User Account

All Pages

Prepare the journal entries for umet company

Assignment Help Accounting Basics
Reference no: EM132083432

The UMET Company is delinquent on a $600,000, 16% note plus $64,000 accrued interest to the La Jollita Bank. The note was due on April 1, 2016. On April 2, 2016, the La Jollita Bank agrees to restructure the debt by forgiving the accrued interest, reducing the face value of the note to $300,000, reducing the interest rate to 8%, and extending the maturity date to April 1, 2014. The interest is due each year on April 1.

Required: Prepare the journal entries for UMET Company to record the restructuring on April 2, 2016, and the payment of interest on April 1, 2017.

Reference no: EM132083432

Questions Cloud

What is the initial investment outlay : The firm paid a consulting firm $50,000 last year for advice on the project. The firm will use a building that could be sold for $155,915.
Prepare a statement of cash flows : Prepare a Statement of Cash Flows - The net wage checks were given immediately to employees. The payroll taxes will be paid to the IRS and state
What is the operating cash flow associated : What is the operating cash flow associated with the first year of operation?
What are the total cash flows in year three : What are the total cash flows in year three when the asset is sold?
Prepare the journal entries for umet company : Prepare the journal entries for UMET Company to record the restructuring on April 2, 2016, and the payment of interest on April 1, 2017
What is the net present value of the investment : What is the net present value of the investment if the required return is 12%?
Should participants prepare ahead of time : You are a new project manager working on a large project that has completed requirements gathering and is in the middle of the design stage of the SDLC.
What is the annualized holding period return : A stock is expected to pay the following dividends over the next three years: $2.00, $2.10, $2.15.
What is the tax savings : What is the tax savings ( that is, the depreciation tax shield) associated with the new facility in the coming year

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