Lime Co. incurs a $4,000 note with equal principal installment payments due for the next eightyears. What is the amount of the current portion of the noncurrent note payable due in the second year?A. $800B. $1,000C. $500D. nothing, since this is a noncurrent note payable

Lime Co. incurs a $4,000 note with equal principal installment payments due for the next eightyears. What is the amount of the current portion of the noncurrent note payable due in the second year?A. $800B. $1,000C. $500D. nothing, since this is a noncurrent note payable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Roseland Design borrowed $700,000 on a 90-day note from CorpOne Funding Company. CorpOne discounts…

A: Discount on notes = Face value of note x rate of discount x no. of days/360 days = $700,000 x 8% x…

Q: Bull City Industries is considering issuing a $100,000, 7% note to a creditor on account. Assume a…

A: Interest Expense = Note payable amount * Interest Rate * Period

Q: TORR, Inc. issues a $600,000, 9%, five-year note payable on January 1, 20X5. If the monthly payment…

A: Interest for first month = face value of the note payable x interest rate x no. of months/12 =…

Q: On June 8, Williams Company issued an $70,538, 11%, 120-day note payable to Brown Industries.…

A: The note payable is reported as liabilities in the balance sheet. The maturity value of note is…

Q: The December 31, Year 2 carrying amount in the amortization table for this installment note will be…

A: The person who promised to pay the specified amount by signing a note is treated as notes payable as…

Q: Proceeds from Notes Payable On January 26, Nova Co. borrowed cash from Conrad Bank by issuing a…

A: On a company's balance sheet, the notes payable account shows the debt the company has to creditors…

Q: Keesha Company borrows $230,000 cash on December 1 of the current year by signing a 90-day, 11%,…

A: The maturity date is the date when note is due for payment. The accrued interest is the interest due…

Q: Find the proceeds of a non-interest-bearing promissory note for $3575.51, discounted 26 months…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: On January 1, Year 1, Bryson Company obtained a $36,000, four-year, 8% installment note from…

A: There is error in question, 7% interest expense is written which is incorrect. Correct word is 8% of…

Q: On April 1, 20X1, Nelsen Inc. accepts a $100,000, 8% note. The note receivable and interest are due…

A: Note Receivable: It implies a promissory note which is written by the borrower in the favor of…

Q: Currie Company borrowed $24,000 from Sierra Bank by issuing a 9% three-year note. Currie agreed to…

A: A expense associated with borrowing money is interest. It comes from lending arrangements like…

Q: Mark signs a note promising to pay $825 in 3.5 years with simple interest at 10.75%. Then, 9 months…

A: The promissory notes are those legal instruments where one party promises to pay a sum of money to…

Q: The following journal entry was made by your predecessor to record the annual payment on a 5%,…

A: Note payable refers to a composed promissory note. Under this understanding, a borrower gets a…

Q: On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a 90-day note with a face amount…

A: Approach to solving the question:For better clarity of the solution, I have provided the calculation…

Q: [The following information applies to the questions displayed below.] On January 1, MM Company…

A: The principal amount gets decreased with the excess payment of installment over and above the…

Q: Assuming a 360-day year, the interest charged by the bank, at the rate of 7%, on a 90-day,…

A: Given that: Note payable = $124800 Interest rate = 7% Period = 90 days

Q: On January 1,20x1, ABC co. Sold a tract of land that was acquired several years ago for 2,000,000.…

A: The carrying value is a monetary worth assigned to a company's assets. It is normally calculated as…

Q: Leopard Co. uses the installment sales method to recognize revenue. Customers pay the installment…

A: ANSWER : Notes reported at the present value which is amount net of which interest is to be…

Q: Multiple Cholce $591.250. $525,250. $508,750. $541,750.

A: The initial carrying value of non-interest bearing note represents the present value of maturity…

Q: Martinez Co. borrowed $79,200 on March 1 of the current year by signing a 60-day, 9%,…

A: The interest expense is calculated as follows $79200 × 9% × 60/360 = $1188

Q: 9. Martin company purchased an equipment in exchange of an installment note, promising to pay…

A: Annual payment = $16,000Rate = 6%Number of years = 4 years

Q: On June 8, Williams Company issued an $85,200, 9%, 120-day note payable to Brown Industries.…

A: Note payable is issued by the debtor as a. Promise note that he would make the payment on time with…

Q: On January 26, Nyree Co. borrowed cash from Conrad Bank by Issuing a 90-day note with a face amount…

A: Notes are issued to borrow funds. It is a promise by the borrower to repay the funds borrowed on…

Q: Lime Co. incurs a $4,000 note with equal principal installment payments due for the next eight…

A: Introduction: Non current liability: The liabilities which are to be paid more than 1 year period of…

Q: 3-year, P900,000 receivable due as follows 0. On Jan. 1, 20x1, Parya Co. rece note…

A: Introduction: The present value (PV) of a future sum of money or stream of revenue is its current…

Q: ne 8, Alton Co. issued an $79,432, 10%, 120-day note payable to Seller Co. Assuming a 360-day year…

A: Solution: Maturity value of the note is amount that is arrived by adding total amount of interest…

Q: Assuming a 360-day year, when a $14,700, 90-day, 12% interest-bearing note payable matures, total…

A: The term note payable refers to the promissory agreement between two parties in which one party…

Q: Assume 360 days in a year. Do not round your intermediate calculations and round your final answer…

A: Note receivable: Note receivable refers to a written promise received by the creditor from the…

Q: On May 31, Baker Co. issued an $35,679, 8%, 120-day note payable to Samunck Co. Assume Baker's…

