non-interest-bearing note payable: present value

Caloulator Non-Interest-Bearing Note Payable: Present Value General Journal Balance Sheet On January 1,2016, Northem Manufacturing Company bought a piece of equipment by signing a non-interest-bearing $80,000, 1-year note. The face value of the note includes the price of the 0quipment and the interest The emotive terest rates an annual rate of 16%, and the note is to be paid four S20.000 aane ty stall eres on March 31 June 30 September 30, and December 31. The price of the equipment the present value of the tour payments discounted at the effective rterest rate Required: 1. Prepare all journal entries to record the preceding information Present value techniques should be used 2. If Northen's inancial statements were issued on June 30, 2016, what amount would me company report as notes payable? Chart of Accounts CHART OF ACCOUNTS Northern Manufacturing Company General Ledger ASSETS REVENUE 111 Cash 121 Accounts Receivable 125 Notes Receivable 141 Inventory 152 Prepaid Insurance 181 Machine 189 Accumulated Depreciation 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 LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 260 Notes Payable 261 Income Taxes PayableDiscount on Notes Payable EQUITY 311 Common Stock 331 Retained Earnings ook Calculator General Journal Prepare the necessary journal entries to record: 1. the purchase of the machine and signing of the note on January 1, 2016 2. the quarterly payments on March 31, June 30, September 30 and December 31 Additional Instructions PAGE 9 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF DEBIT CREDIT 10 12 12 13 14 15 16 17 18 19 Balance Sheet Complete Northern Manufacturing Company's partial balance sheet on June 30, 2016. Additional Instructions Northern Manufacturing Company Partial Balance Sheet June 30, 2016 1Current Liabilities: 2 Notes payable Less: Discount on notes payable 1 1 1 1 Future Value of 1 n1.5% 4.0% 4.5% 5.0% 55% 60% 70% 80% '90%-10.0% 12.0% 1.0% 16.0% 1 1.015000 1040000 1045000 1.050000 1055000 1060000 1.070000 1000 100 1.100000 1.120000 1.140000 1.180000 1. 21.030225 1081600 1092025 1.102500 1.113025 .123600 1.144900 1166400 1.188100 1.210000 2400 12006c0 1.45600 1.3 3 1.045678 1124864 1141166 1.157625 1.174241 1.191016 1,22504 1.250712 1.290029 1.301000 14040, 1401544 150 e16 1 4 1.061364 1.169859 1.192519 1.21506 238825 1.262477 1.31079 1360489 14112 1.464100 1.573519 1,680060 1.810830 5 1.077284 1.216653 1246182 1276282 306960 1338226 1.402552 1469328 1538624 1.610510 1.702342 1925415 6 1,080443 1265319 1.302260 1340096 1378843 1.418519 1500730 1.586874 1.677100 1.771561 1973823 2194973 2436306 7 1.109845 1.315932 1.360862 1.407100 1.454679 1503630 1.605781 1.713824 82039 940717 221008 8 1.126493 1.368569 1.422101 1477455 1.534687 1.593848 1.718186 1850930 1.992563 2143569 2475063 9 1.143390 1423312 1.486095 1581328 1,619094 1.89479 1.838459 1.900 2171893 2.357948 277309 325199 3.00298 10 1.160541 1.480244 1552969 1628895 1708144 1.790848 1967151 2.158925 2367364 2.593742 3.105848 11 1,177949 1.539454 1.622853 1.710339 1802092 1.898299 2.104852 2.331639 2580426 2853117 2 1.195618 1.601032 1.695881 1.795856 1.901 13 1.213552 1,065074 1.772196 1.885649 2006774 2.132928 2 400845 14 1231750 1731670 1851945 1,97032 2 15 1.260232 1.800044 1.935282 2 s 1.268066 1872901 2022370 2182875 2355263 2540062 2952104 342se0 70so6 isans et3O001 17 1.280020 1,947900 2.113377 2292021 2.484802 2692773 3.158815 3 2100342 2.2 2.852580 3.27041537 3478550 226232 5,11726 207 201219 2252192 2518170 2012065 3.138428 3806070 481700 5,3027 72 191 220804 2578534 2937194 3341727 3974 47112 620134 7975181 1 2,710624 3 065803 3,452271 360483 .402411 6.606701 2110001 2200004 2578534 2937194 3341727 3m408 4M7 3.797498 4887112 6201349 ,0751S io. 078928 2232470 239655 2.759032 3172160 3642482 177248 54735 7137 9205521 11 7000184327633 5054470 6.868041 927646412467685 10. 1307341 2025017 2208479 2406619 2621408 285439 337982 398010 717120 9917 78988 10575189 14462314 10 3 616528 4315701 5,141681 .115909861276 12055693 167765172 19 1.326951 2.106849 2.307860 2.526950 2.765647 3025600 20 1346856 2.191123 2411714 2653298 2917757 3207135 3869684 4860957 56044" 6zzso 9840 13743400 21 1.367058 2.278768 2520241 2.785063 3 627500 9646293 13,743490 19.460759 27 3078234 3309564 4140562 5033834 6108808 7.400250 10.803848 15 667578 22 574481 32 1 1 22 1.387564 2.369919 2.633652 225261 3247537 3.603537 4.430402 5436540 6658600 8.140275 12.100310 17 861039 26.186398 23 1.408377 2464716 2.752166 3,071524 3426152 3.819750 4740530 5,871464 7257874 8 24 1.429503 2.583304 2.876014 3,225100 3.614580 .048935 .072367 6341181 7.911083 9.849733 15.178629 23.212207 35.236417 53 8.954302 13.552347 20361585 30.378222 45 1.450945 266583 3006434 3.386355 3813392 291871 .427433 6848475 8.623081 10834706 17.000064 26.461916 40.874244 62 26 1.472710 2.772470 3.140679 3555673 4023129 4540083 5807353 7396353 9399158 1191817 19040072 30166584 474 14123 734 27 1.494800 2 883369 3.282013 3733456 4244401 4822346 6213868 7.988061 10.245082 13.10994 21.324881 34389906 55.00082 87 1517222 2.998703 3.429700 3920159 4477843 5.111687 6.648838 8.627106 167140 14420994 23883866 39.204493 63.800444 102 317275 1212182 15 863093 2.74993044 893122 74008815 21. 29 1.539981 30 1.563080 3.118651 3.584036 4.116136 4724124 5.418388 7.114257 9 3243398 3.745318 4321942 4983951 $.743491 7.61225s 10.062657 13.267678 17.449402 299522 50 950159 85.849877 Future Value of an Ordinary Annuity of 1 n15% 4.5% 5.0% 3.5% 60% 70% 8.0% 90% 10.0% 12.0% 140% 11.000000 1000000 1.000000 1000000 1000000 1000000 1000000 1000000 000000 1000000 1,000000 1000000 22.015000 2.040000 2045000 2050000 2065000 2.000000 2.070000 2080000 200000 2.1000co 2120000 2.140000 3 3045225 3.12160 3.137025 3152500 3.168025 3.183000 3.214900 3246400 3270100 3310000 3.374400 3439600 4.090903 .248464 4278191 310125 342266 4374616 4439943 4508112 4573129 441000 4.779328 4921144 s 5.152267 5.416323 5470710 5.525631 5.581091 637093 5.750730 5.8666015964711 6.105100 6352847 6610104 6.229551 6.632975 6.716892 6801913 6.888051 6.976319 7.13291 7.335929 75233367,715610 8.115189 53551 7.322994 7.898294 8.019152 8.142011 8.206894 6.39383 8 654021 8.922803 200735 9.487171 10.090012 10.730401 8432830 9214226 9380014 9540100 g 721573 9007468 102soooo 10000as "o20474 11435668 12299003 13.mroo 9.550332 10.582795 10.002114 11.020504 11.256200 11.401316 11.977000 12.467558 13.021000 13.570477 14.775656 16.085347 1 1 1 1 eBook 10 10.702722 12.006107 12.288209 12.577893 12875354 13,180795 13.816448 14.486562 11 11.863262 13.486351 13.841179 14.208787 14 2 13.041211 15.025805 15.464032 15.917127 16385591 10.809941 17 888451 18.977120 20.140720 21384284 24.133133 13 14.236830 16.626838 17.159913 17.712983 18286798 18.882138 20.140643 21495297 22.953385 24 522712 28.029109 32.088654 14 15.450382 18.291911 18.932109 19.598632 20292572 21.015066 15 16.682138 20.023588 20.784054 21.578564 22.408863 23 275970 25.12022 27 152114 29360916 31.772482 37 270715 43.842414 16 17.932370 21.824531 22.719337 23.657492 24841140 25 672528 27 888054 30.324283 33003399 35.949730 2.753280 50352 17 19.201665 23 697512 24.741707 25 840366 26996403 28 212880 30.840217 33.750226 36.973705 40.544703 .883674 59.117601 7 18 20 489376 25.645413 26 855084 28.132385 29481205 30905653 33999033 37.450244 41.301338 45,5991 73 749715 68304066 8 19 21.796716 27.671229 29.063562 30539004 32102671 33.759992 37378965 41.446263 48.018458 1.15090 63439681 78.969235 20 23.123667 29.778079 31.371423 33.065054 34 868318 36.785591 40995492 45.761964 51.160120 7.274999 72.052442 91.0249281 21 24 470622 31.969202 33.783137 35719252 37786076 39.992727 44865177 50422921 56.764b64.002499 81698736 104 768418 1 22 25.837580 342479736303378 38505214 40864310 43392290 49006739 56.456755 e2 87308 71402749 92502584 120.435996 1s 23 27225144 36617889 38037000 41430475 44.111847 46.995828 53436141 60.893296 69531909 7954024 10.600894 130, 29700 24 28.633521 39.082604 41.689196 44501999 47537998 50.815577 58.176671 66.764759 76.789813 88.497327 118.155241 158.658620 2 25 30.063024 41.645908 44.565210 47.727099 51.152588 54.884512 63.249038 73.105940 84.700896 98.347059 133.333870 181.870827 26 31.513969 44.311745 47.570645 51.113454 54965981 59.156383 68.676470 79.964415 93.323977 109.181765 150 333934 208.332743 29 27 32.986678 47.084214 50.711324 54669126 58.989109 63.705766 74.483823 87.350768 102.723135 121.099942 169.374007 238.499327 33 20 34, 401479 49.96750g 53 993 50 402563 63200510 68.529112 80607601 9530880 ,12968217 134209906 190000087 272089233 3g 29 35.998701 52.966286 57423033 62322712 67.711354 73.639798 87 346529 103.965938 124.135358 148.630930 214 582754 312.093725 45 30 37.538681 56.084938 61.007070 66.438848 72 435478 79.058186 94.460786 113.283211 136.307539 164.494023 241.332684 356.786847 53 15.192930 15.937425 17 5487351933729s 583498 14971643 15.783599 16.645487 17.560293 18.531167 20.654583 23044516 2 27 270749 3 22 550488 24 214920 26.019189 279749863 32.39260 37.581065 4 Present Value of 1 n1.5% 4.0% 4.5% 5.0% 5.5% 60% 70% a0% ,9.05. 10.0% 1200% 14.0% 16.0% 18.0% 1 0985222 0 961538 0956938 0.952381 0947867 0.943396 0934579 0925926 0917431 090S091 0802957 0877100 eo o8474sa 2 0970662 0.924556 0915730 0.907029 0898452 0.889996 0.873439 0857339 0.841680 0.826446 0.797194 0769468 0.743163 0.718184 3 0.956317 0.888996 0.876297 0.863838 0851614 0.839619 0.816298 0.793832 0.772183 0.751315 0.711780 0674972 0.640658 0.808631 4 0942184 0854804 0838561 0822702 0807217 0.792094 0.762895 073500708425 0.683013 0535518 0592000 0552291 0515789 5 0928260 0821927 0802451 783526 0765134 0747258 0712986 oeeses o640931 062021 0567427 osigges omsns oano 0.914542 0.790315 0.767896 0.746215 0.725246 0.704961 0.66342 630170 0.596267 054474 0.506631 0.455587 0.410442 0.370432 7 0.901027 0.759918 0.734828 0710681 0887437 0.665057 0.6227T50 0583490 0.547034 0.513s 0.452349 0399637 0353830 0.313825 0.887711 0730090 