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On October 1, Alpha borrowed $12,000 from Really Big Bank. the terms state an interest rate of 9%, with principal and interest due in two

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On October 1, Alpha borrowed $12,000 from Really Big Bank. the terms state an interest rate of 9%, with principal and interest due in two years on September 30. On this date, Alpha entered into a long-term lease agreement with Sunshine Servers. Terms called for five annual payments of $100,000 with the first payment due in one year. Alpha also guarantees a minimum residual value of $10,000 at the end of the lease term. Leases of this type call for the recognition of a Leased Asset and Lease Obligation each equal to the present value of all future cash flows (including any guaranteed residual value). the stated interest rate for this lease is 10%. Alpha pays their employees every other Friday. This bi-weekly payroll covers 10 days (M-F for two weeks). Payroll checks are written each payday for a total of $97,000. This year, December 31 falls on the Wednesday immediately before payday. At the beginning of the year, Alpha's inventory of supplies was $4, 500. During the year, Supplies were purchased for $21,000. Minions report the actual value of Supplies currently in inventory as $5, 600. On October 1, Alpha borrowed $12,000 from Really Big Bank. the terms state an interest rate of 9%, with principal and interest due in two years on September 30. On this date, Alpha entered into a long-term lease agreement with Sunshine Servers. Terms called for five annual payments of $100,000 with the first payment due in one year. Alpha also guarantees a minimum residual value of $10,000 at the end of the lease term. Leases of this type call for the recognition of a Leased Asset and Lease Obligation each equal to the present value of all future cash flows (including any guaranteed residual value). the stated interest rate for this lease is 10%. Alpha pays their employees every other Friday. This bi-weekly payroll covers 10 days (M-F for two weeks). Payroll checks are written each payday for a total of $97,000. This year, December 31 falls on the Wednesday immediately before payday. At the beginning of the year, Alpha's inventory of supplies was $4, 500. During the year, Supplies were purchased for $21,000. Minions report the actual value of Supplies currently in inventory as $5, 600

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