All categories

3 years ago

Presented below are two independent situations.

Business

1 answer:

rewona [7]3 years ago

5 0

Answer: a)Interest expense for Year 2020=$46, 977.50 b) see explanation column

Explanation:

a) Amount of Note payable = $550,000

Present Value factor for 3 years at 12%

= PV = 1/(1+r) ^n

1/ (1+ 12%)^3 =(0.892857143)^ 3 = 0.71178

Present value of Note for land at 2020 = $550,000 x 0.71176 = $391, 479

.136

Interest expense for Year 2020= $391, 479.136 x 12%= $46, 977.50

b) Face value of note = $5,000,000

Present value factor for 4 years at 10 % =

= PV = 1/(1+r) ^n

1/ (1+ 10%)^4 =(0.909090909)^ 4 = 0.68301345

Present value of the note = $5,000,000 x 0.68301345= $3,415,067.28

Discount on note payable =$5,000,000 -$3,415,067.28 =$1,584,932.72

Journal to record amount of interest to report for 2020

Date Account Debit Credit

Jan 2020 Cash $5,000,000

Discount on notes payable $1,584,932.72

Notes payable $5,000,000

interest revenue $1,584,932.72

You might be interested in

McKinnon Inc. reports in its 2013 annual report 10-K, sales of $2,045 million and cost of goods sold of $818 million. For next y

-Dominant- [34]

Answer:

B) $902 million

Explanation:

For computing the projected cost of goods sold, first we have to determine the percentage for costs of goods sold which is shown below:

Percentage = Costs of goods sold ÷ sales

= $818 million ÷ $2,045 million

= 40%

The costs of goods sold now is 42%

Now , the sales would be = $2,045 million × 1.05 = $2,147.25 million

Now the projected cost of goods sold would be

= $2,147.25 million × 42%

= $902 million

7 0

3 years ago

The cost of the business process is the sum of the cost of the inputs and the ________.

Helga [31]

Answer:

I believe the answer for your question is A, Cost of the activities. Hope this helped!

4 0

2 years ago

Rainbow Products is considering the purchase of a paint-making machine to reduce labor costs. The savings are expected to result

Radda [10]

Answer:

In finance, the net present value or net present worth applies to a series of cash flows occurring at different times. The present value of a cash flow depends on the interval of time between now and the cash flow. It also depends on the discount rate. NPV accounts for the time value of money.

The internal rate of return is a measure of an investment’s expected future rate of return. As the IRR is an estimate of a future annual rate of return, IRR should not be confused with the actual achieved investment return of an historical investment.

PAYBACK, the largest customer loyalty program lets you earn rewards points on your daily shopping from 100+ online & in-store partners

hope this helps

<h2>mark me as brainliesat</h2>

6 0

3 years ago

What happens in one sector of the economy often affects other sectors of the economy?

RUDIKE [14]

I believe that this is a true or false question. In my opinion, the answer would be true. Sine when one sector changes the whole economy would be affected and all sectors are affected as well. Hope this answers the question. Have a nice day.

7 0

4 years ago

You sell short 200 shares of Doggie Treats Inc. that are currently selling at $25 per share. You post the 50% margin required on

ioda

Answer:

$ 28.85

Explanation:

Total amount = (200 × $ 25) + ( 200 × $25 × 0.5) = $ 7500

Maintenance margin = (total amount - ( number of shares × price)) / number of share × price

0.3 = (7500 - 200 p) / 200 p

0.3 × 200 p = 7500 - 200 p

60 p + 200 p = 7500

260 p = 7500

p = $ 28.85

3 0

3 years ago