Answer:
- The entry made by Allenson Brick Company on January 1 to record the proceeds and issuance of the note is
b. Cash 200,000
Notes Payable 200,000
Explanation:
At the moment the company receive the money it must reflect the movement with an entry to the balance sheets, which is , a debit entry to the Cash accounts by the amount received and a credit entry to Note Payable accounts reflecting the liabilities that the company will have from now.
The interest expenses are recorded at the moment of the interest are paid which is in 9 months from now.
Answer:
NPV =$ -6,586.30
$7,500
Explanation:
The net present value is the present value of after tax cash flows from an investment less the amount invested.
The net present value can be calculated using a financial calculator.
Cash flow in year zero = -40,000
Cash flow each year from year one to five = 9,500
1 = 13%
NPV =$ -6,586.30
b. ($9500×5) - $40,000 = $47,500 - $40,000 = $7,500
To find the NPV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
Trade barriers. There are no barriers blocking them from trade.
