Blossom Inc. provided several entertainment services to Bramble Corporation in the past. On January 1, 2023, when the receivablefor the past services was due, Bramble was unable to pay the outstanding balance. Blossom agreed to accept a $530,000 non-interestbearing note payable on December 31, 2024. Bramble typically could arrange this kind of financing at an interest rate of 15%.Click here to view the factor table PRESENT VALUE OF 1.Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.(a)Use 1. PV.1 Tables, 2. a financial calculator, or 3. Excel functions to arrive at the amount to record the note receivable. (Roundpresent value factor calculations to 5 decimal places, e.g. 1.2512. Round PV tables and Excel function answers to 0decimal places, e.g. 8,971 and round Financial calculator answer to 2 decimal places, e.g. 89.71.)1.2.3.UsingPV tables$Financial calculator $Excel function+A$Note receivable

Answered: Blossom Inc. provided several…

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 January 1, 2018, an individual (Lender) loaned a third party $25,000 at 5% annual interest. Lender incurred loan registration fees of $750. In 2020, Lender setup a reserve for unpaid interest of $3,000 as they did not receive any interest or principal repayments due to financial hardships of the third party. How much of would Lender deduct in 2020? Multiple Choice O $5,000 $1,400 $1,250 $3,150
On December 31, 2025, Bonita Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Bonita Co. agreed to accept a $328,100 zero-interest-bearing note due December 31, 2027, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Bonita is much more creditworthy and has various lines of credit at 6%. (a) Prepare the journal entry to record the transaction of December 31, 2025, for the Bonita Co. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and final answers to O decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries) Date Account Titles and Explanation Dec 31, 2025 Debit Credit
On January 1, 2020, Flounder Furniture Ltd. borrowed $3 million (face value) from Aurora Inc., a major customer, through non–interest-bearing note due in 5 years. Because the note was non–interest-bearing, Flounder Furniture agreed to sell furniture to this customer at lower than market price. A 11% rate of interest is normally charged on this type of loan.Using (1) factor tables, (2) a financial calculator, or (3) Excel function PV, calculate the amount that the note would be recorded at on January 1, 2020. (Hint: Refer to Chapter 3 for tips on calculating.) Please show solution in Excel
Excel Corporation is experiencing financial difficulty and has met with their creditor (BMO) to explore their options related to a $1.5 million, 6% note payable that is outstanding. The note was issued on September 1, 2020 when the market rate of interest was 6%. There are two years remaining on the note and the current market rate of interest is 8%. Excel and BMO prepare financial statements in accordance with IFRS. For each of the following independent situations prepare the journal entry that both Excel and BMO would on their books. BMO agrees to accept Excel common shares valued at $1,000,000 as settlement of the debt. BMO agrees to accept land as settlement of the debt. The land is on the books of Excel for $500,000 and has a market value of $1,250,000. BMO agrees to modify the terms so that Excel is not paying any interest on the note for the remaining two years. BMO agrees to reduce the principal balance to $1,000,000 and requires interest only payments for the next two years…
At January 1, 2024, Mahmoud Industries, Incorporated, owed Second BancCorp $15 million under a 10% note due December 31, 2026. Interest was paid last on December 31, 2022. Mahmoud was experiencing severe financial difficulties and asked Second BancCorp to modify the terms of the debt agreement. After negotiation Second BancCorp agreed to: a. Forgive the interest for 2023 and 2024. b. Reduce the remaining two years' interest payments to $1 million each and delay the first payment until December 31, 2025. c. Reduce the unpaid principal amount to $14 million. Required: Prepare the journal entries by Mahmoud Industries, Incorporated, necessitated by the restructuring of the debt at (1) January 1, 2024; (2) December 31, 2025; and (3) December 31, 2026. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.
Grouper Inc. is a reliable, long-term customer of Monty Ltd. Due to unexpected costs of rapid expansion, Grouper was unable to pay its account balance when it became due on January 1, 2023. Monty agreed to accept a $225,000 non- interest bearing note that would be payable on December 31, 2026. This type of financing would typically have an interest rate of 12%. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. (a) Use 1. PV.1 Tables, 2. a financial calculator, or 3. Excel functions to arrive at the amount to record the note receivable. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and round final answer to 0 decimal places, e.g. 8,971.) Your answer has been saved. See score details after the due date. Note receivable $ (b) eTextbook and Media (c) List of Accounts Your answer has been saved. See score details after the due date. Account Titles and Explanation Notes Receivable Prepare…
Grouper Inc. is a reliable, long-term customer of Monty Ltd. Due to unexpected costs of rapid expansion, Grouper was unable to pay its account balance when it became due on January 1, 2023. Monty agreed to accept a $225,000 non- interest bearing note that would be payable on December 31, 2026. This type of financing would typically have an interest rate of 12%. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. (a) Use 1. PV.1 Tables, 2. a financial calculator, or 3. Excel functions to arrive at the amount to record the note receivable. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and round final answer to 0 decimal places, e.g. 8,971.) Your answer has been saved. See score details after the due date. Note receivable $ (b) eTextbook and Media (c) List of Accounts Your answer has been saved. See score details after the due date. Account Titles and Explanation Notes Receivable Prepare…
Excel Corporation is experiencing financial difficulty and has met with their creditor (BMO) to explore their options related to a $1.5 million, 6% note payable that is outstanding. The note was issued on September 1, 2020 when the market rate of interest was 6%. There are two years remaining on the note and the current market rate of interest is 8%. Excel and BMO prepare financial statements in accordance with IERS. For each of the following independent situations prepare the journal entry that both Excel and BMO would on their books. a. BMO agrees to accept Excel common shares valued at $1,000,000 as settlement of the debt. 5. BMO agrees to accept land as settlement of the debt. The land is on the books of Excel for $500,000 and has a market value of $1,250,000. c. BMO agrees to modify the terms so that Excel is not paying any interest on the note for the remaining two years. d. BMO agrees to reduce the principal balance to $1,000,000 and requires interest only payments for the next…
On December 31, 2020, Monty Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Monty Co. agreed to accept a $296,600 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 12%. Monty is much more creditworthy and has various lines of credit at 6%. Prepare the journal entry to record the transaction of December 31, 2020, for the Monty Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Date Account Titles and Explanation Dec. 31, 2020 eTextbook and Media List of Accounts Assuming Monty Co's fiscal year-end is December 31, prepare the journal entry for December 31, 2021. (Round…
what is notes recievable for On December 31;2025, Blue Inc. rendered services to Beghun Corporation at an agreed price of $106,641, accepting $41,800 down and agreeing to accept the balance in four equal installments of $20,900 receivable each December 31 . An assumed interest rate of 11% is imputed. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Example 4 (Notes Receivable): On November 30, 2020, James Co. lent money to Scott Co. and issued a 5-month, $120,000, 8% note receivable. Scott paid James the full amount of interest and principal on April 30, 2021. What is the journal entry for James Co. to record the issuance of the note receivable? What is the end-of-year adjusting journal entry for James Co. to record interest revenue earned as of December 31?

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