What the maturity value of the loan would amount to

Assignment Help Accounting Basics

Reference no: EM132725770

The Gotham City Industrial Bank January 1, 2019 Bank $996,744 is a national dealership trading in spaceships and automated self flying drones. It wishes to purchase a custom-made metal press having a market value of for use in its maintenance division. approached for a ten year loan to finance the acquisition. It offered to pay coupon interest at the end of each year at an annual rate of 3%. On , the loaned an amount of which, along with additional internal funds, the company used to purchase the equipment. The current market rate on that date was 8%.

December 31, 2019, GAO recorded $79,739 to Bond Interest Expense and $39,739 to Bonds Payable in the adjusting entry prepared to record the annual accrued interest for 2019.

Problem 1: The maturity value of the loan would amount to

a. $450,000.

b. $1,446,744.

c. $1,298,698.

d. $1,500,000.

e. Unable to determine the amount with the given data.

Reference no: EM132725770

Questions Cloud

Compute for the adjusted balances of the unamortized bond : Compute for the adjusted balances of the Unamortized bond discount and Bond interest payable and Total noncurrent liabilities as of March 31, 2025

Evaluate coca cola strengths and weaknesses : Evaluate Coca Cola's strengths and weaknesses compared to these competitors.

What is its operating profitability ratio : A company has sales of $200 million, NOPAT of $12 million, net income of $8 million, What is its operating profitability ratio? Its capital requirement ratio

Evaluating the productivity of the lecturer : As the administrative manager in a university, you have been asked to develop a system for evaluating the productivity of the Lecturer.

What the maturity value of the loan would amount to : What the maturity value of the loan would amount to? The Gotham City Industrial Bank January 1, 2019 Bank $996,744 is a national dealership trading

Emerging application of technology in critical infrastructur : Emerging Application of Technology in a Critical Infrastructure - choose your emerging application of technology first and then select an appropriate critical

What is its free cash flow for the current year : For the current year, its total net operating capital is $10 million, and its NOPAT is $1.2 million. What is its free cash flow for the current year

How much is tied up in net operating working capital : Other long-term operating assets = $1 million. How much is tied up in net operating working capital (NOWC)? How much is tied up in total net operating capital

Four dimensions that are measured in a balanced scorecard : Describe the four dimensions that are measured in a balanced scorecard (BSC). Explain what purposes a BSC can serve for a manager.

User Account

All Pages