Problem 7-9 kingbird Inc. had the following long-term receivable account balances at December 31, 2016 Note receivable from sale of division $900,000 Note receivable from officer 439,000 Transactions during 2017 and other information relating to kingbird's long-term receivables were as follows 1. The $900,000 note receivable is dated May 1, 2016, bears interest at 10% and represents the balance of the consideration received from the sale of Kingbird's electronics division to New York Company, Principal payments of $300.000 plus appropriate interest are due on May 1, 2017, 2018, and 2019. The first principal and interest payment was made on May 1, 2017 Collection of the note installments is reasonably assured 2. The 5439,000 note receivable is dated December 31, 2016, bears interest at 9%, and is due on December 3, 2019. The note is due from Sean May, president of Ungbird Inc and it collateralized by 10,975 shares of kingbird's common stock Interest is payable annually on December 31, and all interest payments were paid on their due dates through December 31, 2017. The quoted market price of Kingbird's common stock was $46 per share on December 31, 2017 3. On April 1, 2017, Kingbird sold a patent to Pennsylvania Company in exchange for a $112.000 zero-interest-bearing note due on April 2019. There was no established exchange price for the patent and the note had no ready market. The prevailing rate interest for a note of this type at An. 2017, was 14%. The present value of 1 for two periods at 145 0.769 use this factor) The patent had carrying value of $44,000 anuary 1, 2017, and the amortization for the year ended December 31, 2017 would have been $8.960. The collection of the note receivable from Pennsylvania is reasonably assured 4. Os Duly 1, 2017. dngbird sold a parcel of land to Splinter Company for $211.000 under an installment sale contrac, Splinter made $63,480 cash down payment on July 1 2017 and signed a 4-year 13' note for the $140,120 balance. The coulanul masof prindpal and interest on the note will be 543.799 Bayable on July 1, 2018 through July 1, 2021. The land could have been sold at an established cash price of $211,600. The cost of the land to Kingbird was 5161.000. Circumstances are such that the Collection of the installments on the note is reasonably assured Prepare the long-term receivables section of Kingbirds balance sheet at December 31, 2017 [Round answers to o dederalnieces, 5.125.) KINGBIRD INC Prepare the long-term receivables section of Kingbird's balance sheet at December 31, 2017. (Round answers to O KINGBIRD INC Long-Term Receivables Section of Balance Sheet $ Prepare a schedule showing the current portion of the long term receivables and accrued interest receivable that would appear in Kingbird's balance sheet at December 31, 2017 (Round answers to decimal places, S. 129.) KINGBIRD INC Selected Balance Sheet Balances Prepare a schedule showing interest revenue from the long-term receivables that would appear on Kingbird's income statement for the year ended December 31, 2017. (Round answers to decimal places, c.0.5.125.) KINGBIRD INC Interest Revenue from Long-Term Receivables Problem 7.9 Kingbird Inc. had the following long-term receivable account balances at December 31, 2016. Note receivable from sale of division $900,000 Note receivable from office 439,000 1. Transactions during 2017 and other Information relating to Kingbird's long-term receivables were as follows. The $900,000 noto receivable is dated May 1, 2016, bears interest at 10%, and represents the balance of the conoderation received from the sale of Kingbird's electronics division to New York Company, Prindpal payments of $100,000 plus appropriate interest me due on May 1, 2017, 2018, and 2019. The first principal and interest payment was made on May 1, 2017 Collection of the note installments is reasonably assured. 2. The $430,000 note receivable is dated December 31, 2016, bears interest at 9%, and is due on December 31, 2019. The note is due from Sean May, president of Kingbird Inc. and is collateralized by 10,975 shares of Kingbird) common stock. Interest is payable annually on December 31, and all interest payments were paid on their due dates through December 31, 2017. The quoted market price of Kingbird's common stock was $46 per share on December 31, 2017 On April 1, 2017, Kingbird sold a patent to Pennsylvania Company in exchange for $112.000 zero interest beating note due on April 1, 2019. There was no established exchange price for the patent, and the note had no ready market. The prevailing rate of interest for a note of this type at April 1, 2017, was 14%. The present value of $1 for two periods at 14% is 0.709 (use this factor). The patent had a carrying value of $44,000 at January 1, 2017, and the amortization for the year ended December 31, 2017, would have been $8,960. The collection of the note receivable from Pennsylvania is reasonably assured 4. On July 1, 2017. Kingbird sold a parcel of land to Splinter Company for $211.600 under an installment sale contract. Splinter made a $63,480 cash down payment on July 1. 2017, and signed a year 13% note for the $145,120 balance. The equal annual payments of principal and interest on the note will be $43,799 payable on July 1, 2018, through July 1, 2021. The land could have been sold at an established cash price of $211,600. The cost of the land to Kingbird was $161,600. Circumstances are such that the collection of the instaliments on the note is reasonably assured Prepare the long-term receivables section of Kingbird's balance sheet at December 31, 2017. (Hound answers to O decimal places, e.g. 5,125) KINGBIRD INC. Long-Term Receivables Section of Balance Sheet Prepare a schedule showing the current portion of the long-term receivables and accrued interest receivable that would appear in Kingbird's balance sheet at December 31, 2017. (Round answers to o decimal places, e.g. 5.129.) KINGBIRD INC. Selected Balance Sheet Balances Prepare a schedule showing interest revenue from the long term receivables that would appear on ingbird's income statement for the year ended December 31, 2017. (Round answers to o decimal places, e.o. 5.125.) KINGBIRD INC. Interest Revenue from Long-Term Receivables Click if you would like to Show Work for this question: Don Show Work Problem 7-9 kingbird Inc. had the following long-term receivable account balances at December 31, 2016 Note receivable from sale of division $900,000 Note receivable from officer 439,000 Transactions during 2017 and other information relating to kingbird's long-term receivables were as follows 1. The $900,000 note receivable is dated May 1, 2016, bears interest at 10% and represents the balance of the consideration received from the sale of Kingbird's electronics division to New York Company, Principal payments of $300.000 plus appropriate interest are due on May 1, 2017, 2018, and 2019. The first principal and interest payment was made on May 1, 2017 Collection of the note installments is reasonably assured 2. The 5439,000 note receivable is dated December 31, 2016, bears interest at 9%, and is due on December 3, 2019. The note is due from Sean May, president of Ungbird Inc and it collateralized by 10,975 shares of kingbird's common stock Interest is payable annually on December 31, and all interest payments were paid on their due dates through December 31, 2017. The quoted market price of Kingbird's common stock was $46 per share on December 31, 2017 3. On April 1, 2017, Kingbird sold a patent to Pennsylvania Company in exchange for a $112.000 zero-interest-bearing note due on April 2019. There was no established exchange price for the patent and the note had no ready market. The prevailing rate interest for a note of this type at An. 2017, was 14%. The present value of 1 for two periods at 145 0.769 use this factor) The patent had carrying value of $44,000 anuary 1, 2017, and the amortization for the year ended December 31, 2017 would have been $8.960. The collection of the note receivable from Pennsylvania is reasonably assured 4. Os Duly 1, 2017. dngbird sold a parcel of land to Splinter Company for $211.000 under an installment sale contrac, Splinter made $63,480 cash down payment on July 1 2017 and signed a 4-year 13' note for the $140,120 balance. The coulanul masof prindpal and interest on the note will be 543.799 Bayable on July 1, 2018 through July 1, 2021. The land could have been sold at an established cash price of $211,600. The cost of the land to Kingbird was 5161.000. Circumstances are such that the Collection of the installments on the note is reasonably assured Prepare the long-term receivables section of Kingbirds balance sheet at December 31, 2017 [Round answers to o dederalnieces, 5.125.) KINGBIRD INC Prepare the long-term receivables section of Kingbird's balance sheet at December 31, 2017. (Round answers to O KINGBIRD INC Long-Term Receivables Section of Balance Sheet $ Prepare a schedule showing the current portion of the long term receivables and accrued interest receivable that would appear in Kingbird's balance sheet at December 31, 2017 (Round answers to decimal places, S. 129.) KINGBIRD INC Selected Balance Sheet Balances Prepare a schedule showing interest revenue from the long-term receivables that would appear on Kingbird's income statement for the year ended December 31, 2017. (Round answers to decimal places, c.0.5.125.) KINGBIRD INC Interest Revenue from Long-Term Receivables Problem 7.9 Kingbird Inc. had the following long-term receivable account balances at December 31, 2016. Note receivable from sale of division $900,000 Note receivable from office 439,000 1. Transactions during 2017 and other Information relating to Kingbird's long-term receivables were as follows. The $900,000 noto receivable is dated May 1, 2016, bears interest at 10%, and represents the balance of the conoderation received from the sale of Kingbird's electronics division to New York Company, Prindpal payments of $100,000 plus appropriate interest me due on May 1, 2017, 2018, and 2019. The first principal and interest payment was made on May 1, 2017 Collection of the note installments is reasonably assured. 2. The $430,000 note receivable is dated December 31, 2016, bears interest at 9%, and is due on December 31, 2019. The note is due from Sean May, president of Kingbird Inc. and is collateralized by 10,975 shares of Kingbird) common stock. Interest is payable annually on December 31, and all interest payments were paid on their due dates through December 31, 2017. The quoted market price of Kingbird's common stock was $46 per share on December 31, 2017 On April 1, 2017, Kingbird sold a patent to Pennsylvania Company in exchange for $112.000 zero interest beating note due on April 1, 2019. There was no established exchange price for the patent, and the note had no ready market. The prevailing rate of interest for a note of this type at April 1, 2017, was 14%. The present value of $1 for two periods at 14% is 0.709 (use this factor). The patent had a carrying value of $44,000 at January 1, 2017, and the amortization for the year ended December 31, 2017, would have been $8,960. The collection of the note receivable from Pennsylvania is reasonably assured 4. On July 1, 2017. Kingbird sold a parcel of land to Splinter Company for $211.600 under an installment sale contract. Splinter made a $63,480 cash down payment on July 1. 2017, and signed a year 13% note for the $145,120 balance. The equal annual payments of principal and interest on the note will be $43,799 payable on July 1, 2018, through July 1, 2021. The land could have been sold at an established cash price of $211,600. The cost of the land to Kingbird was $161,600. Circumstances are such that the collection of the instaliments on the note is reasonably assured Prepare the long-term receivables section of Kingbird's balance sheet at December 31, 2017. (Hound answers to O decimal places, e.g. 5,125) KINGBIRD INC. Long-Term Receivables Section of Balance Sheet Prepare a schedule showing the current portion of the long-term receivables and accrued interest receivable that would appear in Kingbird's balance sheet at December 31, 2017. (Round answers to o decimal places, e.g. 5.129.) KINGBIRD INC. Selected Balance Sheet Balances Prepare a schedule showing interest revenue from the long term receivables that would appear on ingbird's income statement for the year ended December 31, 2017. (Round answers to o decimal places, e.o. 5.125.) KINGBIRD INC. Interest Revenue from Long-Term Receivables Click if you would like to Show Work for this question: Don Show Work