On December 31, 2025, Concord Company acquired a computer from Plato Corporation by issuing a $570,000.00 zero - interest - bearing note, payable in full on December 31, 2029. Concord Company's credit rating permits it to borrow funds from its several lines of credit at 10%. The computer is expected to have a 5-year life and a $67,000 salvage value.Schedule of Note Discount Amortization
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- Which of the following accounts are used when a short-term note payable with 5% interest is honored (paid)? A. short-term notes payable, cash B. short-term notes payable, cash, interest expense C. interest expense, cash D. short-term notes payable, interest expense, interest payablePart A: Calculate the interest on the following notes: Part B: Determine the maturity dates on the following notes: Check Figure 1. Interest, 66.92Use information from EA10. Compute the interest expense due when Barkers honors the note. Show the journal entry to recognize payment of the short-term note on December 4.
- On January 1, 2021, Surreal Manufacturing issued 540 bonds, each with a face value of $1,000, a stated interest rate of 3 percent paid annually on December 31, and a maturity date of December 31, 2023. On the issue date, the market interest rate was 4 percent, so the total proceeds from the bond issue were $525,017. Surreal uses the simplified effective-interest bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare a bond amortization schedule. 2-5. Prepare the journal entries to record the bond issue, the interest payments on December 31, 2021 and 2022, the interest and face value payment on December 31, 2023 and the bond retirement. Assume the bonds are retired on January 1, 2023, at a price of 102. X Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 5 Prepare the journal entries to record the bond issue, the interest payments on December 31, 2021 and 2022,…If the discounting is secured borrowing, what is included in the journal entry to record the transaction? a. Debit loss on note receivable discounting Ᵽ87,000b. Debit interest expense Ᵽ87,000c. Credit liability for note discounted Ᵽ6,063,000d. Credit interest income Ᵽ63,000II- Discounting of note receivable with recourse A P1,800,000, 6-month, 10% note dated March 1 is received from a customer by an entity and discounted by First Bank on May 1 at 12%. Compute for; Maturity value Discount Net proceeds Term of note Discount period Gain or loss on note receivable discounting
- 60. If the face value of a notes receivable is greater than its present value, which would most likely appear in the journal entry in the amortization? a. Cr. Premium on Notes Receivable b. Dr. Discount on Notes Receivable c. Dr. Premium on Notes Receivable d. Cr. Discount on Notes ReceivableActivity No.6 Notes Receivable DUE DATE The date a note is to be paid is called the DUE DATE or Maturity Date. The period of time between the issuance date and the due date of the short-term note may be stated in either days or months. When the term of the note is stated in days, the due date is the specified number of days after its issuance. Your activity starts here---- Promissory Note A. P5,000 Butuan City, Philippines March 16, 2021 Ninety days AFTER DATE We PROMISE TO PAY TO THE ORDER OF Fuji Enterprises Five Thousand and 00/100 only PESOS PAYABLE AT First National Bank VALUE RECEIVED WITH INTEREST AT 10% NO. 10 DUE J. P. ALINGALAN TREASURER, CALA COMPANY B. P30,000.00 Butuan City, Philippines July 8, 2021 One hundred twenty days AFTER DATE We PROMISE TO PAY TO THE ORDER OF Fuji Enterprises Thirty Thousand and 00/100 only. PESOS PAYABLE AT First National Bank VALUE RECEIVED WITH INTEREST AT 12% 11 DUE W. P. DALUGDOG TREASURER, AMOR COMPANY NO. C. P25,000.00 Butuan City,…Accrued Interest Payable The following is a list of outstanding notes payable as of December 31, 20-- Date of Note Principal 12/1/-- $1,490 11/25/-- 2,690 12/14/-- 3,900 11/19/-- 1,800 Maker B. Jones M. Aguilar T. Plant W. Brand Required: Interest 6% 6 7 00 8 Term 90 days 80 120 180 No. of Days 30 36 18 42 1. Compute the accrued interest at the end of the year. Assume 360 days in a year Round your for $
- On September 30, 2020, Peace Frog International (PFI) (a U.S.-based company) negotiated a two- year, 1,600,000 Chinese yuan loan from a Chinese bank at an interest rate of 4 percent per year. The company makes interest payments annually on September 30 and will repay the principal on September 30, 2022. PFI prepares U.S. dollar financial statements and has a December 31 year- end. Relevant exchange rates are as follows: U.S. Dollar per Chinese Yuan ( CNY) $0.160 Date September 30, 2020 December 31, 2020 September 30, 2021 December 31, 2021 September 30, 2022 0.165 0.180 0.185 0.210 a. Prepare all journal entries related to this foreign currency borrowing. b. Taking the exchange rate effect on the cost of borrowing into consideration, determine the effective interest rate in U.S. dollars on the loan in each of the three years 2020, 2021, and 2022.In credit terms of 3/15, n/45, the "3" represents the Oa. number of days in the discount period Ob. number of days when the entire amount is due Oc. percent of the cash discount )d. full amount of the invoiceIn credit terms of 2/10, n/30 the "2" represents the O A. Number of days in the discount period O B. Full amount of the invoice C. Number of days when the entire amount is due O D. Percent of the cash discount