HW #5 - Prob. A Solution

HW #5 - Prob. A Solution - 892 19 2,910 12/31/201 3 4,400 1...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Solutions to HW #5 Problem A 1. FV = $220,000 PMT = $220,000*.02 = $4,400 (face value * stated rate) N = 3 years i = 9% Compute PV = $181,018 Dr. Note receivable $220,000 Cr. Discount on note receivable $38,982 Cr. Service Revenue 181,018 2. Date Cash Received Interest Revenue Amortizatio n Carrying Value 12/31/2011 18 1,018 12/31/2012 4,400 1 6,292 11,
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 892 19 2,910 12/31/201 3 4,400 1 7,362 12, 962 20 5,872 12/31/201 4 4,400 1 8,528 14, 128 22 0,000 Dr. Cash $ 4,400 Dr. Discount on note receivable 11,892 Cr. Interest revenue $16,292 3. Dr. Cash $224,400 Dr. Discount on note receivable 14,128 Cr. Interest revenue $18,528 Cr. Note receivable 220,000...
View Full Document

Ask a homework question - tutors are online