User Account

All Pages

What should be the balance of the discount on notes payable

Assignment Help Accounting Basics
Reference no: EM133106863

Question - On January 1, 2021, Crown Company sold property to Leary Company. There was no established exchange price for the property, and Leary gave Crown a $4,000,000 zero-interest-bearing note payable in 5 equal annual installments of $800,000, with the first payment due December 31, 2021. The prevailing rate of interest for a note of this type is 9%. The present value of the note at 9% was $3,111,721 at January 1, 2021. What should be the balance of the Discount on Notes Payable account on the books of Leary at December 31, 2021 after adjusting entries are made, assuming that the effective-interest method is used?

Reference no: EM133106863

Questions Cloud

Prepare t-accounts to show the flow of costs : Recognized depreciation of $24,150 on manufacturing property, plant, and equipment. Prepare T-accounts to show the flow of costs during the period
Prepare the year end adjusting entry : Robert recorded this money as Painting Revenue. As of December 31 20%, of the job had been completed. Prepare the year end adjusting entry
What is the present value of the future cash flows : What is the present value of the future cash flows, if you also could earn $240,000 per year rent on the property? The rent is paid at the end of each year
How do you mitigation the risks : How do you mitigation the risks - apply any change management model. Like hayes (generic change management model) or Kotter's model or McKinsey's
What should be the balance of the discount on notes payable : What should be the balance of the Discount on Notes Payable account on the books of Leary at December 31, 2021 after adjusting entries are made
How much money do you need to deposit into savings account : Pinder Bank is offering a savings account that guarantees a 10% annual compound interest over the next 20 years. How much money do you need to deposit
What is the required return for txm : TXM pays a $4.50 dividend and that is growing at 4% annually. What is the required return for TXM and what is the value of the stock
Justify the need for strategic planning : Describe what strategic planning in healthcare organizations entails. How is it different from project planning or budgeting?
Calculate the basic earnings per share for leeds : Throughout 2021, the average market price for each common share of Leeds was $52. Calculate the basic earnings per share for Leeds

Reviews

Write a Review

Accounting Basics Questions & Answers

  Cabinets inc is a large manufacturer of modular kitchen

cabinets inc. is a large manufacturer of modular kitchen cabinets sold primarily to builders and developers. the

  What account will affected if pays for freight

A business has a perpetual inventory system. If it buys inventory from a supplier on FOB shipping point terms, what account will affected if pays for freight

  Prepare a retained earnings statement for the year

Prepare a retained earnings statement for the year ended December 31, 2016. Enter all amounts as positive numbers

  Prepare journal entry for pina to adjust the deferred tax

At December 31, 2017, Pina Corporation had a deferred tax liability of $591,500, Prepare the journal entry for Pina to adjust the deferred tax liability

  What is shawn depreciation deduction

In April of 2019, Shawn purchased and placed in service $70,000 of automobiles (5-year class life) for his business. What is Shawn depreciation deduction

  Find an amount is ordinary income in hands of the recipient

Which of the following is not a factor to consider in determining whether an amount is ordinary income in the hands of the recipient?

  What is the IRR of the project

In turn, variable costs are estimated at 15% of annual revenues. If the opportunity cost is 8% and the term is 8 years, what is the IRR of the project

  Describe each product in terms of branding

First, visit a local retail store and look at the brand names, package designs, and labels for various products. Choose one product that you think is a "good" example of these product components, and choose one product that you think is a "bad" ex..

  Post the transactions to t-accounts

Selected transactions from the journal of Metlock, Inc. during its first month of operations are presented here. Post the transactions to T-accounts

  The fiscal year ends december 31 for lake hamilton

the fiscal year ends december 31 for lake hamilton development. to provide funding for its moonlight bay project lhd

  What income must he show on his tax return

Allen (age 32) takes a distribution of $20,000 from his Traditional IRA account, What income and/or penalties must he show on his tax return

  Each preferred share may be converted into six shares

Assume Cole Corporation originally issued 300 shares of $50 par convertible preferred stock at $110 per share.

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