Question: Use the following present value information to answer the questions below N PV Single Sum $1 Table 6-2 PV Ordinary Annuity Table 6-4 5% 8%

Use the following present value information to answer the questions below

N

PV Single Sum $1

Table 6-2

PV Ordinary Annuity

Table 6-4

5%

8%

5%

8%

1

0.95238

0.92593

0.95238

0.92593

2

0.90703

0.85734

1.85941

1.78326

3

0.86384

0.79383

2.72325

2.57710

4

0.82270

0.73503

3.54595

3.31231

5

0.78353

0.68058

4.32948

3.99271

On December 31, 2018 Seller Company sold goods to Buyer Company and in return received a $40,000 3-year note.

- A. B. C. D. E. F. G. H. I. J. K. L.

Assume that the note is zero-interest bearing and that Buyer Companys borrowing rate is 5%. Interest is compounded annually. Determine the Sales Revenue recognized by Seller Company on December 31, 2018
- A. B. C. D. E. F. G. H. I. J. K. L.

Assume that the note is zero-interest bearing and that Buyer Companys borrowing rate is 5%. Interest is compounded annually. Determine the Interest Revenue recognized by Seller Company on December 31, 2019
- A. B. C. D. E. F. G. H. I. J. K. L.

Assume that the note is a 5% note and that Buyer Companys borrowing rate is 8%. Interest is paid annually. Determine the Sales Revenue recognized by Seller Company on December 31, 2018
- A. B. C. D. E. F. G. H. I. J. K. L.

Assume that the note is a 5% note and that Buyer Companys borrowing rate is 8%. Interest is paid annually. Determine the Discount Amortized by Seller Company on December 31, 2019
- A. B. C. D. E. F. G. H. I. J. K. L.

Assume that on December 31, 2017 Seller Company received a 3-year, zero-interest bearing note receivable with a face value of $10,000 and recorded a discount of $925 on December 31, 2017. Determine the Carrying Value of the Note Receivable on December 31, 2017.
- A. B. C. D. E. F. G. H. I. J. K. L.

Assume that on December 31, 2017 Seller Company received a 3-year, zero-interest bearing note receivable with a face value of $10,000 and recorded a discount of $925 on December 31, 2017. Determine the TOTAL Interest Revenue Seller Company will recognize over the entire 3-year period.
A.

2,952.59
B.

1,727.68
C.

Not enough information to determine
D.

952.59
E.

31,753.20
F.

10,925
G.

9,075
H.

40,000
I.

34,553.60
J.

$925
K.

1,845.37
L.

36,907.40

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