Question

In: Accounting

Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV...

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 $19,000 on the purchase date and the balance in five 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?
2. Johnstone needs to accumulate sufficient funds to pay a $490,000 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 $129,000 beginning on January 1, 2021. A 12% interest rate is implicit in the lease agreement. At what amount should Johnstone record the lease liability on January 1, 2021, beforeany lease payments are made?
  

Solutions

Expert Solution


Related Solutions

Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV...
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 $11,000 on the purchase date and the balance in five annual installments of $9,000 on each June 30 beginning June 30,...
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV...
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, 2018, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $18,000 on the purchase date and the balance in six annual installments of $6,000 on each June 30 beginning June 30,...
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV...
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, 2018, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $27,000 on the purchase date and the balance in eight annual installments of $4,000 on each June 30 beginning June 30,...
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV...
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, 2018, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $27,000 on the purchase date and the balance in eight annual installments of $4,000 on each June 30 beginning June 30,...
ohnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV...
ohnstone 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, 2018, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $12,000 on the purchase date and the balance in six annual installments of $10,000 on each June 30 beginning June 30,...
1. Differentiate between investing activities, operating activities and financing activities. Please provide examples of each in...
1. Differentiate between investing activities, operating activities and financing activities. Please provide examples of each in your answer. 2. Discuss and explain the difference between a vertical analysis and a horizontal analysis. Which method do you feel is better?
Differentiate between investing activities, operating activities and financing activities. Please provide examples of each in your...
Differentiate between investing activities, operating activities and financing activities. Please provide examples of each in your discussion.
What kinds of activities are reported in each of the operating, investing and financing sections of...
What kinds of activities are reported in each of the operating, investing and financing sections of the statement of cash flows? How is this information useful?
   Classify each cash transaction between Operating (O), Investing (I), or Financing (F) activities; and prepare...
   Classify each cash transaction between Operating (O), Investing (I), or Financing (F) activities; and prepare the Statement of Cash Flow for Cougar Corp. using the following data: Cash at the beginning of the year: $600,000 Cash Receipts from: __Bank (Interest on CD) $3,000 __Customers Sales $875,000 __Interest $30,000 __Dividends $3,500 Cash payments for: __Dividends $2,000 __Raw Materials $ 3,000 __Wages Expense $4,000 __Land $10,000 __Interest $4,000
For HP What investing and financing activities does the company have? What are some other examples...
For HP What investing and financing activities does the company have? What are some other examples of investing and financing activities? 200 words please
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT