Do not use Ai On January 1, 2024, Sheridan Company issued for cash a $1,180,000, 3-year note bearing annual interest at 8% to Splish, Inc. Themarket rate of interest for a note of similar risk is 9%. What cash would have been recorded on the issue date of the note? (Roundpresent value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places e.g. 58,971.)Click here to view factor table.Total Proceeds$

To solve this problem, we need to calculate the present value of a 3-year note with an 8% annual…

Answered: On January 1, 2024, Sheridan Company…

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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Descriptors are provided below for six situations involving notes receivable being discounted at a bank. In each case, the maturity date of the note is December 31, 2024, and the principal and interest are due at maturity. For each situation, determine the proceeds received from the bank on discounting the note. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Note Note Face Value Date of Note Interest Rate 1 $ 90,000 3/31/2024 Date Discounted 8% 6/30/2024 Discount Rate Proceeds Received 10% $ 80,280 2 90,000 3/31/2024 8% 9/30/2024 10% 93,150 3 90,000 3/31/2024 8% 9/30/2024 12% 92,700 4 180,000 6/30/2024 6% 10/31/2024 10% 5 180,000 6/30/2024 6% 10/31/2024 12% 6 180,000 6/30/2024 6% 11/30/2024 10%
The company issued a note receivable on September 30th, 2020 for OMR 10,000 with an interest rate of 5%. The maturity date of the note is 11th December, 2020. The note was honored on the maturity date. Calculate the interest amount received by the company on the maturity date assuming 360 days in a year. OMR 101.388 OMR 97.22 OMR 98.61 OMR 100 Calculate the amount of cash and cash equivalents if bank balance is OMR 50, Post-dated cheques are OMR 35, Cash in hand is OMR 75, Advance granted to employees is OMR 85, stationery on hand is OMR 36: ull lis is! TOSHIBA
On January 1, 2022, Easy Company sold merchandise for 500,000 by accepting a note for 6 months with interest to be paid at maturity at 12%. On March 1, the entity discounted the note without recourse at a bank with a 15% discount. How much is the maturity value of the notes receivable?
narubhai
On June 1, 2021, Dirty Harry Co. borrowed cash by Issulng a 6-month noninterest-bearing note with a maturity value of $550,000 and a discount rate of 9%. Assuming straight-line amortization of the discount, what Is the carrylng value of the note as of September 30, 2021? (Round all calculations to the nearest whole dollar amount.) Multiple Cholce $591,250. $525,250. $508,750. $541,750.
1. On December 31, 2018, Conchita Martinez Company signed a P1,000,000 noninterest bearing note to Sauk City Bank. The market interest rate at that time is 12%. The stated interest rate on the note was 10%, payable annually. The note matures in 5 years. Considering these data, the bank released cash to the company amounting to P927,908; i.e., the total of the present value of the principal and interest. Unfortunately, because of lower sales, the company's financial situation worsened. On December 31, 2020, when the carrying amount of the loan is determined to be P951,968, Sauk City Bank determined that it was probable that the company would pay back only P600,000 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the P1,000,000 loan. The present value of 1 at 12% for 3 years is 0.71178 and the present value of an ordinary annuity of 1 at 12% for 3 years is 2.40183. 1.In the note amortization schedule before impairment, how…
Headland Corporation issued a 5-year, $65,000, zero-interest-bearing note to Brown Company on January 1, 2025, and received cash of $32,317. The implicit interest rate is 15%. Prepare Headland's journal entries for (a) the January 1 issuance and (b) the December 31 recognition of interest. (Round answers to O decimal places, e.g. 38,548. 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.) Date 1, 2025 31, 2025 Account Titles and Explanation Cash Discount on Notes Payable Notes Payable Interest Expense Discount on Notes Payable IIII Debit 32317 32683 6536.6 Credit 65000 6536.6
Headland Corporation issued a 5-year, $65,000, zero-interest-bearing note to Brown Company on January 1, 2025, and received cash of $32,317. The implicit interest rate is 15%. Prepare Headland's journal entries for (a) the January 1 issuance and (b) the December 31 recognition of interest. (Round answers to O decimal places, e.g. 38,548. 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.) No. (a) (b) Date Account Titles and Explanation Debit Credit
hmm.118.
Railing Co. obtained a 4-year, P600,000, Non-interest bearing note that requires payment in lump sum at maturity date, Railing determined that the effective interest rate on the note is 12%. Which of the following statements is correct? A.Railing Co. will likely measure the note on initial recognition by multiplying the face amount of the note by PV of 1 @12%, n=4. B.Railing co will most likely measure the note on initial recognition by multiplying the face amount of the note by PV of annuity dure of 1 @12%, n=4. C.Railing Co. will most likely measure the face amount of the note on initial recognition by multiplying the face amount of the note by PV of annuity due of 1@12, n=4. D.Any of these as an accounting policy choice.
Haresh
None

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