User Account

All Pages

Prepare each equal payment from october

Assignment Help Financial Accounting
Reference no: EM132496298

On April 1, 2014, Able Co borrows $200,000 for four years from the Toy Company to obtain funds to buy a piece of commercial property. As collateral, Able Co. gives Toy Company a mortgage on the manufacturing plant that it owns and that are on its books at a cost of $50,000. Interest is charged on the unpaid balance of the loan principal at an interest rate of 4 percent per year compounded semiannually. Payments are due on April 1 and October 1 of each year. Able co agrees to make eight payments over the four years of the mortgage so that when the last payment is made on April 1, 2018, the loan and all interest will have been paid. The first seven payments are to be equal. The eighth payment is to be just large enough to discharge the balance of the loan. Able Co. closes its books annually on December 31 and uses the effective interest method.

Question 1: Each equal payment from October 2014 to October 2018 is equal to (round to the nearest hundred):

  • $52,500
  • $27,300
  • $22,300
  • $22,200
  • None of the other alternatives are correct / Not enough data provided to calculate it

Reference no: EM132496298

Questions Cloud

Operation of satellite communications networks : Apply concepts of satellite communication systems associated with operation of satellite communications networks and designan end-to-end satellite communication
Prepare a cash flow spreadsheet : Prepare a Cash Flow Spreadsheet that identifies the incremental cash flows for each year of the machines life. A company is evaluating the purchase of a machine
Prepare trial balance according to t accounts balance : Open general ledger T accounts and post the journal entries to T accounts. Prepare a? income statement, statement of cash flows and balance sheet.
Find what is the net present value of the investment : The machine costs $150,000. Assume an interest cost of 7%. What is the payback period? What is the Net Present Value of the investment?
Prepare each equal payment from october : Prepare Each equal payment from October 2014 to October 2018 is equal to (round to the nearest hundred), On April 1, 2014, Able Co borrow $200,000 for four year
Apply knowledge of epidemiological and biostatistical method : Critical analysis - Evidence of causation in relation to the study question, using principles of causal inference. For this part of
Behavior chain and chaining as a procedure : What is the difference between a behavior chain and chaining as a procedure?
People with breathing-related sleep problems : Why would practicing a didgeridoo (an Indigenous Australian wind instrument which is very long in shape) lead to an improvement in sleep for people
How realistic is the body shape of dolls that children play : Do you think that Mattel Toys has gone far enough making strides to diversify Barbie's looks? What other kinds of dolls do you see that might promote unhealthy

Reviews

Write a Review

Financial Accounting Questions & Answers

  What expense should be recorded for 2018 as a result

A company buys an oil rig for $2400000 on January 1, 2018. The life of the rig is 10 years and the expected cost to dismantle the rig at the end.

  Susceptible to earnings management manipulation

A company accounts for Inventories on a FIFO basis. Compared to LIFO, is FIFO a more balance-sheet oriented approach to accounting for inventory, or is it a more income- statement approach? Explain.  Generally, is FIFO or LIFO more susceptible to ear..

  Chart of accounts and the general ledger

Explain the difference between the Chart of Accounts and the General Ledger.

  The activity method of depreciation

The activity method of depreciation and For income statement purposes, depreciation is a variable expense if the depreciation method

  Social cognition researchers to describe the unconscious

Which of the following attributes is not used by social cognition researchers to describe the unconscious

  Before the jobs act-what are the gun-jumping rules

Before the JOBS Act, what are the “gun-jumping” rules? What is the process known as testing-the-waters post-JOBS Act?

  Each of the instruments that facilitate exporting

Describe the steps in the exporting process and each of the instruments that facilitate exporting. What are export management companies and what are export trading companies? What purposes do they serve and in what way are they valuable?

  What are timetable identified for three of mileston

What are the timetable identified for three of the milestones on each of the projects that are being addressed by the IASB?

  Find out the amount of cost that should be assigned

Determine the cost transferred to finished goods. Find out the amount of cost that should be assigned to the ending work in process inventory

  Prepare an income statement for the quarter ending march

Prepare an income statement for the quarter ending March 31 as shown in Schedule 9 in the Chapter 7. Prepare a balance sheet as of March 31.

  Periodic inventory by three methods

Periodic Inventory by Three Methods- There are 25 units of the item in the physical inventory at December 31. The periodic inventory system is used. Round average unit cost to the nearest cent and final answers to the nearest whole dollar, if require..

  Compute symanteks rate of return on assets for each year

Compute Symantek's rate of return on assets for each year of the project, assuming that accounting expenses R&D expenditures as they occur. Use the year-end balance of total assets in the denominator.

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