How much is the initial cost of the furniture

Assignment Help Accounting Basics

Reference no: EM132817591

Deferred settlement - with cash price equivalent

Problem 1: On January 1, 20x1, SQUAMOUS SCALY Co. purchased furniture with an installment price of ?520,000 and a cash price equivalent of ?400,000 by paying ?40,000 down payment and issuing a one-year noninterest-bearing note of ?120,000 payable in equal semi-annual installments on July 1 and December 31, 20x1. How much is the initial cost of the furniture?

a. 520,000 b. 480,000 c. 400,000 d. 360,000

Reference no: EM132817591

Questions Cloud

How much is the initial cost of the fixtures : The prevailing rate for the note as of January 1, 20x1 is 12%. How much is the initial cost of the fixtures? REEDY SLENDER Co. purchased fixtures

Services or processes of an organization : Explain reasons as to why an organization should embrace continuous improvement despite increased productivity and the absence of customer complaints.

What is this project equivalent annual cost or EAC : The fixed asset is fully depreciated over life of the project and has no salvage value. If the required return is 10%, what is project equivalent annual cost

Define how to protect computer system : Security experts recommend using a multilayered defense strategy. A multilayered defense puts multiple controls in place to protect computer system, networks.

How much is the initial cost of the furniture : Noninterest-bearing note of ?120,000 payable in equal semi-annual installments on July 1 and December 31, 20x1. How much is the initial cost of the furniture?

Find current two industry leaders : How will accomplishing these objectives support your success in management? What risks or challenges might a manager encounter if they have not mastered

What consolidating entry adjustment is necessary : In preparing the consolidated financial statements for the year ended December 31, 2019, what consolidating entry adjustment is necessary

How much is initial cost of equipment for preclude prevent : How much is the initial cost of the equipment? PRECLUDE PREVENT Co. acquired an equipment for ?448,000 on account with a credit term of 2/15

What level of customer service is masspc : MassPC Inc. produces a 4-week supply of its PC Pal model when stock on hand drops to 500 units. It takes 1 week to produce a batch.

User Account

All Pages