On June 1, 2017, Morrow Corp. loaned Gant $500,000 on a 12% note, payable in five...
On June 1, 2017, Morrow Corp. loaned Gant $500,000 on a 12% note, payable in five annual installments of $100,000 beginning January 2, 2018. In connection with this loan, Gant was required to deposit $5,000 in a zero-interest-bearing escrow account. The amount held in escrow is to be returned to Gant after all principal and interest payments have been made. Interest on the note is payable on the first day of each month beginning July 1, 2017. Gant made timely payments through November 1, 2017. On January 2, 2018, Morrow Corp. received payment of the first principal installment plus all interest due. At December 31, 2017, Morrow's interest receivable on the loan to Gant should be
Homework Answers
As given, Gant made timely payments through November 1,2017.
At December 31,2017
Interest Recievable by Morrow Corp. [for 2 months(Nov&Dec)]
=$500,000 x 2/12 x 12%
=$10,000
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On June 1, 2017, Morrow Corp. loaned Gant $500,000 on a 12%
note, payable in five...
Hi! Please EXPLAIN the below PROBLEMS THANKS! *105. The Supplies account had a balance at the...
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On January 1, 2017, Eagle borrows $21,000 cash by signing a four-year, 5% installment note. The...
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On January 1, 2017, Ann Price loaned $216216 to Joe Kiger. A zero-interest-bearing note (face amount,...
On January 1, 2017, Ann Price loaned $216216 to Joe Kiger. A
zero-interest-bearing note (face amount, $280000) was exchanged
solely for cash; no other rights or privileges were exchanged. The
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interest for a loan of this type is 9%. The present value of
$280000 at 9% for three years is $216216. What amount of interest
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$75600.
$56950.
$19459.
$25200.
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Sloan Co. acquired a packaging machine from Vintage Corp on January 1, 2016. In payment for the $4,575,000 machine, Sloan Co. issued a five-year installment note to be paid in five equal payments at the end of each year. The payments include interest at the rate of 8%. How much of the second installment payment made on December 31, 2017 is for the principal (reduction of notes payable) in 2017? O 366,000 O 842,225 303,613 O 779.838
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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. (Round your intermediate calculations and finel answers to the nearest dollar amount.) 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. View transaction list...
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On January 1, 2017, Eagle borrows $21,000 cash by signing a four-year, 5% installment note. The note requires four equal payments of $5,922, consisting of accrued interest and principal on December 31 of each year from 2017 through 2020. (Round your intermediate calculations and final answers to the nearest dollar amount.) 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. Answer is not...
On January 1, 2017, Ann Price loaned $216216 to Joe Kiger. A
zero-interest-bearing note (face amount, $280000) was exchanged
solely for cash; no other rights or privileges were exchanged. The
note is to be repaid on December 31, 2019. The prevailing rate of
interest for a loan of this type is 9%. The present value of
$280000 at 9% for three years is $216216. What amount of interest
income should Ms. Price recognize in 2017?
$75600.
$56950.
$19459.
$25200.
Sloan Co. acquired a packaging machine from Vintage Corp on January 1, 2016. In payment for the $4,575,000 machine, Sloan Co. issued a five-year installment note to be paid in five equal payments at the end of each year. The payments include interest at the rate of 8%. How much of the second installment payment made on December 31, 2017 is for the principal (reduction of notes payable) in 2017? O 366,000 O 842,225 303,613 O 779.838
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. (Round your intermediate calculations and finel answers to the nearest dollar amount.) 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. View transaction list...
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