An eight-year note for $4000 issued on November 1, 2016, with interest at 6.2% compounded quarterly is discounted on November 1, 2018, at 0.6% compounded monthly. What are the proceeds of the note? The proceeds of the note are $-----

An eight-year note for $4000 issued on November 1, 2016, with interest at 6.2% compounded quarterly is discounted on November 1, 2018, at 0.6% compounded monthly. What are the proceeds of the note? The proceeds of the note are $-----

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 11E

See similar textbooks

Related questions

Q: Anne can type 55 words in 1 1/3 minutes. How long will it take her to type 100 words?

A: Here, Total words typed = 55 words Time taken = 1 minute and 20 seconds (1/3*60) To Find: Time taken…

Q: QUESTION 2 An investor invests $40,000 today, in exchange for continuous cash flows of $15,000 per…

A: 1. Payback Period is the length of time required to recover the cost of Investment. Discounted…

Q: would you buy these bond in 2011?

A: Bond Price: It is estimated by discounting the par value and the expected future coupon payments by…

Q: An item listed for 4,000 has been given trade discounts of 30%, 20%, and 10% by the manufacturer. 1.…

A: Solution:- Trade discount means the amount of discount on the list price of a commodity.

Q: What is Lands End's WACC?

A: WACC (discount rate) refers to the joint cost of company's capital from all the sources of the…

Q: You are considering an investment that will pay you $2,500 in one year, $5,000 in two years and…

A: Present Value refers to the discounted value of a single cash flow or multiple cash flows today…

Q: PLEASE SKIP IF YOU ALREADY ANSWERED. I WILL UPVOTE

A: The question is related to Ratio Analysis. 1. Current Ratio is calculated by dividing Current Assets…

Q: what is the payback in this investment, assuming that the savings accrue over the whole year?

A: Payback period refers to the period within which the sum invested by the company in a project will…

Q: Bank ZLX is marketing their new fund by noting that a fixed $320 monthly deposit in their fund…

A: Future value of annuity Annuity is a series of equal fixed payment at equal interval over the…

Q: The firm is not required to make a best execution determination only if it has directed that the…

A: NYSE stands for Newyork stock exchange and refers to the largest stock exchange for all the…

Q: Arnold Inc. is considering a proposal to manufacture high-end protein bars used as food supplements…

A: Given, The cost of equipment is $1.3 million Tax rate is 30%

Q: If you invest $2,000 today, withdraw $1,000 in 3 years, deposit $3,000 in 5 years, deposit $1,500 in…

A: Given, The amount invested today is $2000 The rate of interest is 7%

Q: You deposit $4000 in an account earning 7% interest compounded continuously. How much will you have…

A: Amount Deposited now(PV) is $4,000 Interest rate is 7% Compounded Continuously Time period is 10…

Q: 1. Plans qualifying for preferential tax treatment must meet minimum participation and vesting…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Red Fire has a Debt/Equity Ratio of .15, and Equity Multiplier of 1.15, a return on sales of 6.4,…

A: Here, Debt Equity Ratio is 0.15 Equity Multiplier is 1.15 Return on Sales is 6.4 Asset Turnover is…

Q: Question content area top Part 1 (Capital asset pricing model) Anita, Inc. is considering the…

A: The Capital Asset Pricing Model (CAPM) refers to the model which tells us how the financial markets…

Q: At age 25 someone sets up an ira with an Apr of 5%. At the end of each month he deposits $35 in the…

A: Starting age 25 Retirement age 65 Total number of years in between = 65-25 = 40 years APR is 5%…

Q: nd yo What annual rate of return did you earn of your investment?

A: Annual Rate of Return: It represents the annual rate made on investment or charged annually on a…

Q: Warren bought a bicycle for $2500, plus 13% HST. He arranged to make a payment to the store at the…

A: Loans are paid by monthly payment that carry the payment of interest and also payment for the…

Q: You are buying your first car and need to bor- row $16,000 over 5 years. If interest is 6%, Adham…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: What determines a country’s net international investment position

A: The Net International Investment Position is basically the quantity after casting off the outside…

Q: Yes, since it increases EPS.

