Question
On Jan 1, 2016, Zahid sold a truck to Othaim in exchange for a $200,000, 6% (payable annually), 5 year, notes payable. On Jan 1,
On Jan 1, 2016, Zahid sold a truck to Othaim in exchange for a $200,000, 6% (payable annually), 5 year, notes payable. On Jan 1, 2016, the market rate was 8%.
| Date | Cash Received | Int. Revenue | Pre Amrt. | Carrying Value |
| 1-Jan-16 |
|
|
|
|
| 1-Jan-17 |
|
|
|
|
| 1-Jan-18 |
|
|
|
|
| 1-Jan-19 |
|
|
|
|
| 1-Jan-20 |
|
|
|
|
| 1-Jan-21 |
|
|
|
|
| Requirements: | ||
| (1) | What is the sale revenue that Zaid should recognize on Jan 1, 2016? |
|
| (2) | What is the interest revenue that Zaid should recognize on Dec 31, 2016? |
|
| (3) | What is the Pre Amrt. that Zaid should recognize on Dec 31, 2018? |
|
| (4) | What is the carrying value of the notes on Dec 31, 2019? |
|
| (5) | What is the interest receivable related to the notes on Dec 31, 2020? |
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Cross-Border Mergers And Acquisitions UK Dimensions
Authors: Moshfique Uddin, Agyenim Boateng
1st Edition
0415836603, 9780415836609
