The note from Hart Company, made under customary trade terms,On both notes, interest is calculated on the outstanding principalreceivable from customers in exchange for services rendered.balance at the annual rate of 3% and payable at maturity.At year-end, Jet Company received two P1,000,000 noteson both notes, interest is calculated on the outstanding principalche note from Hart Company, made under customary trade terms,due in nine months and the note from Maxx Company is due infive years.The market interest rate for similar notes at year-end was 8%. Thecompound interest factors to convert future value into present valueat 8% follow:Present value of 1 due in nine monthsPresent value of 1 due in five years.944.680What is the total carrying amount of notes receivable at year-end?1,624,000а.1,747,200b.1,680,0001,782,000с.d.

Often business receive promissory note in lieu of cash payment from its customers. These promissory…

compound interest factors to convert future value into present value is due in nine months and the note from Maxx Company is due in balance at the annual rate of 3% and payable at maturity. On both notes, interest is calculated on the outstanding principal The note from Hart Company, made under customary trade terms, receivable from customers in exchange for services rendered. At year-end, Jēt Company received two P1,000,000 notes a hoth notes, interest is calculated on the outstanding principal che note from Hart Company, made under customary trade terms, e due in nine months and the note from Maxx Company is due in five years. The market interest rate for similar notes at year-end was 8%. The compound interest factors to convert future value into present value at 8% follow: Present value of 1 due in nine months Present value of 1 due in five years .944 .680 What is the total carrying amount of notes receivable at year-end? 1,624,000 а. 1,747,200 b. 1,680,000 1,782,000 с. d.

compound interest factors to convert future value into present value is due in nine months and the note from Maxx Company is due in balance at the annual rate of 3% and payable at maturity. On both notes, interest is calculated on the outstanding principal The note from Hart Company, made under customary trade terms, receivable from customers in exchange for services rendered. At year-end, Jēt Company received two P1,000,000 notes a hoth notes, interest is calculated on the outstanding principal che note from Hart Company, made under customary trade terms, e due in nine months and the note from Maxx Company is due in five years. The market interest rate for similar notes at year-end was 8%. The compound interest factors to convert future value into present value at 8% follow: Present value of 1 due in nine months Present value of 1 due in five years .944 .680 What is the total carrying amount of notes receivable at year-end? 1,624,000 а. 1,747,200 b. 1,680,000 1,782,000 с. d.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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