A: Earning per share refers to the amount of money that a company makes for the payment of each share…

Q: QUESTION 6 If I have a simple discount note for 75 days (ordinary interest), a discount of $150, and…

A: The rate of Discount is calculated with the help of following formula Rate of Discount = Discount…

Q: Caruso Hardware is adding a new product line that will require an investment of $1,500,000. Managers…

A: The payback period is period within which initial investments will be recovered very company through…

Q: uclear research laboratory that is contemplating leasing a diagnostic scanner (leasing is a very…

A: Applying capital budgeting concepts will help you decide whether leasing an item is a better choice…

Q: Taylor Swift owns 2,000 shares of QRS Moving Company. QRS pays a yearly dividend of $1.50 per share.…

A: Dividend per share is the amount which is declare by the company to its shareholder, it is…

Q: What is the average annualized forward premium/discount for the JPY if you use the 2M forward…

A: Working Note #1 Calculation of mid spot rate: Mid spot rate= 121.112 + 121.2332=242.345 /2 =…

Q: Machine X Machine Y First Cost, S 20,000 14,000 Year 1 AOC, S Year 2 AOC, S 5,000 Year 3 AOC, $…

A: In this problem we need to find present value of machine and hence find annual equivalent worth of…

Q: Markov Manufacturing recently spent $15 million to purchase some equipment used in the manufacture…

A: "Hi, Thanks for the Question. Since you asked multiple sub parts question, we will answer first…

Q: exchange rate regime,

A: The exchange rate refers to the price of the money of a country and relates to the value of…

Q: What is a capital budgeting technique that generates decision rules and associated metrics for…

A: The capital budgeting technique help to evaluate the acceptibility and rejection of a particular…

Q: Effective crisis management requires a strong bank resolution framework. What are the pros and cons…

A: A strong bank resolution framework will provide banks with a prudential framework which will make…

Q: Compute the Profitability Index (PI) for each project? Project A Project B Profitability…

A: Profitability index is an important capital budgeting tool. We use the tool of profitability index…

Q: What are the projected sales for the last year before the sale?

A: Future Value: It represents the future worth of the present amount of cash flow. It is calculated…

Q: Net Operating Incom Earnings Before Tax Net Income/Earnings

A: The operating income made from continuous activities is reported as operating income which is…

Q: Assume that the DPI of a 10-year fund at the end of its 4th year is 1.1x and that, by that time,…

A: Two and twenty (or "2 and 20") is a fee structure that is widespread in hedge funds, as well as…

Q: implicity it is nterest-only loan. Without using mortgages, the equity investment return rate is…

A: Rate of return is the profit generated on the investment in the property but there is payment of…

Q: t amount must be deposited in etuity today earning 8% compo ally if the first monthly paymer ade 6…

A: Perpetuity annuity means that it will continue forever. Annuity due means payments are at the…

Q: A Project has a cost of $65,000 and it's expected cash inflows are $12,000 per year for 9 years and…

A: MIRR- Formula to be used: MIRR = Terminal Cash inflowsPV of cash outflows1n-1 Data given: Cash…

Q: (Security market line) Your father just learned from his financial advisor that his retirement…

A: Beta: Stock's volatility in respect of over all market is measured by beta of an investment…

Q: Projected Operating Assets Berman & Jaccor Corporation's current sales and partial balance sheet…

A: Operating Assets are those assets which are used in day to day operations of business. The…

Q: Shortening the cash conversion cycle always enhances the shareholder value

A: The cash conversion cycle is simply a statistic that assesses how long it takes a firm to convert…

Q: A particular security's default risk premium is 3 percent. For all securities, the inflation risk…

A: Rate of return on security is the sum of all risk premiums added together to get overall required…

Q: Potter Industries Inc. has warrants outstanding that permit its holders to purchase 1 share of stock…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: ILLUSTRATE THE VARIOUS COST CLASSIFICATIONS. (PLEASE INCLUDE PHOTOS OR TEXT FOR THE EXPLANATION)…

A: Cost - Cost is that Value of any business / product which was directly or indirectly influenced with…

Q: Last year, Industrial Industries had Operating Cash Flow of -55,000. It had Net Capital Spending of…

A: Free cash flow is cash generated from business. It is calculated as follows Free cash flow = Cash…

