Question: On December 30, 2005, Bart, Inc. purchased a machine from Fell Corp. in exchange for a non- interest bearing note requiring eight payments of $20,000.

On December 30, 2005, Bart, Inc. purchased a machine from Fell

On December 30, 2005, Bart, Inc. purchased a machine from Fell Corp. in exchange for a non- interest bearing note requiring eight payments of $20,000. The first payment was made on December 30, 2005, and the others are due annually on December 30. At the date of issuance, the prevailing rate of interest for this type of note was 11%. Present value factors are as follows: Peri The present value of an ordinary annuity The present value of the annuity in advance od of 1 at 11% 7 00 8 4.712 5.146 of 1 at 11% 5.231 5.712 On Bart's December 31, 2005 balance sheet, the note payable to Fell was $114,240 $104,620 $94,240 $102,920

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!

(Please answer with complete solution) (AICPA) 5. On January 1, 20x1, RELISH TASTE Co. acquired a machine by issuing a 3%, P4,000,000 note due on January 1, 20x4. Interest is payable semiannually....

Question 4 On December 30, 2017, Bart, Inc. purchased a machine from Fell Corp. in exchange for a non-interest bearing note requiring eight payments of $20,000. The first payment was made on December...

On December 3 0 , Year 1 , Bart, Inc. purchased a machine from Fell Corp. in exchange for a noninterest bearing note requiring eight payments of $ 2 0 , 0 0 0 . The first payment was made on December...

Barbie Company had 0 bonds payable with face amount of 4,900,000 and accrued interest of 200,000. 111e carrying amount of the bonds is 4,500,000. The creditor agreed to the settlement of bonds with...

The following questions are used in the Kaplan CPA Review Course to study property, plant, and equipment and intangible assets while preparing for the CPA examination. Determine the response that...

The following questions are adapted from a variety of sources including questions developed by the AICPA Board of Examiners and those used in the Kaplan CPA Review Course to study property, plant,...

Moto Inc. pays state income tax at a 6 percent rate and federal income tax at a 34 per-cent rate. Moto recently engaged in a transaction in Country N, which levied a $97,300 tax on the transaction....

Imagine you have an infinite amount of five different banknotes (10 euros, 50,100,200,500). You have to put them in a box and find all possible types(modes) of doing that. Rules are: After 10 euros...

find the equation for the contour f ( x , y ) 2 x ^ ( 2 ) y + 5 x + 2 5 that goes through point ( 3 , - 1 ) equation:

Liquid Extracts Company produces a line of fruit extracts for home use in making wine, jams and jellies, pies, and meat sauces. Fruit enter the production process in pounds; the product emerges in...

On May 31, the inventory balances of Princess Designs, a manufacturer of high-quality children's clothing, were as follows: Materials Inventory, $21,360; Work in Process Inventory, $15,112; and...

The financial statements of P&G are presented in Appendix 5B or can be accessed at the books companion website, www.wiley.com/college/kieso. Instructions Refer to P&Gs financial statements and the...

The comparative balance sheet of Lim Garden Supplies Inc. for December 31, 2010 and 2011, is as follows: The income statement for the year ended December 31, 2011, is as follows: The following...

In an examination of Arenes Corporation as of December 31, 2012, you have learned that the following situations exist. No entries have been made in the accounting records for these items. 1. The...

Create a 200 word summary on the Juvenile Justice System than and today. Describe The Juvenile system and provide a generalizable definition. Highlight the issues in the Juvenile system and why this...

Herman Quilly is the cost accountant for the Lockwood Corporation. In attempting to perform a Monte Carlo simulation, to assess the profitability of one of the firms product lines, he has estimated...

Using Monte Carlo simulation, the Capp Company found the following probability distribution for the net present value of a project that it is evaluating: pg52 NPV Probability -$50,000 .10 -25,000 .30...

The El Paso Furniture Company wants to use Monte Carlo simulation to analyze the cost-volumeprofit relationship for one of its product lines. The probability distribution for this product is shown...