On September 1, 2022, Finley Corp. sold inventory in exchange for a 2-year non-interest-bearing note having...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On September 1, 2022, Finley Corp. sold inventory in exchange for a 2-year non-interest-bearing note having a face value of $30,000. The present value of this note has already been determined to be $23,916. 12% compounded annually is a reasonable cost of borrowing for non-interest-bearing notes of this nature. The note's face value will be paid back on September 1, 2024. Finley Corp. has a calendar year-end, uses the effective interest method, and uses the periodic inventory system. A. Complete the amortization table for this note in the space below. Round all calculations to the nearest whole dollar. (2 pts) Cash Received Date 9/1/22 9/1/23 9/1/24 9/1/24 Totals Interest Revenue Carrying Value B. Prepare journal entries for the dates noted below. Round all calculations to the nearest whole dollar. Reminder: Please follow the correct journal entry formatting rules. (20 pts) 9/1/22 12/31/22 12/31/23 Dr Cr On September 1, 2022, Finley Corp. sold inventory in exchange for a 2-year non-interest-bearing note having a face value of $30,000. The present value of this note has already been determined to be $23,916. 12% compounded annually is a reasonable cost of borrowing for non-interest-bearing notes of this nature. The note's face value will be paid back on September 1, 2024. Finley Corp. has a calendar year-end, uses the effective interest method, and uses the periodic inventory system. A. Complete the amortization table for this note in the space below. Round all calculations to the nearest whole dollar. (2 pts) Cash Received Date 9/1/22 9/1/23 9/1/24 9/1/24 Totals Interest Revenue Carrying Value B. Prepare journal entries for the dates noted below. Round all calculations to the nearest whole dollar. Reminder: Please follow the correct journal entry formatting rules. (20 pts) 9/1/22 12/31/22 12/31/23 Dr Cr
Expert Answer:
Answer rating: 100% (QA)
A Amortization Table Date Cash Received Interest Revenue Car... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
On December 1, 2011, John and Patty Driver formed a corporation called Susquehanna Equipment Rentals. The new corporation was able to begin operations immediately by pur-chasing the assets and taking...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Enter the transactions for Weeks 1 5 into the appropriate Journal for the month of June 2022. Next, post all the Journal transactions to the ledger accounts as specified in the Account System...
-
In Exercises 1 through 18, differentiate the given function. y 2+1 1-2
-
Determine the polar moment of inertia of the area shown with respect to (a) Point O, (b) The centroid of the area. 80 60 -40-- 40-- 40 -- 40-| Dimensions in mm
-
An LM380 must deliver ac power to a \(10 \Omega\) load. The maximum power dissipated in the amplifier must be limited to \(2 \mathrm{~W}\) and the maximum allowed distortion must be limited to 3...
-
The income statement and balance sheet for Clark Industries at March 31, 2010, are presented next: Requirements 1. Calculate the gross profit percentage for Clark Industries for the year. 2. The...
-
The management of a chain of fast-food restaurants wants to investigate the relationship between the daily sales volume (in dollars) of a company restaurant and the number of competitor restaurants...
-
Manu enterprises is a textile manufacturing corporation with an average inventory of $8,700, average receivables of $10,300 and average payables of $5,600. The sales on credit and cost of goods sold...
-
How would the companys cash needs change for the company in Examples 14-1 to 14-5 if the third project started in May instead of February and the retention was not released until the following year?
-
What is the Difference between each of the following terms, Justify with drawing if possible: 1) Array Based Sacks Vs Linked Lists Based Stacks 2) Pop() Method Vs Top() Method 3) Singly Linked Lists...
-
How did they get the credit sales and opportunity cost? Credit Sales Cost of Goods Sold (81.98 % of sales ) Gross Margin Additional Marketing Cost the new credit policy (assuming 1% of credit sales)...
-
Simplify the following expression completely: (-4w15) 4 Answer:
-
B Ltd a US firm had exports to C Ltd a UK firm in year 2016 for 10M payable in 1 year. The interest and exchange rates applicable were as follows: US interest rates 6.1% UK interest rates 9.0% Spot...
-
Billie owns a high-end home theater speaker system, which she bought 2 years ago for $2236. Unfortunately, the speaker system was stolen last week, but Billie has a renter's insurance. What is the...
-
Find the equilibrium points for the system x'= 10(y - x) y'= 28x - y-xz 8 z' = - -z+xy 3 One of the equilibrium points will have all positive coordinates. Those coordinates are: x= y = x =
-
Write the entire speech according to the given information: You are proud to be associated with an organisation that has worked tirelessly to promote a culture of equality. In the past few years...
-
10m solution. If Ka(HA) = 10 then pOH of solution will be [Given : log4=0.6] (A) 6.7 (B) Greater than 6.7 & less than 7.0 (C) Greater 7.0 & less than 7.3 (D) Greater than 7.3
-
Last year, Wyeth Company recorded an impairment on an asset held for use. Recent appraisals indicate that the asset has increased in value. Should Wyeth record this recovery in value under GAAP?
-
What is the nature of interest? Distinguish between simple interest and compound interest.
-
Kawasaki Company shows the following entries in its Equipment account for 2013. All amounts are based on historical cost. Instructions(a) Prepare any correcting entries necessary.(b) Assuming that...
-
Consider an economy in long-run equilibrium with an inflation rate, \(\pi\), of \(12 \%(0.12)\) per year and a natural unemployment rate, \(u_{n}\), of \(4 \%(0.04)\). The expectations-augmented...
-
In a certain economy, the expectations-augmented Phillips curve is a. Graph the Phillips curve of this economy for an expected inflation rate of 0.075 . If the Fed chooses to keep the actual...
-
How do expropriation and confiscation differ?
Study smarter with the SolutionInn App