30) (HW) A note for $25 000 dated August 1, 2010, is due with compound interest at j, = 9% 4 years after date. On November 1, 2011, the holder of the note has it discounted by a lender who chargesj, = 7.5%. 12 What are the proceeds?
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- . On April 30, 2022, Lenny Inc. borrowed $10 million cash from Colonial Bank and issued a 5-month, noninterest-bearing note, priced to yield an effective interest rate of 10%. The stated discount rate on this loan is: A. More than the effective interest rate. B. Less than the effective interest rate. C. Equal to the effective interest rate. D. Unrelated to the effective interest rateOn January 1, 2014, Huff Co. issued a $4,000,000, zero interest (0%), 10-year note payable for$2,575,711. What was the Effective/Market Annual interest rate when the note was issued? I need typed answer with explanation N2. On January 1, 2022, Balance Bar Co. receives a 5-year, $100,000 zero-interest-bearing note for services they provided. The market rate of interest for a note of similar risk is 6 percent. a. How does Balance Bar record the receipt of the note? b. And how does Balance Bar record interest revenue at the end of the first year?c. At the end of the second year?
- On December 31, 2020, Iva Majoli Company borrowed $62,092 from Paris Bank, signing a 5-year, $100,000 zero-interest-bearing note. The note was issued to yield 10% interest. Unfortunately, during 2022, Majoli began to experience financial difficulty. As a result, at December 31, 2022, Paris Bank determined that it was probable that it would receive back only $75,000 at maturity. The market rate of interest on loans of this nature is now 11%. Instructions a. Prepare the entry to record the issuance of the loan by Paris Bank on December 31, 2020. b. Prepare the entry, if any, to record the impairment of the loan on December 31, 2022, by Paris Bank.On January 1, 2020, Flounder Furniture Ltd. borrowed $3 million (face value) from Aurora Inc., a major customer, through non–interest-bearing note due in 5 years. Because the note was non–interest-bearing, Flounder Furniture agreed to sell furniture to this customer at lower than market price. A 11% rate of interest is normally charged on this type of loan.Using (1) factor tables, (2) a financial calculator, or (3) Excel function PV, calculate the amount that the note would be recorded at on January 1, 2020. (Hint: Refer to Chapter 3 for tips on calculating.) Please help within ExcelOn January 1, 2020, Flounder Furniture Ltd. borrowed $3 million (face value) from Aurora Inc., a major customer, through non–interest-bearing note due in 5 years. Because the note was non–interest-bearing, Flounder Furniture agreed to sell furniture to this customer at lower than market price. A 11% rate of interest is normally charged on this type of loan.Using (1) factor tables, (2) a financial calculator, or (3) Excel function PV, calculate the amount that the note would be recorded at on January 1, 2020. (Hint: Refer to Chapter 3 for tips on calculating.) Please show solution in Excel
- On December 31, 2016, Rocky Bank has a loan receivable of P4,000,000 from a borrower that it's carrying is at face value and is due on December 31, 2022. Interest on the loan is payable at 9% each December 31. The borrower paid the interest due on December 31, 2016 but informed the bank that it would probably miss the next two years' interest payments. After that, the borrower is expected to resume the annual interest payment but it would make the principal payment one year late, with interest paid for that additional year at the time of principal payment. Round off present value factors up to three decimal points. What is the impairment loss for 2016?On December 31, 2018, Conchita Martinez Company signed a P1,000,000 noninterest bearing note to Sauk City Bank. The market interest rate at that time is 12%. The stated interest rate on the note was 10%, payable annually. The note matures in 5 years. Considering these data, the bank released cash to the company amounting to P927,908; i.e., the total of the present value of the principal and interest. Unfortunately, because of lower sales, the company’s financial situation worsened. On December 31, 2020, when the carrying amount of the loan is determined to be P951,968, Sauk City Bank determined that it was probable that the company would pay back only P600,000 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the P1,000,000 loan. The present value of 1 at 12% for 3 years is 0.71178 and the present value of an ordinary annuity of 1 at 12% for 3 years is 2.40183. 1.In the note amortization schedule before impairment, how…On December 30, 2022, Hershey Company sold a machine in exchange for a non-interest bearing note requiring ten annual payments of ₱100,000. The first payment was made on December 30, 2022. The market interest rate for similar notes at date of issuance was 8%. The PV of 1 at 8% for 9 periods is .50 and at 10 periods is .46. The PV of ordinary annuity of 1 at 8% for 9 periods is 6.25 and for 10 periods is 6.71.On December 31, 2022, what amount should be reported as notes receivable? [A] 450,000 [B] 460,000 [C] 625,000 [D] 671,000
- 1. On January 1, 2022, Balance Bar Co. lends Bio Foods $100,000 in exchange for a $100,000, 5-year note bearing interest at 8 percent annually. The market rate of interest for a note of similar risk is also 8 percent. a. How does Balance Bar record the receipt of the note? b. And how does Balance Bar record the receipt of interest at the end of the first year? c. At the end of the second year?On January 1, 2022, Easy Company sold merchandise for 500,000 by accepting a note for 6 months with interest to be paid at maturity at 12%. On March 1, the entity discounted the note without recourse at a bank with a 15% discount. How much is the maturity value of the notes receivable?On jan 1 2022, rodney inc provided services to smith's company in exchange for smith's $300000, 2 year 8% note with interest compound semi annually on july 1 and jan 1. The current market rate of similar notes is 12%. What are the input value on the financial calculator?
