A company issues a $200,000, 5%, six-year note on January 1, 2021. If the monthly payment is $3,220.99, by how much will the carrying value decrease

A company issues a $200,000, 5%, six-year note on January 1, 2021. If the monthly payment is $3,220.99, by how much will the carrying value decrease when the first month's payment is made on January 31, 2021?

A) $4,054.32

B) $2,387.66

C) $3,220.99

D) $833.33

Answer: B

Which of the following is not a reason why some companies lease rather than buy?

A) Leasing may allow you to borrow with little or no down payment.

B) Leasing may offer protection against risk of declining asset values.

C) Leasing offers flexibility and lower costs when disposing of an asset.

D) Leasing transfers the title to the lessee at the beginning of the lease.

Answer: D

Which of the following is recorded by the lessee at the beginning of the lease?

A) Decrease in assets.

B) Increase in expenses.

C) Increase in revenues.

D) Increase in liabilities.

Answer: D

Camp Elim obtains a $125,000, 6%, five-year loan for a new camp bus on January 1, 2021. What amount will be recorded for interest expense for the first month's

Camp Elim obtains a $125,000, 6%, five-year loan for a new camp bus on January 1, 2021. What amount will be recorded for interest expense for the first month's payment on January 31, 2021?

A) $625

B) $125

C) $7,500

D) $1,000

Answer: A

Camp Elim obtains a $125,000, 6%, five-year loan for a new camp bus on January 1, 2021. If the monthly payment is $2,416.60, by how much will the carrying value decrease when the first payment is made on January 31, 2021?

A) $1,791.60

B) $625.00

C) $2,416.60

D) $1,000.60

Answer: A

A company issues a $200,000, 5%, six-year note on January 1, 2021. What amount will be recorded for interest expense for the first month's payment on January 31, 2021?

A) $1,000.00

B) $138.89

C) $833.33

D) $694.44

Answer: C