CALCULATOR FULL SCREEN PRINTER VERSION 4 BACK Problem 7-9 Kingbird Inc. had the following long-term receivable account balances at December 31, 2016, Note receivable from sale of division $900,000 Note receivable from officer 439.000 Transactions during 2017 and other information relating to Kingbird's long-term receivables were as follows 1. The 5900,000 note receivable is dated May 1, 2016. bears Interest at 10%, and represents the balance of the consideration received from the sale of Kingbird's electronics division to New York Company, Principal payments of $300,000 plus appropriate interest are due on May 1, 2017, 2016, and 2019. The first principal and interest payment wa made on May 1, 2017. Collection of the note installments is reasonably assured. 2. The 3439,000 note receivable is dated December 31, 2016, bears interest at 9%, and is due on December 31, 2019. The note is due from Sean May, president of Kingbird Inc and is collateralised by 10,975 shares of Kingbird's common stock. Interest is payable annually on December 31, and all interest payments were paid on their due dates through December 31, 2017. The quoted market price of Kingbird's common stock was 546 per share on December 31, 2017 1. On April 1, 2017. Kingbird told patent to Pennsylvania Company in exchange for a $112,000 zero-interest-bearing note due on April 1, 2019. There was no established exchange price for the patent, and the note had no ready market. The prevailing rate of interest for a note of this type at April 1, 2017, was 14%. The present value of $1 for two periods at 14% is 0.769 (use this factor). The patent had > Caming value of 544,500 at January 1, 2017, and the amortization for the year ended December 31, 2017, would have been 18.960. The collection of the not receivable from Pennsylvania is reasonably assured 4 On Jul 1, 2017, Kingbird sold parcel of land to Splinter Company for $211.600 under an installment sale contract. Splinter made a $62.480 cash down payment on July 1, 2017, and signed 4-year 13 note for the $145,120 balance. The equal annual payments of pridal and interest on the note will be 143.799 payable on July 1, 2016 through 1, 2021. The land could have been soldat established cash price of $211,000. The cost of the land to Xingbird was $161,600. Circumstances are such that the collection of the installments on the cote is reasonably assured Prepare the long-term receivables section of Kingbird's balance sheet at December 31, 2017. (Round KINGBIRD INC. Long-Term Receivables Section of Balance Sheet > > $ Prepare a schedule showing the current portion of the long-term receivables and accrued interest recevable that would appear in Kingbird's balance sheet at December 31, 2017 Cound answers to decimal places 0.5,129.) KINGBIRD INC. Selected Balance Sheet Balances Prepare a schedule showing interest revenue from the long-term receivables that would appear on Kingbird's income statement for the year ended December 31, 2017. (Round answers to decimal places... 5,125.) KINGBIRD INC Interest Revenue from Long-Term Receivables CALCULATOR FULL SCREEN PRINTER VERSION 4 BACK Problem 7-9 Kingbird Inc. had the following long-term receivable account balances at December 31, 2016, Note receivable from sale of division $900,000 Note receivable from officer 439.000 Transactions during 2017 and other information relating to Kingbird's long-term receivables were as follows 1. The 5900,000 note receivable is dated May 1, 2016. bears Interest at 10%, and represents the balance of the consideration received from the sale of Kingbird's electronics division to New York Company, Principal payments of $300,000 plus appropriate interest are due on May 1, 2017, 2016, and 2019. The first principal and interest payment wa made on May 1, 2017. Collection of the note installments is reasonably assured. 2. The 3439,000 note receivable is dated December 31, 2016, bears interest at 9%, and is due on December 31, 2019. The note is due from Sean May, president of Kingbird Inc and is collateralised by 10,975 shares of Kingbird's common stock. Interest is payable annually on December 31, and all interest payments were paid on their due dates through December 31, 2017. The quoted market price of Kingbird's common stock was 546 per share on December 31, 2017 1. On April 1, 2017. Kingbird told patent to Pennsylvania Company in exchange for a $112,000 zero-interest-bearing note due on April 1, 2019. There was no established exchange price for the patent, and the note had no ready market. The prevailing rate of interest for a note of this type at April 1, 2017, was 14%. The present value of $1 for two periods at 14% is 0.769 (use this factor). The patent had > Caming value of 544,500 at January 1, 2017, and the amortization for the year ended December 31, 2017, would have been 18.960. The collection of the not receivable from Pennsylvania is reasonably assured 4 On Jul 1, 2017, Kingbird sold parcel of land to Splinter Company for $211.600 under an installment sale contract. Splinter made a $62.480 cash down payment on July 1, 2017, and signed 4-year 13 note for the $145,120 balance. The equal annual payments of pridal and interest on the note will be 143.799 payable on July 1, 2016 through 1, 2021. The land could have been soldat established cash price of $211,000. The cost of the land to Xingbird was $161,600. Circumstances are such that the collection of the installments on the cote is reasonably assured Prepare the long-term receivables section of Kingbird's balance sheet at December 31, 2017. (Round KINGBIRD INC. Long-Term Receivables Section of Balance Sheet > > $ Prepare a schedule showing the current portion of the long-term receivables and accrued interest recevable that would appear in Kingbird's balance sheet at December 31, 2017 Cound answers to decimal places 0.5,129.) KINGBIRD INC. Selected Balance Sheet Balances Prepare a schedule showing interest revenue from the long-term receivables that would appear on Kingbird's income statement for the year ended December 31, 2017. (Round answers to decimal places... 5,125.) KINGBIRD INC Interest Revenue from Long-Term Receivables