n = | 3 | |
I = | 12% | |
Cash Flow | Amount | Present Value |
Interest | $ 27,000 | $ 3,20,301 |
Principal | $ 4,50,000 | $ 64,849 |
$ 3,85,150 |
Date | Account Titles | Debit | Credit |
Jan-01 | Notes Receivable | $ 4,50,000 | |
Sales Revenue | $ 3,85,150 | ||
Discount on notes receivable | $ 64,850 | ||
(Sale of machine) | |||
Cost of Goods Sold | $ 2,50,000 | ||
Inventory | $ 2,50,000 | ||
(Cost of goods sold) |
Date | Account Titles | Debit | Credit |
1 | Cash | $ 27,000 | |
Discount on Notes receivable | $ 19,218 | ||
Interest Revenue | $ 46,218 | ||
2 | Cash | $ 27,000 | |
Discount on Notes receivable | $ 21,524 | ||
Interest Revenue | $ 48,524 | ||
3 | Cash | $ 27,000 | |
Discount on Notes receivable | $ 24,108 | ||
Interest Revenue | $ 51,108 | ||
4 | Cash | $ 4,50,000 | |
Notes Receivable | $ 4,50,000 |
Table factors are online. Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed...
Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2021. Amber paid for the lathe by issuing a $800,000, three-year note that specified 5% interest, payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions that 9% was a reasonable rate of interest. (FV of $1, PV of...
Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2021. Amber paid for the lathe by issuing a $850,000, three-year note that specified 4% Interest, payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions that 9% was a reasonable rate of interest. (EV of $1. PV of...
Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2021. Amber paid for the lathe by issuing a $850,000, three-year note that specified 4% Interest, payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions that 9% was a reasonable rate of interest. (EV of $1. PV of...
Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2021. Amber paid for the lathe by issuing a $600,000, three-year note that specified 6% interest, payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions that 10% was a reasonable rate of interest. (FV of $1. PV of...
Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2018. Amber paid for the lathe by issuing a $600,000, three-year note that specified 4% interest, payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions that 12% was a reasonable rate of interest. (FV of $1, PV of...
Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2021. Amber paid for the lathe by issuing a $850,000, three-year note that specified 4% interest, payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions that 9% was a reasonable rate of interest. (FV of $1, PV of...
Amber Mining and Milling, Inc, contracted with Truax Corporation to have constructed a cu completed and ready for use on January 1, 2018. Amber paid for the lathe stom-made lathe. The machine was by issuing a $500,000 three-year note that specified 4% price of the lathe was unknown. It was determined by interest, payable annually on December 31 of each year. The cash market comparison with similar transactions that 8% was a reasonable rate of interest. PVAD of $) (Use...
"AFE 588 Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2021. Amber paid for the lathe by issuing a $500,000, three year note that specified 5% Interest, payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions that 8% was a reasonable rate of interest. (EY of...
Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2021. Amber paid for the lathe by issuing a $750,000, three-year note that specified 5% interest, payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions that 9% was a reasonable rate of interest. (FV of $1, PV of...
Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2021. Amber paid for the lathe by issuing a $750,000, three-year note that specified 4% interest, payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions that 9% was a reasonable rate of interest. (FV of $1, PV of...