Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. prasart ltd purchased a rust-inhibiting machine by

Prasart Ltd purchased a rust-inhibiting machine by paying $25,000 cash on the purchase date and...

80.2K

Verified Solution

Question

Accounting

Prasart Ltd purchased a rust-inhibiting machine by paying $25,000 cash on the purchase date and agreeing to pay $5,000 every three months during the next two years. The first payment is due three months after the purchase date. Prasart's borrowing rate is 12%.

The liability reported on the balance sheet as of the purchase date, after the initial $25,000 payment was made, is closest to:

$73,255.
$40,000.
$35,098.
$33,801.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Explain in detail the physiological functions and mechanisms of action of a neurotransmitter (Acetylcholine) and explain...

Medical Sciences
Q

Q.7 MRI machine uses magnetic field to create detailed images of human soft organs. Can you elaborate...

Physics
Q

Electric Potential and Potential Energy (Uniform Fields) The potential difference ∆V needed to stop a moving...

Physics
Q

Can you write an essay on the question below? Give a critical analysis of the statement,...

Advance Math
Q

Case 4-1 Toyota Motor Corporation Toyota Motor Corporation is a leading, global manufacturer of motor vehicles. It...

General Management
Q

How do I find the derivative equation With steps would be greatly appreciated 0 1x...

Algebra
Q

You have almost completed the Olney Company's Employee Payroll Register for the pay period ending...

Accounting
Q

Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources),...

Accounting
Q

What do financial ratios analyze? the "bottom line" the return to the franchised business owner...

Accounting
Q

Complete the following table by indicating whether FIFO or LIFO results in the lower reported...

Accounting
Q

I need help with this adjusting entry! The company had two locations and...

Accounting
Q

In your own words, why is it so important that we audit inventories each year,...

Accounting