On December 31, 2020, Pearl Limited acquired a machine from Pronghorn Corporation by issuing a $520,000, non–interest-bearing note that is payable in full on December 31, 2024. The company’s credit rating permits it to borrow funds from its several lines of credit at 10%. The machine is expected to have a five-year life and a $80,000 residual value. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.     Using (1) factor tables, (2) a financial calculator, or (3) Excel function PV, calculate the value of the note and prepare the journal entry for the purchase on December 31, 2020.

Q: , 2021, XYZ. issued a 9% interest bearing note with a face amount of P 30,000,000 for the purchase…

A: Notes are to paid by the annual installments carrying the principal and interest amount.

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Q: cember 31, 2023. After

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Q: On January 1, 2020, Smith Company signed a five-year Note for the acquisition of equipment. Annual…

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Q: On January 1, Whispering Corporation issues a $140,000, 10-year non-interest-bearing note to Camden…

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Q: Teari Company purchased a machine on September 1, 2021. The purchase agreement required Teari to pay…

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A:

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A:

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Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.