User Account

All Pages

What is the amount of interest expense on the loan

Assignment Help Financial Accounting
Reference no: EM132652465

Atlas Ltd. received a bank loan on January 1, 20X1 for $200,000 that bears interest at 3% with fixed annual payments of $20,000 due on January 1, starting in 20X2. In the blank boxes below, please provide the amounts asked for in each of the following questions in this order (when entering amounts please do not use commas, negative signs, dollar signs or cents -please round your answer to the nearest dollar).

Question 1: What is the amount of interest expense on this loan that the company will report in its income statement for the year ending December 31, 20X1?

Question 2: What is the balance that the company will report for the current liability portion of the bank loan on December 31, 20X1?

Question 3: Assume that loan payments were required one day earlier, and the first payment was made by the company on December 31, 20X1. In this case, what balance would the company report in its December 31, 20X1 statement of financial position for the current portion of the bank loan payable?

Reference no: EM132652465

Questions Cloud

What is amount of warranty expense that company report : Carlyle Ltd. reports under IFRS, What is the amount of warranty expense that the company should report for the year ended December 31, 20X2?
Explain two current national patient safety goals : Choose and explain two current National Patient Safety Goals and reflect on how they are impacting or affecting your current practice.
What is the fair market value of the machine received : On March 1, 2016, the GABRIEL Company sold machine for P 155,000. What is the fair market value of the machine received.?
What are the four functions of deviance : What are the four functions of deviance? Explain four different times in your life when each of these functions was present. Imagine you are a principal at an.
What is the amount of interest expense on the loan : What is the amount of interest expense on this loan that the company will report in its income statement for the year ending December 31, 20X1?
Discuss surprising facts about psychological care of aging : Discuss surprising facts about the psychological care of the aging. Did you originally consider any of these as myths, when in reality they are based.
Identify the journalistic preference in the outcome : Christian values are in the news frequently. Describe an example within the past year that includes an issue or environment related to health care.
Discuss ethical consideration against the use of stem cells : Stem cell research is still a current health care issue. The United States Food and Drug Administration (FDA) has only approved a very limited number.
How cumulative preferred stock differs from noncumulative : How cumulative preferred stock differs from noncumulative preferred stock. How is a preferred stock dividend calculated? Explain in detail.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Compute the total asset value for each of the five servers

For this project, assume that an organization has five servers. Server 1 has a TCO of $25,000, servers 2 and 3 have a TCO of $37,000 each, and the remaining two servers – servers 4 and 5 – have a TCO of $42,000 each. The servers are not used by inter..

  Expected returns-stock-bonds and commodities

Suppose you visit with a financial adviser, and you are considering investing some of your wealth in one of three investment portfolios: stocks, bonds, or commodities. Which investment should you choose to maximize your expected returns: Stock, Bonds..

  Considering the replacement of equipment used in operations

Mueller Company is considering the replacement of equipment used in operations. The following data are available: Old Equipment New Equipment Original cost $93,000 $60,000 Useful life in years 13 6 Current age in years 7 0 Book value $57,000 - Dispos..

  Discuss drawback of the irr against the npv

Solve the internal rate of return for Machine A? [Hint: internal rate of return is the rate which results in a zero NPV using linear interpolation]

  Calculate the direct material usage variance

The following activity occurred during the month of December: Materials purchased: 5,200 costing $29,900, Material used: 4,750 yrds, Units produced 1,000 units, DL 2,100 hours costing $17,850. Calculate the direct material price variance. Calculate t..

  Prepare the general journal entry to record first interest

A company paid $500,000 for 12% bonds with a par value of $500,000. The bonds pay 6% interest semiannually on September 1 and March. Prepare the general journal entry to record the first interest payment on June 30, 2009.

  What items have been recorded under owners equity section

HA2032 - Corporate and Financial Accounting - The different sources a company can use to raise its funds and different classifications of entities for reporting

  Prepare the bank reconciliation

When it comes to accounting, do you think the same person who receives cash payments should also prepare the bank reconciliation?

  Average-cost method-amount allocated to ending inventory

A company just began business and made the following four inventory purchases in June: A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the average-cost method, the amount allocated to the ending in..

  Considering eliminating a department

Weston Corporation is considering eliminating a department that has a contribution margin of $70,000 and $140,000 in fixed costs. Of the fixed costs, $100,000 cannot be avoided. The effect of eliminating this department on Weston's overall net operat..

  Minimum transfer price if division is operating capacity

Penn Company has a division that manufactures a component that sells for $80 and has variable costs of $35 and fixed costs of $15. Another division wants to purchase the component. What is the minimum transfer price if the division is operating below..

  What the depreciation charge in the third year will be

What the depreciation charge in the third year will be? A company buys a piece of machinery for $50,000 and it estimates the life

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