On December 31, 2020, Stellar Company signed a $ 1,022,000 note to Pearl Bank. The market interest rate at that time was 11%. Thestated interest rate on the note was 9%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Stellar'sfinancial situation worsened. On December 31, 2022, Pearl Bank determined that it was probable that the company would pay backonly $ 613,200 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,022,000 loan.(a)Determine the amount of cash Stellar received from the loan on December 31, 2020. (Round present value factors to 5 decimalplaces, e.g. 0.52513 and final answer to 0 decimal places, e.g. 5,275.)Amount of cash Stellar received from the loan%24

The interest rate is a proportion of the principal—the amount borrowed—that a lender charges a…

Answered: stated interest rate on the note was…

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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1. Compute the present value of the loan receivable on December 31, 2021. 2. Compute the impairment loss to be recognized on December 31, 2021. 3. Prepare journal entries from 2021 to 20
1. On January 1, 2022, Balance Bar Co. lends Bio Foods $100,000 in exchange for a $100,000, 5-year note bearing interest at 8 percent annually. The market rate of interest for a note of similar risk is also 8 percent. a. How does Balance Bar record the receipt of the note? b. And how does Balance Bar record the receipt of interest at the end of the first year? c. At the end of the second year?
Zuhoor Muscat Company borrowed RO 240,000 from the bank signing a 8%, 6-month note on October 1, 2020. The recorded amount of accrued interest expense on December 31, 2020 will be: a. None of the options are correct. Ob. RO 40,000. O c. RO 240,000. Od. RO 4,800. O e. RO 9,600. NEXT PAGE 4440 025 Type here to search B. red by ws 10 S acer
1. Compute the amount of interest during 2021, 2022, and 2023 for the following note receivable: On May 31, 2021, Washington State Bank loaned $260,000 to Paul Mara on a two-year, 12% note. 2. Which party has a(n): (a) note receivable? (b) note payable? (c) interest revenue? (d) interest expense? 3. How much in total would Washington State Bank collect if Paul Mara paid off the note early on November 30, 2021? 1. Compute the amount of interest during 2021, 2022, and 2023 for the following note receivable: On May 31, 2021, Washington State Bank loaned $260,000 to Paul Mara on a two-year, 12% note. (Round the interest amounts to the nearest whole dollar.) Year 2021 2022 2023 Amount of interest
1. Interest has not yet been recorded on the notes payable which was taken out on March 1, 2020 with a 4% annual interest rate. The note has a three-year term and principal and interest are due on the maturity date. What is the interest? (Principle x rate x time)
On December 31, 2016, Rocky Bank has a loan receivable of P4,000,000 from a borrower that it's carrying is at face value and is due on December 31, 2022. Interest on the loan is payable at 9% each December 31. The borrower paid the interest due on December 31, 2016 but informed the bank that it would probably miss the next two years' interest payments. After that, the borrower is expected to resume the annual interest payment but it would make the principal payment one year late, with interest paid for that additional year at the time of principal payment. Round off present value factors up to three decimal points. What is the impairment loss for 2016?
4. On April 1, 2021, XYZ CO. issued a 9% interest bearing note with a face amount of P 30,000,000 for the purchase of a machine. The note is payable in five equal annual installments starting on March 31,2022. Interest is payable annually base on the remaining balance. There is no established cash price for the equipment. The prevailing market rate of interest for a note of this type is 12%. How much is the interest expense for the year 2022?
Please answer practice problem
B10.
I want the answer
On January 26, Nova Co. borrowed cash from Conrad Bank by issuing a 90-day note with a face amount of $ \$ 44, 400 $. Assume a 360-day year. a. Determine the proceeds of the note, assuming the note carries an interest rate of $8\% $. b. Determine the proceeds of the note, assuming the note is discounted at $8\% $,
An $9,000 note dated 06/22/2020, matures on 12/22/2020 at 8.15%. (Banker’s Rule) In how many days is the note due? What interest is paid on the note?

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