Pls answer number 5 with solutions On January 1, 20x1 WRECK RUIN Co. acquired land by issuing a three-year, 12%, ₱4,000,000 note payable. Principal and all accrued interests are due on December 31, 20x3. How much is the interest expense in 20x2? a. 1,017,600c. 537,600 b. 960,000d. 764,213
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- STEP 1: STEP 2: Step 1: Step 2: Step 3: Step 4: Answer: Step 1: Step 2: Step 3: Step 4: Answer: 4 9 $20,600 4 8 PV: Payment: Annual Interest Rate: Deferral period: Payment period: Compounded: Amount 159295 Amount 159295 Facts +/- CPT +/- CPT $20,600 4% 8 year(s) 9 year(s) Annually Keystroke I/Y N PMT PV Keystroke I/Y N FV PVQuestion 1 Patrick Industries began construction of a warehouse on July 1, 2023. The project was completed on May 31, 2024. Patrick took out a $1,000,000 note at interest of 6% to help finance the construction. Patrick also has the following other debt outstanding throughout the construction period: $2,000,000, 8% note $5,000,000,4% bond Construction expenditures incurred were as follows: July 1, 2023 September 30, 2023 November 30, 2023 $300,000 700,000 500,000 February 1, 2024 200,000 May 31, 2024 200,000 The company's fiscal year-end is December 31 and it uses the specific interest method. Required a. Calculate the amount of interest capitalized for 2023 and 2024. b. Calculate the interest expense to be reported on the income statement for 2023 and 2024. c. Calculate the cost of the new warehouse.Problem 4 At the beginning of current year, Enhypen Company sold an equipment with remaining useful life of 10 years and immediately leased it back for 5 years. Sales price at above falr value Fair value of equipment Carrying amount of equipment Annual rental payable at the end of each year Implicit interest rate Present value of an ordinary annuity of 1 at 10% for 5 periods 5,700,000 5,000,000 4,500,000 500,000 10% 3.79 1. What amount should be recognized as initial lease liability? 2. What amount should be recognized as cost of right of use asset? 3. What amount should be recognized as cost of right of use asset? 4. What amount should be recognized as annual rental income of the buyer-lessor?
- QUES TON 6 Questions 6-10 are related and share the same information: You decide to invest in $8,750,000.00 of Repurchase Agreement due in 38 days and quoted at 12.000%. You finance the investment with a repo at 12.125% over the same period. Your initial investment in the Repurchase Agreement is $ (dollars, rounded to two places after the decimal) QUESTION 7 on which you earn interest of $ (dollars, rounded to two places after the decimal) (refers to the above problem statement) QUESTION 8 You pay interest of $ (dollars, rounded to two places after the decimal) (refers to the above problem statement) QUESTION 9 thereby making a profit of $. (dollars, rounded to two places after the decimal) (refers to the above problem statement)Question 4 On January 1, 2019, Madira Company loaned $216,374 to Virginia Company. A zero-interest- bearing note (face amount, $288,000) was exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2021. The prevailing rate of interest for a loan of this type is 10% . The present value of $288,000 at 10% for three years is $216,374. What is the book value (carrying amount) of the note on Virginia's balance sheet on December 31st, 2019 (round to the nearest dollar)? Question 5 The cost of issuing common stock should be reported in Accumulated Other Comprehensive Income in the balance sheet deducted from the Paid-in Capital in Excess of Par account charged to the income statement as an expense in the year the stock is issued None of these statements is correct Question 6Question Content Area A building with an appraisal value of $130,876 is made available at an offer price of $155,610. The purchaser acquires the property for $39,936 in cash, a 90-day note payable for $25,942, and a mortgage amounting to $59,561. The cost of the building to be reported on the balance sheet is a. $115,674 b. $125,439 c. $155,610 d. $130,876
- Determining Asset Cost When Paying with Cash and Notes Payable Ked Inc. purchases equipment, which has a cash price of $2,690. Terms are arranged for a $800 cash down payment plus payment of the remaining $1,890, plus 15% compound interest per annum, through three equal payments. The purchase occurs on January 1, and the three payments occur on each December 31 thereafter. Required • Round answer to the nearest whole dollar. • Do not use negative signs with your answers. a. Compute the amount of each annual payment. $ b. What does Ked record for the cost of equipment? $ c. What total amount of interest was paid? $ 2,690 X XQuestion 19 At the beginning of current year, Don Rashed Company sold a building with remaining life. of 20 years and immediately leased it back for 5 years. Sales price is 20,000,000 for an 18,000,000 fair value. Upon reviewing the books of Don Rashed, the carrying amount of the building per FS is 10,800,000. The agreement consideration is 1500,000 with an implicit interest rate of 12%. What is the cost of right of use of asset?Q2 An entity acquired an operating license from the local council to operate a night club for ten years in the area. The council charges R150 000 for the license to operating in such an affluent area. The entity decided to use the straight line method of amortization for all its licenses. What is the amount of amortization to be charged against the profits in the third year? Select one: a. R105 000 b. R45 000 c. R0 d. R15 000
- Q3 Canliss Mining Company borrowed money from a local bank. The note the company signed requires five annual installment payments of $16,000 not due for three years. The interest rate on the note is 6%. (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.) What amount did Canliss borrow? (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) Step 1: Calculate the PV of the Ordinary Annuity Component: Payment: ? n = ? i = ? Present Value: ? Step 2: Convert the Annuity to a Single Sum: Payment: ? n = ? i = ? Present Value: ?Question 5 You inherited $300,750 and invested it at 6.25% per year. How much could you withdraw at the beginning of each of the next 15 years? O a. $32,443. O b. $24,020. Oc. $25,522. Od. S29,622. e. $23,035.Required information Problem 9-1B Record and analyze installment notes (LO9-2) [The following information applies to the questions displayed below.] On January 1, 2021, Stoops Entertainment purchases a building for $600,000, paying $120,000 down and borrowing the remaining $480,000, signing a 8%, 20-year mortgage. Installment payments of $4,014.91 are due at the end of each month, with the first payment due on January 31, 2021. Problem 9-1B Part 4 4. Total payments over the 20 years are $963,578 ($4,014.91 × 240 monthly payments). How much of this is interest expense and how much is actual payment of the loan? Interest expense Actual payments on the loan
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