answer number 40, 41, and 42 with solutions 40. How much is the remaining liability afterthe 6th payment?Sol'n:C. P7 976.51D. P7 683.70A. P9 500.13B. P9 421.0741. What is the purchase price of a bond worth P150 000 with a coupon rate of 7% payable annually for15 years? Assume that the market rateis 3%.A. P96 279.29B. P125 348.32Soľn:C. P208 220.71D. P221 627.6142. Which of the two companies gives a better investment: company A with a current market value ofP3.55 and P0.72 dividend or company BSoln:with a current market value of P53.20 anda dividend of P7.32?A. company AB. company BC. both A and BD. none of them For 36- 40: Albert borrowed P180 000 to be repaid with equal quarterly payments for 2 2 years with aninterest rate of 9% compounded quarterly. As a collateral, he offered his used car with anappraised value of P250 000 which the lender accepted. Given the first five rows of theamortization table of the loan, answer the questions that follow.Regular Payment Interest Component of Principal Component ofLoan BalancePeriodPaymentPayment180 000.0016 251.78163 748.224 050.0020 301.7820 301.7816 617.44147 130.783 684.333310.4416 991.34130 139.4420 301.782 928.1417 373.64112 765.7920 301.781234

As per our guidelines we provide solution to the one question only and you have asked three…

Answered: 40. How much is the remaining liability…

Business

Accounting

40. How much is the remaining liability after the 6th payment?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1EA: Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest...

See similar textbooks

Related questions

Q: Tiny Tots Daycare Centre provides daycare for children Mondays through Fridays. The business had…

A: In the context of the given question, we are required to compute the number of children that must be…

Q: 2020 Formula Asset turnover ratio = - Given Net Sales = 84,343 Solution Asset turnover Net Sales…

A: The asset turnover ratio shows the ratio of changes in the asset of the company. It represents the…

Q: The following Trial Balance was extracted from the books of EMGEE Sdn Bhd, an accounting firm as at…

A: The balance sheet and income statement are the part of financial statements that shows the position…

Q: Yerbury Corp. manufactures construction equipment. Journalize the entries to record the following…

A: Investment in shares means to invest in a company by purchasing or acquiring the shares of that…

Q: A comparative balance sheet and an income statement for Burgess Company are given below: Burgess…

A: The cash flow statement is one of the financial statements of the business which is prepared to…

Q: Required: Compute basic and diluted EPS for the consolidated entity for 20X7. (Round your…

A: The basic earning per share can be defined as the earning available to the common shareholder for a…

Q: Instructions Last Unguaranteed Financial Inc. purchased the following trading securities during Year…

A: Journal entry is the modern method of accounting which is used to record business transactions that…

Q: Inventory turnover 2020 Formula Inventory Turnover Ratio = Costs of Goods Sold Average Inventory…

A: Inventory is very important for business but too much inventory is cost to firm but too less…

Q: Lang Company began operations in Year 1. During its first two years, the company completed a number…

A: The journal entries are prepared to record day to day transactions of the business on regular basis.…

Q: Mauro Products distributes a single product, a woven basket whose selling price is $16 per unit and…

A: Introduction: In business accounting, the break-even point is the level of cash necessary to cover…

Q: The credit analyst for Mazibuko Limited has established the following data relating to the working…

A: Formula for Cash Conversion Cycle DIO + DSO - DPO WHERE, DIO= Days of Inventory Outstanding DSO =…

Q: On January 1, 20x1, Zevrek Co. issues bonds with face amount of ₱4,000,000 for ₱4,100,000. The bonds…

A: INTRODUCTION: Retirement is the point in life when a person decides to stop working permanently. The…

Q: The condensed statement of financial position as of January 1, 2022 of ABC Corporation is undergoing…

A: In case of liquidation of the company the amount available for distribution is distributed in the…

Q: Net income Preferred dividends Average stockholders' equity Average common stockholders' equity…

A: Return on stockholders' equity = Net incomeAverage stockholders' equity× 100

Q: Scootz could sell its scooters to retailers either assembled or unassembled. The cost of an…

A: Introduction: Incremental analysis is a technique for making business decisions that determines the…

Q: Instructions Journalize the entries to record the following selected bond investment transactions…

A: Interest on Bonds is paid as per coupon rate. The market price of bonds depends based on yield of…

Q: A business issued a 120-day, 6% note for $9,000 to a creditor on account. The company uses a 360-day…

A: Notes Payable - Notes Payable is the instrument issued against borrowed funds. It is a promissory…

Q: PR 4-4A Ledger accou and closing entries; optional spreadsheet The unadjusted trial balance of…

A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…

Q: Listed below, in random order, are the statement of financial position accounts and related balances…

A: Balance sheet or the statement of financial position is the summary showing assets, liabilities and…

