On January 1, 2020, a customer purchased a new $33,000 automobile, making a downpayment of $1,000. The customer signed a note indicating that the annual rate of interest would be 8% and that quarterly payments would be made over 3 years. For the first year, Good-Deal required a $400 quarterly payment to be made on April 1, July 1, October 1, and January 1, 2021. After this one-year period, the customer was required to make regular quarterly payments that would pay off the loan as of January 1, 2023.
a) Prepare a note amortization schedule for the first year.
(b) Indicate the amount the customer owes on the contract at the end of the first year.
(c) Compute the amount of the new quarterly payments.
(d) Prepare a note amortization schedule for these new payments for the next 2 years.
(e) What do you think of the new sales promotion used by Good-Deal?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On January 1, 2020, a customer purchased a new $33,000 automobile, making a downpayment of $1,000. The customer signed a note indicating ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
How to calculate cost of goods purchased?
Answers (1)
Bvi corporation had net income of $1,600,000 and paid dividends to common stockholders of $400,000 in 2014. the weighted average number of shares outstanding in 2014 was 500,000 shares.
Answers (1)
How has the pattern of trade changed in the United States since 1960? A. Exports and imports have grown at the same rate, and the United States has remained a net exporter. B.
Answers (1)
How could the U. S. Federal Reserve System curb some of the risk of economic instability?
Answers (1)
One of the advantages of starting your own business is
Answers (2)
New Questions in Business
At the end of the accounting period, Isaac Company had a balance of $4,000 in its common stock account, additional paid in capital of $4,000, retained earnings of $3,000, and $1,000 of treasury stock. The total amount of stockholders' equity is:a.
Answers (1)
If the findings and the results are not presented properly, the research completed was a waste of time and money. True False
Answers (1)
Coronado Shoes Fool Inc. is involved in litigation regarding a faulty product sold in a prior year. The company has consulted with its attorney and determined that it is possible that they may lose the case.
Answers (1)
On Jan 1, 2011, P. T. Scope Company purchased a computer system for $3,240. The company expects to use the system for 3 years. The asset has no salvage value. The book value of the system at Dec 31, 2012 is
Answers (1)
What minimum amount of body weight loss (lbs) is shown to improve physical capabilities and quality of life?
Answers (1)