Determine amount the business has to pay the bank

Assignment Help Accounting Basics
Reference no: EM13534425

The note payable calls for a payment of $868,000 at the maturity date, the bookkeeper thinks that this amount should be recorded as a liability and that the difference between this liability amount and the $800,000 proceeds received by the business should be debited to the prepaid expenses asset account. Do you agree?

Assuming quarterly compounding of the quoted 6 percent annual interest rate, determine the amount the business has to pay the bank at the maturity date of the note one year from now.

Reference no: EM13534425

Questions Cloud

Prepare a revised operating profit report : The business treats the cost of idle capacity as a period cost and prepare a revised operating profit report and summary of manufacturing activity for the business.
Insulin is a peptide hormone that : Insulin is a peptide hormone that:(explanation requiredfor points)
Good does canada have a comparative advantage : For which good does Canada have a comparative advantage?
Glucagon stimulates gluconeogenesis because : Glucagon stimulates gluconeogenesis because:(explanationrequired for points)
Determine amount the business has to pay the bank : Assuming quarterly compounding of the quoted 6 percent annual interest rate, determine the amount the business has to pay the bank at the maturity date of the note one year from now.
Calculate financial leverage gain or loss for the year : Would the companys operating profit have been $3,600,000 lower?
Determine company cost of goods sold expense : During the year, it manufactures 120,000 units and sells 110,000 units. Determine Company cost of goods sold expense for the year and its cost of ending inventory using the FIFO method.
What is the federal funds interest rate : What is the Federal Funds Interest rate?
Rebate strategy to increase sales volume : The impact on operating profit, would the rebate strategy to increase sales volume be a good trade-off for the company?

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