1. On June 30, 2018, the Johnstone Company purchased equipment
from Genovese Corp. Johnstone agreed to...
1. On June 30, 2018, the Johnstone Company purchased equipment
from Genovese Corp. Johnstone agreed to pay Genovese $22,000 on the
purchase date and the balance in five annual installments of $5,000
on each June 30 beginning June 30, 2019. Assuming that an interest
rate of 11% properly reflects the time value of money in this
situation, at what amount should Johnstone value the equipment? 2.
Johnstone needs to accumulate sufficient funds to pay a $520,000
debt that comes due...
Katie plans to purchase a new car. She decides to borrow
$25,000 from her friend at...
Katie plans to purchase a new car. She decides to borrow
$25,000 from her friend at 8% per year compounded monthly for 4
years. She plans to repay the loan with 48 equal monthly payments.
How much is the monthly payment?
How much interest is in the 23rd payment?
What is the remaining balance immediately after she made her
37th payment?
Later, she became able to pay off the loan at the end of the
30th month. She has not...
On June 1, Pane purchases 6,000 shares of Crane stock and 4,000
shares of Lane stock....
On June 1, Pane purchases 6,000 shares of Crane stock and 4,000
shares of Lane stock. At the time of purchase, the Crane and Lane
stocks have a readily determinable fair value of $30 and $65,
respectively.
On June 5, Pane sells an investment classified as
available-for-sale for $200,000. The debt securities were purchased
at par value during the prior year for $150,000. At the end of the
prior year, the securities were valued at$170,000
. On June 7, Pane...
Kyle purchased a new TV and a DVD player on September 1, 2019,
for $1,500 and...
Kyle purchased a new TV and a DVD player on September 1, 2019,
for $1,500 and used her father's credit card to pay for it. His
father agreed to allow Kyle to use the card based on her paying the
balance within one year. The nominal interest rate on the card is
24% compounded monthly and requires equal monthly payments. The
first payment was on October 1, 2019.After six months of paying for
these purchases, Kyle decided, on March 1,...
Sweetwater Water Testing Service was established on June 16.
Sweetwater uses field equipment and field supplies...
Sweetwater Water Testing Service was established on June 16.
Sweetwater uses field equipment and field supplies (chemicals and
other supplies) to analyze water for unsafe contaminants in
streams, lakes, and ponds. Transactions related to purchases and
cash payments during the remainder of June are as follows:
June 16.
Issued Check No. 1 in payment of rent for the remainder of
June, $2,900.
16.
Purchased field supplies on account from Hydro Supply Co.,
$4,920.
16.
Purchased field equipment on account from...
Month
Budgeted Cash Sales
Budgeted Credit Sales
Budgeted Cash Purchases
Budgeted Credit Purchases
December
8,000
21,000...
Month
Budgeted Cash Sales
Budgeted Credit Sales
Budgeted Cash Purchases
Budgeted Credit Purchases
December
8,000
21,000
January
9,000
23,000
February
11,000
25,000
March
77,800
12,000
12,000
22,000
March
68,500
12,500
12,500
23,500
May
72,000
12,300
12,300
24,500
Wages & other operating expenses are estimated as
follows:
Month
Wages
Other Expenses
March
20,000
28,000
April
17,500
22,000
May
20,000
23,000
Newequipment purchased in February for $16,750 istobepaid
forin April.
New furniture purchased in March for $15,000 isto be paid...
A client plans to send her child to college starting in the
fall of 2038. She...
A client plans to send her child to college starting in the
fall of 2038. She estimates that tuition will cost $40,000 per year
and that room and board will cost $14,000 per year, with $20,000
payable for tuition and $7,000 payable for room and board on each
January 1 and July 1 during the four years in college, starting on
July 1, 2038 and ending on January 1, 2042. She can invest in a
fund that will pay 6%...
You are considering making a loan at the bank. You will borrow
$10,000 from the bank...
You are considering making a loan at the bank. You will borrow
$10,000 from the bank today. The interest rate on the loan is 5
percent nominal compounded annually. You will completely pay off
the loan with two equal payments. The first payment is due one year
from today, and the second payment is due two years from today.
Your loan payments will be $5378.05 each. How much will your loan
balance be after you make the first payment?
A....
Following information relates to Acco Co.
Beginning cash balance on July 1: $45,000.
Cash receipts from...
Following information relates to Acco Co.
Beginning cash balance on July 1: $45,000.
Cash receipts from sales: 24% is collected in the month of
sale, 50% in the next month, and 26% in the second month after sale
(uncollectible accounts are negligible and can be ignored). Sales
amounts are: May (actual), $1,548,000; June (actual), $1,080,000;
and July (budgeted), $1,260,000.
Payments on merchandise purchases: 48% in the month of purchase
and 52% in the month following purchase. Purchases amounts are:
June...
Johnstone Company is facing several decisions regarding
investing and financing activities. Address each decision
independently. (FV...
Johnstone Company is facing several decisions regarding
investing and financing activities. Address each decision
independently. (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.)
1. On June 30, 2021, the Johnstone Company
purchased equipment from Genovese Corp. Johnstone agreed to pay
Genovese $24,000 on the purchase date and the balance in six annual
installments of $7,000 on each June 30 beginning June 30,...