On Dec 31, 2022, Huey, Inc. issued a $67,800,000 Note to Huge Deal Co. in payment...

 

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On Dec 31, 2022, Huey, Inc. issued a $67,800,000 Note to Huge Deal Co. in payment for 5 bull dozers. The note term is 3 years and contains a 5% annual interest payment at each year end with the note face to be paid at term end. If Huey had been able been able to pay cash for the bull dozers, the price would have been $56,970,000. Requirements: 1. What is the value of the bull dozers? 2. What is the effective interest rate of this Note? 3. Create an amortization table. 4. Create the journal entries for note issuance, the last interest payment, and note re-payment. 1 Asset Price 2 Effective Rate Amortization Table Journal Entries Period Cash Interest Amort Balance Calculations Here: On Dec 31, 2022, Huey, Inc. issued a $67,800,000 Note to Huge Deal Co. in payment for 5 bull dozers. The note term is 3 years and contains a 5% annual interest payment at each year end with the note face to be paid at term end. If Huey had been able been able to pay cash for the bull dozers, the price would have been $56,970,000. Requirements: 1. What is the value of the bull dozers? 2. What is the effective interest rate of this Note? 3. Create an amortization table. 4. Create the journal entries for note issuance, the last interest payment, and note re-payment. 1 Asset Price 2 Effective Rate Amortization Table Journal Entries Period Cash Interest Amort Balance Calculations Here:

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