On January 1, 2019, Diggs Co. lends some money in exchange for a 10% $100,000 10-year note. The market rate for similar notes is 8%. Interest is received semiannually each July 1 and January 1. The financial year ends December 31. Round to the nearest whole number. (Hint: Prepare a partial amortization schedule to July 1, 2021) a. The note is issued at premium (par / premium / discount) b. The present value of the note is $ 113590 C. The cash received at July 1, 2019 is $ 5000 d. The interest income to Diggs Co. at December 31, 2020 is $ 1359

On January 1, 2019, Diggs Co. lends some money in exchange for a 10% $100,000 10-year note. The market rate for similar notes is 8%. Interest is received semiannually each July 1 and January 1. The financial year ends December 31. Round to the nearest whole number. (Hint: Prepare a partial amortization schedule to July 1, 2021) a. The note is issued at premium (par / premium / discount) b. The present value of the note is $ 113590 C. The cash received at July 1, 2019 is $ 5000 d. The interest income to Diggs Co. at December 31, 2020 is $ 1359

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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