Date July 1 2023 July 1 $ 2024 July 1 2025 July 1 2026 July 1 2027 Cash Collected installment Note Receivable Amortization Schedule Interest Revenue Principal Collected GA $ $ $ Note Ca Amo
On July 1, 2023, Shamrock Inc. made two sales:
It sold excess land in exchange for a four-year, non-interest-bearing promissory note in the face amount of $1,079,350. The
land's carrying value is $540,000.
2.
It rendered services in exchange for an eight-year promissory note having a face value of $360,000. Interest at a rate of 3%
is payable annually.
The customers in the above transactions have credit ratings that require them to borrow money at 11% interest.
Shamrock recently had to pay 8% interest for money it borrowed from British Bank.
3.
On July 1, 2023, Shamrock also agreed to accept an installment note from one of its customers in partial settlement of
accounts receivable that were overdue. The note calls for four equal payments of $21,600, including the principal and
interest due, on the anniversary of the note. The implied interest rate on this note is 10%.
The tables in this problem are to be used as a reference for this problem.
Step by step
Solved in 2 steps
