User Account

All Pages

What is the instalment notes receivable balance six months

Assignment Help Accounting Basics
Reference no: EM132813406

Problem 1: On July 1, 2011, 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 June 30, 2013. Interest receivable on December 31, 2011 was

a. 5% of the face value of the note

b. 4% of the face value of the note

c. 5% of the July 1, 2011 present value of the amount due on June 30, 2013.

d. 4%of the July 1, 2011 present value of the amount due on June 30, 2013.

Problem 2: An entity uses the instalment sales method to recognize revenue. Customers pay the instalment notes in 24 equal monthly amounts which include 12% interest. What is the instalment notes receivable balance six months after the sale?

a. 75% of the original sales price

b. Less than 75% of the original sales price

c. The present value of the remaining monthly payments discounted at 12%.

d. Less than the present value of the remaining monthly payments discounted at 12%.

Reference no: EM132813406

Questions Cloud

What aspect of accounting theory : The interest for the interest in a noninterest bearing note receivable is an example of what aspect of accounting theory? What The interest on a noninterest?
Two reasons for keeping government policies : What are these two reasons for keeping government policies in place to control externalities?
Should Jackson Company accept this offer : An outside supplier has offered to sell part to Jackson Company for $30 each, based on order of 5,000 parts per year. Should Jackson Company accept this offer
Determining the unemployment rate : If there were no other changes in the labor market, what was the unemployment rate last month?
What is the instalment notes receivable balance six months : An entity uses the instalment sales method to recognize revenue. What is the instalment notes receivable balance six months after the sale?
What the entity should report in statement of financial : What the entity should report in its statement of financial position? On July 1 of the current year, an entity received a one-year note receivable bearing
United states federal government : If you were a retailer, would you want to sell domestically made goods or imported items? Talk about why you made this choice.
Determine the amount of taxable income of Aaron Rentz : Determine the amount of taxable income of Aaron Rentz in 2020, who is single and has $900 of wages and $1,400 of interest income for the year
What interest receivable account would show a balance on : What interest receivable account would show a balance on? On July 1 of the current year, an entity received a one-year note receivable bearing interest

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