Question

Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to que 5 Lincoln Company purchased merchandise from Grandville Corp. on September 30, 2021. Payment was made in the form of a noninterest-bearing note requiring Lincoln to make six annual payments of $7,600 on each September 30, beginning on September 30, 2024. (EV 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. Round your final answer to nearest whole dollar amount.) Required: Calculate the amount at which Lincoln should record the note payable and corresponding purchases on September 30, 2021, assuming that an intrate of 10% properly reflects the time value of money in this situation, Answer is con" but not entirely correct. Amount recorded s 17,997 % < Prev 6 of 10 ! Score answer > opt Chapter 2 slides -...pptx O I search

Answer 1

We would first calculate the present value of annual payments as of 2024
Present value of annual payment	Annual payment*PVA(n=6,i=10%)
Present value of annual payment	7600*4.35526
Present value of annual payment	$33,099.98
Calculate present value of $33,099.98
Present value	33099.98*PV of $1 (n= 2, i=10%)
Present value	33099.98*0.82645
Present value	$27,355
Thus, notes payable and purchase would be reported at $27,355