Which model should you buy assuming 12 rate Year Payment Model 2 1 10000 2 9000

Which model should you buy assuming 12 rate year

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Model B requires the following payment schedule. Which model should you buy assuming 12% rate?YearPayment (Model 2)1$10,00029,00038,00045,00053,000 Model 2
Model B year paymen t present value 1 $10,000 8928.57 1 2 9,000 8035.71 4 3 8,000 7142.85 7 4 5,000 4464.28 6 5 3,000 2678.57 1 total 31250 Model A model A year payment present value 1 8,000 7142.857143 2 8000 7142.857143 3 8000 7142.857143 4 8000 7142.857143 5 8000 7142.857143 total 35714.28571 since model A has present value of 35714 and model B has total of 31250 we have to choose model b as appropriate choice Question 3Prepare the journal entries for the following transactions for Dundar Mifflin:1.Dundar Mifflin purchased 1,200 shares of the total of 100,000 outstanding shares of Steve & Company stock for $20.75 per share plus a $70 commission.2.Steve & Company total earnings for the period are $84,000.3.Steve & Company paid a total of $40,000 in cash dividends to shareholders of record.
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