Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kingsley Toyota borrowed $185,000 from a local bank. The loan requires Kingsley to pay 12 equal annual installments beginning one year from today. Assume an

image text in transcribedimage text in transcribedimage text in transcribed

Kingsley Toyota borrowed $185,000 from a local bank. The loan requires Kingsley to pay 12 equal annual installments beginning one year from today. Assume an interest rate of 9%. What is the amount of each annual installment payment? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) (Round your final answers to nearest whole dollar amount.) Table or calculator function: Loan Amount: n = i = Loan Payment: On December 31, 2018, Interlink Communications issued 5% stated rate bonds with a face amount of $101 million. The bonds mature on December 31, 2048. Interest is payable annually on each December 31, beginning in 2019. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Determine the price of the bonds on December 31, 2018, assuming that the market rate of interest for similar bonds was 6%. (Enter your answers in whole dollars. Round your final answers to nearest whole dollar amount.) Table values are based on: n = i = Cash Flow Amount Present Value Interest Principal Price of bonds On September 30, 2018, Ferguson Imports leased a warehouse. Terms of the lease require Ferguson to make 10 annual lease payments of $70,000 with the first payment due immediately. Accounting standards require the company to record a lease liability when recording this type of lease. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Assume a 8% interest rate. What amount should Ferguson record the lease liability on September 30, 2018, before the first payment is made? (Round your final answers to nearest whole dollar amount.) Table or calculator function: Lease Payment: n = i = PV of Lease

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Birth Of American Accountancy

Authors: Peter L. McMickle, Paul H. Jensen

1st Edition

0367534681, 9780367534684

More Books

Students also viewed these Accounting questions