Chapter 7 Notes Receivables Soll

Chapter 7 Notes Receivables Soll - EXERCISE 7-18(1015...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
EXERCISE 7-18 (10–15 minutes) 1. 7/1/07 Notes Receivable. ................................. 1,101,460.00 Discount on Notes Receivable. . 401,460.00 Land. ............................................. 590,000.00 Gain on Sale of Land. ................. 110,000.00 ($700,000 – $590,000) Computation of the discount $1,101,460 Face value of note .63552 Present value of 1 for 4 periods at 12% $ 700,000 Present value of note 1,101,460 Face value of note $ 401,460 Discount on note receivable 2. 7/1/07 Notes Receivable. ................................. 400,000.00 Discount on Notes Receivable. . 178,836.32 Service Revenue. ........................ 221,163.68 Computation of the present value of the note: Maturity value $400,000.00 Present value of $400,000 due in 8 years at 12%—$400,000 X .40388 $161,552.00 Present value of $12,000 payable annually for 8 years at 12% annually—$12,000 X 4.96764 59,611.68 Present value of the note 221,163.68 Discount on note receivable $178,836.32 EXERCISE 7-19 (20–25 minutes)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

Chapter 7 Notes Receivables Soll - EXERCISE 7-18(1015...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online