sd Ayayai Corporation, a publicly-traded company, agreed to loan money to another company. On July 1, 2023, thecompany received a five-year promissory note with a face value of $501,000, paying interest at a face rate of 5%on July 1 each year. The note was issued to yield an effective interest rate of 6%. Ayayai used the effectiveinterest method of amortization for discounts or premiums, and the company's year-end is September 30.Click here to view the factor table PRESENT VALUE OF 1.Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.(a)Use 1. PV Tables, 2. a financial calculator, and 3. Excel functions to arrive at the amount to record the notereceivable. (Round present value factor calculations to 5 decimal places, e.g. 1.2512. Round PV tables and Excelfunction answers to O decimal places, e.g. 8,971 and round Financial calculator answer to 2 decimal places, e.g.89.71.)1.2.3.UsingPV tablesFinancial calculatorExcel functiontANote receivableSUPPORT

The concept in this question is the present value of a promissory note, which refers to the current…

Ayayai Corporation, a publicly-traded company, agreed to loan money to another company. On July 1, 2023, the company received a five-year promissory note with a face value of $501,000, paying interest at a face rate of 5% on July 1 each year. The note was issued to yield an effective interest rate of 6%. Ayayai used the effective interest method of amortization for discounts or premiums, and the company's year-end is September 30.

Ayayai Corporation, a publicly-traded company, agreed to loan money to another company. On July 1, 2023, the company received a five-year promissory note with a face value of $501,000, paying interest at a face rate of 5% on July 1 each year. The note was issued to yield an effective interest rate of 6%. Ayayai used the effective interest method of amortization for discounts or premiums, and the company's year-end is September 30.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 10MC: On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major...

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On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major customer in exchange for used equipment. The equipment had originally cost Park 200,000 and had a book value of 20,000 on the date of the sale. At the 12% imputed interest rate for this type of loan, the present value of the note is 25,500 on January 1, 2019. Park uses the effective interest rate. What is the carrying value of the note receivable on Parks December 31, 2019, balance sheet? a. 28,560 b. 29,000 c. 32,500 d. 36,000
On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First National Bank, on which 16,651 of interest has accrued. On January 2, 2019, the bank agrees to restructure the note. It forgives the accrued interest, extends the repayment date to December 31, 2021, and reduces the interest rate to 10%. Required: Prepare a schedule for Northfield to compute the annual interest expense in regard to the preceding note for each year of the restructuring agreement.
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Swifty Corporation, a publicly-traded company, agreed to loan money to another company. On July 1, 2023, the company received a five-year promissory note with a face value of $519,000, paying interest at a face rate of 5% on July 1 each year. The note was issued to yield an effective interest rate of 6%. Swifty used the effective interest method of amortization for discounts or premiums, and the company's year-end is September 30. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. (a) Use 1. PV Tables, 2. a financial calculator, and 3. Excel functions to arrive at the amount to record the note receivable. (Round present value factor calculations to 5 decimal places, e.g. 1.2512. Round PV tables and Excel function answers to 0 decimal places, e.g. 8,971 and round Financial calculator answer to 2 decimal places, e.g. 89.71.) 1. 2. 3. Using PV tables Financial calculator Excel function $ tA $ LA LA $ Note…
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B. MATATAG Bank loaned P5,000,000 to a borrower on January 1, 2019. The term of the loan require principal payments of P1,000,000 each year for 5 years plus interest at 8%. The first principal and interest payment is due on January 1, 2020. The borrower made the required payments during 2020 and 2021. However, during 2021 the borrower began to experience financial difficulties, requiring the bank to reassess the collectability of the loan. On December 31, 2021, the bank has determined that the remaining principal payment will be collected as originally scheduled but the collection of the interest is unlikely. The bank did not accrue the interest on December 31, 2021. Present value of 1 at 8% 0.926 For one period For two periods For three periods 0.857 0.794 1. What is the impairment loss for 2021? а. 423,000 b. 217,000 c. 222,000 d. 0 2. What is the interest income for 2022? a. 126,160 b. 142,640 c. 240,000 d. 0 3. What is the carrying amount of the loan receivable on December 31,…
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