Sabonis Cosmetics Co. purchased machinery on December 31, 2016, paying $50,000 down and agreeing to pay the balance in four equal installments of $40,000 payable each December 31. An assumed interest of 8% is implicit in the purchase price.

Prepare the journal entries that would be recorded for the purchase and for the payments and interest on
the following dates. (Round answers to the nearest cent.)
(a) December 31, 2013. (d) December 31, 2016.
(b) December 31, 2014. (e) December 31, 2017.
(c) December 31, 2015.

Q3.4: owens industries is trying to increase its profile in the community. as part of this effort, owens sponsors a little league baseball team. the cost of sponsorship is $850. how should owens record this transaction in order to maintain a balanced accounting equation (a = l + se)?

Aminor has the legal right to repudiate

Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.