Answered: For equipment upgrades, a business…

For equipment upgrades, a business borrowed $500,000 at 8% compounded semiannually for 5 years. What are the semiannual payments (in dollars)? (Round your answer to the nearest cent.)

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: A new office building was constructed 8 years ago by a consulting engineering firm. At that time…

A: Loan amount is P 5000,000 Interest rate is 10%

Q: Homeland Plus specializes in home goods and accessories. In order for the company to expand its…

A: Calculate the outstanding principal: Particulars Amount ($) Long term loan 680,000…

Q: On January 1, 20X1, Wade Crimbring, Inc., a dealer in used manufacturing equipment, sold a CNC…

A: Here question is multi sub part question well will solve for first three sub part as well. If you…

Q: Uncle Ben InC. arranged a P9,000,000 revolving credit agreement with a group of banks. The firm paid…

A: Revolving Credit: A line of credit that allows the borrower to borrow funds up to a pre-set limit at…

Q: A design studio received a loan of $3,100 at 4.50% compounded semi-annually to purchase a camera. If…

A: Given information : Loan amount = $3,100 Interest rate = 4.5% Time period = 3 years

Q: On January 1, 20X1, Wade Crimbring, Inc., a dealer in used manufacturing equipment, sold a CNC…

A: Notes receivable are usually a non-current asset which carries a fixed rate of interest and the…

Q: Last year, Lee Industries decided to restructure some of its debt by paying off one of its…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: A small business borrows $53,000 for expansion at 12% compounded monthly. The loan is due in 9…

A: Borrowed amount is $53,000 Interest rate compounded monthly is 12% Time period is loan is 9 years…

Q: ompound intere

A: Loan 1 : Principal Amount ( P1)= Rp. 500 million Compound Interest on P1 (r1)= 10 %p.a. Time period…

Q: The Dell Corporation borrowed $10,000,000 at 7% interest per year, which must be repaid in equal EOY…

A: Present Value of annuity refers to the current value of a series of equal cash flows or payments at…

Q: A firm takes out a $300,000 loan to purchase an asset. It makes yearly payments of $30,000 plus…

A: Before tax cash flow is calculated in real asset property. It is the net income after subtracting…

Q: Libra Ltd borrowed $120 000 from its local bank to finance their operation. Annual payments are…

A: The formula to compute annual payment:

Q: A contractor bought a concrete mixer at P150,000 if paid in cash. The mixer may also be purchased by…

A: The annual payments to be made at the beginning of the year can be calculated with the help of…

Q: Stinson Corporation borrowed $85,000 at 8% compounded quarterly to buy a warehouse. Monthly payments…

A: Here, To Find: Amortization schedule showing last 2 payments =? Total amount paid to settle the…

Q: Smith Corporation borrowed $10 million to finance the construction of a new building. In addition to…

A: The borrowed loan will be shown in the 'Liabilities and owner's equity section of the balance sheet…

Q: General Computers Inc. Purchased a computer server for $72,000. It paid 30.00% of the value as a…

A: Here, To Find: No. of payments required to settle the loan =?

Q: $13,000 was borrowed from two sources, one that charges 20% simple interest and the other that…

A: In the given question the amount is borrowed at two interest rates. As the bifurcation is not known,…

Q: General Computers Inc. purchased a computer server by taking a loan of $33,000 at 3.50% compounded…

A: Amount of loan “L”= $33,000 Rate = 3.5% compounded semi-annually Semi-annual rate “r” = 3.5%/2 =…

Q: Mr. Poseidon Neptune, owner of Underwater Bar Inc., borrowed P350,000 at 11% from a bank to expand…

Q: A factory operator bought a diesel generator set for P10,000 and agreed to pay the dealer uniform…

A: Loan amount = P 10,000, Interest rate = 8%, Time Period = 5 Years

Q: General Computers Inc. purchased a computer server by taking a loan of $36,500 at 3.50% compounded…

A: The loan has been amortized using the interest, the payment made each period must include the…

Q: A small manufacturing company borrowed $1 million and repaid the loan through monthly payments of…

A: Goin in the interest rate on loan - It is the internal rate of return required for the present value…

Q: Frank's Machine Shop purchased a computer to use in tuning encines. To finance the purchase, the…

A: The loan borrowed from a lender can be repaid in regular equal payments. These regular payments…

Q: Falco Inc. financed the purchase of a machine with a loan at 3.50% compounded semi-annually. This…

A: Present value of annuity Annuity is a series of equal fixed payment, made at equal interval over a…

Q: Homeland Plus specializes in home goods and accessories. In order for the company to expand its…

A: Solution to A Outstanding principal balance on December 31 of the first year that is computed for…

Q: Winter Break Inc. obtained a $600,000 loan for a new building valued as $1,100,000. The loan…

A: Amortization is the process of spreading payments over multiple time periods in business. The term…

Q: A corporation has decided to use borrowed capital to finance a portion of an equipment purchase. The…

A: Loans are the debt obligations of a company that are shown on the liabilities side. These are paid…

Q: Cranes Limited took a loan of $ 450,000 at 4% compounded monthly from its bank to train its…

A: When the loans are repaid in periodic instalments, each periodic instalment have 2 components i.e.…

Q: An employee obtained a loan of P11,000 at the rate of 7% compounded annually in order to build a…

A: An amortisation schedule contains opening balance, payment , interest charged and closing…

Q: On January 1, 20X1, Wade Crimbring, Inc., a dealer in used manufacturing equipment, sold a CNC…

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

Q: Homeland Plus specializes in home goods and accessories. In order for the company to expand its…

A: Interest accrued on december 31 of first year = Principal x rate of interest = $700000*8.70% =…

Q: Sadia Corporation, based in UAE, produces meat and milk products. The company sold old machinery for…

A: Sadia Corporation, based in UAE, invest 50,000 UAE dirham in term deposit to earn certain amount of…

Q: Homeland Plus specializes in home goods and accessories. In order for the company to expand its…

A: A)Determination of outstanding principal balance on December 31 Loan amount = 730,000 EMI = 90,000…

Q: General Computers Inc. purchased a computer server by taking a loan of $32,500 at 3.75% compounded…

A: Here, Loan Amount is $32,500 Semi Annual Payment is $2,300 Interest Rate is 3.75% Compounding Period…

Q: Lukas Center acquired a new Laser Machine worth ₱580,000.00. The center plans to pay 35% advance…

A: Price of the Laser Machine= ₱580,000.00 35% is advance payment Duration of the loan= 7 years…

Q: A start-up company that makes robotic hardware for CIM (computer integrated manufacturing) systems…

A: The computation of interest rate is done below:

Q: General Computers Inc. purchased a computer server by taking a loan of $35,000 at 4.50% compounded…

A: Amortization table is as follows-

Q: Sandhill Productions borrowed some money from the California Finance Company at a rate of 15.30…

A: Installment loans are personal or commercial loans that borrowers must repay with regularly…

Q: On January 1, a company purchases equipment with a $5,000 down payment and $5,000 due on January 1…

A: Down payment on January 1 = $ 5000 Interest rate = 8 % Due of next 5 years of each year $ 5000.…

Q: Apple has purchased land for $500,000 for their new factory. They make a down payment of $100,000,…

A: Many Thanks for the Question. Bartleby's Guideline “Since you have posted a question with multiple…

Q: Braddy Machinery sold some equipment for $8,500 and established a promissory note requiring 6.50%…

A: Frist we need to calculate maturity value of promissory note by using this formula Maturity value…

Q: Spectrum borrowed $4 million for new fiber optic cable and repaid the loan in amounts of $400,000 in…

A: Data given: Description Type Amount ($) Loan Cash inflow 4000000 Year 1 Cash outflow -400000…

Q: A company vehicle is being purchased for $55,000 and the business will put $5,000 down. If the…

A: Loan is contract between lender & borrower where lender provide funds to borrower for definite…

Q: Block Associates borrowed $100,000. The company plans to put aside money to repay the loan after 20…

A: A loan refers to a sum of the amount that is being borrowed by a borrower who is in need of funds…

Question

For equipment upgrades, a business borrowed $500,000 at 8% compounded semiannually for 5 years. What are the semiannual payments (in dollars)? (Round your answer to the nearest cent.)

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

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

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.
Using the information provided, what transaction represents the best application of the present value of an annuity due of $1? A. Falcon Products leases an office building for 8 years with annual lease payments of $100,000 to be made at the beginning of each year. B. Compass, Inc., signs a note of $32,000, which requires the company to pay back the principal plus interest in four years. C. Bahwat Company plans to deposit a lump sum of $100.000 for the construction of a solar farm In 4 years. D. NYC Industries leases a car for 4 yearly annual lease payments of $12,000, where payments are made at the end of each year.
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
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.
Electro Corporation bought a new machine and agreed to pay for it in equal annual installments of 5,000 at the end of each of the next 5 years. Assume a prevailing interest rate of 15%. The present value of an ordinary annuity of 1 at 15% for 5 periods is 3.35. The future amount of an ordinary annuity of 1 at 15% for 5 periods is 6.74. The present value of 1 at 15% for 5 periods is 0.5. How much should Electro record as the cost of the machine? a. 12,500 b. 16,750 c. 25,000 d. 33,700
Homeland Plus specializes in home goods and accessories. In order for the company to expand its business, the company takes out a long-term loan in the amount of $650,000. Assume that any loans are created on January 1. The terms of the loan include a periodic payment plan, where interest payments are accumulated each year but are only computed against the outstanding principal balance during that current period. The annual interest rate is 8.5%. Each year on December 31, the company pays down the principal balance by $80,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. A. Determine the outstanding principal balance on December 31 of the first year that is computed for interest. B. Compute the interest accrued on December 31 of the first year. C. Make a journal entry to record interest accumulated during the first year, but not paid as of December 31 of that first year.
Grummet Company is acquiring a new wood lathe with a cash purchase price of $80,000. The Wood Master Industries (the manufacturer) has agreed to accept $23,500 at the end of each of the next 4 years. Based on this deal, how much interest will Grummet pay over the life of the loan? A. $94,000 B. $80,000 C. $23,500 D. $14,000
McMasters Inc. specializes in BBQ accessories. In order for the company to expand its business, they take out a long-term loan in the amount of $800,000. Assume that any loans are created on January 1. The terms of the loan include a periodic payment plan, where interest payments are accumulated each year but are only computed against the outstanding principal balance during that current period. The annual interest rate is 9%. Each year on December 31, the company pays down the principal balance by $50,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. A. Determine the outstanding principal balance on December 31 of the first year that is computed for interest. B. Compute the interest accrued on December 31 of the first year. C. Make a journal entry to record interest accumulated during the first year, but not paid as of December 31 of that first year.
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.
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?
Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at the end of the month for 12 months. The interest rate is 12% annually. If the monthly payments are $888.49, what is the journal entry to record the cash received on Jan. 1 and the first payment made on Jan. 31?
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.