User Account

All Pages

Find what will be the size of new quarterly payments

Assignment Help Accounting Basics
Reference no: EM132728596

Williams Inc. purchased a piece of equipment for $850,000 on May 1, 2019, paying $80,000 in down payment and signing a note for the rest of the amount. Williams Inc. has agreed to make twenty equal quarterly payments for five years beginning August 1, 2019. The interest rate on this loan is 10%.

Problem a. On December 31, 2019, what should be the balance in Williams Inc.'s interest payable related to this note?

Problem b. What is the carrying value of the note on May 1, 2020 after the payment on that day has been made?

Problem c. Assume Williams Inc. refinances the carrying value of the loan on August 1, 2021 after the payment on that date has been made. The new interest rate is 8%. What will be the size of new quarterly payments?

Reference no: EM132728596

Questions Cloud

Who ultimately determines an auditor independence : Who ultimately determines an auditor's independence? Securities and Exchange Commission. /Quality Review Committee. / Board of Accountancy
Minimize total costs : A manager has just received a revised price schedule from a vendor. What order quantity should the manager use in order to minimize total costs?
Forego developing an operational plan : If you are the Executive Director of a small NFP organization and very busy meeting the needs of your clients
Whic is an appropriate procedure in assessing inherent risk : Whic is an appropriate procedure in assessing inherent risk? Review of regulatory requirements specific to the client's business.
Find what will be the size of new quarterly payments : Williams Inc. purchased a piece of equipment for $850,000 on May 1, 2019, paying $80,000, What will be the size of new quarterly payments?
Analyze the internal control weaknesses in the system : Analyze the internal control weaknesses in the system. Model your response according to the six categories of physical control activities specified in COSO
Find the characteristic polynomial of A : Find the characteristic polynomial of A, and use it to find all eigen- values of A or to show that none exist. Explain why your answer makes sense geometrically
What is the probability that the deviation of daily : b. What is the probability that the deviation of daily production from mean being greater than 39,200 gallons?
Will receive a margin call if the maintenance margin : You have tresury bill amounting to 65000. Will you receive a margin call if the maintenance margin by the broker is 45%? Compute forthe critical price!

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.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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