Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Note: Three Questions are related to the same Information On December 31, 2019, Flint Corporation sold for 75,000 an old machine having an original cost

Note: Three Questions are related to the same Information

On December 31, 2019, Flint Corporation sold for 75,000 an old machine having an original cost of 135,000 and a book value of 60,000, and accepted 2-year note receivable of 100,000, 7% payable semi-annually, in exchange. 6% would be a fair rate for this type of transaction.

1- What should be the amount of the notes receivable recorded on December 31, 2019 rounded to the nearest dollar?

a. 0

b. 98,185

c. 100,000

d. 101,859

2- What should be the amount of the interest revenue for the year 2020 rounded to the nearest dollar?

a. 5,098

b. 6,098

c. 6,872

d. 7,872

3- The amount of the note carrying amount as of December 31, 2021 rounded to the nearest dollar is:

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting An Introduction To Concepts Methods And Uses

Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil, Sidney Davidson

7th Edition

0030259630, 978-0030259630

More Books

Students also viewed these Accounting questions