On 31 December 20X0. Columbia Inc. entered into an agreement with Scotia Ltd. to lease equipment. Columbia Inc. will make four equal payments of $100,000 at the beginning of each lease year. Columbia Ltd. anticipates that the equipment will have a residual value of $80,000 at the end of the lease. net of removal costs. Columbia Inc. has the option of (1) paying $80,000 to retain the equipment or (2) allowing Scotia Ltd. to remove it.

Scotia Ltd.'s implicit interest rate in this lease is 7%. Columbia Inc.'s incremental borrowing rate is 8%. Columbia Inc. depreciates the leased equipment on a straight-line basis over four years. The lease commences on 1 January 20X1. Assume that the fair value of the equipment on the open market is greater than the present value of the lease payments.

(PV of $1, PVA of $1 and PVAD of $1 ) (Use appropriate factor(s) from the tables provided.)

Required:

1. Prepare a lease liability amortization table for this lease for Columbia Inc. (Round time value factor to 5 decimal places and final answers to the nearest whole dollar amount. Leave no cell blank. Be certain to enter "0" wherever required.)

2. Prepare all entries that Columbia Inc. will record for this lease and the leased equipment for 20X1 and 20X2. (Round your Intermediate calculations and final answers to the nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round time value factor to 5 decimal places.)

Transcribed Image Text:

Lease Period 20X1 20X2 20X3 20X4 Beginning Balance Amortization Table Interest Net Lease Payment Beg. of Year Incr/(Decr) in Balance Ending Balance View transaction list Journal entry worksheet 1 2 3 4 5 6 7 Record the commencement of lease. Date 1 Jan. 20X1 Note: Enter debits before credits. Record entry General Journal Clear entry Debit Credit View general journal TABLE 1-1: Present value of 1: (P/F, i, n) 1 (1 + i)" P/F = 2% 2.5% 3% 6% 7% 8% 9% 3 6 7 4% 5% 10% 11% 12% 14% 15% 0.98039 0.97561 0.97087 0.96154 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 0.87719 0.86957 0.96117 0.95181 0.94260 0.92456 0.90703 0.89000 0.87344 0.85734 0.84168 0.82645 0.81162 0.79719 0.76947 0.75614 0.94232 0.92860 0.91514 0.88900 0.86384 0.83962 0.81630 0.79383 0.77218 0.75131 0.73119 0.71178 0.67497 0.65752 4 0.92385 0.90595 0.88849 0.85480 0.82270 0.79209 0.76290 0.73503 0.70843 0.68301 0.65873 0.63552 0.59208 0.57175 5 0.90573 0.88385 0.86261 0.82193 0.78353 0.74726 0.71299 0.68058 0.64993 0.62092 0.59345 0.56743 0.51937 0.49718 0.88797 0.86230 0.83748 0.79031 0.74622 0.70496 0.66634 0.63017 0.59627 0.56447 0.53464 0.50663 0.45559 0.43233 0.87056 0.84127 0.81309 0.75992 0.71068 0.66506 0.62275 0.58349 0.54703 0.51316 0.48166 0.45235 0.39964 0.37594 8 0.85349 0.82075 0.78941 0.73069 0.67684 0.62741 0.58201 0.54027 0.50187 0.46651 0.43393 0.40388 0.35056 0.32690 9 0.83676 0.80073 0.76642 0.70259 0.64461 0.59190 0.54393 0.50025 0.46043 0.42410 0.39092 0.36061 0.30751 0.28426 10 0.82035 0.78120 0.74409 0.67556 0.61391 0.55839 0.50835 0.46319 0.42241 0.38554 0.35218 0.32197 0.26974 0.24718 11 0.80426 0.76214 0.72242 0.64958 0.58468 0.52679 0.47509 0.42888 0.38753 0.35049 0.31728 0.28748 0.23662 0.21494 12 0.78849 0.74356 0.70138 0.62450 0.55684 0.49697 0.44401 0.39711 0.35553 0.31863 0.28584 0.25668 0.20756 0.18691 13 0.77303 0.72542 0.68095 0.60057 0.53032 0.46884 0.41496 0.36770 0.32618 0.28966 0.25751 0.22917 0.18207 0.16253 14 0.75788 0.70773 0.66112 0.57748 0.50507 0.44230 0.38782 0.34046 0.29925 0.26333 0.23199 0.20462 0.15971 0.14133 15 0.74301 0.69047 0.64186 0.55526 0.48102 0.41727 0.36245 0.31524 0.27454 0.23939 0.20900 0.18270 0.14010 0.12289 0.72845 0.67362 0.62317 0.53391 0.45811 0.39365 0.33873 0.29189 0.25187 0.21763 0.18829 0.16312 0.12289 0.10686 0.71416 0.65720 0.60502 0.51337 0.43630 0.37136 0.31657 0.27027 0.23107 0.19784 0.16963 0.14564 0.10780 0.09293 0.70016 0.64117 0.58739 0.49363 0.41552 0.35034 0.29586 0.25025 0.21199 0.17986 0.15282 0.13004 0.09456 0.08081 0.68643 0.62553 0.57029 0.47464 0.39573 0.33051 0.27651 0.23171 0.19449 0.16351 0.13768 0.11611 0.08295 0.07027 0.67297 0.61027 0.55368 0.45639 0.37689 0.31180 