Calculate the imputed interest rate

Assignment Help Financial Accounting
Reference no: EM132934520

Question - A private enterprise sold some merchandise for $160,000 on January 1, 2020. The customer paid $20,000 in cash and issued a note for the remainder. The principal will be due in 2 years, and a 5% interest is due every December 31st.

The customer's borrowing rate is unknown

Assume that the customer's borrowing rate is unknown and that the merchandise cash price is $150,000 (everything else holds true). Calculate the imputed interest rate and the interest revenue to be recorded on December 31, 2020 under IFRS.

How do compute the borrowing rate if it is interest bearing note?

Reference no: EM132934520

Questions Cloud

Maintaining healthy blood sugar levels : Explain the role that exercise plays in maintaining healthy blood sugar levels. (short and simple answer)
Amino acid sequence of the protein : Explain why one of the mutations on page 12.9 did not result in any change in the amino acid sequence of the protein.
Examine personality theories from the cognitive theoretical : Analyze Mrs. C's symptoms, including cultural considerations, from the perspective of a key idea from a theorist that you identified from the cognitive
Name the three types of muscle tissue : Name the three types of muscle tissue and answer the following questions about each:
Calculate the imputed interest rate : Calculate the imputed interest rate and the interest revenue to be recorded on December 31, 2020 under IFRS
What is percentage in other countries : United States, there is a rate of childhood obesity of roughly around 15%. But what is this percentage in other countries?
Discuss how perception of counseling has changed : Discuss how your perception of counseling has changed (if at all). Discuss how you imagine counseling fitting into your future as a professional.
What would you do to better off your operation : As a manager of a multi billion company earning an average annual net income of 500 Million. What would you do to better off your operation
What specific multicultural counseling competencies : What specific Multicultural counseling competencies will facilitate additional trust between Riza and Steve? Discuss the materials that you read in chapter.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare cost of production report-using average cost method

AM Coffee Company roasts and packs coffee beans. The process begins in the Roasting Department. From the Roasting Department, the coffee beans are transferred to the Packing Department. Prepare a cost of production report, using the average cost meth..

  Stockholders equity accounts

Blumenthal Corporation reported the stockholders equity accounts shown here with dollar amounts in millions except per-share amounts

  Estimate value per share at the end

If the appropriate equity cost of capital for Procter and Gamble is 8.7% per? year, use dividend-discount model to estimate its value per share at end of 2018.

  Find how much do expect to be in retirement account

You expect a monthly return of 1% and are 45 years from your expected retirement date. how much do you expect to be in your retirement account

  Calculate the NPV and IRR of the gates

Aside from the purchase price, the gates will require a working capital infusion at purchase of $200,000. Calculate the NPV and IRR of the gates

  Find and solve inventory value of the units unsold in hand

Find and Calculate the inventory value of the units unsold in the hands of the consignee at December 31, 2020. On August 15, 2020, Japan Ideas consigned 750

  What is the expected postretirement benefit obligation

What is the expected postretirement benefit obligation at the beginning of 2021? (Round final answer to the nearest whole dollars.)

  How much does need to save every year

Assuming the interest rate is at 12 percent. How much does he need to save every year for the next 25 years for him to achieve his goals.

  Itemized deductions exceeded the standard deduction

In 2016, Denise had $10,380 in taxes she could deduct: $6,700 withholding of state income tax $2,700 real estate taxes $980 property taxes Last year (2015), Denise her itemized deductions exceeded the standard deduction by $500. What is the total for..

  Use a letter to mark each item in the following list

Learning which items belong in each cash flow statement category is an important first step in understanding their meaning. Use a letter to mark each item in the following list as a cash flow from Operating, Investing, or Financing activities. Put pa..

  Determine the gross pay for the week

An employee earns $32 per hour and 1.75 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 50 hours during the week, and that the gross pay prior to the current week totaled $46,400. Determine the gross pay ..

  Taxable income includes of dividends

Taxable income includes $80,000 of dividends from a 10%-owned domestic corporation. Water paid fines and penalties of $6,000 that were not deducted in computing taxable income.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd