Reference no: EM132484615
Point 1: Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2021. Amber paid for the lathe by issuing a $900,000, three-year note that specified 5% interest, payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions that 8% was a reasonable rate of interest. (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.)
Required:
Question 1-a. Complete the table below to determine the price of the equipment.
Question 1-b. Prepare the journal entry on January 1, 2021, for Amber Mining and Milling's purchase of the lathe.
Question 2. Prepare an amortization schedule for the three-year term of the note.
Question 3. Prepare the journal entries to record (a) interest for each of the three years and (b) payment of the note at maturity.
|
Compute days sales in receivables at year-end
: Based on the acid-test ratio, accounts receivable turnover, and days sales in receivables, how does the company compare to the industry?
|
|
What is the value of the stock per share today
: If the required return is 15% and the company just paid a dividend of $2.50 per share, what is the value of the stock per share today?
|
|
What was the value of the bond on january
: What was the value of the bond on 1 January 2016, assuming that market interest rates had fallen to 5%? Round your answer to two decimals.
|
|
What is the value of the bond to christina
: If the current market price of the bond is $1,150, what is the yield to maturity on the bond? Express your answer in percent with two decimals.
|
|
Prepare an amortization schedule for the three-year term
: Prepare the journal entries to record (a) interest for each of the three years and (b) payment of the note at maturity. Prepare an amortization schedule
|
|
Describes the transaction made on january
: Describes the transaction made on January 10th? T-accounts representing a transaction Comfy Home recorded on January 10th.
|
|
Write a report on Asset management strategy
: Write a report on Asset management strategy within global aspect of the asset to fit each type of structure or asset. Identify a relevant asset system
|
|
Determine the amounts that marshall company would report
: Determine the amounts that Marshall Company would report in its postacquisition balance sheet. In preparing the postacquisition balance sheet
|
|
What are the consolidated balances for the accounts
: What are the consolidated balances for the following accounts? (Input all amounts as positive values).On June 30, 2017, Wisconsin, Inc., issued $358,600 in debt
|