Q: On January 1, Vermont Corporation had 46,700 shares of $10 par value common stock issued and…

A: A journal entry is used to record a business arrangement in a company's accounting records. A…

Q: Capital balances and profit-sharing percentages for the partnership of Manda, Emeril, and Fotenot on…

A: Partnership: Its an agreement between two or more partners for forming a a business and sharing the…

Q: Which of the following is an advantage of forming a corporation? Question 6 options: Easy to…

A: Being a corporation has a number of benefits, such as less personal liability, simple ownership…

Q: Chester’s a local butchery expects to sell 419 675 kilograms of meat for the year 2022. Carrying…

A: Introduction: Carrying costs are the different expenses incurred by a company in order to keep…

Q: The initial cost of a paint sand mill, including its installation is P765,952. The mill will last…

A: As per sinking fund method of depreciation amount (p) is invested in the sinking fund account and…

Q: Question Content Area The accounts in the ledger of Monroe Entertainment Co. are listed below. All…

A: Lets understand the basics. Trial balance is a starting point of preparation of the financial…

Q: MULTIPLE OPTIONS The conditions of sale for Mulch Corporation are net/90. On average, their…

A: The average investment in receivables can be estimated with the help of days sales outstanding…

Q: Give one reason why performing advisory services could enhance audit quality. Give one reason why…

A: Here discuss about the details of the importance of performance advisory service which are needed…

Q: Other information: The 6% bonds payable were issued on December 31, 2020 and interest is payable…

A: Cash Flow Statement There are mainly three segment in the Cash flow statement. The details are…

Q: Amount of loss account

A: The amount of loss account will be calculated by taking the number of total hours wasted in a power…

Q: Encik Amir, the owner of Smart Trading, has given to you the following balances taken from his…

A: In the context of the given question, we are required to identify the value to be recorded on 31…

Q: From the following list of balances extract from Jones Trading’s book as at 31 May RM RM…

A: A Trial Balance is a statement that shows either the balance or total amount of the debit items and…

Q: Compute the gross income, adjusted gross income, and taxable income in the following situation.…

A: Lets understand the basics. As per USA tax law, contribution to tax deferred retirement plan needs…

Q: i. ii. iii. iv. February 1. Signed a 60-day, 10% note, $5,000.00. R80. April 2. Paid cash for the…

A: General Journal It is the book where the business transactions are recorded at first, to prepare the…

Q: Tiny Tots Daycare Centre provides daycare for children Mondays through Fridays. The business had…

A: As per the honor code, we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…

Q: whereby a customer who purchases three boxes of chocolates at P200 per box in a single transaction…

A: A.4,000,000 B.7,20,000 3x +.75x =60,000 x = 16,000 So .75 x 16,000 = 12,000 ×200

Q: Stockton Company Adjusted Trial Balance December 31 Cash 6,313 Accounts Receivable 2,648 Prepaid…

A: Introduction: Ending retained earnings are shown in the second section of the balance sheet, under…

Q: Which pair of accounts follows the rules of debit and credit in relation to increases and decreases…

A: The different accounts in business have debit and credit balance. The assets and expenses have…

Q: The following is the adjusted trial balance for Stockton Company. Stockton Company Adjusted Trial…

A: Solution We are provided with the following information to calculate total liabilities Accounts…

Q: Record the following transactions for Sheridan Company in the general journal. (Credit account…

A: Notes Receivable - Notes is an instrument requires the issuer to pay the amount agrees to pay on a…

Q: estion 15 The "matching principle" is used in the Income Statement to report dividends & deferred…

A: The accounting is based on various principles such as historical concept, matching principle, going…

Q: On January 1, Mitzu Company pays a lump-sum amount of $2,800,000 for land, Building 1, Building 2,…

A: The acquisition cost of fixed assets is apportioned to different assets on the basis of percentage…

Q: Sadida (Pty) Ltd sells different grades of cheese to the general public as well as to other…

A: EOQ's full form is Economic Order Quantity. EOQ means that the quantity of inventory when purchased…

Q: Using WACC, ignoring taxes, compute the cost of capital of a company with debt ratio of 0.75:1 and…

A: Debt ratio = 0.75 Equity ratio = 1-0.75 = 0.25 Debt cost = 4% Equity cost = 5%

Q: Quatro Company issues bonds dated January 1, 2021, with a par value of $750,000. The bonds' annual…

A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable. The…

Q: Required: 1. Translate Swoboda's financial statements into U.S. dollars in accordance with U.S. GAAP…

A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…

Q: The following transactions for the month of March have been joumalized and posted to the proper…

A: Accounts Receivables: The revenues or money that the firm will receive from its customers who have…

Q: Assuming all other requirements are met, what is the couple's refundable portion of the American…

A: Given in the question: Filing Status = Jointly (Married) Adjusted Gross Income = $47,000 Tax…

Q: An organization manufactures and sells a single product that has a variable cost of $24 per unit and…

A: Introduction: Break-even point is the level of cash necessary to cover the company's entire fixed…

Q: Use the above information to calculate the materials price and efficiency variances. Then break down…

A: Calculation of Variances, from the data provided

Q: Select whether each of the following would appear on the income statement, statement of owner's…

A: The financial statements of the business includes income statement and balance sheet and statement…

Question

answer number 40, 41, and 42 with solutions

40. How much is the remaining liability after
the 6th payment?
Sol'n:
C. P7 976.51
D. P7 683.70
A. P9 500.13
B. P9 421.07
41. What is the purchase price of a bond worth P150 000 with a coupon rate of 7% payable annually for
15 years? Assume that the market rate
is 3%.
A. P96 279.29
B. P125 348.32
Soľn:
C. P208 220.71
D. P221 627.61
42. Which of the two companies gives a better investment: company A with a current market value of
P3.55 and P0.72 dividend or company B
Soln:
with a current market value of P53.20 and
a dividend of P7.32?
A. company A
B. company B
C. both A and B
D. none of them

For 36- 40: Albert borrowed P180 000 to be repaid with equal quarterly payments for 2 2 years with an
interest rate of 9% compounded quarterly. As a collateral, he offered his used car with an
appraised value of P250 000 which the lender accepted. Given the first five rows of the
amortization table of the loan, answer the questions that follow.
Regular Payment Interest Component of Principal Component of
Loan Balance
Period
Payment
Payment
180 000.00
16 251.78
163 748.22
4 050.00
20 301.78
20 301.78
16 617.44
147 130.78
3 684.33
3310.44
16 991.34
130 139.44
20 301.78
2 928.14
17 373.64
112 765.79
20 301.78
1234

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest rate was 4% compounded annually. Halep Inc. will make payments of $8,264.70 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.
Pickles R Us is a pickle farm located in the Northeast. The following transactions take place: A. On November 6, Pickles borrows $820,000 from a bank to cover the initial cost of expansion. Terms of the loan are payment due in six months from November 6, and annual interest rate of 3%. B. On December 12, Pickles borrows an additional $200,000 with payment due in three months from December 12, and an annual interest rate of 10%. C. Pickles pays its accounts in full on March 12, for the December 12 loan, and on May 6 for the November 6 loan. Record the journal entries to recognize the initial borrowings, and the two payments for Pickles.
Sharapovich Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the interest rate was 5% compounded annually. Sharapovich Inc. will make payments of $11,548.74 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.
Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
Calculating and comparing add-on and simple interest loans. Eli Nelson is borrowing 10,000 for five years at 7 percent. Payments, which are made on a monthly basis, are determined using the add-on method. a. How much total interest will Eli pay on the loan if it is held for the full five-year term? b. What are Elis monthly payments? c. How much higher are the monthly payments under the add-on method than under the simple interest method?
On January 1, Kilgore Inc. accepts a 20,000 non-interest-bearing, 5-year note from Dieland Company for equipment. Neither the fair value of the note nor the equipment is determinable. Kilgore had originally purchased the equipment for 18,000, and the equipment has a book value of 14,000 on January 1. Kilgore knows Dielands incremental borrowing rate of 9%. Prepare the journal entry for Kilgore to record the sale of the equipment on January 1.
Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. Round to the nearest cent if required.
Del Hawley, owner of Hawleys Hardware, is negotiating with First City Bank for a 1-year loan of 50,000. First City has offered Hawley the alternatives listed here. Calculate the effective annual interest rate for each alternative. Which alternative has the lowest effective annual interest rate? a. A 12% annual rate on a simple interest loan, with no compensating balance required and interest due at the end of the year b. A 9% annual rate on a simple interest loan, with a 20% compensating balance required and interest due at the end of the year c. An 8.75% annual rate on a discounted loan, with a 15% compensating balance d. Interest figured as 8% of the 50,000 amount, payable at the end of the year, but with the loan amount repayable in monthly installments during the year
Dexter Construction Corporation is building a student condominium complex; it started construction on January 1, Year 1. Dexter borrowed 2.5 million on January 1 specifically for the project by issuing a 10%, 5-vear, 2.5 million note, which is payable on December 31 of Year 3. Dexter also had a 12%, 5-year, 3 million note payable and a 10%, 10-year, 1.8 million note payable outstanding all year. Calculate the weighted average interest rate on the non-construction-specific debt for Year 1. RE10-9 Refer to RE10-8. In Year 1, Dexter incurred costs as follows: Calculate Dexters weighted average accumulated expenditures.