User Account

All Pages

Prepare a schedule of note discount amortization

Assignment Help Accounting Basics
Reference no: EM131794792

Develop a response in either Word or Excel and follow the instructions outlined in the Assignments Menu for submission.

On December 31, 2010, Palli Company finished consultation services and accepted in exchange a promissory note with a face value of $240,000, a due date of December 31, 2013, and a stated rate of 5%, with interest receivable at the end of each year.  The fair value of the services is not readily determinable and the note is not readily marketable.  Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 10%.

         The following interest factors are provided:

                                                                                   Interest Rate      

Table Factors for Three Periods                    5%                  10%

Future value of 1                                           1.15763            1.33100

Present value of 1                                          .86384              .75132

Future value of an ordinary annuity of 1        3.15250            3.31000

Present value of an ordinary annuity of 1       2.72325            2.48685

REQUIRED

(a) Determine the present value of the note.

Prepare a Schedule of Note Discount Amortization using the effective interest method. (Round to whole dollars.)

Prepare the journal entry to record the acceptance of the note on December 31, 2010.

Prepare the journal entry to record the interest payment received on December 31, 2011

Reference no: EM131794792

Questions Cloud

How often should a reconciliation of the cash account occur : What is the fourth step when reconciling your cash account/bank statement? How often should a reconciliation of the cash account occur?
Prepare best buy retained earnings statement : Prepare Best Buy's retained earnings statement for the year ending February 28, 2009. Also the Net Income for Best Buy is 1003
What is the amount of each payment : Micro Brewery borrows $300,000 to be paid off in three years. The loan payments are semiannual with the first payment. What is the amount of each payment?
What potential benefits or pitfalls do you foresee : What potential benefits or pitfalls do you foresee. Discuss the risk associated with being over or under leveraged
Prepare a schedule of note discount amortization : Prepare a Schedule of Note Discount Amortization using the effective interest method
Prepare in general journal form entry to replenish the fund : Briefly describe when the petty cash fund should be replenished. Prepare in general journal form the entry to replenish the fund
Advise the harrells on how they should respond to the irs : Rex and Agnes Harrell purchased a beach house at Duck, North Carolina, in early 2015. Advise the Harrells on how they should respond to the IRS.
Modify the function split to use the median-of-three rule : Modify the function split to use the median-of-three rule to select the pivot.
Find the equivalent units of production for materials : Compute the equivalent units of production for materials and conversion costs for the month of September

Reviews

Write a Review

Accounting Basics Questions & Answers

  Use the high-low method to estimate the companys energy

jonathan macintosh is a highly successful pennsylvania orchardman who has formed his own company to produce and package

  Determine the carrying value of this bound issue

Use this information to determine the carrying value of this bound issue after adjusting entries have been made on June 30, 2018

  Prepare appropriate journal entry to record the award

On the date of the grant, the stock had market price of $3 per share. Determine the total compensation cost pertaining to the restricted shares

  Calculate the mean absolute deviation

a. Determine the mean, median, range, and midrange. b. Calculate the mean absolute deviation. c. Calculate the standard deviation and variance.

  Contemporary line of cabinets

The Carolina Furniture Company manufactures kitchen cabinets. The company has always used direct labor cost to allocate overhead to its two cabinet lines, Heritage and Contemporary.

  Weighted average inventory valuation

Using the information outlined above, what is the valueof the ending inventory for a perpetual inventory system using the weighted average inventory valuation?

  What is the amount of ending inventory

Assume the "cost of goods available for sale" during a year is $120,000. What is the amount of ending inventory

  Audit fees must be paid before

A client company has not paid its 2004 audit fees. According to the AICPA Code of Professional Conduct, for the auditor to be considered independent with respect to the 2005 audit, the 2004 audit fees must be paid before the:

  Common stock financing is often considered the safest form

common stock financing is often considered the safest form of financing as the issuing firm is under no obligation to

  Explain what is meant by the terms double-entry accounting

Explain what is meant by the terms "double-entry accounting" and "balanced accounting equation". Why are these concepts important

  Costs of operating the helpline

Mire Corporation staffs a helpline to answer questions for customers. The costs of operating the helpline are variable with respect to the number of calls in a month.

  How much overhead will be allocated during july

Harms Shoe Company applies manufacturing overhead based on direct labor hours as the allocation volume. How much overhead will be allocated during July

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