1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
alekssr [168]
3 years ago
8

On December 31, 1991, Jet Co. received two $10,000 notes receivable from customers in exchange for services rendered. On both no

tes, interest is calculated on the outstanding principal balance at the annual rate of 3% and payable at maturity. The note from Hart Corp., made under customary trade terms, is due in nine months and the note from Maxx, Inc. is due in five years. The market interest rate for similar notes on December 31, 1991, was 8%. The compound interest factors to convert future values into present values at 8% follow:
Present value of $1 due in nine months: .944
Present value of $1 due in five years: .680
At what amounts should notes receivable to Maxx be reported in Jet's December 31, 1991, balance sheet?

a. $9,440 $6,800
b. $9,652 $7,820
c. $10,000 $6,800
d. $10,000 $7,820
Business
1 answer:
aleksklad [387]3 years ago
3 0

Answer:

Hart Corp.'s note should be reported at $10,000

Maxx Inc.'s note should be reported at $7,883

Explanation:

Interest bearing notes that represent current accounts (due within one year) should be reported at face value. Hart Corp.'s note is due in nine months, so it should be reported at = $10,000

Maxx Inc.'s note must be recorded at present value because it is due in 5 years.

FV = $10,000 x 1.03⁵ = $11,592.74

now we must determine its present value using an 8% discount rate:

PV = $11,592.74 x 0.680 = $7,883

You might be interested in
To what degree a country's legal system is based on the rule of law matters little in international business.
marissa [1.9K]

Rule of law is very important in case of country’s legal system

This means that no one can be regarded to be above the law in a society where the rule of law exists. In a parliamentary democracy, the rule of law places a duty on all citizens to uphold the law, and in order to do so, the legislation must be just and not arbitrary. The goal of the rule of law, like other constitutional concepts, is to advance peoples' freedom and basic rights.

People and corporations must abide by the regulations set forth by the rule of law in order to avoid penalties. The rule of law establishes norms for businesses so that they, too, know what is required of them in their transactions and enables people to comprehend what is expected of them in their personal capacities.

Learn more about rule of law at

brainly.com/question/820417

#SPJ4

3 0
1 year ago
Extensive collections of published works in electronic form are called
Solnce55 [7]
The correct <span>answer is Digital Library.

A digital library is a special collection of digital objects which can be in form of text, visual, audio or video material which has been organized, stored and retrievable in electronic formats. These materials for them to be stored in a public digital library, usually, have to be published as a requirement.</span>
4 0
2 years ago
Caracteristicas de un seguro público
mr Goodwill [35]
It’s Spanish lol lol lol
6 0
2 years ago
An item owned by a house hold or business that has a monetary value
xenn [34]
Its an asset of the household or business.
4 0
3 years ago
Read 2 more answers
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods
SIZIF [17.4K]

Answer:

LIFO ending inventory $   544.00

Weighted average:      $    565.44‬

FIFO ending invetory:  $   590.00

Explanation:

weighted-average:

1,449 / 41 = 35,34

Ending Inventory

16 x 35.34

LIFo we pick the first 16 units as the latest were sold:

8 units at $ 33  =  $ 264

8 units at $ 35  =  $ 280

Total ending inventory $ 544

FIFo we pick the last as the first one are the first being sold

15 units at 37 = 555

1 unit at 35 =       35

total ending      590

7 0
2 years ago
Read 2 more answers
Other questions:
  • When the turbine generators are turning from the steam, what do they produce?
    10·1 answer
  • You were asked to write a report to management indicating the primary advantage of external recruiting. you chose to focus on ex
    7·1 answer
  • A statistical method for identifying cost behavior
    9·1 answer
  • Suppose that the demand for picture frames is highly inelastic, and the supply of picture frames is highly elastic. A tax of $1
    11·1 answer
  • Which of the following is not a duty of the California Insurance Commissioner?
    15·1 answer
  • Which of the following is generally true about savings vehicles?<br> A
    8·1 answer
  • Https://youtu.be/CBNtbuL0Lb0o​
    7·1 answer
  • April is worried that she is not a "good speller," so she plans to let the spelling
    14·1 answer
  • Vivien's project manager has asked her to analyze the project requirements before finalizing them. What would she look for and a
    15·1 answer
  • bookmark question for later what is a common axiom for information technology professionals? communicate! become an expert know
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!