User Account

All Pages

What will be the size of new quarterly payments

Assignment Help Accounting Basics
Reference no: EM132713212

Question - Williams Inc. purchased a piece of equipment for $850,000 on May 1, 2019, paying $80,000 in down payment and signing a note for the rest of the amount. Williams Inc. has agreed to make twenty equal quarterly payments for five years beginning August 1, 2019. The interest rate on this loan is 10%.

Required - Please answer the three following questions:

a. On December 31, 2019, what should be the balance in Williams Inc.'s interest payable related to this note?

b. What is the carrying value of the note on May 1, 2020 after the payment on that day has been made?

c. Assume Williams Inc. refinances the carrying value of the loan on August 1, 2021 after the payment on that date has been made. The new interest rate is 8%. What will be the size of new quarterly payments?

Reference no: EM132713212

Questions Cloud

What is the annual operating cash flow : What is the annual operating cash flow? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
What are the necessary consolidation entries for a January : On January 2, 2020 Davis Corp. purchased all of Kuehler's common stock for $900,000 cash. What are the necessary consolidation entries for a January
Calculate the aftertax salvage value for the equipment : Calculate the aftertax salvage value for the equipment at the end of the project. (Do not round intermediate calculations and round your answer)
Record each one in the accounting equation : Weston Western Wear (3W) has the transactions. Record each one in the Accounting Equation along with the Associated T-Accounts
What will be the size of new quarterly payments : Williams Inc. has agreed to make twenty equal quarterly payments for five years beginning August 1, 2019. What will be the size of new quarterly payments
What are the journal entries that kimbo corporation make : Kimbo Corporation, What are the journal entries that Kimbo Corporation would make relating to the sale of the widgets and their warranty?
What must be the price for phoenix industries : Moderate long-term growth rate of 5 percent. If the firm's investors expect to earn a return of 15 percent on this stock, what must be its price?
What would entry be to record the employee weekly salary : Assuming that PAYG tax is deducted at 30%, what would the entry be to record the employee's weekly salary (round amounts to the nearest dollar)
How much interest would be paying in year four : Find How much interest would you be paying in Year 4? The terms require you to amortize the loan with 7 equal end-of-year payments.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Differentiate between joint and several liability

"Since the FASB is independent from the AICPA, the latter is no longer concerned with standard setting and related issues." Comment on this statement.

  Write down final proposal which must be 3-5 pages in length

the final deliverable for your business capstone project is to prepare a business proposal addressed to your

  Finding times interest earned

Common stock outstanding January 1, 2017, was 32,000 shares, and 40,000 shares were outstanding at December 31, 2017.

  Find how much would have been the total profits

Partners Ben, Noreen, Lani, and Edwin initially invested,Find how much would have been the total profits given to Edwin at this time?

  Prepare the journal entries for energo

The production tax is 5%. Energo is responsible for reporting the production taxes. Prepare the journal entries for Energo

  How income statement expenses are separated into materials

On a manufacturer's income statement expenses are separated into the materials, work in process, and finished goods three categories

  Prepare a process cost report for the mixing department

Process Costing: FIFO Costing Method- Using the FIFO costing method, prepare a process cost report for the Mixing Department for January.

  From e-activity in terms of which takes precedence and

from the e-activity in terms of which takes precedence and provides the most information evaluate the potential

  Premises of good inductive arguments

An argument is sound when

  Costing method of inventory

Jaclyn is going to the company's primary bank to negotiate a line of credit and wants to show the maximum amount of income without actually changing last year's results. What costing method of inventory(variable or absorption) should she choose? W..

  What continuing education requirement do they have

ACCT2302 Accounting Paper. What continuing education requirement do they have? What organization sponsor's the certification

  Calculate the Global Technology weighted cost

The after tax cost of debt is 7.00 percent; the cost of preferred stock is 11.00 percent; Calculate the Global Technology weighted cost

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