Econo Nation started 2015 with no national budget debt or surplus. By the end of 2015, it had a budget surplus of $294 million; in 2016, it had a budget deficit of $437 million; in 2017, it had a budget surplus of $104 million, and the amount of its budget deficit or surplus in 2018 is unknown. If at the end of 2018, Econo Nation's national debt totaled $44 million, determine the deficit or surplus in 2018. Instructions: Enter your answer as a whole number and include a negative sign if there is a deficit. Period Beginning of 2015 End of 2015 2016 2017 End of 2018 Deficit (-) or surplus (+) 50 $294 million -$437 million $104 million million Debt $44 million

Econo Nation started 2015 with no national budget debt or surplus. By the end of 2015, it had a budget surplus of $294 million; in 2016, it had a budget deficit of $437 million; in 2017, it had a budget surplus of $104 million, and the amount of its budget deficit or surplus in 2018 is unknown. If at the end of 2018, Econo Nation's national debt totaled $44 million, determine the deficit or surplus in 2018. Instructions: Enter your answer as a whole number and include a negative sign if there is a deficit. Period Beginning of 2015 End of 2015 2016 2017 End of 2018 Deficit (-) or surplus (+) 50 $294 million -$437 million $104 million million Debt $44 million

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Coulson Company is in the process of refinancing some long-term debt. Its fiscal year ends on December 31, 2016, and its financial statements will be issued on March 15, 2017. Under current U.S. GAAP, how would the debt be classified if the refinancing is completed on December 15, 2016? What if instead it is completed on January 15, 2017?
ACME Incorporated has a $3.1 million dollar, 9% loan, annual interest payments, with RBC maturing on December 31, 2025. Due to decrease revenues caused by the pandemic, the company is experiencing solvency and cash flow issues that have negatively impacted the its ability to make its interest and principal payments. Assume that ACME's year end is December 31, and the company reports under IFRS. On January 01, 2021, the bank agreed to extend the maturity date to 2035 (The current market rate is 10%). Required: Round interim calculations to four decimals and final answers to the nearest dollar. Conclude on the appropriate accounting treatment and show calculations to support your conclusion.
CPA Bank Co. loaned P6,750,000 to a borrower on January 1, 2018. The terms of the loan were payment in full on January 1, 2023 plus annual interest payment at 12%. The interest payment was made as scheduled on January 1, 2019. However, due to financial setbacks, the borrower was unable to make the 2020 interest payment. The bank considered the loan impaired and projected the cash flows from the loan on December 31, 2020. The bank has accrued the interest on December 31, 2019, but did not continue to accrue interest for 2020 due to the impairment of the loan. The projected cash flows are: December 31, 2021, P1,125,000; December 31, 2022, P1,500,000; December 31, 2023, P1,875,000 and December 31, 2024, P2,250,000. The present value of 1 at 12% is 0.89 for one period, 0.80 for two periods, 0.71 for three periods and 0.64 for four periods. What is the carrying amount loan receivable as of December 31, 2021?
For the March 2020 (2) Press Release, answer the following question.A. For Column 8, complete the range of the Federal Funds Target AND the % change from the previous release.B. For Column 9, decide whether the Fed is buying or selling loans and whether they have increased or decreasedthe amount.
The consumer price index of education in January 2017 was 251.126. In January 2018 the CPI for education was 257.308. If annual tuition at a public university was $5,500 in January 2017, What should the same tuition cost (in dollars) in January 2018 if the school increased tuition to keep pace with the CPI? Round your answer to the nearest cent.
On December 31, 2020, Rose National Bank enters into a debt restructuring agreement with Emerald Resorts, which is experiencing financial difficulties. The bank restructures a $14,000,000 loan receivable issued at par (interest paid to date) by: 1. Reducing the principal obligation from $14,000,000 to $12,000,000; 2. Extending the maturity date from December 31, 2020 to December 31, 2025; and 3. Reducing the interest rate from 8% to 6%. Interest income from the note receivable from Emerald Resorts in 2022 was
On December 31, 2020, Gibson Company has $18,200,000 of short-term debt in the form of notes payable to Blue Lagoon State Bank due in 2021. On January 28, 2021, Gibson enters into a refinancing agreement with Blue Lagoon that will permit it to borrow up to 60% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $15,600,000 in May to a high of $20,800,000 in October during the year 2021. The interest cost of the maturing short-term debt is 15%, and the new agreement calls for a fluctuating interest at 1% above the prime rate on notes due in 2025. Gibson intends to use the refinancing agreement to the fullest extent possible. Gibson’s December 31, 2020, balance sheet is issued on February 15, 2021. Prepare a partial balance sheet for Gibson at December 31, 2020, showing how its $18,200,000 of short-term debt should be presented, including note disclosure.
On December 31, 2023, Concord Corporation has $8.21 million of short-term debt in the form of notes payable that are due in 2024 to Provincial Bank. On January 28, 2024, Concord enters into a refinancing agreement with the bank that permits it to refinance its debt by up to 63% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $5.3 million in February and a high of $8.0 million in October during 2024. The interest cost of the maturing short-term debt is 12%, and the new agreement calls for a fluctuating interest rate at 2% above the prime rate (currently prime is 8%) with the notes due in 2025. Concord informed the bank that it wishes to refinance as much of its debt as possible prior to its December 31, 2023 balance sheet being issued on February 15, 2024. (a) Assuming that Concord follows ASPE, prepare a partial balance sheet for Concord at December 31, 2023, that shows how its $8.21 million of short-term debt should be presented.…
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On April 1, 2021, the Electronic Superstore borrows $21 million of which $7 million is due in 2022. Show how the company would report the $21 million debt on its December 31, 2021 balance sheet. (Enter your answers in dollars not in millions. For example, $7,000,000 rather than $7 million.) Electronic Superstore Partial Balance sheet December 31st 2021 Current liabilities: Long-term liabilities: Total liabilities
On December 31, 2020, Oriole Company has $6,941,000 of short-term debt in the form of notes payable to Gotham State Bank due in 2021. On December 28, 2020, Oriole enters into a refinancing agreement with Gotham that will permit it to borrow up to 52% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $5,949,000 in May to a high of $7,947,000 in October during the year 2021. The interest cost of the maturing short-term debt is 15%, and the new agreement calls for a fluctuating interest at 1% above the prime rate on notes due in 2025. Oriole’s December 31, 2020, balance sheet is issued on February 15, 2021.Prepare a partial balance sheet for Oriole at December 31, 2020, showing how its $6,941,000 of short-term debt should be presented. (Enter account name only and do not provide descriptive information.) ORIOLE COMPANYPartial Balance Sheetchoose the accounting period select…
On December 31, 2020, Firth Company borrowed $62,092 from Paris Bank, signing a 5-year, $100,000 zero-interest-rate note. The note was issued to yield 10% interest. Unfortunately, during 2022, Firth began to experience financial difficulty. As a result, at December 31, 2022, Paris Bank determined that it was probable that it would collect only $75,000 at maturity. The market rate of interest on loans of this nature is now 11%. Instructions a. Prepare the entry (if any) to record the impairment of the loan on December 31, 2022, by Paris Bank. b. Prepare the entry on March 31, 2023, if Paris learns that Firth will be able to repay the loan under the original terms.

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