Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1st,2024, jurassic pork, a food truck s

On January 1st,2024, Jurassic Pork, a food truck specializing in smoked ribs and pulled pork,...

70.2K

Verified Solution

Question

Accounting

image

On January 1st,2024, Jurassic Pork, a food truck specializing in smoked ribs and pulled pork, is purchasing a new food truck for its fleet by signing a note payable which includes an interest rate of 7%. The company will choose between the following two options for the terms of its note payable:Option 1: Payments of $15,000 at the end of each year for 4 years, starting 12/31/24.Option 2: A single payment of $66,000 in 4 years.
Which option above would be the cheaper option for Jurassic Pork? (Note that choices below are scrambled due to a setting in Connect that I cannot change--do not let the order of the choice affect your answer)
Multiple Choice:
A. Both options cost the same.
B. Option 2
C. Option 1
BONUS: What amount of interest expense would Jurassic Pork record on 12/31/25 under option 1? It may be helpful to reference the journal entries you recorded for option 1 when answering this question. (up to 1 bonus point possible)Note: Enter only the amount. No dollar signs!
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students