0.25842 0.21455 0.17843 0.14864 0.12403 0.10367 0.07276 0.06110 0.65978 0.59539 0.53755 0.43883 0.35894 0.29416 0.24151 0.19866 0.16370 0.13513 0.11174 0.09256 0.06383 0.05313 22 0.64684 0.58086 0.52189 0.42196 0.34185 0.27751 0.22571 0.18394 0.15018 0.12285 0.10067 0.08264 0.05599 0.04620 23 0.63416 0.56670 0.50669 0.40573 0.32557 0.26180 0.21095 0.17032 0.13778 0.11168 0.09069 0.07379 0.04911 0.04017 24 0.62172 0.55288 0.49193 0.39012 0.31007 0.24698 0.19715 0.15770 0.12640 0.10153 0.08170 0.06588 0.04308 0.03493 25 0.60953 0.53939 0.47761 0.37512 0.29530 0.23300 0.18425 0.14602 0.11597 0.09230 0.07361 0.05882 0.03779 0.03038 26 0.59758 0.52623 0.46369 0.36069 0.28124 0.21981 0.17220 0.13520 0.10639 0.08391 0.06631 0.05252 0.03315 0.02642 27 0.58586 0.51340 0.45019 0.34682 0.26785 0.20737 0.16093 0.12519 0.09761 0.07628 0.05974 0.04689 0.02908 0.02297 28 0.57437 0.50088 0.43708 0.33348 0.25509 0.19563 0.15040 0.11591 0.08955 0.06934 0.05382 0.04187 0.02551 0.01997 29 0.56311 0.48866 0.42435 0.32065 0.24295 0.18456 0.14056 0.10733 0.08215 0.06304 0.04849 0.03738 0.02237 0.01737 30 0.55207 0.47674 0.41199 0.30832 0.23138 0.17411 0.13137 0.09938 0.07537 0.05731 0.04368 0.03338 0.01963 0.01510 31 0.54125 0.46511 0.39999 0.29646 0.22036 0.16425 0.12277 0.09202 0.06915 0.05210 0.03935 0.02980 0.01722 0.01313 0.53063 0.45377 0.38834 0.28506 0.20987 0.15496 0.11474 0.08520 0.06344 0.04736 0.03545 0.02661 0.01510 0.01142 33 0.52023 0.44270 0.37703 0.27409 0.19987 0.14619 0.10723 0.07889 0.05820 0.04306 0.03194 0.02376 0.01325 0.00993 34 0.51003 0.43191 0.36604 0.26355 0.19035 0.13791 0.10022 0.07305 0.05339 0.03914 0.02878 0.02121 0.01162 0.00864 35 0.50003 0.42137 0.35538 0.25342 0.18129 0.13011 0.09366 0.06763 0.04899 0.03558 0.02592 0.01894 0.01019 0.00751 0.49022 0.41109 0.34503 0.24367 0.17266 0.12274 0.08754 0.06262 0.04494 0.03235 0.02335 0.01691 0.00894 0.00653 0.48061 0.40107 0.33498 0.23430 0.16444 0.11579 0.08181 0.05799 0.04123 0.02941 0.02104 0.01510 0.00784 0.00568 0.47119 0.39128 0.32523 0.22529 0.15661 0.10924 0.07646 0.05369 0.03783 0.02673 0.01896 0.01348 0.00688 0.00494 0.46195 0.38174 0.31575 0.21662 0.14915 0.10306 0.07146 0.04971 0.03470 0.02430 0.01708 0.01204 0.00504 0.00429 0.45289 0.37243 0.30656 0.20829 0.14205 0.09722 0.06678 0.04603 0.03184 0.02209 0.01538 0.01075 0.00529 0.00373 0.11130 0.07265 0.04761 0.03133 0.02069 0.01372 0.00913 0.00610 0.00275 0.00186 0.08720 0.05429 0.03395 0.02132 0.01345 0.00852 0.00542 0.00346 0.00143 0.00092 21 32 0.41020 0.32917 0.26444 0.17120 0.37153 0.29094 0.22811 0.14071 n 1 2 16 17 18 19 20 36 37 38 39 40 45 50 TABLE 1-2: Present value of an ordinary annuity of n payments of 1: (P/A, i, n) 1 (1 + i)" i P/A= n 2% 2.5% 8% 9% 10% 14% 15% 0.87719 0.86957 1.64666 1.62571 3% 4% 5% 6% 7% 11% 12% 0.98039 0.97561 0.97087 0.96154 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 1.94156 1.92742 1.91347 1.88609 1.85941 1.83339 1.80802 1.78326 1.75911 1.73554 1.71252 1.69005 1.64666 2.88388 2.85602 2.82861 2.77509 2.72325 2.67301 2.62432 2.57710 2.53129 2.48685 2.44371 2.40183 2.32163 2.28323 3.80773 3.76197 3.71710 3.62990 3.54595 3.46511 3.38721 3.31213 3.23972 3.16987 3.10245 3.03735 2.91371 2.85498 4.71346 4.64583 4.57971 4.45182 4.32948 4.21236 4.10020 3.99271 3.88965 3.79079 3.69590 3.60478 3.43308 3.35216 5.60143 5.50813 5.41719 5.24214 5.07569 4.91732 4.76654 4.62288 4.48592 4.35526 4.23054 4.11141 3.88867 3.78448 6.47199 6.34939 6.23028 6.00205 5.78637 5.58238 5.38929 5.20637 5.03295 4.86842 4.71220 4.56376 4.28830 4.16042 7.32548 7.17014 7.01969 6.73274 6.46321 6.20979 5.97130 5.74664 5.53482 5.33493 5.14612 4.96764 4.63886 4.48732 8.16224 7.97087 7.78611 7.43533 7.10782 6.80169 6.51523 6.24689 5.99525 5.75902 5.53705 5.32825 4.94637 4.77158 8.98259 8.75206 8.53020 8.11090 7.72173 7.36009 7.02358 6.71008 6.41766 6.14457 5.88923 5.65022 5.21612 5.01877 11 9.78685 9.51421 9.25262 8.76048 8.30641 7.88687 7.49867 7.13896 6.80519 6.49506 6.20652 5.93770 5.45273 5.23371 12 10.57534 10.25776 9.95400 9.38507 8.86325 8.38384 7.94269 7.53608 7.16073 6.81369 6.49236 6.19437 5.66029 5.42062 13 11.34837 