A: Solution a: Interest EXPENSE recognized by Baker in the current fiscal year = $35,679*8%*30/360 =…

Q: . Potts issued a 90-day, 7% note for $200,000, dated February 3 to Valley Co. on account.…

A: The person who promised to pay the specified amount by signing a note is treated as notes payable as…

Q: On January 1, MM Co. borrows $340,000 cash from a bank and in return signs an 8% installment note…

A: An installment note is an obligation or liability that requires the borrower to repay the principal…

Q: Windsor, Inc. has a 30-day note that carries an annual interest rate of 9%. If the amount of the…

A: A written commitment to pay someone is referred to as a promissory note. The person making the…

Q: On July 8, Action Co. issued an $80,000, 6%, 90-day note payable to Scanlon Co. Assuming a 360-day…

A: The note is the liability on which a specific percentage of interest has to be paid over the…

Q: Sunshine Service Center received a 120-day, 6% note for $40,000, dated April 12 from a customer on…

A: Notes receivable is a negotiable instrument that indicates the claims to be paid at a specific date…

Q: Assuming a 360-day year, the interest charged by the bank, at the rate of 6%, on a 90-day,…

A: Interest charged by the bank = Amount of notes payable x rate of interest x no. of days / 360

Q: On the first day of the fiscal year, a company issues $69,000, 9%, seven-year installment notes that…

A: Note : Note is an instrument through which borrower obtains money from a person called lender and…

Q: On June 8, Williams Company issued an $75,972, 6%, 120-day no required, round your answer to the…

A: Maturity amount is the amount that has to be paid at the end of the life of bond or notes payable.…

Q: TORR, Inc. issues a $600,000, 9%, five-year note payable on January 1, 20X1. If the monthly payment…

A: Carrying value of note payable Liability note payable =$600000 on January 1 Add Finance cost…

Q: On June 8, Williams Company issued an $74,068, 8%, 120-day note payable to Brown Industries.…

A: Maturity value of note = issue price + interest accrued over term (for 120 days)

Q: Lime Co. incurs a $4,000 note with equal principal installment payments due for the next eight…

A: 1.The Note payable is one of the form of liability of an business which needs to be settled either…

Q: On January 1, 2Ox1, Bouncy House, Inc. obtains a $50,000, 6 year, 8% installment note for the latest…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Question

Lime Co. incurs a $4,000 note with equal principal installment payments due for the next eight
years. What is the amount of the current portion of the noncurrent note payable due in the second year?
A. $800
B. $1,000
C. $500
D. nothing, since this is a noncurrent note payable

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

On July 1, 20X1, ABC Corp received a P450,000 10% 3-year note from a customer. The principal and interest of the note is collectible in 3 equal payments every June 30, starting June 30, 20X2. How much is the Interest Receivable at Dec 31, 20X1? 22,500 45,000 135,000 0
TORR, Inc. issues a $300,000, 6%, five-year note payable on January 1, 20X1. If the monthly payment is $5,800, what is the note's carrying value after the first month's payment is made on January 31, 20X1? Select one: a. $294,200 b. $300,000 c. $298,500 d. $295,700 e. $298,214
On June 8, Williams Company issued an $92,400, 11%, 120-day note payable to Brown Industries. Assuming a 360-day year, what is the maturity value of the note? Round your answer to the nearest whole dollar.
On June 8, Williams Company issued an $80,000, 5%, 120-day note payable to Brown Industries. Assuming a 360-day year, what is the maturity value of the note? When required, round your answer to the nearest dollar. a. $82,600 b. $84,000 c. $81,333 d. $88,200
On April 1, Year 1, Halo Co. issued a $5,000 face value discount note to the Capri Bank. The note had a 12 percent discount rate and a one-year term. 8. The amount of cash Halo received on April 1, Year 1, was a. $5,000. b. $4,250. c. $4,400. d. $5,500. 9. The total carrying value of Halo’s liabilities on December 31, Year 1, would be a. $5,600. b. $5,000. c. $5,450. d. $4,850. 10. If Halo Co. earned $2,000 of revenue in Year 1, the amount of net income would be a. $2,000. b. $1,550. c. $1,400. d. $1,850.
On June 8, Alton Co. issued an $75,537, 7%, 120-day note payable to Seller Co. Assuming a 360-day year for your calculations, what is the maturity value of the note? When required, round your answer to the nearest dollar. Select the correct answer. $5,288$75,537$80,825$77,300
KE A non interest bearing promissory note for $1484 00 was discounted at 3% pa. compounded monthly. If the proceeds of the note were $1365.00, how long before the due date was the note discounted? State your answer in years and months (from 0 to 11 months) The note was discounted year(s) and month(s) before the due date
On June 8, Williams Company issued an $72,000, 7%, 120-day note payable to Brown Industries. Assuming a 360-day year, what is the maturity value of the note? Round your answer to the nearest whole dollar. a. $5,040 b. $73,680 c. $77,040 Od. $72,000
On January 26, Elegant Co. borrowed cash from Conrad Bank by issuing a 90-day note with a face amount of $64,800. Assume a 360-day year. a. Determine the proceeds of the note, assuming the note carries an interest rate of 9%. b. Determine the proceeds of the note, assuming the note is discounted at 9%.
Happy Company sold a machine in exchange for a P750,000, 5-year, 14% note; interest is payable annually. How much is the total amount of interest collected for this note for 5 years? tart How much cash will be collected at the end of the term of the note? ssments ( Previous rences fessors
On June 8, Alton Co. issued an $73,184, 9%, 120-day note payable to Seller Co. Assuming a 360-day year for your calculations, what is the maturity value of the note? When required, round your answer to the nearest dollar.