Question

In exchange for lending cash, you have a note receivable with a face value (principle) of...

In exchange for lending cash, you have a note receivable with a face value (principle) of 10,000, no coupon, and a term of 3 years. Market interest is 8%. The exchange occured on Jan 1, 2018. Fiscal year end is Dec 31st. The firm uses effective interest to amortize any discounts.

Round to the nearest dollar.

What is the net value of the note receivable on Dec 31, 2018?

What is the value of the related interest revenue on Dec 31, 2019?

What is the value in the Discount on Note Receivable Account on Dec 31, 2020?

*please show or give explanations/work*

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1


0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
n December 31, 2017, Jones Builders Incorporated received a note receivable for stadium repairs provided to...
n December 31, 2017, Jones Builders Incorporated received a note receivable for stadium repairs provided to Lambeau Leap Company. The 4 year note had a face value of $400,000. The stated rate on the note was 9%. The market rate, at the time of issuance, for notes of this kind was 12%. Jones Builders correctly calculated the present value of the note to be $363,552.60. Interest on the note is paid annually, beginning December 31, 2018. The face value will...
Prepare all Journal Entries related to the following note of Company for the 2019 fiscal year...
Prepare all Journal Entries related to the following note of Company for the 2019 fiscal year which ends Dec. 31, 2019. NOTE C: On April 1, 2019, Company finished consultation services and accepted in exchange a promissory note with a face value of $100,000, a due date of April 1, 2021, and no stated or coupon rate. The 11% interest is a realistic interest rate (market rate)for a note of this type.
On December 31, 2019, Swifty Company finished consulting services and accepted in exchange a promissory note...
On December 31, 2019, Swifty Company finished consulting services and accepted in exchange a promissory note with a face value of $675,000, a due date of December 31, 2022, and a stated rate of 6%, with interest receivable at the end of each year. The fair value of the services is not readily determinable and the note is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 12%. The following...
The board of directors of Calmont, LLC, authorized the issuance of $600,000 face value, 20-year, 5...
The board of directors of Calmont, LLC, authorized the issuance of $600,000 face value, 20-year, 5 percent bonds, dated March 1, 2019, and maturing on March 1, 2039. Interest is payable semiannually on September 1 and March 1. DATE TRANSACTIONS FOR 2019 Jun. 1 Issued bonds with a face value of $450,000 at 97.63 plus accrued interest from March 1. (When bonds are issued between interest payment dates, the accrued interest is paid to the corporation by the purchaser. Credit...
On January 1, 2017, Eagle borrows $31,000 cash by signing a four-year, 8% installment note. The...
On January 1, 2017, Eagle borrows $31,000 cash by signing a four-year, 8% installment note. The note requires four equal payments of $9,360, consisting of accrued interest and principal on December 31 of each year from 2017 through 2020. Prepare the journal entries for Eagle to record the loan on January 1, 2017, and the four payments from December 31, 2017, through December 31, 2020.    No Date General Journal Debit Credit 1 Jan 01, 2017 Cash 31,000 31,000 2...
On December 31, 2019, Vaughn Company finished consulting services and accepted in exchange a promissory note...
On December 31, 2019, Vaughn Company finished consulting services and accepted in exchange a promissory note with a face value of $545,000, a due date of December 31, 2022, and a stated rate of 6%, with interest receivable at the end of each year. The fair value of the services is not readily determinable and the note is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 12%. The following...
Notes issued at a discount , face value of notes 4,000,000 nominal rate 6%, effective rate...
Notes issued at a discount , face value of notes 4,000,000 nominal rate 6%, effective rate 8%, The note is issued on January 1, 2017 and mature in four years on January 1,2021. The interest is payable annually every December 31, Since the interest is payable annually there are 4 interest periods . The relevant present value factors are: PV of 1 at 8% for 4 periods .7350 PV of ordinary annuity of 1 at 8% for 4 periods 3.3121...
On January 1, 2018, Ann Stine loaned $37,565 to Joe Grant. A zero-interest-bearing note (face amount,...
On January 1, 2018, Ann Stine loaned $37,565 to Joe Grant. A zero-interest-bearing note (face amount, $50,000) was exchanged solely for cash. The note is to be repaid on December 31, 2020. The prevailing rate of interest for a loan of this type is 10%. The present value of $50,000 at 10% for three years is $37,565. What amount of the Discounts on Notes Payable should Mr. Grant credit in 2018?
On January 1, 2016, Eagle borrows $26,000 cash by signing a four-year, 8% installment note. The...
On January 1, 2016, Eagle borrows $26,000 cash by signing a four-year, 8% installment note. The note requires four equal total payments of accrued interest and principal on December 31 of each year from 2016 through 2019. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided. Round your intermediate calculations and final answers to the nearest dollar amount. Round all table values to 4 decimal places, and use the rounded table values in...
On January 1, 2017, Flounder Corporation issued $1,650,000 face value, 8%, 10- year bonds at $1,447,229....
On January 1, 2017, Flounder Corporation issued $1,650,000 face value, 8%, 10- year bonds at $1,447,229. This price resulted in an effective-interest rate of 10% on the bonds. Flounder uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest January 1. Prepare an amortization table through December 31, 2019 (three interest periods) for this bond issue.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT