I am trying to get these for a year end (December 31) financial report. What is the Gain on Sale of Investment on the Discount on notes receivable for the following: On August 31, Sold stock in a nonpublic company with a book value of $7,000 and accepted a $8,200 noninterest-bearing note with a discount rate of 9%. The $8,200 payment is due on February 28, 2025. The stock has no ready market value.

I am trying to get these for a year end (December 31) financial report. What is the Gain on Sale of Investment on the Discount on notes receivable for the following: On August 31, Sold stock in a nonpublic company with a book value of $7,000 and accepted a $8,200 noninterest-bearing note with a discount rate of 9%. The $8,200 payment is due on February 28, 2025. The stock has no ready market value.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 36P

See similar textbooks

Similar questions

While reviewing the March 31, 2020, balance sheet of Business Solutions, Santana Rey notes that the business has built a large cash balance of $68,057. Its most recent bank money market statement shows that the funds are earning an annualized return of 0.75%. S. Rey decides to make several investments with the desire to earn a higher return on the idle cash balance. Accordingly, in April 2020, Business Solutions makes the following investments in trading securities. Apr. 16 Purchases Johnson & Johnson bonds for $10,000. Apr. 30 Purchases Starbucks notes for $4,400. On June 30, 2020, the fair value of the Johnson & Johnson bonds is $12,000 and the Starbucks notes is $3,800. Required 1. Prepare journal entries to record the April purchases of trading securities by Business Solutions. 2. On June 30, 2020, prepare the adjusting entry to record any necessary fair value adjustment to its portfolio of trading securities.
On August 1, 2022, Colombo Company’s treasurer signed a note promising to pay $122,700 on December 31, 2022. The proceeds of the note were $116,100. Use the horizontal model to show the effects of recording interest expense for the month of September. Indicate the financial statement effect. What is the discount on notes payable and what is the interest expense?
Weldon Corporation’s fiscal year ends December 31. The following is a list of transactions involving receivables that occurred during 2021: Aug. 31 Sold stock in a nonpublic company with a book value of $5,800 and accepted a $6,800 noninterest-bearing note with a discount rate of 9%. The $6,800 payment is due on February 28, 2022. The stock has no ready market value. Prepare journal entries for the above transaction
On January 1, 2024, the Apex Company exchanged some shares of common stock it had been holding as an investment for a note receivable. The note principal plus interest is due on January 1, 2025. The 2021 income statement reported $2,310 in interest revenue from this note and a $6,100 gain on sale of investment in stock. The stock’s book value was $17,000. The company’s fiscal year ends on December 31.Required:1. What is the note’s effective interest rate?2. Reconstruct the journal entries to record the sale of the stock on January 1, 2024, and the adjusting entry to record interest revenue at the end of 2024. The company records adjusting entries only at year-end.
On January 1, 2018, the Apex Company exchanged some shares of common stock it had been holding as aninvestment for a note receivable. The note principal plus interest is due on January 1, 2019. The 2018 incomestatement reported $2,200 in interest revenue from this note and a $6,000 gain on sale of investment in stock. Thestock’s book value was $16,000. The company’s fiscal year ends on December 31.Required:1. What is the note’s effective interest rate?2. Reconstruct the journal entries to record the sale of the stock on January 1, 2018, and the adjusting entry torecord interest revenue at the end of 2018. The company records adjusting entries only at year-end
Please do not give image format
What is the interest expense for December 31 on these accounting question?
Merlin SA started business one year ago and reported the following account balances sheet on 31 December 2019 as followed. Cash 100,000 PPE 500,000 Note payable 120,000 Equity 480,000 Merlin sold €100,000, five-year, 9% bonds on January 1, 2020, for €103,992.71. Interest is payable each January 1. The Note Payable is due on June 30, 2020, with a 10% interest rate. Show the financial statement impact and prepare the journal entry on December 31, 2020, if bond Discount is amortized using the straigh-line amortization (show your calculation).
Berlin AG started business one year ago and reported the following account balances sheet on 31 December 2019 as followed. Cash 100,000 PPE 500,000 Note payable 120,000 Equity 480,000 Berlin sold €100,000, five-year, 9% bonds on January 1, 2020, for €103,992.71. Interest is payable each January 1. The Note Payable is due on June 30, 2020, with a 10% interest rate. Show the financial statement impact and prepare the journal entry on December 31, 2020, if bond Discount is amortized using the straigh-line amortization (show your calculation). Prepare the liability and equity section of the Berlin AG on December 31, 2020, based on this information (Show your calculation).
Need help with this question
The balance sheet for Miley Consulting reports the following information on July 1, 2020. Long-term liabilities Bonds payable $1,000,000 Less: Discount on bonds payable 60,000 $940,000 Miley decides to redeem these bonds at 101 after paying annual interest.Prepare the journal entry to record the redemption on July 1, 2020. What is the account title or explanation? what is debit or credited ?
What is the holding period return on these financial accounting question?