Diamond Company borrowed P500,000 from Bank Two on January 1, 2007 in order to expand its mining capabilities. The five-year note required annual payments of P130,218 and carried an annual interest rate of 9.5%. What is the amount of expense Diamond must recognize on its 2008 income statement? Group of answer choices 35,129 31,037 39,642 47,500

Diamond Company borrowed P500,000 from Bank Two on January 1, 2007 in order to expand its mining capabilities. The five-year note required annual payments of P130,218 and carried an annual interest rate of 9.5%. What is the amount of expense Diamond must recognize on its 2008 income statement? Group of answer choices 35,129 31,037 39,642 47,500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

s
On January 1, New Jersey Company borrowed $260,000 to purchase machinery and agreed to pay 7% interest for eight years on an installment note. Each note payment is doe on the last day of the year. What is the carrying value of the loan at the end of the second year? (Do not round intermediate calculations. Only round your final answer to the nearest dollar.) A. $214,685 B. $218,232 C. $172,917 D. $207,543
Canliss Mining Company borrowed money from a local bank. The note the company signed requires five annual installment payments of $10,000 beginning immediately. The interest rate on the note is 7%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What amount did Canliss borrow? (Round your final answers to nearest whole dollar amount.) Table/Calculator Function = Payment = n = i = Present Value =
A businessman borrowed $1,300,000 from the bank to finance new equipment for his food co-packing factory. The loan is being paid back in uniform annual payments of $83,200, which corresponds to at an annual interest rate of of 4% over 25 years. What is the balance on the loan immediately after making the 8th annual payment? OA. $1,053,306 OB. $634,400 OC. $560,161 OD. $1,012,186 W C
A company borrows $100,000 with interest at j₁2 = 9%. The loan is to be amortized by monthly payments of $1550 for as long as necessary. A final smaller payment will be calculated so the loan will be exactly repaid. The outstanding balance immediately after the th th 88 payment is $796.44. What is the value of the 89" and final payment? O A. $790.51 B. $796.44 C. $802.41 D. $808.43
Fellen Inc. borrowed $150,000.00 at 3.15% for 100 days. The company paid $30,000.00 on day 30 and another $50,000.00 on day 60. How much does the company need to pay on the due date using the ordinary interest method (round to the nearest cent)? O a. $70,709.78 O b. $70,957.27 O c. $120,393.75 O d. $150,525.00 P Type here to search 24 13 16 A 14 f5 f7