What amount should be reported as notes receivable

Assignment Help Financial Accounting
Reference no: EM132836909

Problem 1: On December 30, 2019, Hershey Company sold a machine in exchange for a non-interest bearing note requiring ten annual payments of ?100,000. The first payment was made on December 30, 2019. The market interest rate for similar notes at date of issuance was 8%. The PV of 1 at 8% for 9 periods is .50 and at 10 periods is .46. The PV of ordinary annuity of 1 at 8% for 9 periods is 6.25 and for 10 periods is 6.71. On December 31, 2019, what amount should be reported as notes receivable?

a. ? 625,000
b. ? 450,000
c. ? 671,000
d. ? 460,000

Reference no: EM132836909

Questions Cloud

International business expansion opportunity : International Business Expansion Opportunity - Write a business report assessing the international expansion opportunities in these two countries
What is the accrued interest as of december thirty-one is : What is the accrued interest as of December 31, 2019 is? The 90-day non-interest bearing note amounting to ?50,000 was issued on November
Describe the total quality management control model : International Standards Organization (ISO) 9001:2008, a total quality management (TQM) control model, is a set of quality standards that has been assisting.
What is the probability of no arrivals : Airline passengers arrive randomly and independently at the passenger screening facility at a major international airport. The mean arrival rate is 4 passengers
What amount should be reported as notes receivable : Hershey Company sold a machine in exchange for a non-interest bearing. On December 31, 2019, what amount should be reported as notes receivable
About budget estimation and developing budget : About budget estimation and developing a budget. You are providing a review of contractor bids for a component of your upcoming project
Calculate the present value of total outflows : Mr. Brooks would like to refund the bonds with a new issue of equal amount also having 17 years to maturity. Calculate the present value of total outflows
Explain how you would promote better collaboration : If you were Mr. Carson, explain how you would promote better collaboration in this situation to meet the needs of the student.
What is the loan impairment loss for kit-kat bank : There is a high probability that remaining interest payments will not be paid. The prevailing interest rate is 10%. What is the loan impairment loss for 2019?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Calculations and what effective annual interest rate

How much will the student pay each month for 48 months? Show calculations and What effective annual interest rate is being charged? Show calculations.

  Importance of the engagement

the importance of the engagement files for engagement continuity

  Will the bond proceeds always be less than the face amount

Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest

  What is the compensation expense

December 31, 2018 and December 31, 2019, respectively. What is the compensation expense for 2019 as a result of the share appreciation rights?

  Investment from a decision-making perspective

Texas Construction Corporation (TCC) builds custom luxury homes along the Gulf Coast. The company was nearing the completion of a home for Jill and Tom Wilson when the couple suddenly declared bankruptcy. At that time, TCC had invested $1,525,000 in ..

  Compute the operating income for 2007chan manufacturing

compute the operating income for 2007chan manufacturing company data for 20x7 followsales 12000 units at 17 eachactual

  How many of each type of air compressor company produce

Formulate and solve a linear optimization model using the auxiliary variable cells method and write short memo to the production manager explaining sensitivity

  Prepare the journal entries that are required at december

Prepare the journal entries that are required at December 31, 2019 and 2020, assuming that a periodic inventory system is used, with inventory recorded at cost

  Measurement of the value of transactions and or events

Identify and critically discuss the following five principles in relation to the measurement of the value of transactions and or events. a) Separability and identity b) Current cost accounting c) Verifiability d) Income approach e) Matching principle

  What is the target variable cost per mouse

If the company desires to make a profit $2,000,000 on the mouse, what is the target variable cost per mouse? Round to two decimal places

  What is the minimum redundancy pay

She accepts the redundancy termination and is paid $200,000. If Julie's weekly pay is $2,000, what is the minimum redundancy pay she is entitled to

  Compute the taxes owed after selling this equipment

A piece of equipment is bought for $70,000 and is depreciate, with a salvage value of $2,000. At the end of 5 years the equipment was sold for $35,000. If the company is in the 36% tax bracket, compute the taxes owed after selling this equipment in y..

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