Wk 5 - Apply: Summative Assessment (due Day 7) Saved Help 2 Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several financing alternatives have been offered by Danning: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 11.11 points 1. Pay $1,050,000 in cash immediately. 2. Pay $440,000 immediately and the remainder in 12 annual installments of $80,000, with the first installment due in one year. 3. Make 12 annual installments of $131,000 with the first payment due immediately. 4. Make one lump-sum payment of $1,780,000 six years from date of purchase. Required: Determine the best alternative for Harding, assuming that Harding can borrow funds at a 9% interest rate. (Round your final answers to nearest whole dollar amount.) eBook PV References Option 1 Option 2 Option 3 Option 4 The best alternative for Harding Wk 5 - Apply: Summative Assessment (due Day 7] Saved Help 3 On March 1, 2021, Gold Examiner receives $142,000 from a local bank and promises to deliver 96 units of certified 1-oz. gold bars on a future date. The contract states that ownership passes to the bank when Gold Examiner delivers the products to Brink's, a third-party carrier. In addition, Gold Examiner has agreed to provide a replacement shipment at no additional cost if the product is lost in transit. The stand-alone price of a gold bar is $1,440 per unit, and Gold Examiner estimates the stand-alone price of the replacement insurance service to be $60 per unit. Brink's picked up the gold bars from Gold Examiner on March 30, and delivery to the bank occurred on April 1. 11.12 points Required: 1. How many performance obligations are in this contract? 2. to 4. Prepare the journal entry Gold Examiner would record on March 1, March 30 and April 1. eBook Complete this question by entering your answers in the tabs below. References Req 1 Reg 2 to 4 How many performance obligations are in this contract? Number of performance obligations Reg 1 Req 2 to 4 > Wk 5 - Apply: Summative Assessment (due Day 7] Saved Help SE 3 On March 1, 2021, Gold Examiner receives $142,000 from a local bank and promises to deliver 96 units of certified 1-oz. gold bars on a future date. The contract states that ownership passes to the bank when Gold Examiner delivers the products to Brink's, a third-party carrier. In addition, Gold Examiner has agreed to provide a replacement shipment at no additional cost if the product is lost in transit. The stand-alone price of a gold bar is $1,440 per unit, and Gold Examiner estimates the stand-alone price of the replacement insurance service to be $60 per unit. Brink's picked up the gold bars from Gold Examiner on March 30, and delivery to the bank occurred on April 1. 11.12 points Required: 1. How many performance obligations are in this contract? 2. to 4. Prepare the journal entry Gold Examiner would record on March 1, March 30 and April 1. eBook Complete this question by entering your answers in the tabs below. References Req 1 Req 2 to 4 Prepare the journal entry Gold Examiner would record on March 1, March 30 and April 1. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the receipt of cash by Gold Examiner. Note: Enter debits before credits. General Journal Debit Credit Date March 01 Wk 5 - Apply: Summative Assessment due Day 7] A Saved Help Save & Exit Submit Reg 1 Reg 2 to 4 3 Prepare the journal entry Gold Examiner would record on March 1, March 30 and April 1. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list 11.12 points Journal entry worksheet eBook 1 2 3 > Record the receipt of cash by Gold Examiner. References Note: Enter debits before credits. General Journal Debit Credit Date March 01, 2021 Record entry Clear entry View general journal (Reg 1 Reg 2 to 4