10.98318 10.63496 9.98565 9.39357 8.85268 8.35765 7.90378 7.48690 7.10336 6.74987 6.42355 5.84236 5.58315 14 12.10625 11.69091 11.29607 10.56312 9.89864 9.29498 8.74547 8.24424 7.78615 7.36669 6.98187 6.62817 6.00207 5.72448 15 12.84926 12.38138 11.93794 11.11839 10.37966 9.71225 9.10791 8.55948 8.06069 7.60608 7.19087 6.81086 6.14217 5.84737 16 13.57771 13.05500 12.56110 11.65230 10.83777 10.10590 9.44665 8.85137 8.31256 7.82371 7.37916 6.97399 6.26506 5.95423 17 14.29187 13.71220 13.16612 12.16567 11.27407 10.47726 9.76322 9.12164 8.54363 8.02155 7.54879 7.11963 6.37286 6.04716 18 14.99203 14.35336 13.75351 12.65930 11.68959 10.82760 10.05909 9.37189 8.75563 8.20141 7.70162 7.24967 6.46742 6.12797 19 15.67846 14.97889 14.32380 13.13394 12.08532 11.15812 10.33560 9.60360 8.95011 8.36492 7.83929 7.36578 6.55037 6.19823 16.35143 15.58916 14.87747 13.59033 12.46221 11.46992 10.59401 9.81815 9.12855 8.51356 7.96333 7.46944 6.62313 6.25933 17.01121 16.18455 15.41502 14.02916 12.82115 11.76408 10.83553 10.01680 17.65805 16.76541 15.93692 14.45112 13.16300 12.04158 11.06124 10.20074 23 18.29220 17.33211 16.44361 14.85684 13.48857 12.30338 11.27219 10.37106 24 18.91393 17.88499 16.93554 15.24696 13.79864 12.55036 11.46933 10.52876 25 19.52346 18.42438 17.41315 15.62208 14.09394 12.78336 11.65358 10.67478 20 21 22 1 2 3 4 5 6 7 8 1- 9 10 9.29224 8.64869 8.07507 7.56200 6.68696 6.31246 9.44243 8.77154 8.17574 7.64465 6.74294 6.35866 9.58021 8.88322 8.26643 7.71843 6.79206 6.39884 9.70661 8.98474 8.34814 7.78432 6.83514 6.43377 9.82258 9.07704 8.42174 7.84314 6.87293 6.46415 26 20.12104 18.95061 17.87684 15.98277 14.37519 13.00317 11.82578 10.80998 9.92897 9.16095 8.48806 7.89566 6.90608 6.49056 27 20.70690 19.46401 18.32703 16.32959 14.64303 13.21053 11.98671 10.93516 10.02658 9.23722 8.54780 7.94255 6.93515 6.51353 28 21.28127 19.96489 18.76411 16.66306 14.89813 13.40616 12.13711 11.05108 10.11613 9.30657 8.60162 7.98442 6.96066 6.53351 29 21.84438 20.45355 19.18845 16.98371 15.14107 13.59072 12.27767 11.15841 10.19828 9.36961 8.65011 8.02181 6.98304 6.55088 30 22.39646 20.93029 19.60044 17.29203 15.37245 13.76483 12.40904 11.25778 10.27365 9.42691 8.69379 8.05518 7.00266 6.56598 31 22.93770 21.39541 20.00043 17.58849 15.59281 13.92909 12.53181 11.34980 10.34280 9.47901 8.73315 8.08499 7.01988 6.57911 32 23.46833 21.84918 20.38877 17.87355 15.80268 14.08404 12.64656 11.43500 10.40624 9.52638 8.76860 8.11159 7.03498 6.59053 33 23.98856 22.29188 20.76579 18.14765 16.00255 14.23023 12.75379 11.51389 10.46444 9.56943 8.80054 8.13535 8.13535 7.04823 6.60046 34 24.49859 22.72379 21.13184 1841120 16.19290 14.36814 1285401 11.58693 10.51784 9.60857 8.82932 8.15656 7.05985 6.60910 35 24.99862 23.14516 21.48722 18.66461 16.37419 14.49825 12.94767 11.65457 10.56682 9.64416 8.85524 8.17550 7.07005 6.61661 36 25.48884 23.55625 21.83225 18.90828 16.54685 14.62099 13.03521 11.71719 10.61176 9.67651 8.87859 8.19241 7.07899 6.62314 37 25.96945 23.95732 22.16724 19.14258 16.71129 14.73678 13.11702 11.77518 10.65299 9.70592 8.89963 8.20751 7.08683 6.62881 38 26.44064 24.34860 22.49246 19.36786 16.86789 14.84602 13.19347 11.82887 10.69082 9.73265 8.91859 8.22099 7.09371 6.63375 39 26.90259 24.73034 22.80822 19.58448 17.01704 14.94907 13.26493 11.87858 10.72552 9.75696 8.93567 8.23303 7.09975 6.63805 40 27.35548 25.10278 23.11477 19.79277 17.15909 15.04630 13.33171 11.92461 10.75736 9.77905 8.95105 8.24378 7.10504 6.64178 45 29.49016 26.83302 24.51871 20.72004 17.77407 15.45583 13.60552 12.10840 10.88120 9.86281 9.00791 8.28252 7.12322 6.65429 50 31.42361 28.36231 25.72976 21.48218 18.25593 15.76186 13.80075 12.23348 10.96168 9.91481 9.04165 8.30450 7.13266 6.66051 TABLE 1-3: Present value of an annuity due of n payments of 1: (P/AD, i, n) 1 (1 + i)" i P/AD = n 2% 6% 9% 1.00000 11 12 2.5% 3% 4% 5% 7% 8% 10% 11% 12% 14% 15% 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.98039 1.97561 1.97087 1.96154 1.95238 1.94340 1.93458 1.92593 1.91743 1.90909 1.90090 1.89286 1.87719 1.86957 2.94156 2.92742 2.91347 2,88609 2.85941 2.83339 2,80802 2.78326 2.75911 2.73554 2.71252 2.69005 2.64666 