Peabody Corporation purchased equipment and in exchange signed a three-year promissory note.The note requires Peabody to make a single payment of $20,000 in three years. Peabody has otherpromissory notes that charge interest at the annual rate of 6 percent.Required:1. Compute the present value of the note, rounded to the nearest dollar, using Peabody’s typicalinterest rate of 6 percent.2. Show the journal entry to record the equipment purchase (round to the nearest dollar).

Q: Cerise Company would record a note payable of________, if the terms of the loan with a bank are as…

A: PRESENT VALUEPresent Value is the Current Value of Future Cash Flows at a Discounting Rate.Present…

Q: The interest on the note for the Ricoh Color Copier will be paid every six months. Record the…

A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…

Q: Halep Inc. borrowed $56,000 from Davis Bank and signed a 4-year note payable stating the interest…

A: Amortization refers to expensing the acquisition cost minus residual value of assets in a systematic…

Q: ittman Corporation purchased a building by signing a $75,000 long-term mortgage with monthly…

A: A journal entry is a basic accounting record that is used to chronologically track financial…

Q: Falk Enterprises borrowed $8,500 at 6.25% compounded semiannually to purchase a new forklift. The…

A: The question is asking about computation of amortization schedule. Amortization schedule is…

Q: Problem #4: Kirk & Spock Company borrowed $100,000 from Bank Trust to finance the purchase of fixed…

A: Current ratio = It measures the liquidity of the company. Current Ratio shows the company's ability…

Q: On January 1, Year 1, Beatie Company borrowed $400,000 cash from Central Bank by issuing a…

A: Amortization schedule of interest and principal payment for 5 periods is as under:

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: On January 1, 20x1, SCRUPULOUS EXACT Co., acquired a piece of equipment by issuing a P 12,000,000,…

A: Calculating the carrying amount as on January 1, 20X3:Total Amount= $12,000,000Installment Amount=No…

Q: Katec Corporation borrowed $79000.00 at 3% compounded monthly for 13 years to buy a warehouse. Equal…

A: Your explanation of the concept of compound interest and its application to different compounding…

Q: Bob the Builder purchases a piece of equipment on July 1, Year 5. The equipment has 5-year useful…

A: Statement for Calculation of Initial Cost to be Recognized Year  Cash Flow PV Factor @4% PV  0…

Q: Muscat Company buys a bui plot of land for OMR100,000, OMR20,000 cash and signing year mortgage note…

A: Cost of Land = OMR 100,000 Cash paid = OMR 20,000 Mortgage note issued = Cost of Land - Cash paid =…

Q: John Fare purchased $24,000 worth of equipment by making a $4000 down payment and promising to pay…

A: We usually take loans to buy large ticket items like a machine, an equipment, a car or a house. The…

Q: A $660,000 townhome in Richmond Hill was purchased with a down payment of 20% of the amount. A…

A: Given That: Cost of Townhome=$660000 Down payment = 20% Down payment amount = 20% of…

Q: Canliss Mining Company borrowed money from a local bank. The note the company signed requires five…

A: Data given: pmt=$12500 n=5 year i=9%

Q: d. December 31, Year 3-Interest payment. Date Dec. 31, Year 3 Account Name Date Dec. 31, Year 3 To…

A: To raise funds, notes can be issued. The notes are issued at a discount, which means that the cash…

Q: Southtown Corporation purchased equipment and in exchange signed a two-year promissory note.The note…

A: Present value of note = Value of note * Present value of $1 table factor (6%, 2 periods)

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: Acme purchases a new delivery truck making a cash payment of $10,000, a $12,000 trade-in on the old…

A: GIVEN ÷ cash payment of $10,000 $12,000 trade-in on the old delivery truck 5-year loan , yearly…

Q: On January 1, Snipes Construction paid for earth-moving equipment by issuing a $300,000, 3-year note…

A: Determine the amount at which Snipes record the equipment and note.

Q: How do I find the carrying amout for each year?

A: Requirement a:   Prepare an amortization table.

Q: Hartman Delivery Service purchased a new delivery truck for $29,000. At the time of purchase,…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: Sharapova Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the…

A: Notes payable is a financial instrument which promises to pay a certain sum of money to the issuer…

Q: ce of P1,500,000. Under the terms of the sale, the automobile dealer 00,000 cash and a promissory…

A: Maturity Value : It is the estimated income on the amount of investment for a given period. It is…

Q: On June 1, 20x4, a tract of land that originally cost P 800,000 was sold to SHE Company. The company…

A: Introduction The compensation received by an entity for borrowing its cash or permitting another…

Q: American Food Services, Incorporated, acquired a packaging machine from Barton and Barton…

A: A note payable is a formal commitment or written pledge made by a borrower to repay a lender a…

Q: ABC Date Enterprise takes out a $40,000 loen to finance the purchase of new physical capital. It…

A: Data given: Loan amount  (L) = $40,000 n= 1 year i= 8% Corporate tax  rate= 40%

Q: Boston Company purchased a $3,650,000 machine on January 1 of this year for $110,000 cash from the…

A: Notes payable: It implies to a written promise that is made by the maker of the note to other party…

Q: Canliss Mining Company borrowed money from a local bank. The note the company signed requires five…

A: Solution: Step 1: Calculate the PV of the Ordinary Annuity Component:   Payment: $16,000 n =…

Q: U.S. Fax has been granted a loan from a commercial finance company for $1 million at a stated…

A: Effective Cost of Debt(ECD) refers to the total amount that is paid by borrower to lender for taking…

Q: (a) The size of the quarterly payment is S. (Round the final answer to the nearest cent as needed.…

A: Amortization Schedule: It represents a table consisting of the periodic loan payments, interest…

Q: On June 30, Collins Management Company purchased land for $480,000 and a building for $720,000,…

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

Q: Prepare the following journal entry: Baily Corporation purchased a new Bus for $215,000 and paid 15%…

A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the Process…

Q: On January 1, Snipes Construction paid for earth - moving equipment by issuing a $490,000, 3-year…

A: Future Value -A Future Value equation's goal is to calculate a potential investment's future worth…

Q: Killion Company needs to purchase new equipment, but does not have enough cash to purchase it…

A: Please find the required Journal Entries in Solution Section Below.

Q: Megamind Inc. purchases equipment for $250000. They pay $50,000 cash and the supplier finances the…

A: Cash paid = $50,000 Finance portion = $250,000 - 50,000 = $200,000 Interest payment annually =…

Q: Leon Acrobats lent $12,174 to Donaldson, Inc., accepting Donaldson's 2-year, $15,000,…

A: The difference between Notes receivable and cash paid is called as discount on notes receivable.…

Q: The Strug Company purchased office furniture and equipment for $8,600 and agreed to pay for the…

A: The installment payment  includes principal repayment and interest on outstanding amount. So it is…

Q: Kavra Corporation purchased a building by signing a $150,000 long-term mortgage with monthly…

A: Given, Loan Amount = $ 150,000 Monthly payments  = $ 2,000 Rate of Interest = 12% per annum = 12% /…

Q: Towline Corporation borrowed $75,000.00 at 11% compounded monthly for 10 years to buy a warehouse…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Hemingway Company purchases equipment by issuing a 7-year, $210,000 non-interest-bearing note, when…

A: Companies acquire assets either through cash or non-cash means. In the case of non-cash means,…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.