Recorded at the time of purchase

Assignment Help Accounting Basics
Reference no: EM13258944

On jan 1, 2006, vigeland company completed the following transaction (assume 10% annual interest rate)

a) bought a delivery trucka dn agreed to pay $50000 at end of3 years

b) rented anoffice building and was given the option of paying$10,000 at the end of each of the next 3 years or paying $28,000immediately

c) established a savings account by depositing a single amount that will increase to $40,000 at the end of 7 years

d) decided to deposit a single sum in the bank that will provide 10 equal annual year end payments of $15,000 to a retiredemployee (payments start dec. 31, 2006)
----
a) what is the cost of the truck that should be recorded at the time of purchase?
b) which option for the office building should the company select?
c) what single amount must be deposited in this accounton Jan 1, 2006
d) what single sum must be deposited in the bank on Jan. 1.2006

Reference no: EM13258944

Questions Cloud

Utilize interest rate future contracts : Why when trying to utilize interest rate future contracts, it is important to note both the duration of the commitment and the market value of the futures contract?
Explain nitrogen forms several gaseous oxides : Nitrogen forms several gaseous oxides. One of them has a density of 1.27 g L-1 measured at 764 mmHg and 150C. write the formula of the compound
What is the main point of the article : What is the main point of the article and how does the author support his point of view?
Find the initial potential difference across the inductor : An inductor with an inductance of 2.90H and a resistor with a resistance of 6.00? are connected to the terminals of a battery with an emf of 4.00V, Find the initial potential difference across the inductor
Recorded at the time of purchase : what is the cost of the truck that should be recorded at the time of purchase?
Why did reconstruction end : Why did Reconstruction end? Answer Black issues became secondary to other national priorities and interests. Financial panic and economic hard times distracted northerners.
What is your effective purchase price for corn : If the spot price of corn settles at $6.50/bushel in December, what is your effective purchase price for corn?
What is the rms value of the largest sine-wave input : An amplifier with 40 dB of small-signal open-circuit voltagegain, an input resistance of 1M-ohm ,and an output resistance10-ohm drives a load of 100-ohm .What voltage and power gains(expressed in dB) would you expect with the load connected
Compute the final volume and temperature : A sample of 1.0 mole of a perfect gas with cp= 20.8 J K-1 is initially at 3.25 atm and 310K. If it undergoes reversible adiabatic expansion until its pressure reaches 2.50 atm. Calculate the final volume and temperature and the work done.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Effective and efficient statistical measurements

What are some advantages and disadvantages of each: (a) team-based, (b) network-based, and (c) boundaryless organizations?

  Itemized deduction for the casualty loss

At the time of the accident, it was worth $14,000 and Alicia had taken $2,000 of depreciation. After the accident, it was worth $5,000. The car was not insured. If Alicia's AGI is $15,000 (before considering the loss), determine her itemized deduc..

  Determining amount of interest expense

The bonds mature on January 1, 2019. Solo paid $50,000 in bond issue costs. Solo uses straight-line amortization. The amount of interest expense for the year is:

  Determine the year 0 present worth lease payments

A construction company can lease an asset for the next four years by making lease payments that are equivalent to annual payments of $3,000 at year 0, $6000 at year 1, $7000 at year 2, $7000 at year 3 and $4000 at year 4. Use a 12% minimum acceptable..

  Statement of changes in net assets

Which of the following characteristics does the proposed statement of changes in net assets available to stockholders exclude?

  What amount of income gain or loss

What amount of income gain or loss does Sam realize on the formation of the corporation? What amount, if any, does he recognize?

  Prepare the adjusting entry for depreciation

At the end of its first year, the trial balance of Wooster Company shows Equipment $32,000 and zero balances in Accumulated Depreciation-Equipment and Depreciation Expense.

  Which one is another name for the static budget

How does a graph of a flexible budget compare to a CVP graph?

  How much cash will be paid for the january

Suppose all interest is paid at maturity and none of the notesare paid early. How much cash will be paid for the January 1 note, plusinterest, on October1?

  Accounts receivable and allowance for doubtful account

Determine the ending balances in accounts receivable and allowance for doubtful accounts.

  Major weakness of performance report

Discuss the major weakness of performance report. Describe clearly why all the variances for variable expenses are unfavourable (U).

  How fuunds are disclosed and reported

Find a newspaper or magazine even online and select an article relating to the use of governmental funds by state, county, local government, etc on an activity.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd