Note receivable from sale of division Note receivable from officer 1. $1,500,000 Transactions during 2020 and other information relating to Waterway's long-term receivables were as follows. 2 405,200 The $1,500,000 note receivable is dated May 1, 2019, bears interest at 9%, and represents the balance of the consideration received from the sale of Waterway's electronics division to New York Company. Principal payments of $500,000 plus appropriate interest are due on May 1, 2020, 2021, and 2022. The first principal and interest payment was made on May 1,2020. Collection of the note installments is reasonably assured. The $405,200 note receivable is dated December 31, 2019, bears interest at 8%, and is due on December 31, 2022. The note is due from Sean May, president of Waterway Inc. and is collateralized by 10.130 shares of Waterway's common stock. Interest is payable annually on December 31, and all interest payments were paid on their due dates through December 31, 2020. The quoted market price of Waterway's common stock was $46 per share on December 31, 2020.
Note receivable from sale of division Note receivable from officer 1. $1,500,000 Transactions during 2020 and other information relating to Waterway's long-term receivables were as follows. 2 405,200 The $1,500,000 note receivable is dated May 1, 2019, bears interest at 9%, and represents the balance of the consideration received from the sale of Waterway's electronics division to New York Company. Principal payments of $500,000 plus appropriate interest are due on May 1, 2020, 2021, and 2022. The first principal and interest payment was made on May 1,2020. Collection of the note installments is reasonably assured. The $405,200 note receivable is dated December 31, 2019, bears interest at 8%, and is due on December 31, 2022. The note is due from Sean May, president of Waterway Inc. and is collateralized by 10.130 shares of Waterway's common stock. Interest is payable annually on December 31, and all interest payments were paid on their due dates through December 31, 2020. The quoted market price of Waterway's common stock was $46 per share on December 31, 2020.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 30E
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