On July 1, 2017. Agincourt Inc. rendered services in exchange for a 4%. 8-year promissory note having a face value of $500,000 (interest payable annually). Agincourt Inc. recently had to pay 8% Interest for money that it borrowed from British National Bank. The customer of the above fransaction has credit ratings that require them to borrow money at 12% interest. The present value of I at 12% for 8 perlods 0.40388 The present value of an ordinary annulty 4.9676| of 1 at 12% for 8 perlods Instructions By how much amount Ihe service revue wil be credited (Please wite yoUr answer without commas or sign of the doliar. Forekample. if your answer is $10.DOO write it 10000)

On July 1, 2017. Agincourt Inc. rendered services in exchange for a 4%. 8-year promissory note having a face value of $500,000 (interest payable annually). Agincourt Inc. recently had to pay 8% Interest for money that it borrowed from British National Bank. The customer of the above fransaction has credit ratings that require them to borrow money at 12% interest. The present value of I at 12% for 8 perlods 0.40388 The present value of an ordinary annulty 4.9676| of 1 at 12% for 8 perlods Instructions By how much amount Ihe service revue wil be credited (Please wite yoUr answer without commas or sign of the doliar. Forekample. if your answer is $10.DOO write it 10000)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On April 1, 2017, Indigo Company assigns $549,400 of its accounts receivable to the Third National Bank as collateral for a $301,600 loan due July 1, 2017. The assignment agreement calls for Indigo to continue to collect the receivables. Third National Bank assesses a finance charge of 3% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for a note of this type). Your answer is partially correct. Try again. Prepare the April 1, 2017, journal entry for Indigo Company. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Apr. 1, 2017 SHOW LIST OF ACCOUNTS LINK TO TEXT…
KMC Inc. provided a loan to Jim Ltd on January 1st, 2016 and received in exchange a 4-year, $120,000 note bearing interest at 8% to be paid annually on December 31. The market rate of interest for financial instruments of similar risk is 2%. KMC Inc. financial year ends December 31 and the company uses the effective interest method to amortize discount and recognize interest revenue. Required: Round to nearest whole number d) Prepare the journal entry in KMC’s books to record the issuance of the note on January 1, 2016. e) Prepare KMC’s 4-year Note Amortization schedule. f) Prepare the journal entry KMC records on December 31, 2017.
On April 1, 2014, Somers Company assigns $200,000 of its accounts receivable to Third National Bank as collateral for a $100,000 loan due July 1, 2014. The assignment agreement calls for Somers Company to continue to collect the receivables. Third National Bank assesses a finance charge of 3% of the accounts receivable, and interest on the loan is 8% (a realistic rate of interest for a note of this type). a) Prepare the April 1, 2014, journal entry for Somers Company. b) Prepare the journal entry for Somers’s collection of $175,000 of the accounts receivable during the period from April 1, 2014, through June 30, 2014. c) On July 1, 2014, Somers paid Third National all that was due from the loan it secured on April 1, 2014. answr all three subparts thnx
(Assigning Accounts Receivable) On April 1, 2017, Rasheed Company assigns $400,000 of its accounts receivable to the Third National Bank as collateral for a $200,000 loan due July 1, 2017. The assignment agreement calls for Rasheed to continue to collect the receivables. Third National Bank assesses a finance charge of 2% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for a note of this type).Instructions(a) Prepare the April 1, 2017, journal entry for Rasheed Company.(b) Prepare the journal entry for Rasheed’s collection of $350,000 of the accounts receivable during the period from April 1, 2017, through June 30, 2017.(c) On July 1, 2017, Rasheed paid Third National all that was due from the loan it secured on April 1, 2017. Prepare the journal entry to record this payment.
On july 1, 2017 LA company sold equipment to NA company for 1,000,000. LA accepted a 10% note receivable for the entire sales price. This note payable in two equal installments of 500,000 plus accrued interest on December 31,2017 and December 31,2018. On July 1, 2018, LA discounted the note at a bank at an interest rate of 12%. What is the amount received by LA Company from the discounting of note receivable?
On December 31, 2017, Chnag Company sold a machine in the ordinary course of business to Door Company in exchange for a noninterest bearing note requiring ten annual payments of P1,000,000.The entity made the first payment on December 31, 2017. The market interest rate for similar notes at date of issuance was 8%.PV of an ordinary annuity of 1 at 8% for 9 periods 6.25 PV of an ordinary annuity of 1 at 8% for 10 periods 6.71What is the amount of sales revenue?
Mika Company secured a one-year bank loan of P8,000,000 on October 1, 2010. The loan is discounted at 10%. The entity signed a note for the loan and pledged P10,000,000 of its accounts receivable as collateral for the same. The accounting period of the entity ends on December 31. How much is received by Mika Company on its loan transaction?
On July 1, 2017, KYU Co. discounted a 90-day, P850,000, 12% note, received from a customer on June 1, 2017, with a bank at 16% on with recourse basis. The discounting is treated as a conditional sale. The bank uses 365 days per year in computing for discounts. On August 30, 2017 (maturity date), the maker of the note defaulted and the bank charged KYU Co. the maturity value of the note plus a P3,000 protest fee. How much is transferred to accounts receivable due to the dishonor?
On July 1, 2023, Babalon Inc. made the following sale. 1. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $404,520 (interest payable annually). The customer has a credit rating that requires them to borrow money at 12%. The journal entry to record the note on Babalon's book would require: A debit to Notes Receivable for $ type your answer... for: $ type your answer... ; a credit to Service Revenue for $ type your answer... and a credit to Discount on Notes Receivable
On 1 January 2022, Rodney Inc. provided services to Smith Co. in exchange for Smith’s $300,000, 2-year 8% note with interest compounded semi-annually on July 1 and January 1. The current market rate of similar notes is 12%. Rodney Inc. financial year ends December 31. REQUIRED: 1. Provide the following input values from your financial calculator: N = I/Y = PMT = FV = 2. The note was issued at = 3. The present value of the note is =
"On 1 September 2014, Select Company borrowed P600,000 from a bank and signed a 12%, six-month note payable, with interest on the note due at maturity. The total amount of the current liability (including interest payable) for this loan that appears in Select Company's statement of financial position at 31 December 2014 is: " O A. P600,000. O B, P636,000. OC P672,000. O D. P624,000.
On December 1, 2014, Nicole Company gave Dawn Company a P200,000,12% loan. Nicole Company paid proceeds of P 194,000 after the deduction of a P6,000 nonrefundable loan origination fee. Principal and interest are due in sixty monthly installments ofP 4,450, beginning January 1, 2015. The repayment yield an effective interest rate of 12% at apresent value of P 200,000 and 13.4% at a present value of P 194,000. A. What amount of interest income should be reported in 2014?B. What amount should be reported as accrued interest receivable on December 31, 2014?