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kaheart [24]
3 years ago
11

Frasquita acquired equipment from the manufacturer on 6/30/2018 and gave a noninterest-bearing note in exchange. frasquita is ob

ligated to pay $550,000 on 4/30/2019 to satisfy the obligation in full.if frasquita accrued interest of $15,000 on the note in its 2018 year-end financial statements, what amount would it record the equipment on its 6/30/2018 balance sheet?
Business
1 answer:
Alinara [238K]3 years ago
5 0
Since this is a noninterest-bearing note, or a zero-interest-bearing note payable, what's entered into the 6/30/2018 balance sheet is the Future Value of the equipment. The future value, or the face value, is the amount that Frasquita is obligated to pay on 4/30/2019. 

This means that $550000 is the amount recorded as a Notes Payable in the 6/30/2018 balance sheet.
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Answer:

Consider the following explanation

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Under Effective interest method, Interest calculated at the effective interest rate (i.e., the yield of the bond) is charged as an expense annually, and the payment made basis the Coupon rate.

In the given case, interest to be paid semi annually i.e, on June 30 and on December 31, will be $62,500 (i.e., 2,500,000 * 5% * 6/12).

On the basis of above, the interest expense to be charged in the 2017 can be calculated as follows: take a look to the attached archive.

As calculated above, the amount to be charged as interest expense for the year 2017 is (80,220 + 80,840 i.e.,) $ 161,060.

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Explain the effect of a tariff on consumer surplus and producer surplus.
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From the given information, The demand function is (P) = -x/8 + 600. The demand function illustrates the causal connection between the quantity of a commodity that is demanded and its numerous determinants.

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  • One variable's connection with its determinants is described by the demand function. It explains how much of a certain amount of products is bought at various prices for that good and its related goods, various income levels, and various values for other demand-affecting variables.

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Without needing to create a demand function graph, an algebraic formula for constructing demand curves is known as a linear demand function.

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