INT.ACCOUNTING-CONNECT+PROCTORIO PLUS
10th Edition
ISBN: 9781266373862
Author: SPICELAND
Publisher: INTER MCG
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Chapter 5, Problem 5.11E
Deferred annuities
• LO6–7
Required:
Calculate the amount at which Lincoln should record the note payable and corresponding purchases on September 30, 2018, assuming that an interest rate of 10% properly reflects the time value of money in this situation.
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Students have asked these similar questions
Exercise 5-20 (Algo) Deferred annuities; solving for annuity amount [LO5-8, 5-9]
On April 1, 2024, Antonio purchased appliances from the Acme Appliance Company for $500. In order to increase sales,
Acme allows customers to pay in installments and will defer any payments for six months. Antonio will make 18 equal
monthly payments, beginning October 1, 2024. The annual interest rate implicit in this agreement is 24%.
Required:
Calculate the monthly payment necessary for Antonio to pay for his purchases.
Note: Use tables, Excel, or a financial calculator. Do not round intermediate calculations. Round your final answers to
nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
Monthly payment
4
Problem 12
On December 31, 2019, Magtuba Company finished consultation services and accepted in exchange a promissory note with a face value of P300,000, a due date of December 31, 2022, and a stated rate of 5%, with interest receivable at the end of each year. The fair value of the services is not readily determinable and the note is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 10%.
The service revenue to be recognized for the year ended December 31, 2019 is
The carrying amount of the note receivable as of December 31, 2020 is
Chapter 5 Solutions
INT.ACCOUNTING-CONNECT+PROCTORIO PLUS
Ch. 5 - Prob. 5.1QCh. 5 - Explain compound interest.Ch. 5 - Prob. 5.3QCh. 5 - Prob. 5.4QCh. 5 - Prob. 5.5QCh. 5 - Prob. 5.6QCh. 5 - What is an annuity?Ch. 5 - Explain the difference between an ordinary annuity...Ch. 5 - Prob. 5.9QCh. 5 - Prepare a time diagram for the present value of a...
Ch. 5 - Prepare a time diagram for the present value of a...Ch. 5 - What is a deferred annuity?Ch. 5 - Assume that you borrowed 500 from a friend and...Ch. 5 - Compute the required annual payment in Question...Ch. 5 - Explain how the time value of money concept is...Ch. 5 - Prob. 5.1BECh. 5 - Prob. 5.2BECh. 5 - Prob. 5.3BECh. 5 - Present value; single amount LO63 John has an...Ch. 5 - Present value; solving for unknown; single amount ...Ch. 5 - Future value; ordinary annuity LO66 Leslie...Ch. 5 - Future value; annuity due LO66 Refer to the...Ch. 5 - Prob. 5.8BECh. 5 - Prob. 5.9BECh. 5 - Prob. 5.10BECh. 5 - Solve for unknown; annuity LO68 Kingsley Toyota...Ch. 5 - Price of a bond LO69 On December 31, 2018,...Ch. 5 - Lease payment LO69 On September 30, 2018,...Ch. 5 - Prob. 5.1ECh. 5 - Future value; single amounts LO62 Determine the...Ch. 5 - Prob. 5.3ECh. 5 - Prob. 5.5ECh. 5 - Prob. 5.6ECh. 5 - Prob. 5.7ECh. 5 - Prob. 5.10ECh. 5 - Deferred annuities LO67 Required: Calculate the...Ch. 5 - Solving for unknowns; annuities LO68 For each of...Ch. 5 - Solving for unknown annuity amount LO68 Required:...Ch. 5 - Prob. 5.15ECh. 5 - Price of a bond LO69 On September 30, 2018, the...Ch. 5 - Price of a bond; interest expense LO69 On June...Ch. 5 - Prob. 5.18ECh. 5 - Prob. 5.19ECh. 5 - Lease payments LO69 On June 30, 2018,...Ch. 5 - Lease payments; solve for unknown interest rate ...Ch. 5 - Analysis of alternatives LO63, LO67 Esquire...Ch. 5 - Analysis of alternatives LO63, LO67 Harding...Ch. 5 - Investment analysis LO63, LO67 John Wiggins is...Ch. 5 - Prob. 5.5PCh. 5 - Prob. 5.6PCh. 5 - Deferred annuities LO67 On January 1, 2018, the...Ch. 5 - Prob. 5.8PCh. 5 - Noninterest-bearing note; annuity and lump-sum...Ch. 5 - Prob. 5.10PCh. 5 - Solving for unknown lease payment LO68, LO69...Ch. 5 - Solving for unknown lease payment; compounding...Ch. 5 - Lease v s. buy alternatives LO63, LO67, LO69...Ch. 5 - Prob. 5.14PCh. 5 - Prob. 5.15PCh. 5 - Prob. 5.1DMPCh. 5 - Prob. 5.2DMPCh. 5 - Prob. 5.3DMPCh. 5 - Prob. 5.4DMPCh. 5 - Judgment Case 65 Replacement decision LO63, LO67...Ch. 5 - Prob. 5.6DMPCh. 5 - Prob. 5.7DMP
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- Plz asaparrow_forwardM 13arrow_forwardPrim erences Exercise 5-20 (Algo) Deferred annuities; solving for annuity amount (LO5-8,5-9] On April 1, 2024, Antonio purchased appliances from the Acme Appliance Company for $1100. In order to increase sales, Acme allows customers to pay in installments and will defer any payments for six months. Antonio will make 18 equal monthly payments, beginning October 1, 2024. The annual interest rate implicit in this agreement is 24% Required: Calculate the monthly payment necessary for Antonio to pay for his purchases Note: Use tables, Excel, or a financial calculator. Do not round intermediate calculations. Round your final answers to nearest whole dollar amount. (EY of 51. PV of 51, EVA of SJ. EVA of $1. EVAD. of $1 and PVAD of $1) Monthly payment S A 51arrow_forward
- digitalarrow_forwardDetermine the value of the single payment on November 8, 2023 that is economically equivalent to a payment stream consisting of: ● a payment of $10,670 on April 3, 2023, . a payment of $9,970 on September 6, 2023, ● a payment of $8,250 on January 31, 2024. Assume a simple interest rate of 3.1%. Apr. 3, 2023 $10,670 FV2 = $ FV1 = $ PV3 = $ Start by calculating the following values on the time diagram: Sep. 6, 2023 Total = $9,970 The single payment on November 8, 2023 is: $ Nov. 8, 2023 + FV2 FV1 + PV3 Total Jan. 31, 2024 $8,250arrow_forwardQ6arrow_forward
- Testbank Multiple Choice Question 94 Sheridan borrowed $694000 on October 1, 2020 and is required to pay $718000 on March 1, 2021. What amount is the note payable recorded at on October 1, 2020 and how much interest is recognized from October 1 to December 31, 2020? O $ 694000 and $0. O $718000 and $ 14400. O $ 6940000 and $ 24000. O $718000 and $0.arrow_forwardWhat is the carrying value of the loans receivable as of December 31, 2022 after impairement recognition A. 8,123,0231 B. 8,000,000 C . 8,211,570 D, 9,211,570arrow_forwardPlease answerarrow_forward
- help me answer this thank youarrow_forwardHow much shall be reported as interest income for 2022? a. 90,000 b. 96,836 c. 120,000 d. 129,115arrow_forward43 _________________ is a written promise to pay a specified amount on a definite future date within one year or the company’s operating cycle, whichever is longer. a. Short-term note payable b. Short- term notes receivables c. Long-term note receivables d. Long-term notes payablearrow_forward
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