4. Help the inexperienced accountant of Ala-alipaw Co. Discount on notes payable on initial recognition (2) reconstruct the information required in the numbered blanks: Face amount (1) Effective interest rate Term of the note (in years) (3) (4) Payments Interest expense Amortization Present value Date 400,000 400,000 1,119,272 898,356 179,084 (5) (6) 12012 12/31/ 256,263 (7) 400,000 102,735 (8) 344,828 (9) 400,000 (10) 344,828
4. Help the inexperienced accountant of Ala-alipaw Co. Discount on notes payable on initial recognition (2) reconstruct the information required in the numbered blanks: Face amount (1) Effective interest rate Term of the note (in years) (3) (4) Payments Interest expense Amortization Present value Date 400,000 400,000 1,119,272 898,356 179,084 (5) (6) 12012 12/31/ 256,263 (7) 400,000 102,735 (8) 344,828 (9) 400,000 (10) 344,828
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:reconstruct the information required in the numbered blanks:
4.
4. Help the inexperienced accountant of Ala-alipaw Co.
Face amount
(1)
Effective interest rate
Term of the note (in years)
(3)
(4)
Interest expense Amortization Present value
Date Payments
1/11
1,119,272
400,000
400,000
400,000
400,000
12/31/x1
179,084
(5)
12/31/2
12/31/3
(9)
(6)
102,735
898,356
(7)
256,263
(8)
344,828
(10)
344,828
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