Answered: Amount 1,200,000.00 Interest 12% Date…

Amount 1,200,000.00 Interest 12% Date 1/1/2020 Due Date 12/31/2022 The note is compounded interest bearing Compute for the interest in Year 2021? O 161,280 O 150,000 O 130,000 O 144,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: NOTE DATED APRIL 7, 2021 DUE IN 145 DAYS INTEREST RATE IS 7.5% FACE OF THE NOTE IS $12,000 CALCULATE…

A: Interest Amount = Principal Amount x Interest Rate Maturity Value = Principal Amount + Interest

Q: Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 2 3 4 5 6 7 8 9 10…

A: The NPV of a project refers to its profitability measured by discounting its cash flows to the…

Q: 2. 1 2 3. 4 6. 7. 8. 10 EOY 20 21 22 23 24 25 26 27 28 29 30 CF $300 $270 $240 $210 $180 Five…

A: Compounding interest refers to earning interest not only on principal amount but also on interest…

Q: the final payment being on 1st of August 2024, total amount of the annuity is _ calculated on the…

A: Annuity is the fixed payment that an investor receives from an investment or fixed deposits made…

Q: deposited $10,000 in an account paying 7% compounded annually. How much will the account be worth…

A: Time value of money (TVM) means that the amount of money received in the present period will have…

Q: Suppose that you invest $9,000 at 6% interest, compound quarterly, for 5 years. use Table 11-1 to…

A: Compound interest is the total interest earned during the investment period. It considers…

Q: On January 1, 2020, Smith Company signed a six-year Not interest and principal payments of $21,980,…

A: Present value including capital budgeting, bond valuation, and investment appraisal. By using it,…

Q: City Hospital, a nonprofit organization, estimates that it can save $28,000 a year in cash operating…

A: The process of evaluating proposed big projects or investments is an important part of capital…

Q: Loan amount = $ 10000 on November 01, 2020 for 5 years Interest rate @10 PA Entry on December 31,…

A: Lets discuss the basic. When loan is obtained from the other person then there is also a term of…

Q: Information on a note receivable: Face amount P800,000 Effective Interest 14% PV of P1 @14%, n= 5…

A: The note is payable after a particular period in a lump sum without any interest payable for each…

Q: . 2022, Clark Co. received a P3,000,000, 10% note from a customer upon baid in six equal semi-annual…

A: The time value of money implies that a sum of money is worth more now than the same sum that it will…

Q: Jules, Inc. issued a 4-year, $75,000, zero-interest-bearing note to Reed Company on January 2, 2025,…

A: Interest free note receivable are the instrument which is issued at discount and redeemable at face…

Q: Required information Use the following information for the Exercises below. (Algo) [The following…

A: The note payable are reported as liabilities in the balance sheet.. Accumulated interest is the…

Q: 1a. Compute the cash payback period for each project. Cash Payback Period Plant Expansion Retail…

A: Payback period: The payback period is the length of time it takes for an investor to recoup the…

Q: Loan amount = $ 10000 on November 01, 2020 for 5 years Interest rate @10 PA Entry on December 31,…

A: Formula: Interest amount = Loan amount x Interest rate x Time period

Q: Net present value-unequal lives Project 1 requires an original investment of $50,100. The project…

A: Net present value :— It is the difference between the present value of all cash inflows and the…

Q: Coronado Company sells 8% bonds having a maturity value of $2,180,000 for $2,014,720. The bonds are…

A: Bonds are the debt securities that a corporation issues to raise money. The issue of bonds results…

Q: Discount #1897047 at 5.8% simple interest from March 21, 2021 to July 8, 2022. Round your answer to…

A: A discount in the finance is defined as the situation at the time of security, which used to trade…

Q: Carrie Tune will receive $32,000 for the next 14 years as a payment for a new song she has written.…

A: The present value of the annuity is the discounted worth that is defined as the process of…

Q: On September 1, 2020, Taiwan Co. issued a note payable to BDO in the amount of P1,200,000, with the…

A: 1. Calculation of Outstanding Amount Amount = 1,200,000 Amount per Installment = 1,200,000 /3 =…

Q: What is the present value of an annuity of $456 to be received at the end of each year for three…

A: The current worth of the annuity that will be received for a fixed tenure at a given interest rate…

Q: Compute for the current liabilities.

