.166400 & 1.188100 & 1.210000 & 1.254400 & 1.299600 & 1.345600 & 1.392400 \\ \hline 3 & 1.045678 & 1.124864 & 1.141166 & 1.157625 & 1.174241 & 1.191016 & 1.225043 & 1.259712 & 1.295029 & 1.331000 & 1.404928 & 1.481544 & 1.560896 & 1.643032 \\ \hline 4 & 1.061364 & 1.169859 & 1.192519 & 1.215506 & 1.238825 & 1.262477 & 1.310796 & 1.360489 & 1.411582 & 1.464100 & 1.573519 & 1.688960 & 1.810639 & 1.938778 \\ \hline 5 & 1.077284 & 1.216653 & 1.246182 & 1.276282 & 1.306960 & 1.338226 & 1.402552 & 1.469328 & 1.538624 & 1.610510 & 1.762342 & 1.925415 & 2.100342 & 2.287758 \\ \hline 6 & 1.093443 & 1.265319 & 1.302260 & 1.340096 & 1.378843 & 1.418519 & 1.500730 & 1.586874 & 1.677100 & 1.771561 & 1.973823 & 2.194973 & 2.436396 & 2.699554 \\ \hline 7 & 1.109845 & 1.315932 & 1.360862 & 1.407100 & 1.454679 & 1.503630 & 1.605781 & 1.713824 & 1.828039 & 1.948717 & 2.210681 & 2.502269 & 2.826220 & 3.185474 \\ \hline 8 & 1.126493 & 1.368569 & 1.422101 & 1.477455 & 1.534687 & 1.593848 & 1.718186 & 1.850930 & 1.992563 & 2.143589 & 2.475963 & 2.852586 & 3.278415 & 3.758859 \\ \hline 9 & 1.143390 & 1.423312 & 1.486095 & 1.551328 & 1.619094 & 1.689479 & 1.838459 & 1.999005 & 2.171893 & 2.357948 & 2.773079 & 3.251949 & 3.802961 & 4.435454 \\ \hline 10 & 1.160541 & 1.480244 & 1.552969 & 1.628895 & 1.708144 & 1.790848 & 1.967151 & 2.158925 & 2.367364 & 2.593742 & 3.105848 & 3.707221 & 4.411435 & 5.233836 \\ \hline 11 & 1.177949 & 1.539454 & 1.622853 & 1.710339 & 1.802092 & 1.898299 & 2.104852 & 2.331639 & 2.580426 & 2.853117 & 3.478550 & 4.226232 & 5.117265 & 6.175926 \\ \hline 12 & 1.195618 & 1.601032 & 1.695881 & 1.795856 & 1.901207 & 2.012196 & 2.252192 & 2.518170 & 2.812665 & 3.138428 & 3.895976 & 4.817905 & 5.936027 & 7.287593 \\ \hline 13 & 1.213552 & 1.665074 & 1.772196 & 1.885649 & 2.005774 & 2.132928 & 2.409845 & 2.719624 & 3.065805 & 3.452271 & 4.363493 & 5.492411 & 6.885791 & 8.599359 \\ \hline 14 & 1.231756 & 1.731676 & 1.851945 & 1.979932 & 2.116091 & 2.260904 & 2.578534 & 2.937194 & 3.341727 & 3.797498 & 4.887112 & 6.261349 & 7.987518 & 10.147244 \\ \hline 15 & 1.250232 & 1.800944 & 1.935282 & 2.078928 & 2.232476 & 2.396558 & 2.759032 & 3.172169 & 3.642482 & 4.177248 & 5.473566 & 7.137938 & 9.265521 & 11.973748 \\ \hline 16 & 1.268986 & 1.872981 & 2.022370 & 2.182875 & 2.355263 & 2.540352 & 2.952164 & 3.425943 & 3.970306 & 4.594973 & 6.130394 & 8.137249 & 10.748004 & 14.129023 \\ \hline 17 & 1.288020 & 1.947900 & 2.113377 & 2.292021 & 2.484802 & 2.692773 & 3.158815 & 3.700018 & 4.327633 & 5.054470 & 6.866041 & 9.276464 & 12.467685 & 16.672247 \\ \hline 18 & 1.307341 & 2.025817 & 2.208479 & 2.406619 & 2.621466 & 2.854339 & 3.379932 & 3.996019 & 4.717120 & 5.559917 & 7.689966 & 10.575169 & 14.462514 & 19.673251 \\ \hline 19 & 1.326951 & 2.106849 & 2.307860 & 2.526950 & 2.765647 & 3.025600 & 3.616528 & 4.315701 & 5.141661 & 6.115909 & 8.612762 & 12.055693 & 16.776517 & 23.214436 \\ \hline 20 & 1.346855 & 2.191123 & 2.411714 & 2.653298 & 2.917757 & 3.207135 & 3.869684 & 4.660957 & 5.604411 & 6.727500 & 9.646293 & 13.743490 & 19.460759 & 27.393035 \\ \hline 21 & 1.367058 & 2.278768 & 2.520241 & 2.785963 & 3.078234 & 3.399564 & 4.140562 & 5.033834 & 6.108808 & 7.400250 & 10.803848 & 15.667578 & 22.574481 & 32.323781 \\ \hline 22 & 1.387564 & 2.369919 & 2.633652 & 2.925261 & 3.247537 & 3.603537 & 4.430402 & 5.436540 & 6.658600 & 8.140275 & 12.100310 & 17.861039 & 26.186398 & 38.142061 \\ \hline 23 & 1.408377 & 2.464716 & 2.752166 & 3.071524 & 3.426152 & 3.819750 & 4.740530 & 5.871464 & 7.257874 & 8.954302 & 13.552347 & 20.361585 & 30.376222 & 45.007632 \\ \hline 24 & 1.429503 & 2.563304 & 2.876014 & 3.225100 & 3.614590 & 4.048935 & 5.072367 & 6.341181 & 7.911083 & 9.849733 & 15.178629 & 23.212207 & 35.236417 & 53.109006 \\ \hline 25 & 1.450945 & 2.665836 & 3.005434 & 3.386355 & 3.813392 & 4.291871 & 5.427433 & 6.848475 & 8.623081 & 10.834706 & 17.000064 & 26.461916 & 40.874244 & 62.668627 \\ \hline 26 & 1.472710 & 2.772470 & 3.140679 & 3.555673 & 4.023129 & 4.549383 & 5.807353 & 7.396353 & 9.399158 & 11.918177 & 19.040072 & 30.166584 & 47.414123 & 73.948980 \\ \hline 27 & 1.494800 & 2.883369 & 3.282013 & 3.733456 & 4.244401 & 4.822346 & 6.213868 & 7.988061 & 10.245082 & 13.109994 & 21.324881 & 34.389906 & 55.000382 & 87.259797 \\ \hline 28 & 1.517222 & 2.998703 & 3.429700 & 3.920159 & 4.477843 & 5.111687 & 6.648838 & 8.627106 & 11.167140 & 14.420994 & 23.883866 & 39.204493 & 63.800444 & 102.966560 \\ \hline 29 & 1.539981 & 3.118651 & 3.584036 & 4.116136 & 4.724124 & 5.418388 & 7.114257 & 9.317275 & 12.172182 & 15.863093 & 26.749930 & 44.693122 & 74.008515 & 121.500541 \\ \hline 30 & 1.563080 & 3.243398 & 3.745318 & 4.321942 & 4.983951 & 5.743491 & 7.612255 & 10.062657 & 13.267678 & 17.449402 & 29.959922 & 50.950159 & 85.849877 & 143.370638 \\ \hline \end{tabular} Required: 1. Determine the cost of the machine. What principle guides the determination of the cost of the machine? 2. Prepare the journal entry to record the acquisition of the machine. 3. Next Level How would your answer change, if at all, if the $280,000 cash price were not available? 2. Prepare the journal entry to record the acquisition of the machine on January 1. General Journal Instructions How does grading work? Present Value of an Ordinary Annuity of 1 p Present Value of Annuity Due p1(1+i)n11+1 pn,i=(1+i)n1