0.703185 0 676830 0651500 0027412 0.82012 s40200 0.501806 0.460507 0403863 0.350550 0.305025 0266038 9 0.874592 0.702587 0672904 0 644600 0617629 0.591808 0.543934 500249 0400428 0.424068 0360610 0.307508 0.262953 0.22545 10 0.861667 0 675564 0.043928 0613913 0585431 0.558395 0508349 0463193 0422411 0385543 0.321973 0209744 0220684 0.191004 11 0848933 0.649581 0.616199 0.584679 0554911 0.526788 0.475093 0.428883 0.387533 0.35044 0287476 0.236617 0.195417 0.161919 12 0.806367 0.624597 0589664 0.556837 0525982 0496969 0.444012 0397114 0.355535 0318631 0256675 0.207559 0.168463 0.13722 13 0.824027 0.600574 0.564272 0.530321 0408561 0.468839 0.414964 0.367698 0.326179 0.289664 0.229174 0.182069 0.145227 0.116288 14 0.811849 0.577475 0.539973 0.505068 0472569 0.442301 0.387817 0.340461 0.299246 0.263331 0.204620 0.159710 0.125195 0.098549 15 0.799852 0.555265 0.516720 0.481017 0447933 0.417265 0.362446 0.315242 0274538 0239392 0.182696 0.140096 0.107927 0.083516 16 0.788031 0.533908 0.494469 0.458112 0424581 0.393646 0.338735 0.291890 0251870 0217629 0.163122 0122892 0093041 0.070776 17 0.776385 0.513373 0.473176 0.430297 0402447 0.371364 0.316574 0.270269 0231073 0.197845 0.145644 0.107800 0.080207 0.059980 18 0.764912 0.493628 0.452800 0.415521 0381466 0350344 0.295864 0.250249 0211994 0.179659 0.130040 0.094561 0.069144 0.050830 19 0.753607 0.474642 0.433302 0395734 0361579 0.330513 0.276508 0.231712 0194490 0.163508 0.116107 0.082948 0.050607 0.043077 20 0.742470 0.456387 0.414643 0376889 0342729 0.311805 0.258419 0214548 0.178431 0.148644 0.103667 0.072762 0.051385 0.036506 21 0.731498 0.438834 0.396787 0.358942 0324862 0.294155 0.241513 0.198656 0.163698 0.135131 0.092560 0063826 0.044298 0.030937 eBook Calculator 22 18.620824 14.451115 13.784425 13.163003 12583170 12.041582 11.061240 10.2010449.442425 8.771540 7.844646 6.742944 6.011326 23 19.330861 14856842 14.147775 13.488574 12.875042 12.303379 11.272187 10.371059 9.580207 883218 7.718434 6.792056 6044247 24 20.030405 15.246963 14.495478 13.798642 13.151699 12.550358 11.469334 10.528758 9.706612 8984744 7.784316 6.835137 6072627 25 20.719611 15.622080 14.828209 14.093945 13.413933 12.783356 11.663583 10.674776 9.822580 9.077040 7,843139 6.872927 6.097092 26 21.398632 15.982769 15.146611 14.375185 13662495 13003168 11825779 10.809978 9.928972 9.160945 7.895680 6.906077 6.118183 27 22.067817 16.329586 15.451303 14643034 13.898100 13.210534 11.986709 10.935165 10.026580 9 237223 7.9425546.935155 6.136364 28 22.726717 16.603063 15.742874 14898127 14.121422 13406164 12.137111 1051078 10.116128 9.306587 7.984423 6960662 6.152038 29 23.376076 16.983715 16.021889 15.141074 14.333101 13 590721 12.277674 11.158406 10.198283 9369606 8.021806 6.983037 6.165550 30 24.015838 17.292033 16.288889 1.372451 14.533745 13.764831 12.409041 11.257783 10.273654 9.426914 8055184 70026646.179 Present Value of Annuity Due Dni 9.0% 10.0% 12.0% 14.0% 16.0% 1 1000000 1.000000 1.000000 1.000000 1000000 1000000 1000000 1000000 1000000 1.000000 1000000 1.000000 1.000000 2 1.985222 1.9615381.956938 1.952381 19478671.943390 1.934579 1.9259261.917431 1.909091 1.892857 1.877193 1.802069 3 2.955883 2.886095 2.872668 2.859410 2.846320 2833393 2808018 2.783265 2750111 2.735537 2690051 2.646661 2.60523 4 3.912200 3.775091 3.748964 3.723248 3697933 3673012 3624316 3.577097 