FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On December 31, 2020, Hawk Co. accepted a zero-interest note receivable from a major stockholder for $600,000 due on December 31, 2023. The prevailing rate

On December 31, 2020, Hawk Co. accepted a zero-interest note receivable from a major stockholder for $600,000 due on December 31, 2023. The prevailing rate of interest for a note of this type at December 31, 2020 was 10%. (Round to the nearest dollar) (AICPA adapted) What is the amount of the discount on December 31, 2020?

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

Step: 3

blur-text-image

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

Computer Accounting With QuickBooks Online

Computer Accounting With QuickBooks Online

Authors: Donna Kay

2nd Edition

1260888061, 9781260888065

Students also viewed these Accounting questions

Question

★★★★★
A 1:5 scale model at 1,200 rpm is used to study the prototype of a centrifugal pump that produces 1.00 m3/sec at 30-m head when rotating at 400 rpm. Determine the model discharge and head.

Answered: 1 week ago

Question

★★★★★
Study the following accounts of two companies and then answer the questions which follow. Both companies are stores selling textile goods. Trading and Profit and Loss Accounts R Ltd T Ltd Sales...

Answered: 1 week ago

Question

★★★★★
The number of animals caught in an animal trap during an hour has the Poisson distribution with parameter ????. If it is known that the probability that no animal is trapped during an hour equals...

Answered: 1 week ago

Question

★★★★★
King Construction Company began work on a contract in 2017. The contract price is $ 4,000,000, and King determined that its performance obligation was satisfied over time. Other information relating...

Answered: 1 week ago

Question

★★★★★
Garden Supplies Inc. Balance Sheet Years ending December 31 ASSETS Current assets: Cash and equivalents Accounts receivables Inventory Total current assets Net fixed assets: Net plant and equipment...

Answered: 1 week ago

Question

★★★★★
The following balances were taken from the books of Swifty Corp. on December 31, 2025. Interest revenue $121,500 Accumulated depreciation-equipment $57,100 Cash 72,500 Accumulated...

Answered: 1 week ago

Question

★★★★★
Suppose there is sudden increase in preference of chocolates. But the cost of production rises due to rise in the price of milk. Use a demand supply model, to determine what happens to the...

Answered: 1 week ago

Question

★★★★★
Which of the following does NOT illustrate how deviant behavior can impact a company? Employees don't feel safe. The company could face a lawsuit. The company's workforce is unaffected. It may limit...

Answered: 1 week ago

Question

★★★★★
In the figure below, we see that traditional one-person-one-vote (1p1v) majority voting results in an inefficient majority "yes" vote (two in favor, one opposed). Let's see whether the outcome is...

Answered: 1 week ago

Question

★★★★★
What's a common phrase heard from teams that are experiencing some level of groupthink? "Everyone needs to listen to the scrum master." "Nobody likes a naysayer." "We all agree, so we must be right."...

Answered: 1 week ago

Question

★★★★★
Davis Manufacturing Company had the following data for a recent year: January 1 December 31 Accounts receivable $27,000 $33,000 Materials inventory 22,500 6,000 Work in process inventory 70,200...

Answered: 1 week ago

Question

★★★★★
Did you trace the history and milestones enough to provide a clear timeline?

Answered: 1 week ago

Question

★★★★★
Did you offer hard data that is verifiable with sources identified in text?

Answered: 1 week ago

Question

★★★★★
Did you provide headings that offer structure to the information? [C]

Answered: 1 week ago

Previous Question Next Question