Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show supporting calculations Whispering Winds Corporation, a publicly-traded company, agreed to loan money to another company. On July 1, 2020, the company received a

image text in transcribed

please show supporting calculations

image text in transcribed

image text in transcribed

Whispering Winds Corporation, a publicly-traded company, agreed to loan money to another company. On July 1, 2020, the company received a five-year promissory note with a face value of $520,000, paying interest at a face rate of 5% on July 1 each year. The note was issued to yield an effective interest rate of 6%. Whispering Winds used the effective interest method of amortization for discounts or premiums, and the company's year-end is September 30. Click here to view the factor table PRESENT VALUE OF 1 Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1 (a) Use 1. PV.1 Tables, 2. a financial calculator, or 3. Excel functions to arrive at the amount to record the note receivable. (Round present value factor calculations to 5 decimal places, eg. 1.25125 and the final answer to 0 decimal places, eg. 58,971) Note receivable $ (n) Tiods 1 2 3 4 5 7. 8 9 10 2% 212% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% 0.98039 0.97561 0.97087 0.96156 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 0.86957 0.96117 0.95181 0.94260 0.92456 0.90703 0.89000 0.87344 0.85734 0.84168 0.82645 0.81162 0.79719 0.75614 0.94232 0.92860 0.91514 0.88900 0.86384 0.83962 0.81630 0.79383 0.77218 0.75132 0.73119 0.71178 0.65752 0.92385 0.90595 0.88849 0.85480 0.82270 0.79209 0.76290 0.73503 0.70843 0.68301 0.65873 0.63552 0.57175 0.90583 0.88385 0.86261 0.82193 0.78353 0.74726 0.71299 0.68058 0.64993 0.62092 0.59345 0.56743 0.49718 0.88797 0.86230 0.83748 0.79031 0.74622 0.70496 0.66634 0.63017 0.59627 0.56447 0.53464 0.50663 0.43233 0.87056 0.84127 0.81309 0.75992 0.71068 0.66506 0.62275 0.58349 0.54703 0.51316 0.48166 0.45235 0.37594 0.85349 0.82075 0.78941 0.73069 0.67684 0.62741 0.58201 0.54027 0.50187 0.46651 0.43393 0.40388 0.32690 0.83676 0.80073 0.76642 0.70259 0.64461 0.59190 0.54393 0.50025 0.46043 0.42410 0.39092 0.36061 0.28426 0.82035 0.78120 0.74409 0.67556 0.61391 0.55839 0.50835 0.46319 0.42241 0.38554 0.35218 0.32197 0.24719 0.80426 0.76214 0.72242 0.64958 0.58468 0.52679 0.47509 0.42888 0.38753 0.35049 0.31728 0.28748 0.21494 0.78849 0.74356 0.70138 0.62460 0.55684 0.49697 0.44401 0.39711 0.35554 0.31863 0.28584 0.25668 0.18691 0.77303 0.72542 0.68095 0.60057 0.53032 0.46884 0.41496 0.36770 0.32618 0.28966 0.25751 0.22917 0.16253 0.75788 0.70773 0.66112 0.57748 0.50507 0.44230 0.38782 0.34046 0.29925 0.26333 0.23199 0.20462 0.14133 0.74301 0.69047 0.64186 0.55526 0.48102 0.41727 0.36245 0.31524 0.27454 0.23939 0.20900 0.18270 0.12289 0.72845 0.67362 0.62317 0.53391 0.45811 0.39365 0.33873 0.29189 0.25187 0.21763 0.18829 0.16312 0.1068- 0.71416 0.65720 0.60502 0.51337 0.43630 0.37136 0.31657 0.27027 0.23107 0.19785 0.16963 0.14564 0.09293 0.70016 0.64117 0.58739 0.49363 0.41552 0.35034 0.29586 0.25025 0.21199 0.17986 0.15282 0.13004 0.08081 0.68643 0.62553 0.57029 0.47464 0.39573 0.33051 0.27651 0.23171 0.19449 0.16351 0.13768 0.11611 0.07027 0.67297 0.61027 0.55368 0.45639 0.37689 0.31180 0.25812 0.21455 0.17843 0.14864 0.12403 0.10367 0.06110 11 12 13 14 15 16 17 18 19 20 PV = 1 - (1+0) (n) Periods 1 2 3 4 au 2 8 9 10 2% 212% 3% 4% 5% 6% 7% 8% 9% 10% 12% 15% 0.98039 0.97561 0.97087 0.96154 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 0.86957 1.94156 1.92742 1.91347 1.88609 1.85941 1.83339 1.80802 1.78326 1.75911 1.73554 1.71252 1.69005 1.62571 2.88388 2.85602 2.82861 2.77509 2.72325 2.67301 2.62432 2.57710 2.53130 2.48685 2.44371 2.40183 2.28323 3.80773 3.76197 3.71710 3.62990 3.54595 3-46511 3-38721 3-312133-23972 3.16986 3.10245 3.03735 2.85498 4.71346 4.645834-57971 4.45182 4.32948 4.21236 4.10020 3.99271 3.88965 3.79079 3.69590 3.60478 3.35216 5.60143 5.50813 5.41719 5.24214 5.07569 4.91732 4.76654 4.62288 4.48592 4.35526 4.23054 4.11141 3.78448 6.47199 6.34939 6.23028 6.00205 5.78637 5.582385-38929 5.20637 5.03295 4.86842 4.71220 4.56376 4.16042 7-32548 7.17014 7.01969 6.73274 6.46321 6.209795-97130 5.74664 5.53482 5-334935.146124.96764 4.48732 8.16224 7.97087 7.78611 7.435337.10782 6.80169 6.515236.24689 5.99525 5.759025-537055-32825 4-77158 8.98259 8.75206 8.53020 8.11090 7.721737.36009 7.02358 6.71008 6.417666.14457 5.88923 5.65022 5.01877 9.78685 9.51421 9.25262 8.76048 8.30641 7.88687 7.49867 7.13896 6.80519 6.49506 6.20652 5.93770 5.23371 10.57534 10.25776 9.95400 9.38507 8.86325 8.38384 7-942697-53608 7.16073 6.81369 6.49236 6.19437 5-42062 11.34837 10.98319 10.63496 9.98565 9-39357 8.85268 8.35765 7.90378 7.48690 7.10336 6.74987 6.423555-58315 12.10625 11.69091 11.29607 10.56312 9.89864 9.29498 8.74547 8.24424 098615 7.36669 6.98187 6.62817 5.72448 12.84926 12.38138 11.93794 11.11839 10.37966 9.71225 9.10791 8.55948 8.06069 7.60608 7.19087 6.81086 5.84737 13-57771 13.05500 12.56110 11.65230 10.83777 10.10590 9.44665 8.85137 8.31256 7.82371 7.37916 6.97399 5.95424 14.29187 13.71220 13.16612 12.16567 11.27407 10.47726 9.76322 9.12164 8.54363 8.02155 7.548797.11963 6.04716 14.99203 14.35336 13.75351 12.65930 11.68959 10.82760 10.05909 9.37189 8.75563 8.20141 7.70162 7.24967 6.12797 15.67846 14.97889 14.32380 13.13394 12.08532 11.15812 10.33560 9.60360 8.95012 8.36492 7.83929 736578 6.19823 16.35143 15.58916 14.87747 13.59033 12.46221 11.46992 10.59401 9.81815 9.12856 8.51356 7.96333 7.46944. 6.25933 11 12 13 14 15 16 17 18 19 20

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

Students also viewed these Accounting questions