Q1. Explanation is required.

As CFO of a small manufacturing firm, you have been asked to determine the best financing for the purchase of a new piece of equipment. The vendor is offering repayment options of $12,000 at the end of each year for five years, or no payment for two years followed by one payment of $44,500. The current market rate of interest is 10%. Calculate present value of both options. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answers to 2 decimal places, e.g. 5,275.25.) Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Present Value Option 1 $ Option 2 $ Which option would you recommend?A review of the accounts of Windsor Accountants reected the following transactions, which may or may not require adjustment for the year ended December 31, 2020. The Prepaid Rent account shows a debit of $6,900 paid October 1, 2020, for a one-year lease that started on that day. On November 1, 2020, Services Revenue was credited for $2,660 that was paid by a client for audit services to be performed in January. On June 1, 2020, a cheque in the amount of $5,760 was issued for a two-year insurance policy starting on June 1, 2020. The amount was charged to Insurance Expense. 4. Interest of $1,310 has accrued on notes payable. Prepare the reversing entry for each item, where appropriate. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit Prepare the adjusting entry for each item. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit 1. | Rent Expense l 575 l Prepaid Rent | 575 2. l Accounts Receivable l 2660 I Service Revenue I 2660 3. l Prepaid Insurance l 5760 l Accounts Payable l 5760 4. l Interest Expense l 1310 | Notes Payable l 1310