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How would I solve this problem? Part A. Determine the dollar amount of the cash payment of P&I to be remitted each April 1st. Part
How would I solve this problem?
Part A. Determine the dollar amount of the cash payment of P&I to be remitted each April 1st.
Part B. Determine the Service Revenue ABC can recognize on April 1, 2018.
Part C. Determine the Total Interest Revenue that ABC will recognize on this note for the year ended December 31, 2019.
Part D. Prepare a partial Balance Sheet for this Note Receivable as of December 31, 2018:
Current Assets :
Interest Receivable ______
Note Receivable ______
Long-Term Investments:
Note Receivable ______
Periods 3 50 496 6% 896 996 PV of $1 89 .82 .70 .68 84 .74 .59 .56 .79 68 .50 46 77 654642 Present Value of an Ordinary Annuity 496 696 896 996 2.77 445 7.43 8.11 2.67 4.21 6.80 7.36 2.57 3.99 6.25 6.71 2.53 3.89 5.99 6.41 Part I. On April 1, 2018, ABC Company rendered services to Jones Company in exchange for a three year, $400,000, 896 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%
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