2.62571 3.88388 3.85602 3.82861 3.77509 3.72325 3,67301 3.62432 3.57710 3.53129 3.48685 3.44371 3.40183 3.32163 3.28323 4.80773 4.76197 4.71710 4.62990 4.54595 4.46511 4.38721 4.31213 4.23972 4.16987 4.10245 4.03735 3.91371 3.85498 5.71346 5.64583 5.57971 5.45182 5.32948 5.21236 5.10020 4.99271 4.88965 4.79079 4.69590 4.60478 4.43308 4.35216 6.60143 6.50813 6.41719 6.24214 6.07569 5.91732 5.76654 5.62288 5.48592 5.35526 5.23054 5.11141 4.88867 4.78448 7.47199 7.34939 7.23028 7.00205 6.78637 6.58238 6.38929 6.20637 6.03295 5.86842 5.71220 5.56376 5.28830 5.16042 8.32548 8.17014 8.01969 7.73274 7.46321 7.20979 6.97130 6.74664 6.53482 6.33493 6.14612 5.96764 5.63886 5.48732 9.16224 8.97087 8.78611 8.43533 8.10782 7.80169 7.51523 7.24689 6.99525 6.75902 6.53705 6.32825 5.94637 5.77158 9.98259 9.75206 9.53020 9.11090 8.72173 8.36009 8.02358 7.71008 7.41766 7.14457 6.88923 6.65022 6.21612 6.01877 10.78685 10.51421 10.25262 9.76048 9.30641 8.88687 8.49867 8.13896 7.80519 7.49506 7.20652 6.93770 6.45273 6.23371 13 11.57534 11.25776 10.95400 10.38507 9.86325 9.38384 8.94269 8.53608 8.16073 7.81369 7.49236 7.19437 6.66029 6.42062 14 12.34837 11.98318 11.63496 10.98565 10.39357 9.85268 9.35765 8.90378 8.48690 8.10336 7.74987 7.42355 6.84236 6.58315 15 13.10625 12.69091 12.29607 11.56312 10.89864 10.29498 9.74547 9.24424 8.78615 8.36669 7.98187 7.62817 7.00207 6.72448 16 13.84926 13.38138 12.93794 12.11839 11.37966 10.71225 10.10791 9.55948 9.06069 8.60608 8.19087 7.81086 7.14217 6.84737 17 14.57771 14.05500 13.56110 12.65230 11.83777 11.10590 10.44665 9.85137 9.31256 8.82371 8.37916 7.97399 7.26506 6.95423 18 15.29187 14.71220 14.16612 13.16567 12.27407 11.47726 10.76322 10.12164 9.54363 9.02155 8.54879 8.11963 7.37286 7.04716 19 15.99203 15.35336 14.75351 13.65930 12.68959 11.82760 11.05909 10.37189 9.75563 9.20141 8.70162 8.24967 7.46742 7.12797 20 16.67846 15.97889 15.32380 14.13394 13.08532 12.15812 11.33560 10.60360 9.95011 9.36492 8.83929 8.36578 7.55037 7.19823 17.35143 16.58916 15.87747 14.59033 13.46221 12.46992 11.59401 10.81815 10.12855 9.51356 8.96333 8.46944 7.62313 7.25933 18.01121 17.18455 16.41502 15.02916 13.82115 12.76408 11.83553 11.01680 10.29224 9.64869 9.07507 8.56200 7.68696 7.31246 18.65805 17.76541 16.93692 15.45112 14.16300 13.04158 12.06124 11.20074 10.44243 9.77154 9.17574 8.64465 7.74294 7.35866 19.29220 18.33211 17.44361 15.85684 14.48857 13.30338 12.27219 11.37106 10.58021 9.88322 9.26643 8.71843 7.79206 7.39884 19.91393 18.88499 17.93554 16.24696 14.79864 13.55036 12.46933 11.52876 10.70661 9.98474 9.34814 8.78432 7.83514 7.43377 26 20.52346 19.42438 18.41315 16.62208 15.09394 13.78336 12.65358 11.67478 10.82258 10.07704 9.42174 8.84314 7.87293 7.46415 27 21.12104 19.95061 18.87684 16.98277 15.37519 14.00317 12.82578 11.80998 10.92897 10.16095 9.48806 8.89566 7.90608 7.49056 28 21.70690 20.46401 19.32703 17.32959 15.64303 14.21053 12.98671 11.93516 11.02658 10.23722 9.54780 8.94255 7.93515 7.51353 29 22.28127 20.96489 19.76411 17.66306 15.89813 14.40616 13.13711 12.05108 11.11613 10.30657 9.60162 8.98442 7.96066 7.53351 30 22.84438 21.45355 20.18845 17.98371 16.14107 14.59072 13.27767 12.15841 11.19828 10.36961 9.65011 9.02181 7.98304 7.55088 31 23.39646 21.93029 20.60044 18.29203 16.37245 14.76483 13.40904 12.25778 11.27365 10.42691 9.69379 9.05518 8.00266 7.56598 32 23.93770 22.39541 21.00043 18.58849 16.59281 14.92909 13.53181 12.34980 11.34280 10.47901 9.73315 9.08499 8.01988 7.57911 33 24.46833 22.84918 21.38877 18.87355 16.80268 15.08404 13.64656 12.43500 11.40624 10.52638 9.76860 9.11159 8.03498 7.59053 24.98856 23.29188 21.76579 19.14765 17.00255 15.23023 13.75379 12.51389 11.46444 10.56943 9.80054 9.13535 8.04823 7.60046 25.49859 23.72379 22.13184 19.41120 17.19290 15.36814 13.85401 12.58693 11.51784 10.60857 9.82932 9.15656 8.05985 7.60910 36 25.99862 24.14516 22.48722 19.66461 17.37419 15.49825 13.94767 12.65457 11.56682 34 35 10.64416 9.85524 9.17550 8.07005 7.61661 37 26.48884 24.55625 22.83225 19.90828 17.54685 15.62099 14.03521 12.71719 11.61176 10.67651 9.87859 9.19241 8.07899 7.62314 38 26.96945 24.95732 23.16724 