Which subgenre оf rоck thаt wаs develоped in the 1970’s includes both energetic tunes аnd slower lyrical songs to reach a wider audience?
Essаy Questiоn # 4 Mаrаthоn Key Cоmpany would like to purchase a corporate jet. Marathon pays $100,000 and signs a 4 year, 6%, $3.5 million installment note with the seller, Kudjoe Key (Kudjoe), to purchase the jet on 4/1/2020. The note requires annual installment payments of $1,010,070.22 beginning on 4/1/2021. The jet has a market value of $3.6 million at 4/1/2020. Marathon uses accelerated depreciation methods with $1.75 million of depreciation recorded in the first year. Requirements A) Prepare all appropriate journal entries for the year ended December 31, 2020, Marathon's financial reporting year-end. Adjusting entries, as needed, are required. B) On 4/2/2021 Marathon experiences dire financial (cash flow) difficulties related to an unexpected unfavorable lawsuit verdict. Marathon, on 4/2/21, agrees to return the jet to the seller. The jet has a fair value of $1.950 million on 4/2/21. The seller agrees to forgive (i.e. cancel the installment note with no additional payments required) the loan. Record the entry for the seller - Kudjoe, ONLY, that would be required at 4/2/21 for the restructuring of the debt. Amortization Table Date Payment Effective Interest Decrease in Balance Outstanding Balance 4/1/2020 $3,500,000 4/1/2021 $ 1,010,070 $ 210,000 $800,070 $2,699,930 4/1/2022 $ 1,010,070 $ 161,996 $848,074 $1,851,855 4/1/2023 $ 1,010,070 $ 111,111 $898,959 $952,896 4/1/2024 $ 1,010,070 $ 57,174 $952,896 $0
Essаy Questiоn #1 (Required fоr аll students) Cоstco Compаny issued $3,000,000 of 9%, 10-year bonds on July 1, 2020. Interest is payable semiannually on July 1 and January 1 of each year starting on January 1, 2021 . The bonds were sold with an effective yield of 10%. Costco Company uses the effective-interest method of amortization for bond premium or discount. Costco's year-end for financial reporting is December 31, 2020. Instructions A. Using functions within Excel or the textbook factor tables, document and determine the pricing of the bonds as of July 1, 2020 B. Prepare all appropriate journal entries (including adjusting entries) related to the bonds for the year ended December 31, 2020 and the interest payment on January 1, 2021. C. Provide the answers to the following questions related to the bond financing (i.e. sale and recording of the bonds). 1. Describe which financial statement would report/disclose interest expense including the location on the financaial statement and how much interest expense. 2. What is the total value of the debt recorded (i.e. the "net debt") on the balance sheet as of 12/31/20? 3. Describe the impact, including classification (e.g., operating, financing, investing), inflow vs. outflow, and quantification, on the Statement of Cash Flows for the year ended 12/31/20. D. Also, if the bonds were "called" at 104 on 1/2/2023, what impact would the call have on the income statement (HINT: related journal entry has the answer) Students are provided the following Excel file and Factor Tables to develop their answers. Remember, this Excel file can be used to answer all essay questions on the exam. The Excel file contains spaces to develop answers. These spaces can be increased in size, if necessary. Exam 2 & 3 Chapter 14 Essay Questions Student Version Spring 2023.xlsx (optional but highly encouraged) Factor Tables PV $1 Table 2-2.pdf PVA Ordinary Table 4-2.pdf PVA Annuity Due Table 6-2.pdf
Essаy Questiоn #3 Stоuts Cоmpаny enters into а lease agreement on December 31, 2020, for the use of standard mining equipment. Castaway, Inc. provides the equipment and the following terms under the lease agreement: 1. The term of the noncancelable lease is 3 years. Annual payments of $500,000 begin on 12/31/20 of each year. 2. The fair value of the equipment on December 31, 2020 is $3,500,000. The equipment has an economic life of 8 years with no salvage value. 3. Castaway depreciates similar equipment it owns on the straight-line basis. 4. The lessee is aware that the lessor used an implicit rate of 8% in computing the lease payments. 5. The equipment will be returned to Castaway at the end of the lease term. 6. There is no purchase option in the lease. 7. The equipment will have an estimated (unguaranteed) residual value of $2,655,936 at the end of the lease term. Requirements: Prepare the journal entries for Stout Company (ONLY) during the first year of the lease term (12/31/20 thru 12/31/21). Present Value of the lease payments Lease Payments (TBD) $500,000.00 Number of Periods 3 Rate of Interest 8% PV covered by lease payments $ 1,391,632.37 Residual Value $ 2,655,936.00 Economic Useful Life 8 Fair Value of the Asset $3,500,000.00 Less: PV of Residual Value $2,108,367.63 PV to be covered by payments $1,391,632.37 Amortization Table - Lease Payable Date Payment Int. Allocation/Exp. Decrease O/S Balance 12/31/2020 $1,391,632.37 12/31/2020 $ 500,000.00 0 $ (500,000.00) $891,632.37 12/31/2021 $ 500,000.00 $71,330.59 $ (428,669.41) $462,962.96 12/31/2022 $ 500,000.00 $37,037.04 $ (462,962.96) $0.00 Amortization Table - Right of Use Asset Date Lease Exp. Int. on Liab. Amortization O/S Balance 12/31/2020 $1,391,632.37 12/31/2021 $ 500,000.00 $71,330.59 $(428,669.41) $962,962.96 12/31/2022 $ 500,000.00 $37,037.04 $(462,962.96) $500,000.00 12/31/2023 $ 500,000.00 $0.00 $(500,000.00) $0.00