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I am very overwhelmed on these problems, I understand 6-5, I just need help with the rest please! Thank you so much! Problem 6-1 John
I am very overwhelmed on these problems, I understand 6-5, I just need help with the rest please! Thank you so much!
Problem 6-1 John wants to buy a new gas Barbeque. The cost is S659.98. He will have to pay for it with 10% down and 5 equal annual payments that include interest at 6%. Calculate the payments. Amortize the payments. Problem 6-2 Suzie wants a new Jeep. The cost is $ 69,000. She will pay 10% down and the rest in five equal annual payments which include interest at 4%. Calculate the payments. Amortize the payments. Problem 6-3 Megan has just purchased a new goat. The cost was $ 1.000. She paid 10% down and will pay the rest in 4 equal annual installments which include interest at 8%. Calculate her payments and prepare an amortization schedule Problem 6-4 You have just purchased a new car for $60,000. You pay no money down and will make 60 equal monthly payments starting next month. The interest rate is 10% per year. Amortize the first three months of your loan Problems 6-5 Chris's Beamer Biz, Inc. Year 4-20X4, Paid her beginning accounts payable and received all owed her. Bought 5 Beamers, sold 10. Bought for $48.000 each, sold for $70,000. Bought for 25% down and the other 75% to be paid next year. Sold for 80% down with 20% to be paid next year. Paid workers what she owed them at the beginning plus $4.000 per month for eleven months, owed wages of $4,000 at the end of the year for December. Paid $3,000 for utilities. On January 1, she bought a pre-fabricated building to put on the land she invested in year 20X1. The building cost $200,000. It is expected that the building will last ten years and then be worth about 25% of the original cost. To buy the building, she took out a $160,000 interest-only mortgage from the bank and used $40,000 of the company's money. She must pay the bank 8% interest at the end of each year on the building's mortgage. The $160,000 will be due 10 years from the date of purchase. She paid the interest on the building's mortgage for Year 4 on December 31. On January 1, 20X4 she spent $60,000 on furniture and fixtures for the new building. It is estimated that these items will last 10 years and then be worth 10% of their value. She opened her new location on January 1. (She now operates two locations. She paid 10 months' rent on her first location at $1,000 per month. She paid Uncle Phil the interest owed on December 31. Remember she expenses her insurance at 300 per month Also, do not forget the depreciation on the sign. She paid last year's taxes. She paid a dividend of $30,000. She owes 20X4 taxes at the end of the year (same rate as last year). (Prepare Financials, which also includes Journal Entries & T-Accounts) Problem 6-6 Jerry wants to withdraw $2,000 per year for the next three years starting in one year. If the bank pays interest annually at 1%, how much must he put in today so that he can make the planned withdrawals? Problem 6-7 Samsun Company earned $400,000 last year. The company had 15,000 shares of common stock outstanding on January 1, sold 8,000 shares on May 1 and sold 4,000 shares on October 1. Calculate the EPS for Samsun. Problem 6-8 How much does Meghann need to invest today at 8% so that she can withdraw $75,000 each year for the next 20 years? Problem 6-9 Still on Meghann - What if Meghann wanted to withdraw $100,000 for 30 years - how much would she need to invest today at 8%? Problem 6-10 You started the year with a beginning balance in Rent Payable of $1,000. You paid 14 months' rent of $14,000. Record the journal entry. Problem 6-11 You started the year with a beginning balance in Prepaid Rent of $4,000. You paid 9 months of rent of $18,000. Record the journal entry. Problem 6-12 You started the year with $5,000 in Wages Payable. You paid $50,000 to your worker. You owed her $ 10,000 at the end of the year. Record the journal entries. Problem 6-13 You started the year with $ 1,500 in Prepaid Insurance. This was four months of insurance on a policy that expires this year. On May 1, you purchased a two-year policy for $4,800. Record the journal entries Problem 6-14 You want to buy a motorcycle from JD. The cost is $20,000, $2,000 down and the rest in three equal annual payment beginning one year from today. Interest is included in the payments at 10%. How much are the payments? Amortize the loan. Problem 6-15 You want to buy a bus. Cost is $180,000 with 10% down and the rest in 5 equal annual payments which include interest at 6%. The payments begin in one year. How much are the payments? Amortize the loan Step by Step Solution
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