Question
Please I just want question 3 and 4: On September 1, 2023, Ivanhoe Ltd. purchased equipment for $32,400 by signing a two-year note payable with
Please I just want question 3 and 4:
On September 1, 2023, Ivanhoe Ltd. purchased equipment for $32,400 by signing a two-year note payable with a face value of $32,400 due on September 1, 2025. The going rate of interest for this level of risk was 9%. The company has a December 31 year end. (The tables in this problem are to be used as a reference for this problem.) Click here to view Table A.2 - PRESENT VALUE OF 1 - (PRESENT VALUE OF A SINGLE SUM) Click here to view Table A.4 - PRESENT VALUE OF AN ORDINARY ANNUITY OF 1
1) Calculate the cost of the equipment, where necessary using any of the three methods (tables, financial calculator, or Excel), assuming the note is as follows: (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.)
1. | An 9% interest-bearing note, with interest due each September 1. |
2. | A 2% interest-bearing note, with interest due each September 1. |
3. | A non-interest-bearing note. |
Cost of the Equipment | ||||
1. | An 9% interest-bearing note | $enter a dollar amount rounded to 0 decimal places | ||
2. | A 2% interest-bearing note | $enter a dollar amount rounded to 0 decimal places | ||
3. | A non-interest-bearing note | $enter a dollar amount rounded to 0 decimal places |
2)Record all journal entries from September 1, 2023, to September 1, 2025, for an 9% interest-bearing note, with interest due each September 1. Ignore depreciation of the equipment.
3) Record all journal entries from September 1, 2023, to September 1, 2025, for a 2% interest-bearing note, with interest due each September 1. Ignore depreciation of the equipment.
4)D) Record all journal entries from September 1, 2017, to September 1, 2019, for a non-interest-bearing note. Ignore depreciation of the equipment.
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3 Record all journal entries from September 1 2023 to September 1 ...Get Instant Access to Expert-Tailored Solutions
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