4. Assume that Crimbring opted to carry this note at its fair value. What should be the value of the note on Crimbring’s December 31, 20X1, balance sheet if the market interest rate is then 12%? Assume that the December 31, 20X1, payment has been made. 5. Prepare the entry that Crimbring would make on December 31, 20X1, to record the note at its fair value.

Q: Under the effective interest method of interest bearing note in lump-sum payment, the interest to be…

A:

Q: 11. On January 1, 2020, Jones Services receives a zero-interest note with a matu $10,000 and a three…

A: Solution a: Face value of note = $10,000 Normal rate of similar note = 10%  Period of note = 3 years…

Q: ivanhoe ltd receives a $86000,zero interest bearing note. the present value of this note is $72024.…

A: Notes are financial instruments representing a promise to pay a specified amount of money at a…

Q: is 12%. What should be the balance of the Discount on Notes Paya adjusting entries are made,…

A: AmountPV Discount FactorPVInterest (560000*10%) $         56,000       3.60480 $…

Q: a. Within the short-term obligations of Lance Company, as of December 31, 2011, the date on which…

A: Current liabilities are those charges that are generally paid within a one-year time span and it…

Q: ABC company issued a promissory note to DEF bank. Details from the promissory note as follows: Date…

A: Promissory note is the written note prepared where promisor promises to the promise to pay the…

Q: The Irby Firm loaned Soltis Inc. $147,812. The Irby Firm accepted Soltis Inc's. 3 - year $ 186, 200,…

A: Zero-interest-bearing notes receivable refer to promissory notes or debt instruments that do not…

Q: with a book and fair value of P50,000 and P30,000, respectively. bank receive if unsecured creditors…

A: In this case the fair value of inventory is P30,000 and the amount loaned to company is P40,000.…

Q: A promissory note is a written statement agreeing to pay a sum of money either on demand or at a…

A: Promissory notes are like notes payable. Here the issuer of the note promises to pay the other party…

Q: A promissory note has a face value of 22275.00 and it has a date of issue of November 15 this year.…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: Ahmed has discounted the bill with bank. The date of maturity is 1st July 2021, when can the bank…

A: Days of Grace: Drawee is given three extra days following the due date of the bill for making…

Q: (b) On January 1, 2020, Pearl Furniture borrowed $5,900,000 (face value) from Sinise Co, a major…

A: A zero-interest note seems to be a debt that does not include the written obligation that the…

Q: Descriptors are provided below for six situations involving notes receivable being discounted at a…

A: Notes receivables are the company's asset as it is the amount that is to be received at the end of…

Q: Assume that on 15th January 2019 Mustafa and Sons LLC sold OMR 15000 goods to Ibri traders on…

A: The maturity value is the amount to be paid at the time of maturity of note note receivable by the…

Q: months after the given mat

A: Given as,

Q: Suppose the face amount of the notevwas adjusted to include nonbearing interest note andc12% is yhr…

A: To DateParticularsDebit($)Credit($)Oct. 1, 2021Cash A/c Dr.26880000Discount on notes payable A/c…

Q: On January 1, Boston Company completed the following transactions (use a 7% annual interest rate for…

A: Transaction Date  01-01-2022 Interest Rate 7%

Q: On September 1, 2024, Hiker Shoes issued a $108,000, 6-month, noninterest-bearing note. The loan was…

A: Answer    Interest =           amount × rate of discount × 6/12  =  $108000 × 10% × 6/12      =…

Q: 3-year, P900,000 receivable due as follows 0. On Jan. 1, 20x1, Parya Co. rece note…

A: Introduction: The present value (PV) of a future sum of money or stream of revenue is its current…

Q: On January 2, 2023, Sunland Inc. sells goods to Bramble Company in exchange for a…

A: Interest is a amount which is paid by a borrower to the person from the money has been taken by him…

Q: 16. On 1 January 2022, Marina Tower exchanged equipment for an $800,000 zero-interest-bearing note…

A: When more than one asset is purchased at the lumpsum price then the cost is allocated to the…

Q: A 62-day note for $115 bears interest at 5.75% and is sold 26 days before the due date to a bank…

A: Following are the proceeds 62-day Promissory Note is for $ 115  Simple Interest rate = 5.75%…

Q: On January 1, 2022, Balance Bar Co. receives a 5-year, $100,000 zero-interest-bearing note for…

A: Fv=100,000 N=5 years i=6% Then principal:$100,000 (PVF$5,6%) = $100,000 x .74726 =$74,726…

Q: . On November 1, 20x1, ABC discounted a P1,000,000, 90-day note, received from a customer on…

A: Discounted notes are a way for a business to reduce its receivable amount to meet its immediate…

Q: Culver Corporation has elected to use the fair value option for one of its notes payable. The note…

A: An unrealized holding gain or loss on notes payable is recorded for the change in the fair value of…

Q: January 1, 20x1, ABC Bank extended a P1,000,000 loan to XYZ. Principal is due on December 31, 20x5…

A: Explanation of Concept Current problem is related to the concept of impairment of asset value. Every…

Q: Loob Company had the following loans at 12% interest payable at maturity. The entity repaid each…

A: Interest is required to be paid on the amount borrowed from financial institutions. The interest…

Q: During the period, FN Trading issued another promissory note for an additional loan of P74,000 and…

A: The question is based on the concept of Financial Accounting.

Q: 2. On May 1, Edwards signs a $125,000 non-interest-bearing note payable due in one year to Chicago…

A: At the time of issuance of notes payable, the cash account is debited and notes payable are credited…

Q: On June 3, 20X1, Alaska State Company received a $5,400, 45-day, 12 percent note from Samuel Adams,…

A: Journal entry is an art of recording, summarizing and classifying the business transactions into…

Q: The following information is available for Beta, a trader, for the year ended 31 March 2022. Trade…

A: Bad Debt Expense is an expense used to record the uncollectible account write-off. It is recorded on…

Q: On January 1, 2022, Balance Bar Co. lends Bio Foods $100,000 in exchange for a $100,000, 5-year note…

A: Since Balance Bar Co. lends Bio Foods $100,000 in exchange for a $100,000, 5-year note bearing…

Q: On December 31;2025, Blue Inc. rendered services to Beghun Corporation at an agreed price of…

A: Notes are also known as promissory notes which are a sort of debt instrument stating a promise to…

Q: On May 1, the Morse Company accepted a 60-day, $15,000 non-interest-bearing note from U Corporation.…

A: Note payable is a promise to pay certain amount of money on maturity date. The note can be with…

Q: Descriptors are provided below for six situations involving notes receivable being discounted at a…

A: Notes receivable is an asset of a company. It is a written promise document to receive a certain…

Q: 6. On December 31, 2010, Chelsea Co. provides a service for its customer Villas Boas Co. inexchange…

A: First step is to compute the amount of notes receivable to be recorded in the beginning of the…

Q: On January 1, 20x1, ABC Bank extended a P1,000,000 loan to XYZ. Principal is due on December 31,…

A: Loan definition:- Loan is basically lending of money by persons, entities or organizations to other…

Q: Coronado Corporation has elected to use the fair value option for one of its notes payable. The note…

A: Unrealized holding gain or loss on notes payable refers to the changes in the fair value of notes…