Although it is possible to solve the problem manually (using only pen, papertype ; in D3 , in E3 and in F3 . In cell C3 (i.e., column C, row 3),in the illustrations in this book. Moreover, information on the effectivetransactions are made on a monthly basis rather than on an annual basis liketechnology. In practice, it is more common that payments on financingdeduction of a P6,000 nonrefundable loan origination fee.11% loan. Money paid proceeds of P194,000 after theorigination fee. The effective interest rate on the loan is92Chapter2Notes Payable93approximately equal toс. 16%.d. 17.37%.a. 11.19%.b. 12%.O.K, get an access to a computer and open the Microsoft Excel ®10. On December 1, 20x5, Money Co. gave Home Co. aP200,000,app.Principal and interest are due in 60 monthly installmentsStep 1: HeadingsofP4,310 beginning January 1, 20x6. The repayments yieldeffective interest rate of 11% at a present value of P200,000 an12.4% at a present value of P194,000. What amount of expenfrom this loan should Home report in its 20x5 profit or loss?d. 7,833edalanvalue>.FormulasDataReviewViewc. 2,005Page LayoutAcrobatb. 1,833InsertHomeа. 0-11X CutCalibriWrap Tet(AICPA)a Copy -BIU. 3Merge & CentFasteFormat PainterFontAlignmentClipboardF6APROBLEM 5: CLASSROOM ACTIVITY2.InterestAmortization Present valueNOTE: This activity is OPTIONAL as the learner will need to have access toa COMPUTER with a Microsoft Excel ® application installed in it.Month Payments3Step 2: Month columnIn B5, type <1>. This indicates the initial recognition (payment of downpayment).World Corporation acquired a vehicle in exchange for a note payable.Details are as follows:Car model: 3.5L Expedition Platinum 4x4 AT (Year: 2017)Down payment: P318,000Monthly amortization (5 yrs.): P72,703In B6, type <1> or select B6 then press CTRL+D (press the "Ctrl" keyand without releasing it press the "D" key; this is the shortcut for fill down).B6 indicates the first monthly installment payment.aleMove the cursor to the bottom right of cell B6 until the cursor turnsinto a small black cross.The vehicle has a cash price equivalent of P3,580,000D.1Requirements: Determine the following by preparing an amortizationtable using Microsoft Excel ®:3Month Payments Interest Amortization Present value4a. Effective interest rateb. Total cash outflow on the acquisition of the vehicleTotal interest expense over the term of the noted. Prepare the journal entry on initial recognitionThe cursor tims into a small black crosС.Double click then drag down until cell B65, Left click the "Auto FillOptions" then select "Fill Series."Solution Guide:and calculator), that would be very cumbersome. We will need to

Notes payable is a written agreement in which one party agrees to pay the other party a specific…

Answered: On December 1, 20x5, Money Co. gave…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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. nothing, since this is a noncurrent note payment D. $500
Adams Acrobats lent $17,147 to Donaldson, Inc., accepting Donaldson's 2-year, $20,000, zero-interest-bearing note. The implied interest rate is 8%. Prepare Adams's journal entries for the initial transaction, recognition of interest each year, and the collection of $20,000 at maturity. (Round answers to O decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation (To record the initial transations) (To record the recognition of interest in year one) (To recognize the interest in year 2) (To record the collection of the note) Debit Credit INT
Question. Jamaica Corporation carried out the following transactions involving note payable. During the fiscal year ended December 31, 2020. Aug 6 Borrowed $ 15,200 from Tony Stark, issuing to him a 45 da, 14% note payable. Sept. 16 Purchased office equipment from Ikea Company. The invoice amount was $18,800 and Ikea Company agreed to accept as full payment a 3-month, 15% note for the invoice amount. Sept. 20 Paid Tony Stark note plus accrued interest. Nov.1 Borrowed $ 2,35,000 from Nation Commercial Bank at an interest rate of 12% per annum; signed a 90-days note payable for $ 2,42,256, which included a $7,056 interest charge in the face amount. Dec.1 Purchased merchandise in the amount of $13,000 from Stephens & Co. Gave in settlement a 60-day note nearing interest at 15% (Perpetual inventory system is deployed). Dec. 16 The $18,800 note payable to Ikea Company matured today. Paid the interest accrued and issued new 30-days, 12% note to replace the maturing…
Tony Acrobats lent $44,639 to Donaldson, Inc., accepting Donaldson's 2-year, $55,000, zero-interest-bearing note. The implied interest rate is 11%. Prepare Tony's journal entries for the initial transaction, recognition of interest each year, and the collection of $55,000 at maturity. (Round answers to O decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation (To record the initial transations) (To record the recognition of interest in year one) Debit I Credit
$120,000 of its accounts receivable to 2nd National Bank as collateral for a $70,000 loan due August 1 of the same year. The assignment agreement calls for Bay Co. to continue to collect the receivables. The bank assesses a finance charge of 3% of the accounts receivable. The interest rate on the loan is 8% which is a realistic interest rate for this type of loan. Prepare the journal entry that Bay Co. would make on February 1 Prepare the journal entry for Bay's collection of $50,000 of the receivables between February 1 and July 31. Prepare the journal entry to record Bay Co.'s payment to the bank.
On January 1, 2021, Glanville Company sold goods to Otter Corporation. Otter signed an installment note requiring payment of $21,500 annually for five years. The first payment was made on January 1, 2021. The prevailing rate of interest for this type of note at date of issuance was 10%. Glanville should record sales revenue in January 2021 of: (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.) Multiple Choice $107,500 $81,502 $89,652 None of these answer choices are correct.
104.
Waterway Corporation factors $260,800 of accounts receivable with Kathleen Battle Financing, Inc. on a with recourse basis. Kathleen Battle Financing will collect the receivables. The receivables records are transferred to Kathleen Battle Financing on August 15, 2025. Kathleen Battle Financing assesses a finance charge of 2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts receivable to cover probable adjustments. (b) Assume that the conditions are met for a transfer of receivables with recourse to be accounted for as a sale. Prepare the journal entry on August 15, 2025, for Waterway to record the sale of receivables, assuming the recourse obligation has a fair value of $5,000. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)
Halep Inc. borrowed $36,000 from Davis Bank and signed a 4-year note payable stating the interest rate was 4% compounded annually. Halep Inc. will make payments of $9,917.64 at the end of each year. Prepare an amortization table showing the principal and interest in each payment. Round your answers to two decimal places. Year BeginningBalance Payment Interest To Principal EndingBalance 1 $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 $fill in the blank 5 2 fill in the blank 6 fill in the blank 7 fill in the blank 8 fill in the blank 9 fill in the blank 10 3 fill in the blank 11 fill in the blank 12 fill in the blank 13 fill in the blank 14 fill in the blank 15 4 fill in the blank 16 fill in the blank 17 fill in the blank 18 fill in the blank 19 fill in the blank 20
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

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