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
Phantasy [73]
4 years ago
11

Guido Properties owes First State Bank $60 million under a 7% note with two years remaining to maturity. Due to financial diffic

ulties of Guido, the previous year’s interest ($4.2 million) was not received. The bank agrees to settle the note receivable and accrued interest receivable in exchange for land having a fair value of $44 million and a book value of $ 32 million.
Required:

Prepare all the journal entries required for the settlement on Guido’s books.
Business
1 answer:
Mademuasel [1]4 years ago
3 0

Answer:

Explanation:

The journal entries are shown below:

Notes payable A/c Dr $60,000,000

Interest payable A/c Dr $4,200,000

        To Land A/c $32,000,000

        To Gain on transfer of land $12,000,000

        To gain on settlement of debt $20,200,000

(Being all transactions are recorded and the remaining balance is credited to the gain on settlement of debt)

The Gain on transfer of land is computed below:

= $44 million - $32 million

= $12 million

You might be interested in
My grandma just died and when my dad told me this he said lol what does it mean?
Burka [1]

Answer:

lots of love?&3&3&3&3&3&3&

5 0
3 years ago
Read 2 more answers
A company has been determined the they plan to invest $9,800,000 in a new solar field in November 2020. The investment will star
Gnesinka [82]

Answer:

The Net Present Value of this project is:

$7,358,638.89

Explanation:

a) Data and Calculations:

Estimated cost of investment = $9,800,000 in November 2020

Monthly benefits = $200,000 starting from May 2021

Period of benefits = 9.5 years

Required rate of return = 6% p[er year

Using the Excel NPV (XNPV) function, the NPV = $7,358,638.886

b) The Present Value of the project is the discounted value of the cash inflows of $200,000 for 114 months and $9,800,000 on day 1.  An excel copy of the calculations is attached.

Download xlsx
7 0
3 years ago
Brennan Corporation's WACC is 10.00%, its end-of-year free cash flow (FCF1) is expected to be $75.0 million, the FCFs are expect
Slav-nsk [51]

Answer:

$75 million

Explanation:

Firm's value = FCF1 / WACC - growth

Equity Value = Firm's value - Debt value

Intrinsic value per share = Equity Value / Number of shares

Therefore Firm's value = $75.0 million / (0.10 - 0.05) = $1,500 million

Equity Value = Firm's value - Debt value = $1500 - 0 debt = $1,500 million

Intrinsic value per share = Equity Value of $1500 / 20 million shares =

$75 million

3 0
3 years ago
Read 2 more answers
Which of the following are generally considered to be uncontrollable government expenditures?
Rasek [7]
The answer to your question is : D. All of the above

Hope this helps
6 0
3 years ago
At what percentage of credit card usage, does it start affecting your score in a negative way?​
cluponka [151]

Answer:

3%

Explanation:

ratio of 80 or 90 percent or more highly negative impact on your credit score.

4 0
4 years ago
Other questions:
  • Say you own a​ 500-unit apartment complex. When the apartments are​ 90% occupied, monthly operating costs total​ $200,000. When
    6·1 answer
  • It is the company's responsibility to prevent all accidents at work ?
    13·1 answer
  • In a perfectly competitive industry, the existence of positive economic profits induces firms to _______ (enter / exit) an indus
    13·1 answer
  • There are different standards for due process in civil and criminal cases.
    7·2 answers
  • Even Better Products has come out with a new and improved product. As a result, the firm projects an ROE of 20%, and it will mai
    8·1 answer
  • Exercise 8-3
    8·1 answer
  • Which of the following is a reason to obtain professional certification?a. Certification provides credibility that an individual
    15·1 answer
  • DUE THIS WEEK! WILL GIVE BRAINIEST
    9·1 answer
  • What are the essential elements for a commodity to be rich in economics.​
    6·1 answer
  • charles wolfe purchased the following long-term investments at par during 2021: $20,000 general obligation bonds of burlington c
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!