Agya clinic entered into a hire purchase agreement with Savu Enterprise,to purchase a new and improved...
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Agya clinic entered into a hire purchase agreement with Savu Enterprise,to purchase a new and improved X-ray machine. The list price of the X-ray machine is GH€245,000. The payment schedule as provided in the agreement is as follows Initial deposit 31 December 2021 31 December 2022 31 December 2023 31 December 2024 Agya Clinic estimates that economic benefits will flow from its X-ray machines to the business for a period of 15 years, after which it will be disposed off as scrape at GHe32,000. Required: 4. H IV. ii. GH€90,000 GH 67 500 GH$61,750 GH 45,600 GHe37,400 Determine the hire purchase price and the interest amount included in this amount Apportion the hire purchase interest amount over the relevant periods using the sum of years' digits method Make the necessary ledger entries to record the transactions relation to the higher purchase in the books of Agya Clinic Provide the income statement and statement of financial position extracts for Agya Clinic for all the relevant years. Agya clinic entered into a hire purchase agreement with Savu Enterprise,to purchase a new and improved X-ray machine. The list price of the X-ray machine is GH€245,000. The payment schedule as provided in the agreement is as follows Initial deposit 31 December 2021 31 December 2022 31 December 2023 31 December 2024 Agya Clinic estimates that economic benefits will flow from its X-ray machines to the business for a period of 15 years, after which it will be disposed off as scrape at GHe32,000. Required: 4. H IV. ii. GH€90,000 GH 67 500 GH$61,750 GH 45,600 GHe37,400 Determine the hire purchase price and the interest amount included in this amount Apportion the hire purchase interest amount over the relevant periods using the sum of years' digits method Make the necessary ledger entries to record the transactions relation to the higher purchase in the books of Agya Clinic Provide the income statement and statement of financial position extracts for Agya Clinic for all the relevant years.
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Answer rating: 100% (QA)
i The interest included in the hire purchase price is GH112500 The hire purchase price is calculated ... View the full answer
Related Book For
Contemporary Business Mathematics with Canadian Applications
ISBN: 978-0134141084
11th edition
Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs
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