Oriole Ltd. signed an instalment note on January 1, 2020, in settlement of an account payable...
Oriole Ltd. signed an instalment note on January 1, 2020, in settlement of an account payable of $42,500 owed to Mott Ltd. Oriole is able to borrow funds from its bank at 9%, whereas Mott can borrow at the rate of 7%. The note calls for two equal payments of blended principal and interest to be made at December 31, 2020 and 2021. Using (1) factor Table A.4, (2) a financial calculator, or (3) Excel function PV, calculate the amount of the equal instalment payments that will be made to Mott Ltd.
Click here to view the factor table PRESENT VALUE OF 1.
Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF
1.
| Amount of the equal instalment to be paid | $enter a dollar amount of the equal instalment to be paid |
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Excel function has been used in calculating EMI
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Oriole Ltd. signed an instalment note on January 1, 2020, in
settlement of an account payable...
1) Ayayai Corporation issues $560,000 of 9% bonds that are due in 8 years and pay...
1) Ayayai Corporation issues $560,000 of 9% bonds that are due in 8 years and pay interest semi-annually. At the time of issue, the market rate for such bonds is 8%. Calculate the bonds’ issue price by using (1) factor Tables A.2 and A.4, (2) a financial calculator, or (3) Excel function PV. (Hint: Refer to Chapter 3 for tips on calculating.) (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer...
Carla Vista Ltd. issued an instalment note on January 1, 2020 (with a required yield of...
Carla Vista Ltd. issued an instalment note on January 1, 2020 (with a required yield of 12%) in exchange for land that it purchased from Safayeni Ltd. Safayeni’s real estate agent had listed the land on the market for $113,000. The note calls for three equal blended payments of $42,884 that are to be made at December 31, 2020, 2021, and 2022. (USING PV TABLE) a) Prepare an effective-interest amortization table for the instalment note for the three-year period. (12/31/20,...
Blossom Ltd. issued an installment note on January 1, 2020 (with a required yield of 8%)...
Blossom Ltd. issued an installment note on January 1, 2020 (with a required yield of 8%) in exchange for land that it purchased from Safayeni Ltd. Safayeni’s real estate agent had listed the land on the market for $125,000. The note calls for three equal blended payments of $44,624 that are to be made at December 31, 2020, 2021, and 2022. (You. may use facctor table of the present value of 1 and the factor table of the present value...
Brief Exercise 20-6 Oriole Ltd., a public company following IFRS 16, recently signed a lease for...
Brief Exercise 20-6 Oriole Ltd., a public company following IFRS 16, recently signed a lease for equipment from Costner Ltd. The lease term is 3 years and requires equal rental payments of $44,046 at the beginning of each year. The equipment has a fair value at the lease’s inception of $124,800, an estimated useful life of 3 years, and no residual value. Oriole pays all executory costs directly to third parties. The appropriate interest rate is 6%. Click here to...
need help with b please NEXT On July 1, 2020, Marin Inc, made two sales: 1. It sold excess land in exchange for a f...
need help with b please
NEXT On July 1, 2020, Marin Inc, made two sales: 1. It sold excess land in exchange for a four year on-Interest-bearing promissory note in the face amount of $1,040,980. The band's carrying value is $600,000 2. It rendered services in exchange for an eight-year promissory not having a face value of $450,000. Interests are of is payable annually The customers in the above transactions have credit ratings that require them to borrow money at...
12 Tamarisk Company purchased a machine at a price of $109,700 by signing a note payable,...
12
Tamarisk Company purchased a machine at a price of $109,700 by signing a note payable, which requires a single payment of $132,737 in 2 years. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Assuming annual compounding of interest, what rate of interest is being paid on the loan? (Round answer to 0 decimal places, e.g. 52%.) Rate of interest % LINK TO...
9. (LO 5) AP Zhang Inc. issues a $497,000, 3-year, 7% instalment note payable on January...
9. (LO 5) AP Zhang Inc. issues a $497,000, 3-year, 7% instalment note payable on January 1. The note will be paid in three annual blended payments of $189,383 each. What is the amount of interest expense that should be recognized by Zhang in the second year? $21,533 $23,193 $23,968 $34,790 10. (LO 5) AP Assume that the note issued by Zhang Inc. in question 9 above will be paid with fixed principal payments of $165,667 each. What is the...
On June 1, 2020, Concord Corporation approached Silverman Corporation about buying a parcel of undeveloped land....
On June 1, 2020, Concord Corporation approached Silverman Corporation about buying a parcel of undeveloped land. Silverman was asking $242,000 for the land and Concord saw that there was some flexibility in the asking price. Concord did not have enough money to make a cash offer to Silverman and proposed to give, in return for the land, a $305.000, five-year promissory note that bears interest at the rate of 4%. The interest is to be paid annually to Silverman Corporation...
On January 1, 2020, Sage Hill Co. leased a building to Oriole Inc. The relevant information...
On January 1, 2020, Sage Hill Co. leased a building to Oriole Inc. The relevant information related to the lease is as follows. 1. 2. 3. 4. 5. 6. The lease arrangement is for 10 years. The building is expected to have a residual value at the end of the lease of $2,800,000 (unguaranteed). The leased building has a cost of $3,300,000 and was purchased for cash on January 1, 2020. The building is depreciated on a straight-line basis. Its...
Please Oriole Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020....
Please
Oriole Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020. The lease is for an 8-year period and requires equal annual payments of $33,300 at the beginning of each year. The first payment is received on January 1, 2020. Oriole had purchased the machine during 2019 for $150,000. Collectibility of lease payments by Oriole is probable. Oriole set the annual rental to ensure a 6% rate of return. The machine has an economic life...
need help with b please
NEXT On July 1, 2020, Marin Inc, made two sales: 1. It sold excess land in exchange for a four year on-Interest-bearing promissory note in the face amount of $1,040,980. The band's carrying value is $600,000 2. It rendered services in exchange for an eight-year promissory not having a face value of $450,000. Interests are of is payable annually The customers in the above transactions have credit ratings that require them to borrow money at...
12
Tamarisk Company purchased a machine at a price of $109,700 by signing a note payable, which requires a single payment of $132,737 in 2 years. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Assuming annual compounding of interest, what rate of interest is being paid on the loan? (Round answer to 0 decimal places, e.g. 52%.) Rate of interest % LINK TO...
On June 1, 2020, Concord Corporation approached Silverman Corporation about buying a parcel of undeveloped land. Silverman was asking $242,000 for the land and Concord saw that there was some flexibility in the asking price. Concord did not have enough money to make a cash offer to Silverman and proposed to give, in return for the land, a $305.000, five-year promissory note that bears interest at the rate of 4%. The interest is to be paid annually to Silverman Corporation...
On January 1, 2020, Sage Hill Co. leased a building to Oriole Inc. The relevant information related to the lease is as follows. 1. 2. 3. 4. 5. 6. The lease arrangement is for 10 years. The building is expected to have a residual value at the end of the lease of $2,800,000 (unguaranteed). The leased building has a cost of $3,300,000 and was purchased for cash on January 1, 2020. The building is depreciated on a straight-line basis. Its...
Please
Oriole Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020. The lease is for an 8-year period and requires equal annual payments of $33,300 at the beginning of each year. The first payment is received on January 1, 2020. Oriole had purchased the machine during 2019 for $150,000. Collectibility of lease payments by Oriole is probable. Oriole set the annual rental to ensure a 6% rate of return. The machine has an economic life...
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