On February 1 , 2 0 2 0 , the Greece Corp., which maintains a perpetual inventory
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Question:
On February 1 , 2 0 2 0 , the Greece Corp., which maintains a perpetual inventory system, acquired merchandise inventory by signing a two - year, 1 4 % , $ 8 0 , 0 0 0 note payable. On this date, the market interest rate on a note of this type is 8 % . This note pays interest semiannually on February 1 and August 1 of each year.
Required:
a Using the NPV function in Excel, compute the present value of this note.
b Record the acquisition of this merchandise inventory on February
c Prepare a complete effectiveinterestrate schedule for this note in Excel or on paper.
d Make the necessary August entry related to this note.
e Make the necessary December adjusting entryies related to this note.
f Make all of the necessary February entryies related to this note
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
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