Q: ssume that three years ago, you purchased a 10-year corporate bond that pays 8.0 perce urchase price…

A: The value of bond is the present value of coupon payment and present value of par value of bond…

Q: DIS How much did the preferred shareholders receive in 20112

A: Preferred Stock Holders: The holders of the preferred stock have part ownership in a business and…

Q: oil company in a town of a certain Province is going to upgrade its processing facilities the…

A: The payback period is the period required to the initial amount of investment. Annual worth method…

Q: 8. a. What is the annual interest amount for a $2,000 bond that pays 7.5 percent interests? b.…

A: The annual interest is calculated with the help of following formula Annual Interest = Face Value…

Question

An eight-year note for $4900 issued on November 1, 2016, with interest at 6.2% compounded quarterly is discounted on November 1, 2018, at 6.0% compounded monthly. What are the proceeds of the note?
The proceeds of the note are t
(Round to the nearest cent as needed Round all intermediate values to six decimal places as needed)

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

Given,

VIEW

Calculation is as follow:

VIEW

Answer

VIEW

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

Lime Co. incurs a $4,000 note with equal principal installment payments due for the next eight years. What is the amount of the current portion of the noncurrent note payable due in the second year? A. $800 B. $1,000 C. $500 D. nothing, since this is a noncurrent note payable
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.)
Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?
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
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?
Non-Interest-Bearing Note Payable: Present Value On January 1, 2019, Northern Manufacturing Company bought a piece of equipment by signing a non-interest-bearing 80,000, 1-year note. The face value of the note includes the price of the equipment and the interest. The effective interest rate is an annual rate of 16%, and the note is to be paid in four 20,000 quarterly installments on March 31, June 30, September 30, and December 31. The price of the equipment is the present value of the four payments discounted at the effective interest rate. Required: Prepare all journal entries to record the preceding information. Present value techniques should be used. If Northerns financial statements were issued on June 30, 2019, what amount would the company report as notes payable?
Entries for installment note transactions On January 1, 20Y2, Hebron Company issued a 175,000, five-year, 8% installment note to Ventsam Bank. The note requires annual payments of 43,830, beginning on December 31, 20Y2. Journalize the entries to record the following:
On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9% U.S. Treasury notes for 194,000. The notes mature July 1, 2020, and pay interest semiannually on January 1 and July 1. The notes were sold on December 1, 2019, for 199,000. Aldrich normally uses straight-line amortization on all of its notes. In its income statement for the year ended December 31, 2019, what amount should Aldrich report as a gain on the sale of the available-for-sale security? a. 2,500 b. 3,500 c. 5,000 d. 6,000
Discounting of Notes Payable On October 30, 2019, Sanchez Company acquired a piece of machinery and signed a 12-month note for 24,000. The lace value of the note includes the price of the machinery and interest. The note is to be paid in four 6,000 quarterly installments. The value of the machinery is the present value of the four quarterly payments discounted at an annual interest rate of 16%. Required: 1. Prepare all the journal entries required to record the preceding information including the year-end adjusting entry and any payments. Present value techniques should be used. 2. Show how the preceding items would be reported on the December 31, 2019, balance sheet.
Spath Company borrows 75,000 by issuing a 4-year, noninterest-bearing note to a customer on January 1, 2019. In addition, Spath agrees to sell inventory to the customer at reduced prices over a 5-year period. Spaths incremental borrowing rate is 12%. The customer agrees to purchase an equal amount of inventory each year over the 5-year period so that a straight-line method of revenue recognition is appropriate. Required: Prepare the journal entries on Spaths books for 2019 and 2020. (Round answers to 2 decimal places.)
Non-Interest-Bearing Notes Payable On November 16, 2019, Clear Glass Company borrowed 20,000 from First American Bank by issuing a 90-day, non-interest-bearing note. The bank discounted this note at 12% and remitted the difference to Clear Glass. Required: 1. Prepare the journal entries of Clear Glass to record the preceding information, the related calendar year-end adjusting entry, and payment of the note at maturity. 2. Show how the preceding items Would be reported on the December 31, 2019, balance sheet. 3. Next Level What is Clear Glass Companys effective interest rate?