Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help its urgent On December 31, 2013 , the Maggio Incorporated provided business consulting services and accepted in exchange a promissory note with a
Please help its urgent
On December 31, 2013 , the Maggio Incorporated provided business consulting services and accepted in exchange a promissory note with a face value of $1,700,000, a due date of December 31, 2016, and a stated (coupon) rate of interest of 2%. interest is payable at the end on eoch yeat. The fair value of the business services is not readily determinable and the note receivable is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 6%. What is the present value of the note? Prepare the joumal entry to record the transaction for Maggio Incopporated. Prepate an amortization table for the note receivable using the effective interest rate method of amortization: Prepare the journal entry required to record the interest earned on December 31, 2015. What will be the balance sheet presentation of the note on December 31,2015 ? Current Assets, Notes Recelvable._. $1,700,000 Current Assets, Short-term Investments.... $1 Current Assets, Notes Receivable. 1,635,697 None of the above 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