User Account

All Pages

Non-interest bearing note for the balance

Assignment Help Finance Basics
Reference no: EM133112148

On January 1, 2018 Lion electric Inc. sold parts to a customer at a total price of $440,000. Lion electric Inc. received $100,000 cash and a three year 3% non-interest bearing note for the balance. Interest is payable on December 31 every year, the company's year end. The market rate for this note is 6%. The customer paid the note in full on its maturity date.

Give all the entries related to the notes receivable for the first two (2) years only. Lion electric Inc. is a public company and they use the gross method to account for notes receivable. (12 marks). Note: Non-interest bearing means the note does not give interest

Reference no: EM133112148

Questions Cloud

What will be the balances in the balance sheet accounts : What will be the balances in the balance sheet accounts related to the lease at the end of the first year for Cafe Med (ignore taxes)
Determine how much cash will increase during March : Use this information to determine how much cash will increase (decrease) during the month of March
What are its TIE ratio and its return on invested capital : Its annual sales are $6.6 million, its average tax rate is 25%, and its profit margin is 2%. What are its TIE ratio and its return on invested capital (ROIC)
Determine the breakeven point in units : Frederick Company utilizes a JIT production system and there are no Raw Materials, Determine the breakeven point in units
Non-interest bearing note for the balance : On January 1, 2018 Lion electric Inc. sold parts to a customer at a total price of $440,000. Lion electric Inc. received $100,000 cash and a three year 3% non-i
What is the duration of bond : Consider the following two bonds: Bond ABC: 3% coupon rate, 5% ytm, and 7 years to maturity Bond XYZ: 8% coupon rate, 6% ytm, and 7 years to maturity Both bonds
Calculate straight bond value for the bond : You are an analyst at FixInc Corp. whose task is to value a convertible bond of Allana Corp. that matures in 5 years. The bond has face value of $1000, annual c
Price of king richard radio stock : King Richard Radio's stock is expected to grow at a 10 percent rate for the next 3 years and then to level off at a constant growth rate of 3 percent per year t
What is the estimated cost of common equity using the CAPM : The return on an average stock in the market last year was 15%. What is the estimated cost of common equity using the CAPM

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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