AMC issues a note with no stated interest rate in exchange for a machine. In accounting...
A short-term note payable With no stated rate of interest should be recorded a. at maturity value. b. recorded at the face amount. c. discounted to present value. d. reported separately from other short-term notes payable.
Warren Peace Bookstore issues a note with no stated interest rate in exchange for a building. In accounting for the transaction:
On December 31, 2019, Coronado Company finished consulting services and accepted in exchange a promissory note with a face value of $610,000, 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...
When the stated interest rate is lower than the effective interest rate for a long-term note receivable, the note is issued at a value that reflects an average of the stated and effective interest rates. a premium. face value. a discount.
Seaside issues a bond with a stated interest rate of 10%, the face value of $50,000, and due in 5 years. Interest payments are made semi-annually. The market rate for this type of bond is 12%. What is the issue price of the bond?
When an equipment dealer receives a long term note in exchange for equipment, and the stated rate of interest is indicative of the market rate of interest at the time of the transaction, the present value of the future cash flows received on the notes: Multiple Choice Is treated as a current liability at the exchange date O () is recorded as interest revenue at the exchange date is recorded as interest receivable at the exchange date. O O O...
Prepare a Schedule of Note Discount Amortization for Marigold Company under the effective interest method. (Round answers to 0 decimal places, e.g. 5,275.) Cash Interest (6%) Effective Interest (12%) Discount Amortized Present Value of Note Date 12/31/197 Unamortized Discount Balance 94393 560607 12/31/20 39300 78600 12/31/21 39300 78600 12/31/22 39300 78600 117900 235800 Click if you would like to Show Work for this question: Open Show Work Testbank Problem 163 a-b On December 31, 2019, Marigold Company finished consulting services...
Mind Explorers issues bonds with a stated interest rate of 8%, face value of $180,000, and due in 10 years. Interest payments are made semi-annually. The market rate for this type of bond is 7%. Using present value tables, calculate the issue price of the bonds. (FV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1 (Use appropriate factor(s) from the tables provided.) Multiple Choice O 892792 5467162 o O S146,426...
Sand Explorers issues bonds due in 15 years with a stated interest rate of 9% and a face value of $320,000. Interest payments are made semi-annually. The market rate for this type of bond is 8%. Using present value tables, calculate the issue price of the bonds. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $414,082. $320,000. O o oo...
Sand Explorers issues bonds due in 10 years with a stated interest rate of 9% and a face value of $160,000. Interest payments are made sem annually. The market rate for this type of bond is 8%. Using present value tables, calculate the issue price of the bonds. V of $1. PV of St. EVA of 51. PVA of $1. EVAD of 51 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $195,706. $170,872. ОО $160,000....