Demonstrate what amount reported as note payable-contest

Assignment Help Accounting Basics
Reference no: EM132726077

Problem 1: Terry Co. offered a contest in which the winner would receive $500,000 payable over twenty years. On December 31, 2019, Jason Company announced the winner of the contest and signed a note payable to the winner for $500,000 payable in $25,000 installments every January 31. On December 31, 2019, Terry Co. purchased an annuity for $209,125 to provide the $475,000 prize remaining after the first $25,000 installment which was paid on January 31, 2020. On December 31, 2019, what amount should be reported as note payable-contest winner, net of current portion?

Reference no: EM132726077

Questions Cloud

Computer incident response team plan : Did the student consider the inputs provided in their earlier submissions? Did the student develop a sound CIRT plan?
Compute non-current portion of note payable as of december : Find the non-current portion of the note payable as of December 31, 20x7. The note is dated April 1, 20x6 and is payable in four equal installments.
Value of the infinite series of cash flows : What is the value of the infinite series of cash flows generated by Harrison's shop in today's dollars? (Round your final answer to the nearest dollar).
Research apple home pod : Research Apple Home Pod. How does it interact with smart home devices?
Demonstrate what amount reported as note payable-contest : Compute what amount should be reported as note payable-contest winner, net of current portion? Jason Company announced the winner of the contest
Systems development life cycle : Examine the activities in the Systems Development Life Cycle (SDLC).
Demonstrate what total amount reported as intangible assets : Merriam Ltd. commenced operations in the current year. Demonstrate What total amount should be reported as intangible assets?
How do tax breaks constitute a missed opportunity : How do tax breaks constitute a missed opportunity?
Virtualization and cloud computing world : Analyze three considerations that the organization's management should be aware of.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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