Exercise 5-11 (Algo) Deferred annuities [LO5-8]Lincoln Company purchased merchandise from Grandville Corp. on September 30, 2021. Payment was made in the form of anoninterest-bearing note requiring Lincoln to make six annual payments of $7,000 on each September 30, beginning on September30, 2024. (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.Round your final answer to nearest whole dollar amount.)Required:Calculate the amount at which Lincoln should record the note payable and corresponding purchases on September 30, 2021,assuming that an interest rate of 6% properly reflects the time value of money in this situation.Amount recorded

Annual payment = p = $7000 Interest rate = r = 6% Number of payment = n = 6

Answered: Exercise 5-11 (Algo) Deferred annuities…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question 11 Cookie Ltd. receives a four-year, $100,000, zero-interest-bearing note. The present value of this note is $82,270. Interest income to be recognized for calendar 2021 will be O $8,227.00. O $10,000. O $7,910.75. O$4,319.18.
Required information Exercise 7-5 (Algo) Notes payable—discount basis LO 2 Skip to question [The following information applies to the questions displayed below.] On April 15, 2019, Powell Inc. obtained a six-month working capital loan from its bank. The face amount of the note signed by the treasurer was $255,400. The interest rate charged by the bank was 5.00%. The bank made the loan on a discount basis. Exercise 7-5 (Algo) Part a Required:a-1. Calculate the loan proceeds made available to Powell.
M10-6 (Algo) Recording Notes Payable [LO 10-2] Part 2 Skip to question [The following information applies to the questions displayed below.] Greener Pastures Corporation borrowed $1,250,000 on November 1, 2021. The note carried a 9 percent interest rate with the principal and interest payable on June 1, 2022. (a) The note issued on November 1. (b) The interest accrual on December 31.
Question 4 On January 1, 2019, Madira Company loaned $216,374 to Virginia Company. A zero-interest- bearing note (face amount, $288,000) was exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2021. The prevailing rate of interest for a loan of this type is 10% . The present value of $288,000 at 10% for three years is $216,374. What is the book value (carrying amount) of the note on Virginia's balance sheet on December 31st, 2019 (round to the nearest dollar)? Question 5 The cost of issuing common stock should be reported in Accumulated Other Comprehensive Income in the balance sheet deducted from the Paid-in Capital in Excess of Par account charged to the income statement as an expense in the year the stock is issued None of these statements is correct Question 6
M10-6 (Algo) Recording Notes Payable [LO 10-2] Part 1 Skip to question [The following information applies to the questions displayed below.] Greener Pastures Corporation borrowed $1,250,000 on November 1, 2021. The note carried a 9 percent interest rate with the principal and interest payable on June 1, 2022. (a) The note issued on November 1. (b) The interest accrual on December 31.
Problem 5-9 (Algo) Noninterest-bearing note; annuity and lump-sum payment [LO5-3, 5-8] On January 1, 2024, The Barrel Company purchased merchandise from a supplier. Payment was a noninterest-bearing note requiring five annual payments of $35,000 on each December 31 beginning on December 31, 2024, and a lump-sum payment of $250,000 on December 31, 2028. A 12% interest rate properly reflects the time value of money in this situation. Required: Calculate the amount at which Barrel should record the note payable and corresponding merchandise purchased on January 1, 2024. Note: Round your final answers to nearest whole dollar amount. Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Time values are based on: n = Cash Flow i= Amount Present Value Payments Lump Sum Amount recorded
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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!
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Please both subparts answer please no plagiarism
Required information Problem 9-1B Record and analyze installment notes (LO9-2) [The following information applies to the questions displayed below.] On January 1, 2021, Stoops Entertainment purchases a building for $600,000, paying $120,000 down and borrowing the remaining $480,000, signing a 8%, 20-year mortgage. Installment payments of $4,014.91 are due at the end of each month, with the first payment due on January 31, 2021. Problem 9-1B Part 4 4. Total payments over the 20 years are $963,578 ($4,014.91 × 240 monthly payments). How much of this is interest expense and how much is actual payment of the loan? Interest expense Actual payments on the loan

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