20.14258 17.71129 15.73678 14.11702 12.77518 11.65299 10.70592 9.89963 9.20751 8.08683 7.62881 39 27.44064 25.34860 23.49246 20.36786 17.86789 15.84602 14.19347 12.82887 11.69082 10.73265 9.91859 9.22099 8.09371 7.63375 40 27.90259 25.73034 23.80822 20.58448 18.01704 15.94907 14.26493 12.87858 11.72552 10.75696 9.93567 9.23303 8.09975 7.63805 45 30.07996 27.50385 25.25427 21.54884 18.66277 16.38318 14.55791 13.07707 11.86051 10.84909 9.99878 9.27642 8.12047 7.65244 50 32.05208 29.07137 26.50166 22.34147 19.16872 16.70757 14.76680 13.21216 11.94823 10.90630 10.03624 9.30104 8.13123 7.65959 1 2 3 4 5 6 7 8 9 10 1 21 22 23 24 25 x (1 + i) Lease Period 20X1 20X2 20X3 20X4 Beginning Balance Amortization Table Interest Net Lease Payment Beg. of Year Incr/(Decr) in Balance Ending Balance View transaction list Journal entry worksheet 1 2 3 4 5 6 7 Record the commencement of lease. Date 1 Jan. 20X1 Note: Enter debits before credits. Record entry General Journal Clear entry Debit Credit View general journal TABLE 1-1: Present value of 1: (P/F, i, n) 1 (1 + i)" P/F = 2% 2.5% 3% 6% 7% 8% 9% 3 6 7 4% 5% 10% 11% 12% 14% 15% 0.98039 0.97561 0.97087 0.96154 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 0.87719 0.86957 0.96117 0.95181 0.94260 0.92456 0.90703 0.89000 0.87344 0.85734 0.84168 0.82645 0.81162 0.79719 0.76947 0.75614 0.94232 0.92860 0.91514 0.88900 0.86384 0.83962 0.81630 0.79383 0.77218 0.75131 0.73119 0.71178 0.67497 0.65752 4 0.92385 0.90595 0.88849 0.85480 0.82270 0.79209 0.76290 0.73503 0.70843 0.68301 0.65873 0.63552 0.59208 0.57175 5 0.90573 0.88385 0.86261 0.82193 0.78353 0.74726 0.71299 0.68058 0.64993 0.62092 0.59345 0.56743 0.51937 0.49718 0.88797 0.86230 0.83748 0.79031 0.74622 0.70496 0.66634 0.63017 0.59627 0.56447 0.53464 0.50663 0.45559 0.43233 0.87056 0.84127 0.81309 0.75992 0.71068 0.66506 0.62275 0.58349 0.54703 0.51316 0.48166 0.45235 0.39964 0.37594 8 0.85349 0.82075 0.78941 0.73069 0.67684 0.62741 0.58201 0.54027 0.50187 0.46651 0.43393 0.40388 0.35056 0.32690 9 0.83676 0.80073 0.76642 0.70259 0.64461 0.59190 0.54393 0.50025 0.46043 0.42410 0.39092 0.36061 0.30751 0.28426 10 0.82035 0.78120 0.74409 0.67556 0.61391 0.55839 0.50835 0.46319 0.42241 0.38554 0.35218 0.32197 0.26974 0.24718 11 0.80426 0.76214 0.72242 0.64958 0.58468 0.52679 0.47509 0.42888 0.38753 0.35049 0.31728 0.28748 0.23662 0.21494 12 0.78849 0.74356 0.70138 0.62450 0.55684 0.49697 0.44401 0.39711 0.35553 0.31863 0.28584 0.25668 0.20756 0.18691 13 0.77303 0.72542 0.68095 0.60057 0.53032 0.46884 0.41496 0.36770 0.32618 0.28966 0.25751 0.22917 0.18207 0.16253 14 0.75788 0.70773 0.66112 0.57748 0.50507 0.44230 0.38782 0.34046 0.29925 0.26333 0.23199 0.20462 0.15971 0.14133 15 0.74301 0.69047 0.64186 0.55526 0.48102 0.41727 0.36245 0.31524 0.27454 0.23939 0.20900 0.18270 0.14010 0.12289 0.72845 0.67362 0.62317 0.53391 0.45811 0.39365 0.33873 0.29189 0.25187 0.21763 0.18829 0.16312 0.12289 0.10686 0.71416 0.65720 0.60502 0.51337 0.43630 0.37136 0.31657 0.27027 0.23107 0.19784 0.16963 0.14564 0.10780 0.09293 0.70016 0.64117 0.58739 0.49363 0.41552 0.35034 0.29586 0.25025 0.21199 0.17986 0.15282 0.13004 0.09456 0.08081 0.68643 0.62553 0.57029 0.47464 0.39573 0.33051 0.27651 0.23171 0.19449 0.16351 0.13768 0.11611 0.08295 0.07027 0.67297 0.61027 0.55368 0.45639 0.37689 0.31180 0.25842 0.21455 0.17843 0.14864 0.12403 0.10367 0.07276 0.06110 0.65978 0.59539 0.53755 0.43883 0.35894 0.29416 0.24151 0.19866 0.16370 0.13513 0.11174 0.09256 0.06383 0.05313 22 0.64684 0.58086 0.52189 0.42196 0.34185 0.27751 0.22571 0.18394 0.15018 0.12285 0.10067 0.08264 0.05599 0.04620 23 0.63416 0.56670 0.50669 0.40573 0.32557 0.26180 0.21095 0.17032 0.13778 0.11168 0.09069 0.07379 0.04911 0.04017 24 0.62172 0.55288 0.49193 0.39012 0.31007 0.24698 0.19715 0.15770 0.12640 0.10153 0.08170 0.06588 0.04308 0.03493 25 0.60953 0.53939 0.47761 0.37512 0.29530 0.23300 0.18425 0.14602 0.11597 0.09230 0.07361 0.05882 0.03779 0.03038 26 0.59758 0.52623 0.46369 0.36069 0.28124 0.21981 0.17220 0.13520 0.10639 0.08391 0.06631 0.05252 0.03315 0.02642 27 0.58586 0.51340 0.45019 0.34682 0.26785 0.20737 