What interest receivable on december of the current year is

Assignment Help Accounting Basics
Reference no: EM132586678

Question 1: On July 1 of the current year, an entity obtained a two- year 8% note receivable for services rendered. At that time, the market rate of interest was 10%. The face amount of the note and the entire amount of interest are due on the date of maturity. Interest receivable on December 31 of the current year is

Option 1: 5% of the face amount of the not

Option 2: 4% of the face amount of the note

Option 3: 5% of the present value of the note

Option 4: 4% of the present value of the note

Reference no: EM132586678

Questions Cloud

Do you think the cpi is a good indicator of inflation : Do you think the CPI is a good indicator of inflation? Why or why not?
How can market forces supply and demands affect : How can market forces supply and demands affect interest and the economy please explain
Find what the interest income for the year is : What The interest income for the year 2017 is?On November 1, 2017, ABC sold the bonds for a total consideration of P3, 925,000. ABC intended to hold these bonds
Describe basic knowledge on the Japanese Civilization : Topic - Japanese Civilization and History *CA* Describe basic knowledge on the topic, introduce related academic discussions
What interest receivable on december of the current year is : The face amount of the note and the entire amount of interest are due on the date of maturity. Interest receivable on December 31 of the current year is
What are the arguments against austerity : What are the arguments against austerity measures during a depression or severe recession?
What economic conclusions can you draw : A historian was quoted as saying that if it hadn't been for slavery the ancient Romans would have had color television.
Why does the ae line have the slope it has : Why does the AE line have the slope it has? What is this slope called? What does this slope represent?
What amount should clay report as capitalized interest : The total amount of interest incurred by Clay during 20X3 was P102, 000. What amount should Clay report as capitalized interest at December 31, 20X3?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare the company manufacturing overhead budget

Prepare the company's manufacturing overhead budget for the upcoming fiscal year. Compute the company's manufacturing overhead rate

  Decided to take out a limited payment life policy

decided to take out a limited payment life policy. She chose this since she expects her income to decline in future years

  What is the expected return on this three-asset portfolio

Is there any way Hennessy could reduce the number of issues from 40 to 20 without significantly affecting risk? Explain.

  Determine purchasing department cost per unit if 1500 units

webb corporation would like to institute an activity-based costing system to price products. the companys purchasing

  Discuss the rationale of the irs

The IRS has joined the debate because it says the full reserve is unfair from a taxation viewpoint. Discuss the rationale of the IRS.

  Velocity receives the additional consideration

Velocity receives the additional consideration of $20,000. Velocity accounts for this arrangement.

  What is pretax income from continuing operations

P purchased a machine on January 1, 2011 for $43625. At the time of purchase, the machine was expected to have a useful life of 21 years and a residual value of $1745. P uses straight-line depreciation.

  Relevant financial information for investors

Assume there is a well-financed, one-year-old company in the biotech industry that is concentrating on developing chemical-based compounds that are aimed at developing drugs to reduce the effects or onset of Alzheimer's Disease.

  Performance management software articles

Performance Management Software Articles

  Determining firm expected rate of return

Dothan Inc.'s stock has a 25% chance of producing a 17% return, a 50% chance of producing a 12% return, and a 25% chance of producing a -18% return. What is the firm's expected rate of return?

  Highest risk arrangement with a payer

From a hospital's perspective, what is most likely to be the highest risk arrangement with a payer?

  Kannan carpets inc has asked you to calculate the companys

kannan carpets inc. has asked you to calculate the companys current ratio for 2001. all you have is a partial balance

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