What should be the reported carrying amount of note payable

Assignment Help Financial Accounting
Reference no: EM132663420

Problem 1: On December 31, 2016, Barramundi Company purchased a machine from Helga Corporation in exchange for a non-interest bearing note requiring eight payments of P200,000. The first payment was made on December 31, 2016, and the others are due annually every December 31 thereafter. At the date of issuance, prevailing interest rate for this type of note was 11%. The present value of an ordinary annuity of 1 at 11% for 8 periods is 5.146, and the present value of an annuity of 1 in advance at 11% for 8 periods is 5.712. What should be the reported carrying amount of the note payable on December 31, 2016?

Reference no: EM132663420

Questions Cloud

Why does management have to use predetermined overhead rates : Why does Management have to use Predetermined Overhead Rates and dollars to calculate unit cost each month. Why can't they use the Actual?
Objective of group policy control discussion : The Objective of the Group Policy Control discussion is to understand the security controls and counter measures with new windows release.
Provide a general summary of the grant in discussion board : Provide a general summary of the grant in the discussion board for grant resources. In your posting include the grant identification number
Computing and enhance green computing : Many believe that cloud computing can reduce the total cost of computing and enhance "green computing" (environmental friendly).
What should be the reported carrying amount of note payable : An annuity of 1 in advance at 11% for 8 periods is 5.712. What should be the reported carrying amount of the note payable on December 31, 2016?
Write a critical and evaluative account of a visitor : Write a Critical and Evaluative account of a Visitor Edinburgh Castle (ScotlandUK) business and associated visitor/customer Behaviour.
What is the bonus for the current year : Branch income for the current year before the bonus and income tax was P1,650,000. The tax rate was 30%. What is the bonus for the current year?
What is the unearned revenue on december : Cobbler Company sells appliance service contracts, What is the unearned revenue on December 31, 2020? What is the unearned revenue on December 31, 2021?
Relates to ethical hacking : Go online and search for information that relates to ethical hacking (white hat or gray hat hacking).

Reviews

Write a Review

Financial Accounting Questions & Answers

  HA2032 Corporate and Financial Accounting Assignment

HA2032 Corporate and Financial Accounting Assignment Help and Solution, Holmes Institute - Assessment Writing Service - analysis of annual financial reporting

  Valid predetermined overhead rate

The following budget data are available for Surly Corporation: Estimated direct labor hours 9,000 Estimated direct labor dollars $85,500 Estimated material dollars $55,000 Actual manufacturing overhead costs $100,800 Estimated manufacturing overhead ..

  Compute the degree of operating leverage for each company

Compute the degree of operating leverage for each company. Assume that sales revenue decreases by 20%. Prepare a CVP income statement for each company.

  What will be the basis of stock received by each shareholder

The point here is to be able use sec 351, 1031 and calculate corporation basis and shareholder basis. What is the recognized gain or loss to Mr. X, Y, and Z? What will be the basis of the stock received by each shareholder? What basis will Alpha Corp..

  What parties rely upon audit and affected by the arrangement

What parties rely upon the audit and could be affected by this arrangement? Should Cindy accept this arrangement? Explain your answer.

  Prepare the paid-in capital section of stockholders

Journalize the transactions - Prepare the paid-in capital section of stockholders' equity at December 31, 2015 - Prepare a stockholders' equity section

  Describe two specific forms of unacceptable advertising

CPAs are allowed to advertise under the Rules of the AICPA Code of Professional Conduct. List the general guidelines regarding the nature of acceptable advertising. Describe two specific forms of unacceptable advertising.

  How do find the number of common shares outstanding

Find the number of common shares outstanding and the par value after the split. (Round par value answer to 2 decimal places.)

  Find what is the percentage increase in sales

If 2021 is the base year, what is the percentage increase in sales from 2021 to 2022? Assume the following sales data for a company

  How does relate to advancements in health care

How does it relate to advancements in health care and health care professionals using advancing technology?How is Everett M. Rogers's Diffusion of Innovations

  Is given an example of direct or indirect financing

Is each of the following an example of direct or indirect financing?- John purchases stock from the biotech fi rm that employs him. -  Mary purchases a newly issued government security.

  What is the maximum price that would be willing to pay

If your required rate of return is 12 percent, what is the maximum price that you would be willing to pay for this company's stock?

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd