1) On June 8, Williams Company issued an $78,358, 12%, 120-day note payable to Brown Industries. Assuming...
Question:
1) On June 8, Williams Company issued an $78,358, 12%, 120-day note payable to Brown Industries. Assuming a 360-day year for your calculations, what is the maturity value of the note? When required, round your answer to the nearest dollar.
2) The Merchant Company issued 10-year bonds on January 1. The 10% bonds have a face value of $94,000 and pay interest every January 1 and July 1. The bonds were sold for $113,374 based on the market interest rate of 8%. Merchant uses the effective interest method to amortize bond discounts and premiums. On July 1 of the first year, Merchant should record interest expense (round to the nearest dollar) of
3 )On January 1, Year 1, Zero Company obtained a $52,000, 4-year, 6.5% installment note from Regional Bank. The note requires annual payments consisting of principal and interest of $15,179, beginning on December 31 of the current year. The December 31, Year 1 carrying amount in the allocation of periodic payments table for this installment note will be equal to:
College Accounting Chapters 1-30
ISBN: 978-1259631115
15th edition
Authors: John Price, M. David Haddock, Michael Farina