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Troyanec [42]
3 years ago
6

On January 1, 2017, Crown Company sold property to Leary Company. There was no established exchange price for the property, and

Leary gave Crown a $400,000 zero-interest-bearing note payable, promising 5 equal annual installments of $80,000, with the first payment due December 31, 2017. The prevailing rate of interest for a note of this type is 8%.
Required:
What is the carrying value of the notes payable at 12/31/14, after the first payment is made (assuming that the effective-interest method is used)?
Business
1 answer:
Mademuasel [1]3 years ago
6 0

Answer:

Leary Company

The carrying value of the notes payable at December 31, 2017, after the first payment is made (assuming that the effective-interest method is used) is:

= $320,000

Explanation:

a) Data and Calculations:

0% Note payable = $400,000

Payment period = 5

Annual installmental payments = $80,000

Prevailing rate of interest for similar note = 8%

Schedule

Period PV                 PMT            Interest               FV

1 $-591,650.08 $80,000.00 $-47,332.01 $558,982.09

2 $-558,982.09 $80,000.00 $-44,718.57 $523,700.66

3 $-523,700.66 $80,000.00 $-41,896.05 $485,596.71

4 $-485,596.71 $80,000.00 $-38,847.74 $444,444.44

5 $-444,444.44 $80,000.00 $-35,555.56 $400,000.00

Total                     $400,000.00    $-208,349.93

Carrying value

Ending value   = $400,000

Interest expense   -47,332.01

Cash repayment   -32,667.99

Carrying value = $320,000

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WITCHER [35]

Answer:

Oct. 1 Issued common stock in exchange for $80,500 cash from investors.

Dr Cash 80,500

    Cr Common Stock 80,500

2 Hired part-time security consultant. Salary will be $2,400 per month. First day of work will be October 15.

No entry required

4 Paid 1 month of rent for building for $2,400.

Dr Prepaid rent 2,400

    Cr Cash 2,400

7 Purchased equipment for $22,000, paying $4,900 cash and the balance on account.

Dr Equipment 22,000

    Cr Cash 4,900

    Cr Accounts payable 17,100

8 Paid $600 for advertising.

Dr Advertising expense 600

    Cr Cash 600

10 Received bill for equipment repair cost of $480.

Dr Repairs expense 480

    Cr Accounts payable 480

12 Provided security services for event for $3,900 on account.

Dr Accounts receivable 3,900

    Cr Service revenue 3,900

16 Purchased supplies for $500 on account.

Dr Supplies inventory 500

    Cr Accounts payable 500

21 Paid balance due from October 7 purchase of equipment.

Dr Accounts payable 17,100

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24 Received and paid utility bill for $181.

Dr Utilities expense 181

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27 Received payment from customer for October 12 services performed.

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31 Paid employee salaries and wages of $6,200.

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6 0
2 years ago
Early access to medical care, from ems through reperfusion, improves overall outcomes by:________
forsale [732]

We can actually deduce here that early access to medical care, from ems through reperfusion, improves overall outcomes by: B. Faster access to medications that increase blood clotting.

<h3>What is EMS?</h3>

EMS refers to Emergency Medical Services. It is actually known to be a system whose responsibility is to provide emergency medical care. The EMS is focused on providing emergency medical care for patients who have serious illness or injury.

The options that complete the question are:

A. Increased access to social support services

B. Faster access to medications that increase blood clotting

C. Delaying onset of hypothermia

D. Saving more heart tissue from cell death

We see here early access of medical care from ems through reperfusion, improves overall outcomes by faster access to medications that increase blood clotting.

Learn more about EMS on brainly.com/question/15043841

#SPJ1

5 0
1 year ago
Supply costs at Lattea Corporation's chain of gyms are listed below: Client-Visits Supply Cost March 11,665 $28,579 April 11,461
mario62 [17]

Answer:

<em>$0.48 per client-visit; $22,856 per month</em>

Explanation:

Where,

y2 is the total cost at highest level of activity;                                                                       y1 is the total cost at lowest level of activity;                                                                      x2 are the number of units/labor hours etc. at highest level of activity; and                           x1 are the number of units/labor hours etc. at lowest level of activity

<em>Variable Cost per Unit </em>

= (28,904 -28,227) / (12,600-11,199)

= $0.48

<em> Total Fixed Cost </em>

= y2 ? bx2

= 28,904 - $0.48 * 12600

= $22,856.00

3 0
3 years ago
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Answer: 25%

Explanation:

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natulia [17]

Answer:

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Explanation:

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