User Account

All Pages

How much is the net proceeds from the discounting

Assignment Help Accounting Basics
Reference no: EM132999566

Problem - On June 1, 2020, Kielvj Company discounted a 6-month P1,500,000 customer note at 11% with a bank on a with recourse basis. The note has a nominal rate of 9% and dated May 1, 2020.

Required -

1. How much is the net proceeds from the discounting?

2. Under secured borrowing, how much is the increase (decrease) in liability on June 1, 2020?

3. Under conditional sale, how much is the increase (decrease) in assets on June 1, 2020?

4. Under secured borrowing, how much is the net interest income (expense)?

Reference no: EM132999566

Questions Cloud

What is the electron configuration for a neutral sulfur atom : What is the electron configuration for a neutral sulfur atom
Discuss the effect of this issue on the auditor report : Based on these facts, management concludes that a write down of $500,000. Discuss the effect of this issue on the auditor's report
Record the journal entry when first issuing the bonds : Barrack Ltd issued 100 five-year bonds with a face value of $1,000 and a coupon rate of 8 per cent per annum, Record the journal entry when first issuing bonds
What is the? bond ytm : Question - A firm raises capital by selling ?$20,000 worth of debt with flotation costs equal to 2?% of its par value. What is the? bond YTM
How much is the net proceeds from the discounting : Kielvj Company discounted a 6-month P1,500,000 customer note at 11% with a bank on a with recourse basis. How much is the net proceeds from the discounting
What is the present value of an income stream : What is the present value of an income stream which provides * 2,000 a year for the first five years and 3,000 a year forever thereafter, if the discount rate i
What is the effective annual cost of borrowing : A company has a collection period of 31 days and factors all receivables immediately at a discount of 2.1%. What is the effective annual cost of borrowing?
What is a bullish vertical spread : The next two questions are based on the following data for a fictitiously named company, OOPS. Current stock price S is $17.5. Time to maturity T is six months.
What is weighted average cost of capital : The financial manager of Alexandria Gazette, Inc., a firm specializing in weekly neighborhood newspapers, is considering expansion of production facilities in o

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