pv

pva

Exercise 9-9 (Algo) Compare installment notes and leases (LO9-2, 9-3) January 1, 2024, Paradise Partners decides to upgrade recreational equipment at its resorts. The company is contemplating whether to purchase or lease the new equipment. Use PV of $1 and PVA of S1. (Use appropriate factor(s) from the tables provided.) Required: 1. The company can purchase the equipment by borrowing $204,000 with a 20 -month, 12% installment note. Payments of $11,304.72 are due at the end of each month, and the first installment is due on January 31, 2024. Record the issuance of the installment note payable for the purchase of the equipment. 2. The company can sign a 20 -month lease for the equipment by agreeing to pay $8.035.22 at the end of each month, beginning January 31,2024 . At the end of the lease, the equipment must be returned. Assuming a borrowing rate of 12%, record the lease. Journal entry worksheet The company can purchase the equipment by borrowing $204,000 with a 20 month, 12% installment note. Payments of $11,304.72 are due at the end of each month, and the first installment is due on Januart 31,2024 . Record the issuance of the installment note payable for the purchase of the equipment. Note: Enter debits before credits. Journal entry worksheet The company can sign a 20-month lease for the equipment by agreeing to pay $8,035.22 at the end of each month, beginning January 31,2024 . At the end of the lease, the equipment must be returned. Assuming a borrowing rate of 12%, record the lease. Note: Enter debits before credits. Twhic 2 Truadi Value of 41