Grouper Inc. is a reliable, long-term customer of Monty Ltd. Due to unexpected costs of rapid expansion, Grouper was unable to pay its account balance when it became due on January 1, 2023. Monty agreed to accept a $225,000 non- interest bearing note that would be payable on December 31, 2026. This type of financing would typically have an interest rate of 12%. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. (a) Use 1. PV.1 Tables, 2. a financial calculator, or 3. Excel functions to arrive at the amount to record the note receivable. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and round final answer to 0 decimal places, e.g. 8,971.) Your answer has been saved. See score details after the due date. Note receivable $ (b) eTextbook and Media (c) List of Accounts Your answer has been saved. See score details after the due date. Account Titles and Explanation Notes Receivable Prepare the journal entry to record this transaction for Monty Ltd. on Jan 1, 2023. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 58,971. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) Accounts Receivable 142992 eTextbook and Media List of Accounts Date December 31, 2023 Debit 142992 Attempts: 1 of 1 used Debit Credit 14299 Prepare the journal entry for Monty Ltd. on December 31, 2023 using the effective interest method. (Round answers to 0 decimal places, e.g. 58,971. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Attempts: 1 of 1 used Cr

On January 1, 2022, Slack Company finished legal services and accepted in exchange a 5% $400,000 promissory note with a due date of December 31, 2024.  Interest is receivable on January 1 of each year. Notes with similar risk have a market rate of interest of 10%.  Set financial calculators to zero decimal place.   Required: (a)  Determine the value of the following: N = Answer 1 Question 3 I/Y = Answer 2 Question 3 PMT = $Answer 3 Question 3 FV = $Answer 4 Question 3   (b)  The present value of the note was $Answer 5 Question 3 (c)  Prepare a Schedule of Note Discount/Premium Amortization for Slack Company under the effective interest method.  Slack Company Schedule of Note Discount/Premium Amortization Effective Interest Method   Date   Cash   Interest Amortized Amount Carrying Value of Note Jan 1, 2022       $Answer 6 Question 3 Dec 31, 2022 $Answer 7 Question 3 $Answer 8 Question 3 $Answer 9 Question 3 Answer 10 Question 3 Dec 31,…

On December 31, 2020, Stellar Company signed a $ 1,022,000 note to Pearl Bank. The market interest rate at that time was  11%. The stated interest rate on the note was  9%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Stellar’s financial situation worsened. On December 31, 2022, Pearl Bank determined that it was probable that the company would pay back only $ 613,200 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $ 1,022,000 loan.

Current Attempt in Progress Riverbed Corp. was experiencing cash flow problems and was unable to pay its $104,000 account payable to Martinez Corp. when it fell due on September 30, 2023. Martinez agreed to substitute a one-year note for the open account. The following two options were presented to Riverbed by Martinez: Option 1: A one-year note for $104,000 due September 30, 2024. Interest at a rate of 9% would be payable at maturity. Option 2: A one-year non-interest-bearing note for $113,360. The implied rate of interest is 9%. Assume that Martinez has a December 31 year end.