Current Attempt in Progress Swifty Corporation borrowed $660000 from Liber Bank on January 1, 2019 in order to expand its mining capabilities. The five-year note required annual payments of $178200 and carried an annual interest rate of 8.50%. What is the amount of expense Swifty must recognize on its 2020 income statement? O $35580 O $45722 O $40969 O $56100
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- Durango, Inc. borrowed $20,000 on October 1, 2020. Durango will not make any payments on this loan until October 1, 2023, and at that time Durango will owe $26,000. What will be the amounts shown on Durango's annual financial statements at December 31, 2022? O Interest expense of $2,000 and interest payable of $4,500 Interest expense of $4,500 and interest payable of $4,500 O Interest expense of $4,500 and interest payable of $1,500 Interest expense of $2,000 and interest payable of $1,500 O None of the aboveCurrent Attempt in Progress Crane Inc. signed a 10-year, 4%, $240,000 mortgage payable on November 30, 2020, with a bank to obtain financing for a new machinery. The terms provide for instalment payments of $2,430 at the end of each month. Prepare the entries to record the mortgage on November 30, 2020, and the first two payments on December 31, 2020, and January 31, 2021. (Credit account titles are automatically indented when the amount is entered.Do not indent manually. List all debit entries before credit entries. Round answers to the nearest whole dollar, e.g. 5,275.) Blended principal and interest payment Date 2020 2021 Account Titles and Explanation Debit 10 CreditOn January 1, 2020, Physanto Corp. received in exchange for equipment sold to Viva Inc., an 8% $500,000 note that matures in January 2024. The market rate of interest for similar notes is 12%. Interest is received semi-annually each July 1 and January 1. Round all values to the nearest whole number. Required: A. Complete the partial amortization schedule provided. Place zero in any field that does not require a computed value.
- View Policies Current Attempt in Progress Lyrtricks Ltd., which has a December 31 year end, had the following transactions in December 2020 and January 2021: 2020 The company borrowed $135,000 from a bank on a five-year loan payable. The terms of the loan stipulate that Lyrtricks must repay 1/5 of the principal every November 30 plus the interest accrued to that date. The loan bears interest at 8% per annum. Dec. 1 Recorded employee wages for December. The wages earned by employees amounted to $9,900, and the.company withheld CPP of $570, El of $481, and income taxes of $2,000. Lyrtricks' employer contributions were $570 for CPP and $673 for EI. Dec. 31 Dec. 31 Recorded the adjusting entry to record the interest incurred on the bank loan during December. Dec. 31 Recorded the entry to reclassify the current portion of the bank loan. 2021 Paid the wages recorded on December 31. Made the remittance to the government related to the December 31 payroll. Jan. 2 Jan. 15 hit antrieg frct…Effect of Compounding Period Kern Company deposited $3,800 in the bank on January 1, 2017, earning 8% interest. Kern Company withdraws the deposit plus accumulated interest on January 1, 2019. Use the appropriate present or future value table: FV of $1, PV of $1, FV of Annuity of $1 and PV of Annuity of $1 Compute the amount of money Kern withdraws from the bank assuming that interest is compounded (a) annually, (b) semiannually, and (c) quarterly. Round your answers to the nearest dollar. a. Annual compounding ? b. Semiannual compounding ? c. Quarterly compounding ?On November 30, 2018, EZ Products borrowed $48,000 on a 5%, 10-year note with annual installment payments of $4,800 plus interest due on November 30 of each succeeding year. How much interest expense should be accrued at December 31, 2018 for the period of November 30 through year-end? Select one: a. $200 b. $400 c. $2,400 d. $1,200
- Current Attempt in Progress Riverbed Corp. was experiencing cash flow problems and was unable to pay its $104,000 account payable to Martinez Corp. when it fell due on September 30, 2023. Martinez agreed to substitute a one-year note for the open account. The following two options were presented to Riverbed by Martinez: Option 1: A one-year note for $104,000 due September 30, 2024. Interest at a rate of 9% would be payable at maturity. Option 2: A one-year non-interest-bearing note for $113,360. The implied rate of interest is 9%. Assume that Martinez has a December 31 year end.PROBLEM 5 On January 1, 2021, Son Co. Company purchased a machine for 300,000 in exchange for a 4-year note. The prevailing note of interest of type is 10%. The new machine was damaged during installation and the repair cost amounted to 30,000. Assuming that the machine has an available cash price that equals to the present value of the note if the note is bears interest at 12% rate. Required: 1.) How much is the cost of the machine? 2.) How much is the interest expense for the year 2022? 3.) How much is the carrying value of the notes as of December 31, 2024?urrent Attempt in Progress Assume that Henry Corporation has a contractual debt outstanding. Henry has available two means of settlement: It can either make immediate payment of $1,485,000, or it can make annual payments of $195,000 for 10 years, each payment due on the last day of the year. Click here to view factor tables Which method of payment do you recommend, assuming an expected effective interest rate of 9% during the future period? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Present Value of annual payments Recommended payment method $
- Impairment of zero-interest notes receivable, GAAP vs. IFRS On December 31, 2020, Firth Company borrowed $62,092 from Paris Bank, signing a 5-year, $100,000 zero-interest note. The note was issued to yield 10% interest. Unfortunately, during 2022, Firth began to experience financial difficulty. As a result, at December 31, 2022, Paris Bank determined that it was probable that it would collect only $75,000 at maturity. The market rate of interest on loans of this nature is now 11%. 1,Instructions: On March 31, 2023, Paris learns that Firth will be able to repay the loan under the original terms. Paris Bank uses IFRS. Prepare the journal entry to be recorded on March 31, 2023, if any. Answer within 45mins.it would be really helpful!Required information [The following information applies to the questions displayed below] On January 1, 2021, Eagle Company borrows $26,000 cash by signing a four-year, 8% installment note. The note requires four equal payments of $7,850, consisting of accrued interest and principal on December 31 of each year from 2021 through 2024. Prepare an amortization table for this installment note. Note: Round all amounts to the nearest whole dollar. Payments Period Ending (A) Beginning (B) Debit Interest (C) Debit Notes Balance. Expense Payable Date 2021 2022 2023 2024 Total $ k (D) Credit Cash S 0 (E) Ending Balance16. On 1 January 2022, Marina Tower exchanged equipment for an $800,000 zero-interest-bearing note due on January 1, 2023. The prevailing rate of interest for a note of this type at January 1, 2020 was 10%. The present value of $1 at 10% for three periods is 0.75. What amount of interest revenue should be included in Marina's 2023 income statement?Question 16Answera.$60,000b.$66,000c.$0d.$80,000. please answer do not image format