View the step-by-step solution to:

Notes Receivable. * Do not round any answer until your final answer.

Notes Receivable. Use the following present value tables to help answer the following questions.  

*Do not round any answer until your final answer. Round your final answer to the nearest whole dollar. When entering your final answer, do not use commas or $ sign. (Sorry...Blackboard is very sensitive and will mark your answer incorrect due to rounding and punctuation.)

PV of $1Periods35910 4%.89.82.70.68 6%.84.74.59.56 8%.79.68.50.46 9%.77.65.46.42Present Value of an Ordinary Annuity

      4%2.774.457.438.11 6%2.674.216.807.36 8%2.573.996.256.71 9%2.533.895.996.41

Part I.  On April 1, 2018, ABC Company rendered services to Jones Company in exchange for a three year, $400,000, 8% note. Payments of P&I (Principal & Interest) are due each April 1st, with the first payment due immediately. December 31st is the fiscal year end for ABC. Jones' normal cost to borrow is 8%.

Required: Use the above information to answer the next (4) questions:

1. Determine the dollar amount of the cash payment of P&I to be remitted each April 1st:$[Question_1]

2. Determine the Service Revenue ABC can recognize on April 1, 2018.

$__________________________________________

3. Determine the Total Interest Revenue that ABC will recognize on this note for the year ended December 31, 2019.$_____________________________________

4. Prepare partial Balance Sheet for this Note Receivable as of December 31, 2018:Current Assets:

Interest Receivable $_____________________

Note Receivable   $_____________________

Long-Term Investments:

Note Receivable   $_____________________


1.Determine the dollar amount of the cash payment of P&I to be remitted each April 1st: $_______________


2.Using the information presented in #1 above, determine the amount of Service Revenue that ABC should recognize on April 1, 2018:


3.Using the information presented in #1 above, determine what amount of Interest Revenue ABC should recognize from this note for the year ending December 31, 2019.    $___________________________________


4.Using the information presented in #1 above, prepare partial Balance Sheet as of December 31, 2018:

Current Assets:

Interest Receivable                 $[Blank_1]

Note Receivable (current maturity)  $[Blank_2]

Long-Term Investments:

Note Receivable                  $[Blank_3]


please list all calculation steps for these questions, thanks.

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question