Question: On August 1, a $60,000, 7%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest

On August 1, a $60,000, 7%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest be paid each year on July 31. The present value of an annuity factor for 3 years at 7% is 2.6243. The present value of a single sum factor for 3 years at 7% is 0.8163. The payment each July 31 will be:

Multiple Choice

1. $20,000.00.

2. $22,863.24.

3. $20,800.00.

4. $20,400.00.

5. $2,863.10.

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!

13. On October 1, a $30,000, 6%, 3-year installment note payableis issued by a company. The note requires equal payments ofprincipal plus accrued interest be paid at the end of each year onSeptember...

1. If bonds for Crayon Corporation, with a face value of $150,000, are converted into common stock when the carrying value of the bonds is $135,000, the entry to record the conversion will include a...

2) A company issued 5-year, 6.5% bonds with a par value of $100,000. The market rate when the bonds were issued was 7.0%. The company received $98,688 cash for the bonds. Using the effective interest...

13. On October 1, a $30,000, 6%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest be paid at the end of each year on...

On October 1, a $30,000, 6%, 3-year installment note payable is issued by a company. The note requires that $10,000 of principal plus accrued interest be paid at the end of each year on September 30....

The following transactions occurred in Wendell Corporation, which has a December 31 year end. 1. Property taxes of $40,000 were assessed on March 1 for the calendar year. They are payable by May 1....

Adonis Corporation issued 10-year, 11% bonds with a par value of $300,000. Interest is paid semiannually. The market rate on the issue date was 10%. Adonis received $318,696 in cash proceeds. Which...

On August 1, a $30,000, 6%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest of $11,223.34. The entry to record the first...

1. On August 1, a $45,600, 7%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest of $17,375.96. The entry to record the first...

QUESTION 14 On August 1, a $30,000. 6%. 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest of 511.223.34. The entry to record...

Long John Silver, a pirate, has buried his treasure on an island with five trees, located at the following points: (30.0 m, 20.0 m), (60.0 m, 80.0 m), (10.0 m, 10.0 m), (40.0 m, 30.0 m), and (70.0 m,...

The following information is about transactions relating to property, plant and equipment of Achilles Ltd ("Achilles") during the year to 31 December 2018: 1. New factory premises were completed and...

9 a ) What is the future value of $ 2 2 , 0 0 0 ( deposited today, no other deposits made ) after twenty - eight years assuming 3 . 8 % annual rate, with semi - annual compounding? b ) What is the...

The first scenario will be a Verbal Judo scenario in which your scenario follows the standard Verbal Judo interaction: You need to ask somebody to modify their behavior either to do something or to...

5. List the forces that shape a groups decisions

4. Identify how culture affects appropriate leadership behavior

3. Identify the qualities that make leaders effective at enacting change