Question: Notes Receivable - Effective Interest Method On January 1, 2018, Tolson Company accepted a 13% note dated January 1, 2018 with a face amount of

Notes Receivable - Effective Interest Method
On January 1, 2018, Tolson Company accepted a 13% note dated January 1, 2018 with a face amount of $2,495,000 in exchange for cash. The note is due in 10 years. A note with similar risk has a market interest rate of 15%. Interest is paid each December 31st.

a)Using an excel spreadheet, calculate the present value of the note receivable.

B)Complete the amortization table using excel formulas when possible:

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

16. On January 1, 2016, Tolson Company accepted a 13% note, dated January 1, 2016, with a face amount of $2,410,000 in exchange for cash. The note is due in 10 years. For notes of similar risk and...

Q:

On January 1, 2022, Garcia Company accepted a 13% note, dated January 1, 2022, with a face amount of $2,450,000 in exchange for cash. The note is due in 10 years. For notes of similar risk and...

Q:

On January 1, 2016, Ringo Company accepted a 13% note, dated January 1, 2016, with a face amount of $2, 480,000 in exchange for cash. The note is due in 10 years. For notes of similar risk and...

Q:

On January 1, 2018. Bandar Company accepted a 14 note, dated January 1, 2018, with a face amount of 52.440.000 in exchange for cash. The note is due in 10 years. For notes of similar risk and...

Q:

On January 1, 2018, Racine Company accepted a 10% note, dated January 1, 2018, with a face amount of $2,400,000 in exchange for cash. The note is due in 10 years. For notes of similar risk and...

Q:

On January 1, 2022, Racine Company accepted a 10% note, dated January 1, 2022, with a face amount of $2,400,000 in exchange for cash. The note is due in 10 years. For notes of similar risk and...

Q:

Notes Receivable. On January 1, 2022, Racine Company accepted a 10% note, dated January 1, 2022, with a face amount of $2,400,000 in exchange for cash. The note is due in 10 years. For notes of...

Q:

E16-18. Notes Receivable. On January 1, 2018, Racine Company accepted a 10% note, dated January 1, 2018, with a face amount of $2,400,000 in exchange for cash. The note is due in 10 years. For notes...

Q:

WAYFAIR INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) S Year Ended December 31, 2018 2017 6,779,174 $ 4,720,895 $ 5,192,451 3,602,072 1,586,723 1,118,823 2016...

Q:

I need give me example in every step. Do not use Excel. Thank you. On January 1,2018, Vidalia Company accepted a 14 % note, dated January 1, 2018 with a face amount of $ 2,480,000 in exchange for...

Q:

Refer to the information in Exercise 13-41. For July, Jolly Cleaners has budgeted profit of $5.000 based on 50 commercial clients. All information about unit costs for cleaners and supplies, about...

Q:

The atmosphere in a retail store is carefully crafted to influence shoppers. Select a retailer with both a physical store and an online store. Describe the elements of the physical stores atmosphere,...

Q:

You are an employee of a conaultant company and have been given the following information to do an investment analysis of a new small income - producing property for sale to a potential investor. \...

Q:

Hypothesis Testing of a Single Mean LCTCS Tuition: Louisiana Community And Technical College System consist of 2 community colleges across the state. I think RPCC's tuition and fees is lower than the...

Q:

How can a report writer meet the needs of both primary and secondary readers? Give a specific example. (Objective 3)

Q:

What five steps are followed when conducting business research? (Objective 3)

Q:

What can a researcher do to create a comfortable, supportive environment for a personal interview? (Objective 3)