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Gnoma [55]
3 years ago
11

The Parry Glitter Company recently loaned $300,000 to FIX 92, a local radio station. The radio station signed a noninterest-bear

ing note requiring the $300,000 to be repaid in three years. As part of the agreement, the radio station will provide Parry with a specified amount of free radio advertising over the three-year term of the note.
The focus of this case is the valuation of the note receivable by Parry Glitter Company and the treatment of the "free" advertising provided by the radio station. The mission of this discussion is to reach a consensus on the appropriate note valuation and accounting treatment of the free advertising.
Mathematics
1 answer:
melomori [17]3 years ago
8 0

Answer:

The Parry Glitter Company

The Parry Glitter Company should record the Notes Receivable as $300,000.

It should also record the interest receivable per year as $24,000 and the advertising cost as $24,000 per year.  These bring into the accounting records the interest revenue and also the advertising expense, which eventually cancel each other.

Step-by-step explanation:

a) Data and Calculations:

Notes Receivable = $300,000

If the notes receivable are repaid at the end of 3 years and it is assumed that the interest on the notes receivable = 8%

Therefore, the cost of the free advertising will be equal to $24,000 ($300,000 * 8%), which is the cost of the interest to the radio station.

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Anna [14]

Answer:the total discounted cost for your stay is $1948.2

Step-by-step explanation:

If you book your room six months in advance, you will save 15% off the price of the room. You decide to take advantage of the offer and book a room for 6 nights. If the original price per night for the room is $382, this means that the value of the discount would be

15/100 × 382 = 0.15 × 382 = $57.3

The cost of the room for a night would be

382 - 57.3 = $324.7

Since you are staying for six nights,

the total discounted cost for your stay would be

324.7 × 6 = $1948.2

8 0
3 years ago
A 12 ft long playground is marked off into 1/5 ft long section for a game,how many sections are there
Mrac [35]
So its 12 divided by 1/5 so 
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That is 12 over 5 and u will divide the numerator by the denominator to get 2.4 
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3 years ago
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Sladkaya [172]

Answer:

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Step-by-step explanation:

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8 0
2 years ago
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expeople1 [14]
The answer is forty five.
6 0
3 years ago
Read 2 more answers
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