User Account

All Pages

What is the amount of interest expense on this loan

Assignment Help Accounting Basics
Reference no: EM13921948

A partial amortization schedule for a 10-year note payable issued on January 1, 2013, is shown below:

1253_264-B-A-L (2915)-1.png

Required: 

a. Using a financial statements model like the one shown here, record the appropriate amounts for the following two events:
(1) January 1, 2013, issue of the note payable. 
(2) December 31, 2013, payment on the note payable.

2174_264-B-A-L (2915)-2.png

b. If the company earned $60,000 cash revenue and paid $42,000 in cash expenses in addition to the interest in 2013, what is the amount of each of the following?
(1) Net income for 2013. 
(2) Cash flow from operating activities for 2013. 
(3) Cash flow from financing activities for 2013. 

c. What is the amount of interest expense on this loan for 2016? 

Reference no: EM13921948

Questions Cloud

Calculations to one decimal place : Determine the number of days' sales in inventory and the inventory turnover for the three companies. Assume 365 days a year. Round all interim calculations to one decimal place. For number of days' sales in inventory, round final answers to the neare..
What is additional funds needed for the coming year : The Booth Company’s sales are forecasted to double from $1,000 in 2013 to $2,000 in 2014. Here is the December 31, 2013, balance sheet: Booth’s fixed assets were used to only 50% of capacity during 2013, but its current assets were at their proper le..
As bond market interest rates increase, the value : As bond market interest rates increase, the value (i.e. price) of a fixed coupon interest rate bond (i.e. a typical corporate bond: A. Does not change B. Increases C. Decreases D. Insufficient information E. None of the above.
Target debt–equity ratio-what is its pretax cost of debt : Kose, Inc., has a target debt–equity ratio of 1.55. Its WACC is 9.8 percent, and the tax rate is 40 percent. If Kose’s cost of equity is 15 percent, what is its pretax cost of debt? If instead you know that the aftertax cost of debt is 6.8 percent, w..
What is the amount of interest expense on this loan : Using a financial statements model like the one shown here, record the appropriate amounts for the following two events:
Increase the deductible pass through loss and deductions : Per the IRC, losses and deductions of an S corporation pass through to the shareholders of the corporation and are limited to the shareholders’ basis in the S corporation. Suggest a plan for a client to increase the deductible pass through loss and d..
Paid the annual payment on the note : June 30 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment.Sept. 30 Paid the annual payment on the note, which consisted of interest of $12,000 and principal of $28,6..
Defined as the ability to consume goods or services : If market interest rates are currently 15% and your investment provides you this 15% return, does that imply that you are 15% more wealthy (after vs. before this investment return)? Assume wealth is defined as the ability to consume (purchase) goods ..
Raise funds externally-what is self-supporting growth rate : Maggie’s Muffins, Inc., generated $5,000,000 in sales during 2013, and its year-end total assets were $2,500,000. Also, at year-end 2013, current liabilities were $1,000,000 consisting of $300,000 of notes payable, $500,000 of accounts payable, and $..

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