PAR lends $10,000 to SUB (80% owned by PAR) on 7/1/2015. SUB signs a one-year, 8% Note, interest payable on the due date. What is the interest receivable that is reported in the 2015 consolidated balance sheet?
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PAR lends $10,000 to SUB (80% owned by PAR) on 7/1/2015. SUB signs a one-year, 8% Note, interest payable on the due date. What is the interest receivable that is reported in the 2015 consolidated
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- Greener Pastures Corporation borrowed $1,000,000 on November 1, 2015. The note carried a9 percent interest rate with the principal and interest payable on June 1, 2016. Show the accountingequation effects and prepare the journal entries for ( a ) the note issued on November 1 and ( b ) theinterest accrual on December 31.KMC Inc. provided a loan to Jim Ltd on January 1st, 2016 and received in exchange a 4-year, $120,000 note bearing interest at 8% to be paid annually on December 31. The market rate of interest for financial instruments of similar risk is 2%. KMC Inc. financial year ends December 31 and the company uses the effective interest method to amortize discount and recognize interest revenue. Required: Round to nearest whole number d) Prepare the journal entry in KMC’s books to record the issuance of the note on January 1, 2016. e) Prepare KMC’s 4-year Note Amortization schedule. f) Prepare the journal entry KMC records on December 31, 2017.Company A received a 5-year Non-interest bearing note payable to Company A on December 31, 2024, P 5,000,000. The market interest rate for this type of transaction is 12%. What is the amount that shall be reported on the statement of financial position on December 31, 2022, as Notes Receivable (net of discount or premium)?
- On December 31, 2011 , Bunny Co. received a 10% note with face amount of P1,500,000. Both principal and compounded interests are due on December 31, 2014. How much interest receivable is reported on the December 31, 2012 statement of financial position?PAR lends $10,000 to SUB (80% owned by PAR) on 7/1/2015. SUB signs a one-year, 8% Note, interest payable on the due date. The interest receivable that is reported in the 2015 consolidated balance sheet is a. 10,000 b. 800 c. 400 d. 0i need help for homework PAR lends $10,000 to SUB (80% owned by PAR) on 7/1/2015. SUB signs a one-year, 8% Note, interest payable on the due date. The interest receivable that is reported in the 2015 consolidated balance sheet is: a. 10,000 b. 800 c. 400 d. 0
- Included in Allen Corp.'s balance sheet at June 30, 2015 is a 10%, $3,000,000 note payable. The note is dated October 1, 2013 and is payable in three equal annual payments of $1,500,000 plus interest. The first interest and principal payment was made on October 1, 2014. In Allen's June 30, 2015 balance sheet, what amount should be reported as accrued interest payable for this note? A. $75,000. B. $112,500. C. $337,500. D. $225,000.KMC Inc. provided a loan to Jim Ltd on January 1st, 2016 and received in exchange a 4-year, $120,000 note bearing interest at 8% to be paid annually on December 31. The market rate of interest for financial instruments of similar risk is 2%. KMC Inc. financial year ends December 31 and the company uses the effective interest method to amortize discount and recognize interest revenue. Required: Round to the nearest whole number a) what is the face value of the note? b) Calculate the present value of the note. c) Is this note issued at par, discount or premium? d) Prepare the journal entry in KMC’s books to record the issuance of the note on January 1, 2016. e) Prepare KMC’s 4-year Note Amortization schedule. f) Prepare the journal entry KMC records on December 31, 2017."On 1 September 2014, Select Company borrowed P600,000 from a bank and signed a 12%, six-month note payable, with interest on the note due at maturity. The total amount of the current liability (including interest payable) for this loan that appears in Select Company's statement of financial position at 31 December 2014 is: " O A. P600,000. O B, P636,000. OC P672,000. O D. P624,000.
- Leaf Co. has a $90,000, 9%, 10-year note issued July 31 of the current year. The debt agreement requires that Leaf maintain a total liabilities-to-equity ratio of 1.0 or less, or else the lender is able to call the debt immediately. At the end of the current year, Leaf's year-end financial statements indicate that it has a total liabilities-to-equity ratio of 1.05. a. Show how the debt is classified on the balance sheet at the current year-end. b. Assume that Leaf obtained a 6-month waiver of the debt covenant beginning this year-end from the lender. The waiver letter was dated on February 1 of the following year (before financial statements were issued). Describe how the debt is classified on the balance sheet at the current year-end. c. How would the answer to part b change (if at all), if a 15-month waiver was obtained? a. Balance Sheet, December 31 ( b. Balance Sheet, December 31 4 c. Balance Sheet, December 31 ¶ 0 0 0Jazz Company lends Sullivan Company $30,000 on August 1, 2019 in exchange of a 9-month, 12% interest note. If Jazz Company accrued interest on its December 31, 2019 year-end, what is the financial statement effect of the collection of the note and interest at its maturity date? Select one: a. BALANCE SHEET INCOME STATEMENT ASSETS = LIABILITIES + STOCKHOLDER'SEQUITY REVENUE - EXPENSE Cash InterestReceivable NotesReceivable Retained Earnings InterestIncome A) +32,700 -1,200 -30,000 +1,500 +1,500 b. BALANCE SHEET INCOME STATEMENT ASSETS = LIABILITIES + STOCKHOLDER'SEQUITY REVENUE - EXPENSE Cash InterestReceivable NotesReceivable Retained Earnings InterestIncome B) -32,700 +1,500 +30,000 -1,200 -1,200 c. BALANCE SHEET INCOME STATEMENT ASSETS = LIABILITIES + STOCKHOLDER'SEQUITY REVENUE - EXPENSE Cash InterestReceivable NotesReceivable Retained Earnings InterestIncome…1. The $1,779,000 note receivable is dated May 1, 2016, bears interest at 8%, and represents the balance of the consideration received from the sale of Ayayai's electronics division to Blossom Company. Principal payments of $593,000 plus appropriate interest are due on May 1, 2017, 2018, and 2019. The first principal and interest payment was made on May 1, 2017. Collection of the note instalments is reasonably assured. 2. The $380,000 note receivable is dated December 31, 2016, bears interest at 7%, and is due on December 31, 2019. The note is due from Marcia Cumby, president of Ayayai Corp., and is secured by 10,000 Ayayai's common shares. Interest is payable annually on December 31, and the interest payment was made on December 31, 2017. The quoted market price of Ayayai's common shares was $40 per share on December 31, 2017. 3. On April 1, 2017, Ayayai's sold a patent to Sunland Company in exchange for a $180,000 non–interest-bearing note due on April 1, 2019. There was no…
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