Bosworth Corporation accepted a 5-year note receivable from Steelman Company on January 1, Year 1. The...

Bosworth Corporation accepted a 5-year note receivable from Steelman Company on January 1, Year 1. The maturity value of the note is $ 760,000. The note has a stated interest rate of 10%. However, the prevailing market interest rate is 12%. The note requires interest payments on June 30 and December 31. What is the present value of this note at inception ANSWER:$704, 063 ( I would like to know how to calculate)

2. Eagle Exporters purchased 80,000 of the 200,000 outstanding shares of Giant Distributors for $3,000,000. Eagle has significant influence over Giant and will account for this investment using the equity method. During the year, Giant declared dividends of $100,000 and reported Net Income of $780,000. What is the balance in the Investment in Giant account at year end? correct answer: $3, 272,000 ( I want to know how to calculate)

3. Cider Jewelers purchased 3,000,000 of the outstanding 10,000,000 shares of Angel & Associates. At the time of the acquisition, the book value of Angel's net assets equals their fair market value. Angel declared and paid dividends of $ 290 000 during the year. Which of the following is the correct journal entry for this transaction?

Solutions

Expert Solution

ekkarill92 answered 10 months ago

Next > < Previous

Related Solutions

Epsilon Ltd. accepted a $600,000 two year note receivable from a customer in connection with a major inventory sale transaction on 1 January 20X5.

Epsilon Ltd. accepted a $600,000 two year note receivable from a customer in connection with a major inventory sale transaction on 1 January 20X5. The note required annual end of year interest payments of 2%, and the principal was due at the end of 20X6. Required:1. Assume that the market interest rate is 7%. Calculate the present value of the note, and prepare a schedule that shows the annual interest using the straight line method of amortization.2. Prepare journal entries...

Selkirk Company obtained a $30,000 note receivable from a customer on January 1, 2018. The note,...

Selkirk Company obtained a $30,000 note receivable from a customer on January 1, 2018. The note, along with interest at 12%, is due on July 1, 2018. On February 28, 2018, Selkirk discounted the note at Unionville Bank. The bank’s discount rate is 14%. Required: Prepare the journal entries required on February 28, 2018, to accrue interest and to record the discounting for Selkirk. Assume that the discounting is accounted for as a sale. (If no entry is required for...

1. On January 1, Panther Corporation received one-year 12% note receivable with a face value of...

1. On January 1, Panther Corporation received one-year 12% note receivable with a face value of P100,000 from one of its customers. On October 1, Panther Corporation discounted the note to Peaceful Bank to meet some of its maturing obligations. The bank’s rate in discounting the note is 14%. How much is the proceeds from discounting of notes receivable? 2. Wednesday Company received from a customer a one-year, P 500,000 note bearing annual interest of 8%. Five months prior to...

Note Receivable Homework On January 1, 2019, The Rusty Moose Corporation sold a building that cost...

Note Receivable Homework On January 1, 2019, The Rusty Moose Corporation sold a building that cost $300,000 and that had accumulated depreciation of $115,000 on the date of sale. The Rusty Moose received as consideration a $325,000 non-interest-bearing note due on January 1, 2023. There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a note of this type on January 1, 2019, was 6%. At what amount...

NA Co. issued note receivable in January, 2017. The terms of the note are a two-year,...

NA Co. issued note receivable in January, 2017. The terms of the note are a two-year, $100,000, 10% interest rate. Assuming the market interest rate is 8% per annum and NA Co. use the effective interest method for an amortization, how much would NA Co. amortize discount (or premium) on the note receivable on the end of 2017? (The present value of $1 for one and two period at 8% is 0.92593 and 0.85734. The present value of $1 for...

On January 1, 2017, Howard Corporation signed a $500,000, 6%, 5-year mortgage note that is payable...

On January 1, 2017, Howard Corporation signed a $500,000, 6%, 5-year mortgage note that is payable in annual installments of $118,698 every January 1. On December 31, 2017, the unpaid principal balance should be reported as A : a $118,698 current liability and a $381,302 long-term liability. B : a $500,000 current liability. C : a $88,698 current liability and a $411,301 long-term liability. D : a $500,000 long-term liability.

Marigold Corporation issued a 5-year, $80,000, zero-interest-bearing note to Brown Company on January 1, 2020, and received cash of $45,394.

Brief Exercise 14-11Marigold Corporation issued a 5-year, $80,000, zero-interest-bearing note to Brown Company on January 1, 2020, and received cash of $45,394. The implicit interest rate is 12%.Prepare Marigold’s journal entries for (a) the January 1 issuance and (b) the December 31 recognition of interest. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is...

On January 1, Year 1, Bryson Company obtained a $71,000, four-year, 11% installment note from Campbell...

On January 1, Year 1, Bryson Company obtained a $71,000, four-year, 11% installment note from Campbell Bank. The note requires annual payments of $22,885, beginning on December 31, Year 1. a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4. Note: Round the computation of the interest expense to the nearest whole dollar. Enter all amounts as positive numbers. In Year 4, round the amount in the Decrease in Notes Payable column either...

On January 1, Year 1, Bryson Company obtained a $39,000, four-year, 10% installment note from Campbell...

On January 1, Year 1, Bryson Company obtained a $39,000, four-year, 10% installment note from Campbell Bank. The note requires annual payments of $12,303, beginning on December 31, Year 1. a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4. Note: Round the computation of the interest expense to the nearest whole dollar. Enter all amounts as positive numbers. In Year 4, round the amount in the Decrease in Notes Payable column either...

On December 31, Year 13, Onyx Corporation accepted an 8%, 10 year, $300,000 note for consulting...

On December 31, Year 13, Onyx Corporation accepted an 8%, 10 year, $300,000 note for consulting services performed at the end of Year 13. Interest on the note will be accrued quarterly, and the note carries an effective rate of 12%. a. What would be the journal entry to record initial acceptance of the note? b. What is the carrying value of the note on April 1st, Year18, assuming 23 interest payments remain to be paid? c. What is the...

Subjects