0.16093 0.12519 0.09761 0.07628 0.05974 0.04689 0.02908 0.02297 28 0.57437 0.50088 0.43708 0.33348 0.25509 0.19563 0.15040 0.11591 0.08955 0.06934 0.05382 0.04187 0.02551 0.01997 29 0.56311 0.48866 0.42435 0.32065 0.24295 0.18456 0.14056 0.10733 0.08215 0.06304 0.04849 0.03738 0.02237 0.01737 30 0.55207 0.47674 0.41199 0.30832 0.23138 0.17411 0.13137 0.09938 0.07537 0.05731 0.04368 0.03338 0.01963 0.01510 31 0.54125 0.46511 0.39999 0.29646 0.22036 0.16425 0.12277 0.09202 0.06915 0.05210 0.03935 0.02980 0.01722 0.01313 0.53063 0.45377 0.38834 0.28506 0.20987 0.15496 0.11474 0.08520 0.06344 0.04736 0.03545 0.02661 0.01510 0.01142 33 0.52023 0.44270 0.37703 0.27409 0.19987 0.14619 0.10723 0.07889 0.05820 0.04306 0.03194 0.02376 0.01325 0.00993 34 0.51003 0.43191 0.36604 0.26355 0.19035 0.13791 0.10022 0.07305 0.05339 0.03914 0.02878 0.02121 0.01162 0.00864 35 0.50003 0.42137 0.35538 0.25342 0.18129 0.13011 0.09366 0.06763 0.04899 0.03558 0.02592 0.01894 0.01019 0.00751 0.49022 0.41109 0.34503 0.24367 0.17266 0.12274 0.08754 0.06262 0.04494 0.03235 0.02335 0.01691 0.00894 0.00653 0.48061 0.40107 0.33498 0.23430 0.16444 0.11579 0.08181 0.05799 0.04123 0.02941 0.02104 0.01510 0.00784 0.00568 0.47119 0.39128 0.32523 0.22529 0.15661 0.10924 0.07646 0.05369 0.03783 0.02673 0.01896 0.01348 0.00688 0.00494 0.46195 0.38174 0.31575 0.21662 0.14915 0.10306 0.07146 0.04971 0.03470 0.02430 0.01708 0.01204 0.00504 0.00429 0.45289 0.37243 0.30656 0.20829 0.14205 0.09722 0.06678 0.04603 0.03184 0.02209 0.01538 0.01075 0.00529 0.00373 0.11130 0.07265 0.04761 0.03133 0.02069 0.01372 0.00913 0.00610 0.00275 0.00186 0.08720 0.05429 0.03395 0.02132 0.01345 0.00852 0.00542 0.00346 0.00143 0.00092 21 32 0.41020 0.32917 0.26444 0.17120 0.37153 0.29094 0.22811 0.14071 n 1 2 16 17 18 19 20 36 37 38 39 40 45 50 TABLE 1-2: Present value of an ordinary annuity of n payments of 1: (P/A, i, n) 1 (1 + i)" i P/A= n 2% 2.5% 8% 9% 10% 14% 15% 0.87719 0.86957 1.64666 1.62571 3% 4% 5% 6% 7% 11% 12% 0.98039 0.97561 0.97087 0.96154 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 1.94156 1.92742 1.91347 1.88609 1.85941 1.83339 1.80802 1.78326 1.75911 1.73554 1.71252 1.69005 1.64666 2.88388 2.85602 2.82861 2.77509 2.72325 2.67301 2.62432 2.57710 2.53129 2.48685 2.44371 2.40183 2.32163 2.28323 3.80773 3.76197 3.71710 3.62990 3.54595 3.46511 3.38721 3.31213 3.23972 3.16987 3.10245 3.03735 2.91371 2.85498 4.71346 4.64583 4.57971 4.45182 4.32948 4.21236 4.10020 3.99271 3.88965 3.79079 3.69590 3.60478 3.43308 3.35216 5.60143 5.50813 5.41719 5.24214 5.07569 4.91732 4.76654 4.62288 4.48592 4.35526 4.23054 4.11141 3.88867 3.78448 6.47199 6.34939 6.23028 6.00205 5.78637 5.58238 5.38929 5.20637 5.03295 4.86842 4.71220 4.56376 4.28830 4.16042 7.32548 7.17014 7.01969 6.73274 6.46321 6.20979 5.97130 5.74664 5.53482 5.33493 5.14612 4.96764 4.63886 4.48732 8.16224 7.97087 7.78611 7.43533 7.10782 6.80169 6.51523 6.24689 5.99525 5.75902 5.53705 5.32825 4.94637 4.77158 8.98259 8.75206 8.53020 8.11090 7.72173 7.36009 7.02358 6.71008 6.41766 6.14457 5.88923 5.65022 5.21612 5.01877 11 9.78685 9.51421 9.25262 8.76048 8.30641 7.88687 7.49867 7.13896 6.80519 6.49506 6.20652 5.93770 5.45273 5.23371 12 10.57534 10.25776 9.95400 9.38507 8.86325 8.38384 7.94269 7.53608 7.16073 6.81369 6.49236 6.19437 5.66029 5.42062 13 11.34837 10.98318 10.63496 9.98565 9.39357 8.85268 8.35765 7.90378 7.48690 7.10336 6.74987 6.42355 5.84236 5.58315 14 12.10625 11.69091 11.29607 10.56312 9.89864 9.29498 8.74547 8.24424 7.78615 7.36669 6.98187 6.62817 6.00207 5.72448 15 12.84926 12.38138 11.93794 11.11839 10.37966 9.71225 9.10791 8.55948 8.06069 7.60608 7.19087 6.81086 6.14217 5.84737 16 13.57771 13.05500 12.56110 11.65230 10.83777 10.10590 9.44665 8.85137 8.31256 7.82371 7.37916 6.97399 6.26506 5.95423 17 14.29187 13.71220 13.16612 12.16567 11.27407 10.47726 9.76322 9.12164 8.54363 8.02155 7.54879 7.11963 6.37286 6.04716 18 14.99203 14.35336 13.75351 12.65930 11.68959 10.82760 10.05909 9.37189 8.75563 8.20141 7.70162 7.24967 6.46742 6.12797 19 15.67846 14.97889 14.32380 13.13394 12.08532 11.15812 10.33560 9.60360 8.95011 8.36492 7.83929 