Question

On January 1, 20X3, Gaudreau Enterprises sold goods in exchange for a $200,000, five‑year, interest-free note...

On January 1, 20X3, Gaudreau Enterprises sold goods in exchange for a $200,000, five‑year, interest-free note from the purchaser. The note was repayable at $20,000 semi‑annually, first due June 30, 20X3. The market rate of interest for similar notes was 6% per annum, payable semi-annually.

Gaudreau prepares its financial statements in accordance with IFRS. What amount of interest revenue should the company report on its December 31, 20X3, year-end financial statements?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On january 1 20X3 Gaudreau enterprise sold goods in exchange for a $200000 five year.,Interest free...
On january 1 20X3 Gaudreau enterprise sold goods in exchange for a $200000 five year.,Interest free note from purchaser. the note was repayable at $ 20000 semi annually first due june 30 20X3.the market rate of interest for similar notes was 6% per annum payable semi annually. Gaudreau prepare its financial statements accordance with IFRS. What amount of interest revenue should the company reports on ots December 31 20X3 Year end financial statement?
On January 1, 2020, ABC Company borrowed $200,000 from the bank. The loan is a 10-year...
On January 1, 2020, ABC Company borrowed $200,000 from the bank. The loan is a 10-year note payable that requires semi-annual payments of $24,000 every June 30 and December 31, beginning June 30, 2020. Assume the loan has a 20% interest rate, compounded semi-annually. Calculate the amount of the note payable at December 31, 2020 that would be classified as a long-term liability.
Pink Ltd is the parent of Floyd Ltd. On 1 January 20X3 Pink made a loan...
Pink Ltd is the parent of Floyd Ltd. On 1 January 20X3 Pink made a loan to Floyd in the form of bills of exchange in the total amount of $80,000 face value. Floyd was required to repay the $80,000 amount (which included the interest component) on 1 October 20X3. On 1 February Pink discounted $20,000 of the bills with the Darkside bank, without recourse, and received $15 000, cash. Floyd was unaware of the discounting. The end of financial...
On January 1, Year 1, Stratton Company borrowed $200,000 on a 10-year, 7% installment note payable....
On January 1, Year 1, Stratton Company borrowed $200,000 on a 10-year, 7% installment note payable. The terms of the note require Stratton to pay 10 equal payments of $28,476 each December 31 for 10 years. The required general journal entry to record the payment on the note on December 31, Year 2 is: Multiple Choice Debit Notes Payable $200,000; debit Interest Expense $8,476; credit Cash $28,476. Debit Interest Expense $14,000; debit Notes Payable $14,476; credit Cash $28,476. Debit Interest...
Question #1 (25 marks) On January 1, 2019, Farmer Co. sold product to a customer in...
Question #1 On January 1, 2019, Farmer Co. sold product to a customer in exchange for a four-year $50,000 promissory note with an annual interest rate of 4%. Interest only payments are due SEMI-ANNUALLY, beginning on June 30, 2019. The market rate for an equivalent loan to this customer would have been 6%*. Farmer Co. uses IFRS, has a Dec 31 year end, and prepares adjusting entries annually. Required: Calculate the amount of revenue to be recorded on January 1st...
7.) Gareon Conley Company issued $3,000,000 of 10-year, 6% annual interest, bonds payable on March 1,...
7.) Gareon Conley Company issued $3,000,000 of 10-year, 6% annual interest, bonds payable on March 1, 2018. The bonds are dated January 1, 2018, with interest payable semi-annually every July 1 and January 1. Conley Company maintains their accounting records on a fiscal year ending July 31. The market rate of interest on similar debt instruments was also 6% so the bonds were sold at face (par) value. The journal entry to record the first interest payment on July 1,...
Cougar Corp. sold 2-year, 5%, $200,000, bonds on January 1, 2020 for $208,000. Interest is paid...
Cougar Corp. sold 2-year, 5%, $200,000, bonds on January 1, 2020 for $208,000. Interest is paid semi-annually on June 30 and December 31. 2 points What is the journal entry to record the issuance of the Bond on 1/1/2020? 8 points: Complete the amortization schedule below. Period ended Cash Paid Interest expense amortization Carrying amount 06/30/2020 12/31/2020 06/30/2021 12/31/2021
On January 1, 2007, LKM got an $18,000, 0% note receivable from Suncor in exchange for...
On January 1, 2007, LKM got an $18,000, 0% note receivable from Suncor in exchange for a delivery furniture LKM no longer needed. Suncor is repaying the note in three equal instalments of $6,000, with the first payment due January 1, 2008. The market rate of interest when the note was received was 5% per annum. The sale of the furniture was correctly recorded. Based on IFRS standard, write the year-end (Dec 31, 2007)adjusting entries for this transaction.
Issue Price of a Bond May Enterprises issued $200,000 of six percent, five-year bonds with interest...
Issue Price of a Bond May Enterprises issued $200,000 of six percent, five-year bonds with interest payable semiannually. Determine the issue price if the bonds are priced to yield (a) six percent, (b) ten percent, and (c) two percent. Use financial calculator or Excel to calculate answers. Round answers to the nearest whole number.
On January 1, 20x6, Cell Co. lends some money in exchange for a 10% $100,000 10-year...
On January 1, 20x6, Cell Co. lends some money in exchange for a 10% $100,000 10-year note. The market rate for similar notes is 8%. Interest is received semiannually each July 1 and January 1. The financial year ends December 31. Round to the nearest whole number. (Hint: Prepare a partial amortization schedule to July 1, 20x8) 1. The present value of the note is : 2. The interest revenue to Cell Co. at December 31, 20x7 is: 3. The...