User Account

All Pages

What should be recognized as interest expense

Assignment Help Financial Accounting
Reference no: EM132663410

Problem 1: On January 1, 2019, Wellington Company lent P1,780,000 cash to Sea Queen Corporation. The promissory note made by Sea Queen for P2,000,000 did not bear explicit interest and was due on December 31, 2020. No other rights or privileges were exchanged. The prevailing interest rate for a loan of this type was 6%. The present value of 1 for two periods at 6% is 0.89. What should be recognized as interest expense for 2019?

Reference no: EM132663410

Questions Cloud

What is the interest rate associated with the loan : If you borrow $9,983 and are required to pay back the loan in five equal annual instalments of $2,500, what is the interest rate associated with the loan?
How many of each robot can and should produce : The last column shows the total resources that are available. Your task is to determine how many of each robot they can and should produce.
Compare two influential influencers : Using Social Blade and other online resources, compare and contrast two influential influencers. How much money do they make from their Youtube videos?
What is the present worth of future pot of gold : Sounds great! However if current interest rates suggested for discounting are 15 percent what is the present worth of his future "pot of gold"?
What should be recognized as interest expense : On January 1, 2019, Wellington Company lent P1,780,000 cash to Sea Queen Corporation. What should be recognized as interest expense for 2019?
How much would have received at the end : If you invest $9,200 per period for the following number of periods, how much would you have received at the end? (Use a Financial calculator)
It leader in the digital transformation era : Review on topic- "IT leader in the digital transformation era". Note how IT professionals and especially leaders must transform their thinking to adapt
What is the interest expense on the note payable : Reign Company bought new machine on January, The present value of 1 at 12% for five periods is 0.567. What is the interest expense on the note payable for 2018?
Find what is the value of the inventory transferred : Find What is the value of the inventory transferred to the next department if beginning inventory was 2,000 units; 9,000 units were started; and 1,000 units?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Find which activities would affect the investing section

Find Which activities would affect the INVESTING section of the cash flow statement this year? Buying back some of your shares

  Prepare the journal entries for the transactions for morgan

Prepare the journal entries for the following transactions for Morgan Co Morgan Co. received a $.40 per share dividend from Gordon Corp. Stock.

  Create future deductible amounts or future taxable amounts

Listed below are 10 causes of temporary. For each temporary difference, indicate (by letter) whether it will create future deductible amounts (D) or future taxable amounts (T). 1. Accrual of a loss contingency, tax-deductible when paid. 2. Newspaper ..

  Account for this project the company

What would be the carrying value of the note on the books of Marvin Corp. at the time of the transaction and one year after the sale and what would be the amount GRC would report if any for impairment?

  What is average total cost

What is average total cost? The change in fixed plus variable cost divided by the quantity of output produced. Total cost divided by the quantity

  Question 1 turkish air is expected to pay a 200 dividend at

question 1 turkish air is expected to pay a 2.00 dividend at the end of this year. if you expect turkish airs dividend

  What was the total value of assets on january

If we were to only consider the current ratio, which financial position would this firm be in? What was the total value of assets on January

  What is the expected cost of direct materials purchased

Schuh, Inc. plans to produce 6,000 units in Month 1 and 7,000 units in Month 2. Each unit requires 3 pounds of direct materials that can be purchased for $2 per pound. At the beginning of Month 1 there are 2,000 pounds of direct materials on hand. Sc..

  Prepare journal entries in the general journal

Prepare Journal Entries in the General Journal

  What is last years residual income

What is last year's residual income? What is the residual income of this year's investment opportunity? If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year? .

  Determine the future value of an ordinary? annuity

Determine the Future value of an ordinary? annuity. What is the future value of ?$500 per year for 8 years compounded annually at 10 ?percent?

  Outstanding common stock for cash

On January 3, 20X9, Jane Company acquired 75 percent of Miller Company's outstanding common stock for cash. The fair value of the non controlling interest was equal to a proportionate share of the book value of Miller Company's net assets at the date..

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