What was effective interest rate that acme paid on this note

Assignment Help Financial Accounting

Reference no: EM13866543

On July 1st 2015 ACME Company issued $20 million non-interest 1 year note to the bank who has a stated 10% discount rate. Principal and interest will be paid at maturity.

REQUIRED:

Record the journal entry ACME makes on July 1, 2015 when it issues the note.

Record the adjusting entry ACME makes on December 31, 2015

Record the entry ACME makes on June 30, 2016 when it pays off the note

What was the effective interest rate that ACME paid on this note?

Reference no: EM13866543

Questions Cloud

The target cost for a job using job costing is calculated : The target cost for a job using job costing is calculated as. Features of a job costing system include all but which of the following:

What was the amount of net income for the year : Carlos Ramirez and Camila Garza organized New World Book Store as a corporation; each contributed $71,800 cash to start the business and received 5,400 shares of common stock. The store completed its first year of operations on December 31, 2014. Wha..

In the departments cost reconciliation report : In December, one of the processing departments at Rumsey Corporation had ending work in process inventory of $21,000. During the month, $110,000 of costs were added to production and the cost of units transferred out from the department was $99,000. ..

What kind of deal did the running back scamper off with : In 2011, a running back signed a contract worth $62.3 million. The contract called for $10 million immediately and a salary of $3.5 million in 2011, $9.5 million in 2012, $10 million in 2013, $9.4 million in 2014 and 2015, and $10.5 million in 2016. ..

What was effective interest rate that acme paid on this note : On July 1st 2015 ACME Company issued $20 million non-interest 1 year note to the bank who has a stated 10% discount rate. Principal and interest will be paid at maturity. What was the effective interest rate that ACME paid on this note?

The equivalent units for materials under the FIFO method : Solis Company uses the FIFO method to compute equivalent units. It has 12,000 units in beginning work in process, 20% complete as to conversion costs and 40% complete as to materials costs, 65,000 units started, and 5,000 units in ending work in proc..

The equivalent units of production for materials : A department had the following information for the month: Total materials costs $420,000 Conversion cost per unit $5.00 Total manufacturing cost per unit $ 8.00 What are the equivalent units of production for materials?

Equivalent units of production for conversion costs : In the month of May, a department had no units in beginning work in process. During May, 80,000 units were started into production department. At the end of May there were 8,000 units in ending work in process that were 65% complete. Materials are ad..

What are the equivalent units of production for materials : The Wrapping Department’s output during the period consists of 17,000 units completed and transferred out, and 900 units in ending work in process that were 75% complete as to materials and conversion costs. Beginning inventory was 1,200 units that w..

User Account

All Pages