Homework Answers
Solution 1:
Amount of borrowings = $1,840,000*65% = $1,196,000
Interest expense on 31.12.2016 = $1,196,000*11%*6/12 = $65,780
Reduction in notes payable recorded by firm on 31.12.2016 = $294,850 - $65,780 = $229,070
Solution 2:
Value of equipment recorded on July 1 2016 = cash price of machine = $1,600,000
Solution 3:
Amount of borrowings = $1,180,000*65% = $767,000
Interest expense on 31.12.2016 = $767,000*12%*6/12 = $46,020
Add Answer to:
On July 1st, 2016, Alligator Supplies Inc. purchased a large piece of machinery for $1,840,000. The...
7. Bjork, Inc. borrowed $150,000 from 1st Star Bank on July 1, 2016. The loan stipulates...
7. Bjork, Inc. borrowed $150,000 from 1st Star Bank on July 1, 2016. The loan stipulates that the annual interest rate is 8%, payable on the 15th of each month, payments beginning July 15, 2016. Assume Bjork makes all interest payments when they are due. How much will Bjork, Inc. report on its 2016 income statement for interest expense? a. $500 b. $5,500 c. $12,000 d. $6,000 e. $0
Bjork, Inc. borrowed $150,000 from 1st Star Bank on July 1, 2016. The loan stipulates that...
Bjork, Inc. borrowed $150,000 from 1st Star Bank on July 1, 2016. The loan stipulates that the annual interest rate is 8%, payable on the 15th of each month, beginning July 15, 2016. Assume Bjork makes all interest payments when they are due. How much will Bjork, Inc. report on its 2016 balance sheet for interest payable? a. $0 b. $500 c. $6,000 d. $5,500 e. $12,000
please solve these for me,thanks! 2016 1. Issued $74,000,000 of 20-year, 11% callable bonds dated July...
please solve these for me,thanks!
2016 1. Issued $74,000,000 of 20-year, 11% callable bonds dated July 1, 2016, at a mar- ket (effective) rate of 13%, receiving cash of $63,532,267. Interest is payable semiannually on December 31 and June 30. 1. Borrowed $200,000 by issuing a six-year, 6% installment note to Nicks Bank. The note requires annual payments of $40,673, with the first payment occurring on September 30, 2017. July Oct. Dec. 31. Accrued $3,000 of interest on the installment...
The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: 2016...
The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: 2016 July 1 Issued $39,500,000 of 20-year, 7% callable bonds dated July 1, 2016, at a market (effective) rate of 8%, receiving cash of $35,590,960. Interest is payable semiannually on December 31 and June 30. Oct. 1 Borrowed $200,000 by issuing a six-year, 4% installment note to Nicks Bank. The note requires annual payments of $38,152, with the first payment occurring on September 30, 2017....
On July 1, 2020, Metlock Inc. made two sales. 1. It sold land having a...
On July 1, 2020, Metlock Inc. made two sales.
1. It sold land having a fair
value of $919,890 in exchange for a 4-year zero-interest-bearing
promissory note in the face amount of $1,447,460. The land is
carried on Metlock's books at a cost of $599,700.
2. It rendered services in exchange
for a 3%, 8-year promissory note having a face value of $404,320
(interest payable annually).
Metlock Inc. recently had to pay 8% interest for money that it...
Ajayi Art, Inc. opened for business on April 1st. Listed below are the transactions for Ajayi...
Ajayi Art, Inc. opened for business on April 1st. Listed below are the transactions for Ajayi Art, Inc. for the month of April April 1 Issued common stock in exchange for $250,000 cash April 1 Purchased office equipment for $17,500 cash. . April 1 Borrowed $20,000 from Novus Bank and signed a 10% note. Interest and principal to be paid in 12 months. April 5 Paid $4,000 rent in advance for the art gallery for the next two months. April...
The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year:
The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: Year 1 July 1 Issued $74,000,000 of 20-year, 11% callable bonds dated July 1, Year 1, at a market (effective) rate of 13%, receiving cash of $63,532,267. Interest is payable semiannually on December 31 and June 30. Oct. 1 Borrowed $200,000 by issuing a six-year, 6% installment note to Nicks Bank. The note requires annual payments of $40,673, with the first payment ocourring on September 30, Year 2. Dec. 31...
Entries for Bonds Payable and Installment Note Transactions The following transactions were completed by Montague Inc.,...
Entries for Bonds Payable and Installment Note Transactions
The following transactions were completed by Montague Inc.,
whose fiscal year is the calendar year:
Year 1
July 1.
Issued $1,330,000 of five-year, 11% callable bonds dated July
1, Year 1, at a market (effective) rate of 12%, receiving cash of
$1,281,055. Interest is payable semiannually on December 31 and
June 30.
Oct. 1.
Borrowed $380,000 by issuing a 10-year, 8% installment note to
Intexicon Bank. The note requires annual payments of...
I just need help with number 3. I can't figure out what the discount amortized is...
I just need help with number 3. I can't figure out
what the discount amortized is for the different years
PR 14-4A Entries for bonds payable and installment note transactions OBJ. 3,4 The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: 2016 July 1. Issued $74,000,000 of 20-year, 11% callable bonds dated July 1, 2016, at a mar- ket (effective) rate of 13%, receiving cash of $63,532,267. Interest is payable semiannually on December 31...
The following transactions were completed by Montague Inc., whose fiscal year is the calendar year: Year...
The following transactions were completed by Montague Inc., whose fiscal year is the calendar year: Year 1 July 1. Issued $8,700,000 of five-year, 9% callable bonds dated July 1, Year 1, at a market (effective) rate of 10%, receiving cash of $8,364,103. Interest is payable semiannually on December 31 and June 30. Oct. 1. Borrowed $120,000 by issuing a 10-year, 7% installment note to Intexicon Bank. The note requires annual payments of $17,085, with the first payment occurring on September...
please solve these for me,thanks!
2016 1. Issued $74,000,000 of 20-year, 11% callable bonds dated July 1, 2016, at a mar- ket (effective) rate of 13%, receiving cash of $63,532,267. Interest is payable semiannually on December 31 and June 30. 1. Borrowed $200,000 by issuing a six-year, 6% installment note to Nicks Bank. The note requires annual payments of $40,673, with the first payment occurring on September 30, 2017. July Oct. Dec. 31. Accrued $3,000 of interest on the installment...
On July 1, 2020, Metlock Inc. made two sales.
1. It sold land having a fair
value of $919,890 in exchange for a 4-year zero-interest-bearing
promissory note in the face amount of $1,447,460. The land is
carried on Metlock's books at a cost of $599,700.
2. It rendered services in exchange
for a 3%, 8-year promissory note having a face value of $404,320
(interest payable annually).
Metlock Inc. recently had to pay 8% interest for money that it...
Ajayi Art, Inc. opened for business on April 1st. Listed below are the transactions for Ajayi Art, Inc. for the month of April April 1 Issued common stock in exchange for $250,000 cash April 1 Purchased office equipment for $17,500 cash. . April 1 Borrowed $20,000 from Novus Bank and signed a 10% note. Interest and principal to be paid in 12 months. April 5 Paid $4,000 rent in advance for the art gallery for the next two months. April...
Entries for Bonds Payable and Installment Note Transactions
The following transactions were completed by Montague Inc.,
whose fiscal year is the calendar year:
Year 1
July 1.
Issued $1,330,000 of five-year, 11% callable bonds dated July
1, Year 1, at a market (effective) rate of 12%, receiving cash of
$1,281,055. Interest is payable semiannually on December 31 and
June 30.
Oct. 1.
Borrowed $380,000 by issuing a 10-year, 8% installment note to
Intexicon Bank. The note requires annual payments of...
I just need help with number 3. I can't figure out
what the discount amortized is for the different years
PR 14-4A Entries for bonds payable and installment note transactions OBJ. 3,4 The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: 2016 July 1. Issued $74,000,000 of 20-year, 11% callable bonds dated July 1, 2016, at a mar- ket (effective) rate of 13%, receiving cash of $63,532,267. Interest is payable semiannually on December 31...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago