User Account

All Pages

What will the NBV of the equipment be

Assignment Help Accounting Basics
Reference no: EM132904828

Question - On Apr 1, 2021 SOF received a bank loan of $30,000 from Conexus Credit Union. On Apr 5, 2021 SOF spent $40,000 to purchase a new point of sale systems (POS) for a total cost of $40,000. The POS system will be used to scan groceries upon the customer purchasing them. The POS system will have a 5-year useful life. The interest rate on the loan from Conexus is 7% (compounded only on the loan principle outstanding). The loan is for 3 years and will be paid back evenly over 3 years. As part of the financing SOF only needs to make the required loan payments each year on Mar 31. Each loan payment will be for $10,000 plus any interest owing.

Required -

a) Journal Entries: Prepare the required journal entries for each of the following dates relating to both the asset and the loan: Apr 1, 2021, Apr 5, 2021, Dec 31, 2021, Mar 31, 2022, Dec 31, 2022, Mar 31, 2023, Dec 31, 2023, Mar 31, 2024. You must show all supporting calculations.

b) Financial Statements: What will the NBV of the equipment be on the Dec 31, 2024 statement of financial position?

Reference no: EM132904828

Questions Cloud

How much does Mike need to add to the fund : Assume that the fund's earnings rate rate has changed from j4=4.35% to j4=4.1% one year before the first scholarship payment. How much does Mike need
Discuss factors complicating the interpretation : Discuss factors complicating the interpretation, the overall risk of genetic disorder/condition/trait, and identify additional information needed.
Risk factors associated with leading cause of death : Explain the relationships between the risk factors associated with the leading cause of death you selected in Module Four and the outcome
Discuss patterns of the disease focusing on single disorder : Provide an explanation of the genogram by interpreting the family history. Discuss patterns of the disease focusing on a single disorder/condition.
What will the NBV of the equipment be : Financial Statements: What will the NBV of the equipment be on the Dec 31, 2024 statement of financial position
National monument and renewable energy : How has it been affected by weathering? Be sure to specify the type of weathering it is exposed to
Summarizes the primary requirements of the standard : Select one of the standards you would like to know more about, and compose an essay that summarizes the primary requirements of the standard.
How would identify the presence of specific health hazards : How you would identify the presence of specific health hazards and how you would evaluate the level of risk for each hazard identified
Ischemic heart disease : Discuss or summarize your most favorite topic of the class or one that you can apply to your everyday life.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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