Determine the combined present value as of December 31, 2016, of the following four payments to be received atthe end of each of the designated years, assuming an annual interest rate of 8%.PaymentYear Received$5,00020176,00020188,00020209,0002022

Present Value:The value of today’s amount to be paid or received in the future at a compound…

Answered: Determine the combined present value as…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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With an interest rate of 5 percent per year, what is the present value on December 31, 2020 of payments of $400 made on December 31 each year for the next 3 years starting in 2021? The present value on December 31, 2020 of payments of $400 on December 31 each year for the next 3 years starting in 2021 is $ d (answer to 1 decimal place).
Required information [The following information applies to the questions displayed below.] At the end of 2025, the following information is available for Great Adventures. • Additional interest for five months needs to be accrued on the $36,000, 6% note payable obtained on August 1, 2024. Recall that annual interest is paid each July 31. • Assume that $12,000 of the $36,000 note discussed above is due next year. Record the entry to reclassify the current portion of the long-term note. • By the end of the year, $20,000 in gift cards have been redeemed. The company had sold gift cards of $25,300 during the year and recorded those as Deferred Revenue. • Great Adventures is a defendant in litigation involving a biking accident during one of its adventure races. The company believes the likelihood of payment occurring is probable, and the estimated amount to be paid is $15,000. • For sales of MU watches, Great Adventures offers a warranty against defect for one year. At the end of the year,…
FOLLOWING QUESTIONS: 1. Consider that the number of periods and the amount of equal installment every year is the same with the given yet the prevailing market interest rate is 10%, how much would be the present value at 01/01/2020? A.973,684 B.1,088,815 C.1,217,105 D. 1,241,910 2. How much is the interest expense on December 31, 2020? A. 91,121 B. 108,143 C. 123,342 D. 136,913 3. How much is the interest expense on December 31, 2021? A. 108,143 B. 123,342 C. 136,913 D. 250,000 4. How much is the Present value at December 31, 2022? A. 600,459 B. 759,339 C. 901,195 D. 1,027,853 5. How many periods or equal installments to pay the Note Payable? A. 5 B. 6 C. 7 D. 8 6. How much is the annual installments? A. 200,000 B. 225,000 C. 250,000 D. 260,000 7. On 12/31/2020, the CURRENT PORTION of the Note Payable would be? A. 113,087 B. 126,658 C. 141,857 D. 158,879 PLEASE PROVIDE SOLUTIONS EVERY ANSWERS. THANK YOU!
Required information [The following information applies to the questions displayed below.] At the end of 2025, the following information is available for Great Adventures. • Additional interest for five months needs to be accrued on the $36,000, 6% note payable obtained on August 1, 2024. Recall that annual interest is paid each July 31. • Assume that $12,000 of the $36,000 note discussed above is due next year. Record the entry to reclassify the current portion of the long-term note. • By the end of the year, $20,000 in gift cards have been redeemed. The company had sold gift cards of $25,300 during the year and recorded those as Deferred Revenue. • Great Adventures is a defendant in litigation involving a biking accident during one of its adventure races. The company believes the likelihood of payment occurring is probable, and the estimated amount to be paid is $15,000. • For sales of MU watches, Great Adventures offers a warranty against defect for one year. At the end of the year,…

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Determine the combined present value as of December 31, 2016, of the following four payments to be received at the end of each of the designated years, assuming an annual interest rate of 8%. Payment Year Received $5,000 2017 6,000 2018 8,000 2020 9,000 2022