given correct answer general accounting Emily Thompson owes $45,000 on a non-interest-bearing note dueJanuary 1, 2025. She offers to pay the amount on January 1, 2015,provided that it is discounted at 8% on a compound annual discountbasis. What would she have to pay on January 1, 2015 under thisassumption?

Step 1: Define Present Value Using Compound DiscountingPresent value (PV) represents the amount that…

Answered: Emily Thompson owes $45,000 on a…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 61P

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On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First National Bank, on which 16,651 of interest has accrued. On January 2, 2019, the bank agrees to restructure the note. It forgives the accrued interest, extends the repayment date to December 31, 2021, and reduces the interest rate to 10%. Required: Prepare a schedule for Northfield to compute the annual interest expense in regard to the preceding note for each year of the restructuring agreement.
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On October 1, 2022, Harlan received a $15,000, six-month, 10% note in exchange for goods sold to McBride Company. Prepare the journal entry to record the receipt of the note on October 1, 2022. Prepare the adjusting entry to record the accrued interest on the note at December 31, 2022. Write a wriiten explanation on what would Harlan do if McBride dishonors its note, but Harlan still expects to eventually collect it?
On August 1, 2018, Mills Company borrowed $109000 cash on a one-year note that required Mills to pay 10 percent interest and $109000 principal, both on July 31, 2019. Assuming the note is paid when due in 2019, what is the debit to interest expense when recording the payment of the note?
On September 1, 2018, Mills Company borrowed $72000 cash on a one-year note that required Mills to pay 8 percent interest and $72000 principal, both on August 31, 2019. Assuming the note is paid when due in 2019, what is the debit to interest payable when recording the payment of the note?
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On January 1, 2020, Ann Price loaned $165286 to Joe Kiger. A zero-interest-bearing note (face amount, $220000) was exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2022. The prevailing rate of interest for a loan of this type is 10%. The present value of $220000 at 10% for three years is $165286. What amount of interest income should Ms. Price recognize in 2020? $47350. $22000. $16529. $66000.
On January 1, 2021, Norwood borrows $470,000 cash from a bank by signing a five-year installment note bearing 6% interest. The note requires equal payments of $111,575 each year on December 31. Required: 1. Complete an amortization table for this installment note. 2. Prepare the journal entries in which Norwood records the following: (a) Norwood borrows $470,000 cash by signing a five-year, 6% installment note. (b) Record the first installment payment on December 31, 2021. (c) Record the second installment payment on December 31, 2022. Complete this question by entering your answers in the tabs below. Req 1 Complete an amortization table for this installment note. Note: Round your intermediate calculations to the nearest dollar amount. Period Ending Date Req 2 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 Total Beginning Balance Debit Interest Expense + Debit Notes Payable 6 of 6 Ending Balance Next > mnt
Heather owes Mark $10.000 payable on September 2021. If money can earn 12 %, what amount should Mark accept in settlement of the debt:A) 30 days before the scheduled payment?B) 90 days before the scheduled payment?
On july 1, 2021 I borrowed 50,000 with notes payable with an interest of 6 percent a year. The note and interest are due on December 31st, 2021. On December 31st 2021 I paid 51,500 to settle the debt in full. Assuming no accruals for interest have been made during the year, what is the entry that I need to record?
On January 1, 2021, Norwood borrows $550,000 cash from a bank by signing a five-year installment note bearing 8% interest. The note requires equal payments of $137,751 each year on December 31. Required: 1. Complete an amortization table for this installment note 2. Prepare the journal entries in which Norwood records the following: (a) Norwood borrows $550,000 cash by signing a five-year, 8% installment note. (b) Record the first installment payment on December 31, 2021. (c) Record the second installment payment on December 31, 2022. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Prepare journal entries to record the note's issuance and each of the first two payments. View transaction list Taurnnlant lecheot < Prey 7 of 7 Next Eo search 99+ 72°F brt se 144 & 4 8 backspace R. 7T Y K MI

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Emily Thompson owes $45,000 on a non-interest-bearing note due January 1, 2025. She offers to pay the amount on January 1, 2015, provided that it is discounted at 8% on a compound annual discount basis. What would she have to pay on January 1, 2015 under this assumption?