On December 31, 2020, Sarasota Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Sarasota Co. agreed to accept a $337,600 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Sarasota is much more creditworthy and has various lines of credit at 5%. Click here to view factor table. (a) Your answer is partially correct. Prepare the journal entry to record the transaction of December 31, 2020, for the Sarasota Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Dec. 31, 2020 Account Titles and Explanation Notes Receivable Service Revenue Discount on Notes Receivable Debit 337,600 Credit 273,996 63,604
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- On December 31, 2020, Sarasota Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Sarasota Co. agreed to accept a $337,600 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Sarasota is much more creditworthy and has various lines of credit at 5%. Click here to view factor table. (a) Your answer is partially correct. Prepare the journal entry to record the transaction of December 31, 2020, for the Sarasota Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Dec. 31, 2020 Account Titles and Explanation Notes Receivable Debit 337,600 Credit 107 INOn December 31, 2020, Larkspur Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Larkspur Co. agreed to accept a $ 252,100 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Larkspur is much more creditworthy and has various lines of credit at 6%.Click here to view factor table.On December 31, 2020, Whispering Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Whispering Co. agreed to accept a $318,100 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Whispering is much more creditworthy and has various lines of credit at 5%. (a) Prepare the journal entry to record the transaction of December 31, 2020, for the Whispering Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
- On December 31, 2020, Ed Abbey Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Abbey Co. agreed to accept a $200,000 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Abbey is much more creditworthy and has various lines of credit at 6%. Instructions a. Prepare the journal entry to record the transaction of December 31, 2020, for the Ed Abbey Co. b. Assuming Ed Abbey Co.’s fiscal year-end is December 31, prepare the journal entry for December 31, 2021. c. Assuming Ed Abbey Co.’s fiscal year-end is December 31, prepare the journal entry for December 31, 2022.On December 31, 2020, Ed Abbey Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Abbey Co. agreed to accept a $200,000 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Abbey is much more creditworthy and has various lines of credit at 6%. Instructions a. Prepare the journal entry to record the transaction of December 31, 2020, for the Ed Abbey Co. b. Assuming Ed Abbey Co.’s fiscal year-end is December 31, prepare the journal entry for December 31, 2021. c. Assuming Ed Abbey Co.’s fiscal year-end is December 31, prepare the journal entry for December 31, 2022. *Explained step by step please.On December 31, 2020, Ed Abbey Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Abbey Co. agreed to accept a $200,000 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Abbey is much more creditworthy and has various lines of credit at 6%. For step 1, why is it worked out 1/1.1 and answer divided by 1.1 to get 0.826446? Can you explain it to me step by step please. It is PV at 10% for end of year 2. I am having trouble understanding the process. Can you please explain it to me?
- On December 31,2019, Halen company performed environmental consulting services for Stuart Corporation was short of cash, and Halen company agreed to accept 900,000 zero-interest-bearing note due December 31,2021 as payment in full. Stuart Corporation is somewhat of a credit risk and typically borrows funds at a rate of10%. (PVIFA n=2,i=10% =1.7355 and PVIF n=2,i=10% =0.8264)Instruction :3.1 Prepare the journal entry to record the transaction of December 31, 2019, for Halen company.3.2 Assuming Halen’s fiscal year-end is December 31, prepare the journal entry for December 31,2020.Company A is currently cash-constrained, and must make a decision about whether to delay paying one of its suppliers, or taking out a loan. They owe the supplier $23345, and they can borrow the money from Bank A, which has offered to lend the firm $23345 for 2 month(s) at an APR (compounded) of 15%. The bank will require a (no-interest) compensating balance of 7% of the face value of the loan and will charge a $216 loan origination fee, which means Hand-to-Mouth must borrow even more than the $23345. Compute the EAR of the loan. Give typing answer with explanation and conclusionGlobal bank loaned P9,000,000 to a borrower on January 1, 2018. The terms of the loan were payment in full on January 1,2023, plus annual interest payment at 12%. The interest payment was made a scheduled on January 1, 2019. However, due to financial setbacks, the borrower was unable to make the 2020 interest payment. The bank considered the loan impaired and projected the cash flows from the loan on December 31, 2020. The bank has accrued the interest on December 31, 2019, but did not continue to accrue interest for 2020 due tot he impairment of the loan. The projected cash flows are: Date of cash flow Amount projected on December 31, 2020 1,500,000 December 31, 2021 December 31, 2022 December 31, 2023 December 31, 2024 The present value of 1 at 12% is .89 for one period, .80 for two periods, .71 for three periods, and .64 for four periods. What is the interest income for 2021? 2,000,000 2,500,000 3,000,000 A.795,600 B.900,000 C.180,000 D.0
- On December 31,2019, Halen company performedenvironmental consulting services for Stuart Corporation was shortof cash, and Halen company agreed to accept 900,000 zero-interest-bearing note due December 31, 2021 as payment in full.Stuart Corporation is somewhat of a credit risk and typicallyborrows funds at a rate of 10%. (PVIFA n=2,i=10% =1.7355 and PVIFn=2,i=10% =0.8264)Instruction:3.1 Prepare the journal entry to record the transaction ofDecember 31, 2019, for Halen company.3.2 Assuming Halen’s fiscal year-end is December 31,prepare the journal entry for December 31, 2020.On December 31, 2020, Firth Company borrowed $62,092 from Paris Bank, signing a 5-year, $100,000 zero-interest-rate note. The note was issued to yield 10% interest. Unfortunately, during 2022, Firth began to experience financial difficulty. As a result, at December 31, 2022, Paris Bank determined that it was probable that it would collect only $75,000 at maturity. The market rate of interest on loans of this nature is now 11%. Instructions a. Prepare the entry (if any) to record the impairment of the loan on December 31, 2022, by Paris Bank. b. Prepare the entry on March 31, 2023, if Paris learns that Firth will be able to repay the loan under the original terms.Milo Corporation has a line of credit with BDO for Ҏ5,000,000 in June30, 2018 payable on December 31, 2019. The company has no existingdeposit with the bank. The bank requires the borrower a compensatingbalance of 5% and charges 15% for loans availed. a) How much should the company borrow to have a net proceeds ofҎ5,000,000?b) What is the effective interest rate from this transaction if:b-1) interest rate is paid at the end of the term?b-2) interest is deducted in advance?