What amount of interest income should Hank Waters recognize

Assignment Help Accounting Basics
Reference no: EM132610104

Question - Hank Waters loaned $112,695 to Ryan Phelps on April 1, 20X1. A zero-interest-bearing note (face amount, $150,000) was exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on April 1, 20X4. The prevailing rate of interest for a loan of this type is 10%. The present value of $150,000 at 10% for three years is $112,695. What amount of interest income should Hank Waters recognize in 20X1?

Reference no: EM132610104

Questions Cloud

Explain the processes of photosynthesis : Fungi, such as mushrooms, obtain their glucose by decomposing organisms in their surroundings and ingesting nutrients.
Does paula have legal claims against capstone corporation : Does Paula have any legal claims against Capstone Corporation? What about Paula's actions? Does Paula have a contract with Freddy to purchase the car?
Importance of using sub queries in database system : Extracting and interpreting data can be very valuable to an organization. Describe the importance of using sub queries in a database system.
How much of the total joint cost is allocated to product : Treating the NRV of by product as an addition to product A sales. Determine how much of the total joint cost of P240,000 is allocated to product A.
What amount of interest income should Hank Waters recognize : The present value of $150,000 at 10% for three years is $112,695. What amount of interest income should Hank Waters recognize in 20X1
Give the name of both of the structures : Choose one plant structure that has a similar function to a structure in the human body. Give the name of both of the structures
Find the ending balance in each account : Kenton Company, Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $39,000.
Describe robert owen new lanark community : Describe Robert Owen's "New Lanark" community? What were his innovations? Did he suspend either private property or market economics? Are there people today.
Did your coworker do anything unethical in the transaction : You have a co-worker at work that you are also friends with. One day, a borrower comes in and meets with him. You overhear the borrower tell your co-worker.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What accounts are affected when a bond matures

What accounts are affected when a bond matures? Which accounts are credited and which accounts are debited when creating journal entries

  Sources and contingencies of power

Your recently acquired knowledge offers great potential for organizations, although few people are aware of this. Describe the sources and contingencies of power you and other graduates from this program have in the labour market.

  The home model is a high-volume 54000 units half-gallon

fireout inc. manufactures steel cylinders and nozzles for two models of fire extinguishers 1 a home fire extinguisher

  Determine the amount of the amortization depletion or

data related to the acquisition of timber rights and intangible assets during the current year ended december 31 are as

  How much is the dollar value of the ending inventory

Lenat Company produced 50,000 units during the year. How much is the dollar value of the ending inventory using full costing

  Discuss various operating expenses

The cash payment is in addition to the $650,000 paid for other operating expenses

  What is Coronado Industries return on assets

Coronado Industries reported net income of $5.5 billion, net sales of $180 billion, What is Coronado Industries's return on assets

  What total cost would you expect to be incurred

If a truck were driven 80,000 kilometers during a year, what total cost would you expect to be incurred

  What is the amount of reported net profit

Interest income from a personal savings account 200 - What is the amount of reported net profit reported on Schedule C

  How much higher or lower would the companys first-year net

reeses tot toy boxes uses variable costing to manage its internal operations. the following data relate to the companys

  Compare and contrast the views of management and accountants

Compare and contrast the views of management and accountants regarding the changes required by the Sarbanes-Oxley Act on internal controls.

  Describes concept of the aging method of receivables

Zenephia Corp. accepted a nine-month note receivable from a customer on October 1, 2008. If Zenephia has an accounting period which ends on December 31, 2008, when would it most likely recognize interest revenue from the note?

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd