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Finacc Chapter 12

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33 views1 page

Finacc Chapter 12

Uploaded by

MkaeDizon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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PROBLEM 12-13 ANSWER: a

First payment on Jan 1, 2016 600,000.00


Present value of remaining payments (600,000*4.36) 2,616,000.00
Correct Sales revenue 3,216,000.00

PROBLEM 12-15 ANSWER: 1.) a 2.) b


1.) Notes Receivable 1,000,000.00
2.) Principal 1,000,000.00
Interest for 5 years(1,000,000*3%*5) 150,000.00
Maturity Value 1,150,000.00
Multiply: Present value factor 0.68
782,000.00

PROBLEM 12-16 ANSWER: 1.)b 2.)c 3.)a 4.)a


1.) Note Receivable 500,000.00
Multiply: Present value factor 3.99
Present value of note receivable 1,995,000.00
2.) Present value of note receivable 1,995,000.00
Interest Rate 8%
Interest income for 2017 159,600.00
3.) Note Receivale-Dec 31,2017 (2,500,000-500,000) 2,000,000.00
Unearned Interest Income- Dec 31, 2017
(2,500000-1,995,000=505,000-159,600) (345,400.00)
Carrying Amount- Dec. 31,2017 1,654,600.00
4.) Carrying Amount- Dec. 31,2017 1,654,600.00
Multiply: Interest rate 8%
Interest Income- 2018 132,368.00

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