Part 1,2, &3 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) Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FVof $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$15,000 on the purchase date and the balance in six annual installments of $7,000 on each June 30 beginning June 30, 2022.Assuming that an interest rate of 12% properly reflects the time value of money in this situation, at what amount should Johnstonevalue the equipment?2. Johnstone needsto accumulate sufficient funds to pay a $450,000 debt that comes due on December 31, 2026. The company willaccumulate the funds by making five equal annual deposits to an account paying 5% interest compounded annually. Determine therequired annual deposit if the first deposit is made on December 31, 2021.3. On January 1, 2021, Johnstone leased an office building. Terms of the lease require Johnstone to make 20 annual lease paymentsof $125,000 beginning on January 1, 2021. A 12% interest rate is implicit in the lease agreement. At what amount should Johnstonerecord the lease liability on January 1, 2021, before any lease payments are made?Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese$15,000 on the purchase date and the balance in six annual installments of $7,000 on each June 30 beginning June 30, 2022.Assuming that an interest rate of 12% properly reflects the time value of money in this situation, at what amount shouldJohnstone value the equipment? (Round your final answers to nearest whole dollar amount.)Show lessATable values are based on:n =Cash FlowAmountPresent ValueInstallmentsDown PaymentValue of the equipment< Required 1Required 2 >

Down payment=15000 Annual cash outflows=7000

1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $15,000 on the purchase date and the balance in six annual installments of $7,000 on each June 30 beginning June 30, 2022. Assuming that an interest rate of 12% properly reflects the time value of money in this situation, at what amount should Johnstone value the equipment? fficio *450 0 00 er 21 2026 T he

1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $15,000 on the purchase date and the balance in six annual installments of $7,000 on each June 30 beginning June 30, 2022. Assuming that an interest rate of 12% properly reflects the time value of money in this situation, at what amount should Johnstone value the equipment? fficio *450 0 00 er 21 2026 T he

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 $26,000 on the purchase date and the balance in five annual installments of $9,000 on each June 30 beginning June 30, 2022. 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?
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 $23,000 on the purchase date and the balance in five annual installments of $6,000 on each June 30 beginning June 30, 2022. Assuming that an interest rate of 10% 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 $530,000 debt that comes due on December 31, 2026. The company will accumulate the funds by making five equal annual deposits to an account paying 5% interest compounded annually. Determine the required annual deposit if the first deposit is made on December 31, 2021.3. On January 1, 2021,…
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA 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 form Genovese Corp. Johnstone agreed to pay Genovese $20,000 on the purchase date and the balance in five annual installments of $8,000 on each June 30 beginning June 30, 2022. Assuming that an interest rate of 10% 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 $5000,000 debt that comes due on December 31, 2026. The company will accumulate the funds by making five equal annual deposits to an account paying 9% interest compounded annually. Determine the required annual deposit if the first deposit is made on December 31, 2021. 3.On January 1, 2021, Johnstone leased…
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA 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 form Genovese Corp. Johnstone agreed to pay Genovese $20,000 on the purchase date and the balance in five annual installments of $8,000 on each June 30 beginning June 30, 2022. Assuming that an interest rate of 10% 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 $5000,000 debt that comes due on December 31, 2026. The company will accumulate the funds by making five equal annual deposits to an account paying 9% interest compounded annually. Determine the required annual deposit if the first deposit is made on December 31, 2021. 3.On January 1, 2021, Johnstone leased…
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently.1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $10,000 on the purchase date and the balance in five annual installments of $8,000 on each June 30 beginning June 30, 2022. Assuming that an interest rate of 10% 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 $400,000 debt that comes due on December 31, 2026. The company will accumulate the funds by making five equal annual deposits to an account paying 6% interest compounded annually. Determine the required annual deposit if the first deposit is made on December 31, 2021.3. On January 1, 2021, Johnstone leased an office building. Terms of the lease require Johnstone to make 20 annual lease payments of $120,000 beginning on…
ISKOLAR started constructing a building to be used for producing its goods in January 2021. ISKOLAR incurred interest of P100,000 from its borrowings to finance the construction. In 2021, the Company also earned interest income of P20,000 and dividend income of P30,000 from its temporary placement of the proceeds from the specific borrowing. According to PAS23, how much borrowing cost should be capitalized by ISKOLAR in 2021? please answer accurately
On the last day of its fiscal year ending December 31, 2021, the Sedgwick & Reams (S&R) Glass Company completed two financing arrangements. The funds provided by these initiatives will allow the company to expand its operations (EV of $1. PV of SI EVALSI PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. S&R Issued 8% stated rate bonds with a face amount of $105 million. The bonds mature on December 31, 2041 (20 years). The market rate of interest for similar bond issues was 9% (4.5% semiannual rate). Interest is paid semiannually (4.0%) on June 30 and December 31, beginning on June 30, 2022. 2. The company leased two manufacturing facilities. Lease A requires 20 annual lease payments of $220,000 beginning on January 1, 2022. Lease B also is for 20 years, beginning January 1, 2022. Terms of the lease require 17 annual lease payments of $240,000 beginning on January 1, 2025. Generally accepted accounting principles require both leases to be…
On October 1, 2024, a company purchased a piece of land by agreeing to pay the seller $450,000 in two years. If the company had borrowed the money from a bank to pay the seller immediately, management estimates the bank would have required interest of 9% For what amount should the company record the land on the date of purchase (rounded to the nearest dollar)? (PV of $1. and PVA of $1) Multiple Choice O O $450,000 $369.000 $412,844 $378,756
show wokings and answer all questions. this is accounting question On 1 January 2019 Stremans Co. borrowed GHc 1.5 million at a rate of 8%to finance the production of two assets, both of which were expected to takea year to build. Work started during 2019. The loan facility was drawn downand incurred on 1 January 2019, and was utilized as follows, with theremaining funds invested temporarily at a rate of 3% during the accountingperiod before these funds were required for spending. Asset A Asset B Ghc 000 Ghc 0001 January 2019 250 5001 July 2019 150 3001 November 2019 100 200 Requiredi. Calculate the borrowing cost eligible for capitalization for each qualifyingasset ii. Calculate the cost of each asset as at 31 December 2019.
ISKOLAR started constructing a building to be used for producing its goods in January 2021. ISKOLAR incurred interest of P100,000 from its borrowings to finance the construction. In 2021, the Company also earned interest income of P20000 and dividend income of P30000 from its temporary placement of the proceeds from the specific borrowing According to PAS23, how much borrowing cost should be capitalized by ISKOLAR in 202 1?.
On January 1, 2021, Hodge Beanery received $8,000 from the Kennedy Company in exchange for a coffee roaster that it will deliver to Kennedy on December 31, 2021. Assuming that Hodge views the time value of money to be a significant component of this transaction, and that a 9% interest rate is applicable. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
TBTF Incorporated rents commercial real state to locally based businesses. TBTF purchased a large office complex on January 2, 2022. In exchange for the real estate, TBTF issued a noninterest bearing note to the seller. This note will be paid in equal instalments that include both principal and interest at the end of each calendar year. Other information pertaining to the purchase of the real estate follows: Annual instalment payment amount Market rate of borrowing for TBTF Number of years note will be outstanding Portion of the purchase price to be allocated to land Portion of the purchase price to be allocated to land improvements $ 253,134 8% 9 24% 14% TBTF has a year end date of December 31. Required: Prepare the journal entries required by TBTF to account for the note on each of the following dates: January 2, 2022 December 31, 2024