A: Current liabilities are the liabilities which a company have on the balance sheet on which the…

Q: Find the future value and total interest of the annuity. Periodic Annual interest Annuity type…

A: We know that, FVA Ordinary = P×1+in-1i =$2400×1+10%44×5-110%4=$61,307.1782=$61,307.18

Q: Information on a note receivable: Face amount P800,000 Effective Interest 14% PV of P1 @14%, n= 5…

A: Lets understand the basics. When note is issued and its payable over installements then it needs to…

Q: If you invest $9,100 per period for the following number of periods, how much would you have in each…

A: TVM concept will be used here. TVM means time value of money.

Q: Grove Media plans to acquire production equipment for $845,000 that will be depreciated for tax…

A: Variables in the question:Cost of equipment=$845,000Depreciation Year 1=$329,000 Depreciation Year…

Q: PE 2-7A. Correcting Entries OBJ. 4 EE 2-7 p. 80 The following errors took place in journalizing and…

A: Prepare the reversal entry transaction 1: In this, the incorrect entry of debit to miscellaneous…

Q: On April 1, 2020, ABC Corporation borrows $50,000 on a 6-month note that charges an annual interest…

A: Total cash paid on maturity = Face value of the Notes + Interest on Notes where, Interest on Notes =…

Q: Атount of Each Deposit Rate Number Туре of Annuity Атount Deposited per Year of Years of Annuity 1.…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Loan amount = $ 10000 on November 01, 2020 for 5 years Interest rate @10 PA Entry on December 31,…

A: Interest is calculated based on the loan amount, interest rate, and time duration.

Q: Sarasota Co receives $2,680,000 when it issues a $2,680,000, 6%, mortgage note payable to finance…

A: Mortgage notes payable is kind of legal promissory note which binds one to pay the mortgage with the…

Q: Internal Rate of Return Method The internal rate of return method is used by King Bros. Construction…

A: a.Determine the present value factor:

Q: Find the difference between simple interest and compound interest on a savings deposit of $70,000 at…

A: Lets understand the basics. Simple interest is a interest calculated on one single amount. In other…

Q: An interest bearing promissory note for 90 days at 5.6% p.a. has a face value of $120,000. If the…

A: Step 1 Discount of trade bills is short-term financing or credit facility provided by bank in which…

Q: $300 $270 $240 $210 $180

A: Given information : Year Cash flows 0 $ - 1 $…

Q: (Click on the icon to view Present Value of $1 table.) (Click on the icon to view Present Value of…

A: initial investment =600000 Annual cash flow =129500 Period =10 years Required rate=16%

Q: al payments of $21,980, based on an interest rate of 9% are to be made every December 31, beginning…

A: Given Annual future value payments = $ 21980 r= 9% n= 6yrs Present value of note = FV* Present…

Q: 17- A RO 40000 Interest-bearing note payable is signed on December 26 2020. If the note is a 120-day…

A: Short term Liabilities - If the liability is maturing within a year will be consider as short term…

Q: A4

A: To find the present value of $16,305 to be received at the end of each of the next 4 years, we need…

Q: 1. 1 2 3. 4 7 8. 6. 10 EOY 20 21 22 23 24 25 26 27 28 29 30 CF $100 $100 $100 $100 $100 Five…

A: Cash flow in 2021 is $100 Cash flow in 2022 is $100 Cash flow in 2023 is $100 Cash flow in 2024 is…

Q: Solve the following problem using elther Table 11-1 or Table 11-2 from your text. When necessary,…

A: Given: Present value = $12,875 Interest rate =6% Years =8 Compounding = 2

Question

Amount
1,200,000.00
Interest
12%
1/1/2020
12/31/2022
Date
Due Date
The note is compounded interest bearing
Compute for the interest in Year 2021?
O 161,280
O 150,000
O 130,000
O 144,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Grove Media plans to acquire production equipment for $845,000 that will be depreciated for tax purposes as follows: year 1, $329,000; year 2, $189,000; and in each of years 3 through 5, $109,000 per year. A 10 percent discount rate is appropriate for this asset, and the company's tax rate is 20 percent. Use Exhibit A.8 and Exhibit A.9. Required: a. Compute the present value of the tax shield resulting from depreciation. b. Compute the present value of the tax shield from depreciation assuming straight-line depreciation ($169,000 per year). Complete this question by entering your answers in the tabs below. Required A Required B Compute the present value of the tax shield resulting from depreciation. Note: Round PV factor to 3 decimal places. Present value of the tax shield
simple interestFind the exact interest and the final amount due on P 12,350 at 11 % for 150 days, using ordinary interest.
Question 11 Cookie Ltd. receives a four-year, $100,000, zero-interest-bearing note. The present value of this note is $82,270. Interest income to be recognized for calendar 2021 will be O $8,227.00. O $10,000. O $7,910.75. O$4,319.18.
A B E 2 Determine the maturity date and compute interest for each note. 3 Days to be used per year 360 days 4 Note Contract Date Principal Interest Rate Period of Note (Term) 6. 1 1-Mar $10,000 6% 60 days 7 2 15-May 15,000 8% 90 days 8 3 20-Oct 8,000 4% 45 days 9. 10 Required: 11 12 (Use cells A5 to F8 from the given information to complete this question.) 13 14 Note Contract Date Maturity Date Interest Expense 15 16 17 3 18
Maria invests $4,900, at 6% interest, compounded quarterly for one year. Use Table 11-1 to calculate the annual percentage yield (APY) for her investment (as a %). Note: "Annual percentage yield" is also known as "effective interest rate." (Round your answer to two decimal places.) %
Tait is entering high school and is determined to save money for college. Tait feels he can save $2,500 each year for the next four years from his part-time job. If Tait is able to invest at 6%, how much will he have when he starts college? (Click the icon to view Present Value of $1 table.) E (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) E (Click the icon to view Future Value of Ordinary Annuity of $1 table.) - X Reference (Round your answer to the nearest dollar.) Reference When Tait starts college he will have Present Value of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Future Value of $1 0.990 0.980 0.971 0.962 0.952 0.943 0.980 0.961 0.943 0.925 0.907 0.971 0.942 0.915 0.889 0.864 0.840 0.961 0.924 0.888 0.855 0.823 0.792 0.951 0.906 0.863 0.822 0.784 0.747 0.917 0.909 0.893 | 0.877 0.870 0.862 0.847 0.833 0.826 0.797 0.769 0.756 0.743…
Problem 12
24-A RO 40000 Interest-bearing note payable is signed on December 26 2020. If the note is a 120-day note what is the maturity date for this short-term liability? a. March 26 b. March 25 c. April 26 d. April 25
list 12 K Find the present value of the following ordinary annuity. Periodic Payment Payment Interval Term Interest Rate Conversion Period $156.00 1 month 5 years 5% semi-annually 3 4 The present value is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) 5 6
Question 1 Today is 22th March 2020. Jane just purchased a 180-day $100,000 bank bill at a simple interest rate. The purchase price is $98,500. She sold this bank bill on 24th May 2020 at 3.98% p.a. simple interest rate. a) What is the implied per annual simple interest rate for her purchasing (expressed as a percentage and rounded to three decimal places)? Select one: a. 0.076 b. 0.032 c. 0.031 d. 0.088 Question 2 Today is 22th March 2020. Jane just purchased a 180-day $100,000 bank bill at a simple interest rate. The purchase price is $98,500. She sold this bank bill on 24th May 2020 at 3.98% p.a. simple interest rate. b) What is her selling price (rounded to four decimal places)? Select one: a. 98740.2903 b. 98634.0935 c. 98846.7161 d. 99317.7280 Question 3 Today is 22th March 2020. Jane just purchased a 180-day $100,000 bank bill at a simple interest rate. The purchase price is $98,500. She sold this bank bill on 24th May 2020 at 3.98% p.a. simple interest…
True (t) or False (f) _____ A $15,000, 8%, 9-month note payable requires an interest payment of $900 at maturity
Present Value What is the present value of a $3,200 deposit in year 3 and another $3,700 deposit at the end of year 7 if interest rates are 8 percent? Multiple Choice О $4,026.08 $4,699.18 О $4,783.24 О $3,036.00