Swifty Corporation, a publicly-traded company, agreed to loan money to another company. On July 1, 2023, the company received a five-year promissory note with a face value of $519,000, paying interest at a face rate of 5% on July 1 each year. The note was issued to yield an effective interest rate of 6%. Swifty used the effective interest method of amortization for discounts or premiums, and the company's year-end is September 30. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. (a) Use 1. PV Tables, 2. a financial calculator, and 3. Excel functions to arrive at the amount to record the note receivable. (Round present value factor calculations to 5 decimal places, e.g. 1.2512. Round PV tables and Excel function answers to 0 decimal places, e.g. 8,971 and round Financial calculator answer to 2 decimal places, e.g. 89.71.)

Swifty Corporation, a publicly-traded company, agreed to loan money to another company. On July 1, 2023, the company received a five-year promissory note with a face value of $519,000, paying interest at a face rate of 5% on July 1 each year. The note was issued to yield an effective interest rate of 6%. Swifty used the effective interest method of amortization for discounts or premiums, and the company's year-end is September 30. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. (a) Use 1. PV Tables, 2. a financial calculator, and 3. Excel functions to arrive at the amount to record the note receivable. (Round present value factor calculations to 5 decimal places, e.g. 1.2512. Round PV tables and Excel function answers to 0 decimal places, e.g. 8,971 and round Financial calculator answer to 2 decimal places, e.g. 89.71.)

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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Question

Swifty Corporation, a publicly-traded company, agreed to loan money to another company. On July 1, 2023, the company received a
five-year promissory note with a face value of $519,000, paying interest at a face rate of 5% on July 1 each year. The note was issued
to yield an effective interest rate of 6%. Swifty used the effective interest method of amortization for discounts or premiums, and the
company's year-end is September 30.
Click here to view the factor table PRESENT VALUE OF 1.
Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.
(a)
Use 1. PV Tables, 2. a financial calculator, and 3. Excel functions to arrive at the amount to record the note receivable. (Round
present value factor calculations to 5 decimal places, e.g. 1.2512. Round PV tables and Excel function answers to 0 decimal places, e.g.
8,971 and round Financial calculator answer to 2 decimal places, e.g. 89.71.)
1.
2.
3.
Using
PV tables
Financial calculator
Excel function
$
tA
$
LA
LA
$
Note receivable

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