3531295 3486852 3.401831 3.321632 3.245890 5 4.854385 4.629895 4587526 .545951 4.505150 4.465108 4.387211 4.312127 4239720 4.169865 4.037349 3.913712 3.798181 6 5.782645 5.451822 5.389977 5.329477 5.270284 5212364 5100197 4.992710 4.889651 4.7907874.604776 4433081 4.274294 6.697187 6.242137 6.157872 6.075692 5.995530 5.917324 5.766540 5.622880 5.485919 5.355261 5.111407 4.888668 4.684738 8 7.598214 7.002055 6.892701 6.786373 6.682967 .582381 6.389289 6.206370 6.032953 5.8684195563757 5.288305 5.038565 4.0% 4, 5% 50% 55% 6.0% 7.0% 80% 8.485026 7.732746 7.505888 7.463213 7.334666 7209794 6971290 6.746630 6534810 6.334026 .067640 6.638864 6.3435 1 1 Caloulator 9 8.485925 7.732745 7.595886 7.463213 7.334566 7209794 6971299 6.746639 6.534819 6.334926 5.967640 5.638864 5.343591 10 9.360517 8.435332 8268790 .107822 7952195 7801692 7515232 7246888 6.995247 6759024 6.328250 5.946372 5.608544 11 10.222185 9.110898 8.912718 8721735 8.537620 8.380087 8023582 7,710081 7.41765e 7,144567 6.650223 6216116 5.833227 12 11.071118 9.780477 9528917 9306414 9.02536 8.886875 8496674 13964 7.805191 7.495061 6.937699 6.452733 6028044 13 11.907505 10.385074 10.118581 9863252 9618518 9.383844 8942686 8536078 8.160725 7.813692 7.194374 6660292 6.197107 10.985648 10.682852 10.393573 10.117079 9 852683 9 357651 8.903776 84B6904 8.103356 7.423548 6.842362 6.342334 589648 10.294984 9745468 9244237 8.78150 8366687 7.628168 7.002072 6.467529 16 14.343233 12.118387 11.739546 11379658 11.037581 10.712249 10.107914 9559479 9060688 8600o 7.810864 7.142168 6.575456 12 652296 12 234015 11.837770 11.462162 11.105895 10.446649 9.851369 9312558 8.823709 7.973986 7.265050 6.668497 638 9543631 9.021553 8.119630 7.3728596.748704 11059087 10.371887 755625 9201712 8249670 7.467420 6817848 20 17 426168 14.133939 13 503294 13.085321 12.607654 12.158116 11.33559s 10.803599 9.950115 9.364920 8.365777 7.550369 6877455 21 18.168609 14 590326 14.007936 13.462210 12.950382 12.46921 11594014 10.818147 10.128546 9513564 8.469444 7623131 6.928841 22 18.900137 15.029160 14.404724 13821153 327524 12.764077 11.835527 11.016803 10.292244 9648694 8562006 7686957 6.973139 23 19.620824 15.451115 14.784425 14.163003 13583170 13041582 12 061240 11 201044 10.442425 9.771540 8.644646 7.742944 7.011326 24 20.330861 15.856842 15.147775 14.488574 13.875042 13.303379 12 272187 11.371059 10.580207 9883218 8718434 7.792056 7044247 25 21.030405 16.246983 15.495478 14.798642 14.151699 13.550358 12 469334 11.528758 10.706612 9.984744 8.784316 7.835137 7072827 26 21.719611 16.622080 15.828209 15.093945 14.413933 13.783356 12.653583 11.674776 10.822580 10.077040 8.843139 7 872927 7097092 27 22.398632 16.982769 16.146611 15.375185 14662405 140166 12 825779 11809978 109292 10160945 8.895660 7 908077 7.118183 28 23.067617 17 329586 16.41303 15.643034 14.898100 14.210534 1296709 11935165 11.026580 10.237223 8942554 793515s 7.13634 15 13.543382 11.563123 11.222825 10.898641 10 17 15.131264 1 18 15.907649 13.165669 12 707191 12 274066 1164609 11.477260 10.763223 10.121 19 16.672561 13.659297 13.159992 12.689587 12.246074 11.827603 29 23.726717 17 663063 16.742874 15.898127 15.121422 14.408164 13.137111 12051078 11.116128 10.306567 8.984423 30 24376076 17.983715 17021889 16.141074 15.333101 14.590721 13277674 12.158406 11.198283 10 369606 9.021806 7.983037 7.165550