Homework Help is Here – Start Your Trial Now!
Business
Finance
4. What is the carrying amount of note pay able ot Problem 23-15 (AICPA Adapted) On December 31, 2021, Bart Company purchased a machine in exchange for a noninterest bearing note requiring eight payments of P200,000. The first payment was made on December 31, 2021 and the others are due annually on December 31. At date of issuance, the prevailing rate of interest for this type of note was 11%. PV of an ordinary annuity of 1 at 11% for 8 periods 5.146 PV of an annuity of 1 in advance at 11% for 8 periods 5.712 1. What amount should be recorded as initial cost of the machine? a. 1,600,000 b. 1,029,200 c. 1,400,000 d. 1,142,400 2. What amount should be recorded as discount on note payable on December 31, 2021? a. 657,600 b. 457,600 c. 570,800 d. 3. What amount should be recorded as interest expense for 2022? а. 125,664 b. 103,664 c. 113,212 d. 176,000 December 31, 2022? a. 942,400 b. 846,064 c. 742,400 d. 742,412

4. What is the carrying amount of note pay able ot Problem 23-15 (AICPA Adapted) On December 31, 2021, Bart Company purchased a machine in exchange for a noninterest bearing note requiring eight payments of P200,000. The first payment was made on December 31, 2021 and the others are due annually on December 31. At date of issuance, the prevailing rate of interest for this type of note was 11%. PV of an ordinary annuity of 1 at 11% for 8 periods 5.146 PV of an annuity of 1 in advance at 11% for 8 periods 5.712 1. What amount should be recorded as initial cost of the machine? a. 1,600,000 b. 1,029,200 c. 1,400,000 d. 1,142,400 2. What amount should be recorded as discount on note payable on December 31, 2021? a. 657,600 b. 457,600 c. 570,800 d. 3. What amount should be recorded as interest expense for 2022? а. 125,664 b. 103,664 c. 113,212 d. 176,000 December 31, 2022? a. 942,400 b. 846,064 c. 742,400 d. 742,412

Essentials Of Investments
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
See similar textbooks
icon
Related questions
Question

answer only number 4.

4. What is the carrying amount of note pay able ot Problem 23-15 (AICPA Adapted) On December 31, 2021, Bart Company purchased a machine in exchange for a noninterest bearing note requiring eight payments of P200,000. The first payment was made on December 31, 2021 and the others are due annually on December 31. At date of issuance, the prevailing rate of interest for this type of note was 11%. PV of an ordinary annuity of 1 at 11% for 8 periods 5.146 PV of an annuity of 1 in advance at 11% for 8 periods 5.712 1. What amount should be recorded as initial cost of the machine? a. 1,600,000 b. 1,029,200 c. 1,400,000 d. 1,142,400 2. What amount should be recorded as discount on note payable on December 31, 2021? a. 657,600 b. 457,600 c. 570,800 d. 3. What amount should be recorded as interest expense for 2022? а. 125,664 b. 103,664 с. 113,212 d. 176,000 December 31, 2022? a. 942,400 b. 846,064 c. 742,400 d. 742,412
Transcribed Image Text:4. What is the carrying amount of note pay able ot Problem 23-15 (AICPA Adapted) On December 31, 2021, Bart Company purchased a machine in exchange for a noninterest bearing note requiring eight payments of P200,000. The first payment was made on December 31, 2021 and the others are due annually on December 31. At date of issuance, the prevailing rate of interest for this type of note was 11%. PV of an ordinary annuity of 1 at 11% for 8 periods 5.146 PV of an annuity of 1 in advance at 11% for 8 periods 5.712 1. What amount should be recorded as initial cost of the machine? a. 1,600,000 b. 1,029,200 c. 1,400,000 d. 1,142,400 2. What amount should be recorded as discount on note payable on December 31, 2021? a. 657,600 b. 457,600 c. 570,800 d. 3. What amount should be recorded as interest expense for 2022? а. 125,664 b. 103,664 с. 113,212 d. 176,000 December 31, 2022? a. 942,400 b. 846,064 c. 742,400 d. 742,412
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS