Ann Demas loaned $230,896 to Joe Smith on January 1, 2020. A zero-interest-bearing note (face amount, $275,000) was exchanged solelyfor cash; no other rights or privileges were exchanged. The note is to be repaid in three years on December 31, 2022. The prevailing rate ofinterest for a loan of this type is 6%. The present value of $275,000 at 6% for three years is $230,896. At December 31, 2021, the balance ofof the Discount on Note Payable account would be(round to whole dollars)Answer:

The balance of discount on Note Payable account is the discounted amount of the face value of the…

Answered: Ann Demas loaned $230,896 to Joe Smith…

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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On December 31, 2018, L Inc. had a $1,600,000 note payable outstanding, due July 31, 2019. L borrowed the money to finance construction of a new plant. L planned to refinance the note by issuing long-term bonds. Because L temporarily had excess cash, it prepaid $510,000 of the note on January 23, 2019. In February 2019, L completed a $3,100,000 bond offering. L will use the bond offering proceeds to repay the note payable at its maturity and to pay construction costs during 2019. On March 13, 2019, L issued its 2018 financial statements. What amount of the note payable should L include in the current liabilities section of its December 31, 2018, balance sheet? Multiple Choice $1,090,000. $1,600,000. $510,000. $0. Please don't provide answer in image format thank you
Led Tasso Inc. (Led) is a sporting goods retailer. Record the following assorted journal entries for the fiscal year-ended December 31, 2022. a) Led made sales of $25,000 plus 13% HST on account. The items sold had a cost of $18,000. Led uses a perpetual inventory system. b) Led paid the amount owing to Supplier A for February. During February, Led purchased $2,700 from Supplier A on account. They already owed them $3,000 at for purchases made in January. c) On March 31, Led issued 5,000 common shares for $4 per share. d) On August 31, Led reacquired 15,000 common shares for $7.50 per share. Prior to the share issue on March 31st (see (c) above), Led had 40,000 common shares issued and outstanding with a total book value of $232,000. e) Received $7,500 cash from a customer whose account had previously been written off as uncollectible.
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Da
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. On April 30, 2022, Lenny Inc. borrowed $10 million cash from Colonial Bank and issued a 5-month, noninterest-bearing note, priced to yield an effective interest rate of 10%. The stated discount rate on this loan is: A. More than the effective interest rate. B. Less than the effective interest rate. C. Equal to the effective interest rate. D. Unrelated to the effective interest rate
On January 1, 2020, Ann Price loaned $157773 to Joe Kiger. A zero-interest-bearing note (face amount, $210000) was exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2022. The prevailing rate of interest for a loan of this type is 10%. The present value of $210000 at 10% for three years is $157773. What amount of interest income should Ms. Price recognize in 2020? $44350. $63000. $15777. $21000.
On January 1, 2023, Karen Hong lent $64612 to Ben Bachu. A zero-interest-bearing note (face amount, $86000) was exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2025. The market rate of interest for a loan of this type is 10%. To the nearest dollar, and using the effective interest method, how much interest revenue should Ms. Hong recognize in 2023? $19383 $6461 $25800 ○ $8600

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