7.36578 6.55037 6.19823 16.35143 15.58916 14.87747 13.59033 12.46221 11.46992 10.59401 9.81815 9.12855 8.51356 7.96333 7.46944 6.62313 6.25933 17.01121 16.18455 15.41502 14.02916 12.82115 11.76408 10.83553 10.01680 17.65805 16.76541 15.93692 14.45112 13.16300 12.04158 11.06124 10.20074 23 18.29220 17.33211 16.44361 14.85684 13.48857 12.30338 11.27219 10.37106 24 18.91393 17.88499 16.93554 15.24696 13.79864 12.55036 11.46933 10.52876 25 19.52346 18.42438 17.41315 15.62208 14.09394 12.78336 11.65358 10.67478 20 21 22 1 2 3 4 5 6 7 8 1- 9 10 9.29224 8.64869 8.07507 7.56200 6.68696 6.31246 9.44243 8.77154 8.17574 7.64465 6.74294 6.35866 9.58021 8.88322 8.26643 7.71843 6.79206 6.39884 9.70661 8.98474 8.34814 7.78432 6.83514 6.43377 9.82258 9.07704 8.42174 7.84314 6.87293 6.46415 26 20.12104 18.95061 17.87684 15.98277 14.37519 13.00317 11.82578 10.80998 9.92897 9.16095 8.48806 7.89566 6.90608 6.49056 27 20.70690 19.46401 18.32703 16.32959 14.64303 13.21053 11.98671 10.93516 10.02658 9.23722 8.54780 7.94255 6.93515 6.51353 28 21.28127 19.96489 18.76411 16.66306 14.89813 13.40616 12.13711 11.05108 10.11613 9.30657 8.60162 7.98442 6.96066 6.53351 29 21.84438 20.45355 19.18845 16.98371 15.14107 13.59072 12.27767 11.15841 10.19828 9.36961 8.65011 8.02181 6.98304 6.55088 30 22.39646 20.93029 19.60044 17.29203 15.37245 13.76483 12.40904 11.25778 10.27365 9.42691 8.69379 8.05518 7.00266 6.56598 31 22.93770 21.39541 20.00043 17.58849 15.59281 13.92909 12.53181 11.34980 10.34280 9.47901 8.73315 8.08499 7.01988 6.57911 32 23.46833 21.84918 20.38877 17.87355 15.80268 14.08404 12.64656 11.43500 10.40624 9.52638 8.76860 8.11159 7.03498 6.59053 33 23.98856 22.29188 20.76579 18.14765 16.00255 14.23023 12.75379 11.51389 10.46444 9.56943 8.80054 8.13535 8.13535 7.04823 6.60046 34 24.49859 22.72379 21.13184 1841120 16.19290 14.36814 1285401 11.58693 10.51784 9.60857 8.82932 8.15656 7.05985 6.60910 35 24.99862 23.14516 21.48722 18.66461 16.37419 14.49825 12.94767 11.65457 10.56682 9.64416 8.85524 8.17550 7.07005 6.61661 36 25.48884 23.55625 21.83225 18.90828 16.54685 14.62099 13.03521 11.71719 10.61176 9.67651 8.87859 8.19241 7.07899 6.62314 37 25.96945 23.95732 22.16724 19.14258 16.71129 14.73678 13.11702 11.77518 10.65299 9.70592 8.89963 8.20751 7.08683 6.62881 38 26.44064 24.34860 22.49246 19.36786 16.86789 14.84602 13.19347 11.82887 10.69082 9.73265 8.91859 8.22099 7.09371 6.63375 39 26.90259 24.73034 22.80822 19.58448 17.01704 14.94907 13.26493 11.87858 10.72552 9.75696 8.93567 8.23303 7.09975 6.63805 40 27.35548 25.10278 23.11477 19.79277 17.15909 15.04630 13.33171 11.92461 10.75736 9.77905 8.95105 8.24378 7.10504 6.64178 45 29.49016 26.83302 24.51871 20.72004 17.77407 15.45583 13.60552 12.10840 10.88120 9.86281 9.00791 8.28252 7.12322 6.65429 50 31.42361 28.36231 25.72976 21.48218 18.25593 15.76186 13.80075 12.23348 10.96168 9.91481 9.04165 8.30450 7.13266 6.66051 TABLE 1-3: Present value of an annuity due of n payments of 1: (P/AD, i, n) 1 (1 + i)" i P/AD = n 2% 6% 9% 1.00000 11 12 2.5% 3% 4% 5% 7% 8% 10% 11% 12% 14% 15% 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.98039 1.97561 1.97087 1.96154 1.95238 1.94340 1.93458 1.92593 1.91743 1.90909 1.90090 1.89286 1.87719 1.86957 2.94156 2.92742 2.91347 2,88609 2.85941 2.83339 2,80802 2.78326 2.75911 2.73554 2.71252 2.69005 2.64666 2.62571 3.88388 3.85602 3.82861 3.77509 3.72325 3,67301 3.62432 3.57710 3.53129 3.48685 3.44371 3.40183 3.32163 3.28323 4.80773 4.76197 4.71710 4.62990 4.54595 4.46511 4.38721 4.31213 4.23972 4.16987 4.10245 4.03735 3.91371 3.85498 5.71346 5.64583 5.57971 5.45182 5.32948 5.21236 5.10020 4.99271 4.88965 4.79079 4.69590 4.60478 4.43308 4.35216 6.60143 6.50813 6.41719 6.24214 6.07569 5.91732 5.76654 5.62288 5.48592 5.35526 5.23054 5.11141 4.88867 4.78448 7.47199 7.34939 7.23028 7.00205 6.78637 6.58238 6.38929 6.20637 6.03295 5.86842 5.71220 5.56376 5.28830 5.16042 8.32548 8.17014 8.01969 7.73274 7.46321 7.20979 6.97130 6.74664 6.53482 6.33493 6.14612 5.96764 5.63886 5.48732 9.16224 8.97087 8.78611 8.43533 8.10782 7.80169 7.51523 7.24689 6.99525 6.75902 6.53705 6.32825 5.94637 5.77158 9.98259 9.75206 9.53020 9.11090 8.72173 8.36009 8.02358 7.71008 7.41766 7.14457 6.88923 6.65022 6.21612 6.01877 10.78685 10.51421 10.25262 9.76048 9.30641 8.88687 8.49867 8.13896 7.80519 7.49506 7.20652 6.93770 6.45273 6.23371 13 11.57534 11.25776 10.95400 10.38507 9.86325 9.38384 8.94269 8.53608 8.16073 7.81369 7.49236 7.19437 6.66029 6.42062 14 12.34837 11.98318 11.63496 10.98565 10.39357 9.85268 9.35765 8.90378 8.48690 8.10336 7.74987 7.42355 6.84236 6.58315 15 13.10625 12.69091 12.29607 11.56312 10.89864 10.29498 9.74547 9.24424 8.78615 8.36669 7.98187 7.62817 7.00207 6.72448 16 13.84926 13.38138 12.93794 12.11839 11.37966 10.71225 10.10791 9.55948 9.06069 8.60608 8.19087 7.81086 7.14217 6.84737 17 14.57771 14.05500 13.56110 12.65230 11.83777 11.10590 10.44665 9.85137 9.31256 8.82371 8.37916 7.97399 7.26506 6.95423 18 15.29187 14.71220 14.16612 13.16567 12.27407 11.47726 10.76322 10.12164 9.54363 9.02155 8.54879 8.11963 7.37286 7.04716 19 15.99203 15.35336 14.75351 13.65930 12.68959 11.82760 11.05909 10.37189 9.75563 9.20141 8.70162 8.24967 7.46742 7.12797 20 16.67846 15.97889 15.32380 14.13394 13.08532 12.15812 11.33560 10.60360 9.95011 9.36492 8.83929 8.36578 7.55037 7.19823 17.35143 16.58916 15.87747 14.59033 13.46221 12.46992 11.59401 10.81815 10.12855 9.51356 8.96333 8.46944 7.62313 7.25933 18.01121 17.18455 16.41502 15.02916 13.82115 12.76408 11.83553 11.01680 10.29224 9.64869 9.07507 8.56200 7.68696 7.31246 18.65805 17.76541 16.93692 15.45112 14.16300 13.04158 12.06124 11.20074 10.44243 9.77154 9.17574 8.64465 7.74294 7.35866 19.29220 18.33211 17.44361 15.85684 14.48857 13.30338 12.27219 11.37106 10.58021 9.88322 9.26643 8.71843 7.79206 7.39884 19.91393 18.88499 17.93554 16.24696 14.79864 13.55036 12.46933 11.52876 10.70661 9.98474 9.34814 8.78432 7.83514 7.43377 26 20.52346 19.42438 18.41315 16.62208 15.09394 13.78336 12.65358 11.67478 10.82258 10.07704 9.42174 8.84314 7.87293 7.46415 27 21.12104 19.95061 18.87684 16.98277 15.37519 14.00317 12.82578 11.80998 10.92897 10.16095 9.48806 8.89566 7.90608 7.49056 28 21.70690 20.46401 19.32703 17.32959 15.64303 14.21053 12.98671 11.93516 11.02658 10.23722 9.54780 8.94255 7.93515 7.51353 29 22.28127 20.96489 19.76411 17.66306 15.89813 14.40616 13.13711 12.05108 11.11613 10.30657 9.60162 8.98442 7.96066 7.53351 30 22.84438 21.45355 20.18845 17.98371 16.14107 14.59072 13.27767 12.15841 11.19828 10.36961 9.65011 9.02181 7.98304 7.55088 31 23.39646 21.93029 20.60044 18.29203 16.37245 14.76483 13.40904 12.25778 11.27365 10.42691 9.69379 9.05518 8.00266 7.56598 32 23.93770 22.39541 21.00043 18.58849 16.59281 14.92909 13.53181 12.34980 11.34280 10.47901 9.73315 9.08499 8.01988 7.57911 33 24.46833 22.84918 21.38877 18.87355 16.80268 15.08404 13.64656 12.43500 11.40624 10.52638 9.76860 9.11159 8.03498 7.59053 24.98856 23.29188 21.76579 19.14765 17.00255 15.23023 13.75379 12.51389 11.46444 10.56943 9.80054 9.13535 8.04823 7.60046 25.49859 23.72379 22.13184 19.41120 17.19290 15.36814 13.85401 12.58693 11.51784 10.60857 9.82932 9.15656 8.05985 7.60910 36 25.99862 24.14516 22.48722 19.66461 17.37419 15.49825 13.94767 12.65457 11.56682 34 35 10.64416 9.85524 9.17550 8.07005 7.61661 37 26.48884 24.55625 22.83225 19.90828 17.54685 15.62099 14.03521 12.71719 11.61176 10.67651 9.87859 9.19241 8.07899 7.62314 38 26.96945 24.95732 23.16724 20.14258 17.71129 15.73678 14.11702 12.77518 11.65299 10.70592 9.89963 9.20751 8.08683 7.62881 39 27.44064 25.34860 23.49246 20.36786 17.86789 15.84602 14.19347 12.82887 11.69082 10.73265 9.91859 9.22099 8.09371 7.63375 40 27.90259 25.73034 23.80822 20.58448 18.01704 15.94907 14.26493 12.87858 11.72552 10.75696 9.93567 9.23303 8.09975 7.63805 45 30.07996 27.50385 25.25427 21.54884 18.66277 16.38318 14.55791 13.07707 11.86051 10.84909 9.99878 9.27642 8.12047 7.65244 50 32.05208 29.07137 26.50166 22.34147 19.16872 16.70757 14.76680 13.21216 11.94823 10.90630 10.03624 9.30104 8.13123 7.65959 1 2 3 4 5 6 7 8 9 10 1 21 22 23 24 25 x (1 + i)

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The given information on 31 December 20x0 Colombia the above table given infor... View the full answer