All categories

2 years ago

Assume that Mahmood Corp. lends Ahmad $10,000 in exchange for a $10,000,

Business

1 answer:

kolezko [41]2 years ago

7 0

Answer:

1) the present value of the note:

PV of face value = $10,000 / (1 + 8%)³ = $7,938.32

PV of interest payments = $1,000 x 2.5771 (PV annuity factor, 8%, 3 periods) = $2,577.10

PV of note = $10,515.42

2) Dr Notes receivable 10,515.42

Cr Cash 10,000

Cr Discount on notes receivable 515.42

3) assuming the loan was made January 2, 2021

Date Cash flow Discount Balance

January 2, 2021 -$10,000 $10,515.42

January 2, 2022 $1,000 $171.81 $10,343.61

January 2, 2023 $1,000 $171.81 $10,171.80

January 2, 2024 $11,000 $171.80 $0

4) December 31, accrued interest on notes receivable

Dr Interest receivable 1,000

Dr Discount on notes receivable 171.81

Cr Interest revenue 1,171.81

You might be interested in

During January, Luxury Cruise Lines incurs employee salaries of $2.4 million. Withholdings in January are $183,600 for the emplo

garri49 [273]

Answer and Explanation:

The journal entry to record the employee salary expense, withholdings, and salaries payable is shown below:

Salaries expense Dr $2,400,000

To Income tax payable ($360,000 + $150,000) $510,000

To FICA tax payable $183,600

To Account payable $24,000

To Salaries payable $1,682,400

(being employee salary expense, withholdings, and salaries payable is recorded)

Here the expenses are debited and payable are credited as it increased the expenses and liabilities

6 0

3 years ago

According to the cost-push theory , what is responsible for inflation?

Tasya [4]

When resources are low, businesses know that they can increase their prices because people need them desperately.

6 0

3 years ago

Read 2 more answers

20. Otto's Tune-Up Shop follows the revenue recognition principle. Otto services a car on August 31. The customer picks up the v

Allushta [10]

Answer:

Option A-The revenue must be recognized on 31 August.

Explanation:

The accrual concept says that the income must be recognized when they are earned not when the amount is received and expenses when they are incurred not when they are paid.

So according to accrual concept, the entity must deliver its share to recognize sales that is servicing the car. When the entity will service the car then it should recognize the revenue otherwise not. So in accrual basis accounting the date of payment is irrelevant for recognition of revenue and expenses.

4 0

3 years ago

Read 2 more answers

Kent and julie are recruiters for sunspree inc. when both of them interview the same applicant, they often find that they have d

BabaBlast [244]

It can be said that kent and julie have Low Inter-rater Reliability.

<h3>What is Inter-rater Reliability?</h3>

Inter-rater reliability is a statistical metric used to assess the degree of consensus among various judges or raters.
It is employed as a method of evaluating the accuracy of the responses generated by various test items.
A test's lower inter-rater reliability may be a sign that its questions are obscure, difficult to understand, or even superfluous.
The percentage of items that the judges agree on can be calculated as a straightforward technique to assess inter-rater reliability.
This is referred to as percent agreement, and it always falls between 0 and 1, with 0 denoting complete disagreement among raters and 1 denoting perfect agreement.

To know more about Inter-rater Reliability with the given link

brainly.com/question/14316125

#SPJ4

5 0

1 year ago

The purpose of determining the critical path on a pert network is to: identify the sequence of tasks that takes the longest to c

natita [175]

Answer:

Identify the sequence of tasks that take the longest to complete

Explanation:

Program Evaluation and Review Technique (PERT) is a project management tool that is used to manage potential contingencies in the process of executing a project. It is used to schedule ,organize and coordinate tasks in a project.

Determining the critical path on a PERT network lists out the time required for different tasks to be completed and as a result , the sequence of tasks that require the longest time are identified.

3 0

3 years ago

Read 2 more answers