A Company Purchased Two New Delivery Vans for a Total

question 76

Essay

A company purchased two new delivery vans for a total of $250,000 on January 1, 2009. The company paid $40,000 cash and signed a $210,000, 3-year, 8% note for the remaining balance. The note is to be paid in three annual end-of-year payments of $81,487 each, with the first payment on December 31, 2009. Each payment includes interest on the unpaid balance plus principal.
(1) Prepare a note amortization table using the format below:
$$\begin{array} { | l | c | c | c | c | c | } \hline \begin{array} { c } \text { Period } \\\text { Ending Date }\end{array} & \begin{array} { c } \text { Beginning } \\\text { Balance }\end{array} & \begin{array} { c } \text { Debit Interest } \\\text { Expense }\end{array} & \begin{array} { c } \text { Debit Notes } \\\text { Payable }\end{array} & \text { Credit Cash } & \begin{array} { c } \text { Ending } \\\text { Balance }\end{array} \\\hline 12 / 31 / 09 & & & & & \\\hline 12 / 31 / 10 & & & & & \\\hline 12 / 31 / 11 & & & & & \\\hline\end{array}$$
(2) Prepare the general journal entries to record the purchase of the vans on January 1, 2009 and the second annual installment payment on December 31, 2010.

Describe the concept of eminent domain and its application in acquiring private property for public use.

Identify the characteristics and legal considerations of trade fixtures in leased properties.

Explain the legal processes involved in modifying real property co-ownership arrangements, such as severing tenancies in common.

Understand the legal mechanisms for protecting against and contesting discriminatory practices in housing and public accommodations.

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Definitions:

Understanding Uncertainty

The process of recognizing and rationalizing the unknown elements in decision-making scenarios.

Objective

A goal or aim that an individual or organization strives to achieve.

Subjective

Based on or influenced by personal feelings, tastes, or opinions, rather than external facts or evidence.

Accelerated Pace

Refers to an increased speed or rate at which activities or developments occur.