Business, 20.06.2020 22:57 ayoismeisjjjjuan

On January 1, 2020, Sparky Inc. performed services for a customer in exchange for a $400,000, ten-year, 5% note. The note requires the customer to pay interest each December 31st, and principal will be remitted at maturity. The company uses the effective interest method to amortize any discounts or premiums. The customer’s normal cost to borrow is 8%. a. What amount of Service Revenue should Sparky record on January 1, 2020? b. What is the total amount of Interest Revenue to be earned over the entire 10-year term of the note? The PV of $1 for 5%, 10n is 0.61, the PV of $1 for 8%, 10n is 0.46. The PVOA for 5%, 10n is 7.72, and the PVOA for 8%, 10n is 6.71.

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 11:10, evansh78

Use the following account numbers and corresponding account titles to answer the following question. account no. account title (1) cash (2) merchandise inventory (3) cost of goods sold (4) transportation-out (5) dividends (6) common stock (7) selling expense (8) loss on the sale of land (9) sales which accounts would appear on the income statement?

Answers: 3

continue

Business, 22.06.2019 19:30, livimal77

At december 31, 2016, pina corporation had the following stock outstanding. 10% cumulative preferred stock, $100 par, 107,810 shares $10,781,000 common stock, $5 par, 4,026,000 shares 20,130,000 during 2017, pina did not issue any additional common stock. the following also occurred during 2017. income from continuing operations before taxes $21,950,000 discontinued operations (loss before taxes) $3,505,000 preferred dividends declared $1,078,100 common dividends declared $2,300,000 effective tax rate 35 % compute earnings per share data as it should appear in the 2017 income statement of pina corporation

Answers: 1

continue

Business, 22.06.2019 20:00, gudtavosanchez19

After testing its water, a city water department issues a report to the related citizens, noting what chemicals have been identified, their doses, and the estimated risks of exposure at these levels. this report represents a type of

Answers: 1

continue

Business, 22.06.2019 23:20, lisagrimmett3

Nnette henri is paid an hourly wage of $8.90 for a 32-hour workweek of 4 days, 8 hours daily. for any work on the fifth day and on saturdays, she is paid one and one-half times her regular hourly rate. during a certain week, in addition to her regular 32 hours, henri worked 6 hours on the fifth day and 5 hours on saturday. for this workweek, henri’s total earnings are:

Answers: 1

continue

You know the right answer?

On January 1, 2020, Sparky Inc. performed services for a customer in exchange for a $400,000, ten-ye...