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Kingbird Inc. had the following long - term receivable account balances at December 3 1 , 2 0 1 9 . Note receivable from sale
Kingbird Inc. had the following longterm receivable account balances at December
Note receivable from sale of division
$
Note receivable from officer
Transactions during and other information relating to Kingbird's longterm receivables were as follows.
The $ note receivable is dated May bears interest at and represents the balance of the consideration received from the sale of Kingbird's electronics division to New York Company. Principal payments of $ plus appropriate interest are due on May and The first principal and interest payment was made on May Collection of the note installments is reasonably assured.
The $ note receivable is dated December bears interest at and is due on December The note is due from Sean May, president of Kingbird Inc. and is collateralized by shares of Kingbird's common stock. Interest is payable annually on December and all interest payments were paid on their due dates through December The quoted market price of Kingbird's common stock was $ per share on December
On April Kingbird sold a patent to Pennsylvania Company in exchange for a $ zerointerestbearing note due on April 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 was The present value of $ for two periods at is use this factor The patent had a carrying value of $ at January and the amortization for the year ended December would have been $ The collection of the note receivable from Pennsylvania is reasonably assured.
On July Kingbird sold a parcel of land to Splinter Company for $ under an installment sale contract. Splinter made a $ cash down payment on July and signed a year note for the $ balance. The equal annual payments of principal and interest on the note will be $ payable on July through July The land could have been sold at an established cash price of $ The cost of the land to Kingbird was $ Circumstances are such that the collection of the installments on the note is reasonably assured.
Prepare a schedule showing the current portion of the longterm receivables and accrued interest receivable that would appear in Kingbird's balance sheet at December Round answers to O decimal places
KINGBIRD INC.
Selected Balance Sheet Balances
December
Current portion of longterm receivables
Note receivable from sale of division
Installment contract receivable
Total current portion of longterm receivables
Accrued interest receivable
Note receivable from sale of division
Installment contract receivable
Total accrued interest receivable
Also, please explain how calculate numbers. Thank you.
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