Jones Delivery Services bought a truck by paying $84,000 cash down and signing a $248,000 non-interest-bearing note due in five years for the balance. Current interest rates were 8%. Actuarial information for five periods at 8% follows:
Amount of 1 $\quad $ $\quad $ $\quad $ $\quad $ $\quad $1.469
Present value of 1 $\quad $ $\quad $ $\quad $ $\quad $0.680
Amount of annuity of 1 $\quad $ $\quad $5.867
Present value of annuity of 1 $\quad $3.993
Required:
Compute the amount that should be charged to the asset account.

Question

Jones Delivery Services bought a truck by paying $84,000 cash down and signing a $248,000 non-interest-bearing note due in five years for the balance. Current interest rates were 8%. Actuarial information for five periods at 8% follows:
Amount of 1  $\quad $ $\quad $ $\quad $ $\quad $ $\quad $1.469
Present value of 1 $\quad $ $\quad $ $\quad $  $\quad $0.680
Amount of annuity of 1 $\quad $ $\quad $5.867
Present value of annuity of 1  $\quad $3.993
Required:
Compute the amount that should be charged to the asset account.

Quizplus · Accepted Answer

The Answer of Jones Delivery Services bought a truck by paying $84,000 cash down and signing a $248,000 non-interest-bearing note due in five years for the balance. Current interest rates were 8%. Actuarial information for five periods at 8% follows:
Amount of 1  $\quad $ $\quad $ $\quad $ $\quad $ $\quad $1.469
Present value of 1 $\quad $ $\quad $ $\quad $  $\quad $0.680
Amount of annuity of 1 $\quad $ $\quad $5.867
Present value of annuity of 1  $\quad $3.993
Required:
Compute the amount that should be charged to the asset account.

Jones Delivery Services Bought a Truck by Paying $84,000 Cash \quad

Jones Delivery Services Bought a Truck by Paying $84,000 Cash $\quad$