Given that revenue is the same for each period

Assignment Help Accounting Basics
Reference no: EM13921646

On January 1, 2013, Spain Co. borrowed cash from First Bank by issuing a $250,000 face value, four year term note that had an 8 percent annual interest rate. The note is to be repaid by making annual cash payments of $75,480 that include both interest and principal on December 31 of each year. Spain used the proceeds from the loan to purchase land that generated rental revenues of $90,000 cash per year.

Required: 

a. Prepare an amortization schedule for the four year period. 

b. Prepare an income statement, balance sheet, and statement of cash flows for each of the four years. 

c. Given that revenue is the same for each period, explain why net income increases each year. 

Reference no: EM13921646

Questions Cloud

How skepticism can function both positively and negatively : Fate works in mysterious ways in several stories we have read. Pick two stories where the power of fate forces an inescapable conclusion and explain why the outcomes of these stories seem just or unjust. Explain how skepticism can function both p..
Discuss two problems that arise in estimating cost curves : Discuss two problems that arise in estimating cost curves. Suppose that the marginal product of labor is: MP = 100 - L, where L is the number of workers hired.
Market share leader in radar detection systems : Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs). Calculate the project’s Time 0 cash flow, taking into account a..
Analyze existing business strategies, industry for samsung : Analyze the business-level strategy of each company by conducting a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis. Next, determine the fundamental way in which each sector influences its competitive position within the industry..
Given that revenue is the same for each period : Given that revenue is the same for each period, explain why net income increases each year.
Paragraph of reader response to the dickinson poem : Compose a paragraph of 'reader response' to the Dickinson poem and one of the Whitman poems. One paragraph each! Remember, 'reader response' asks that you connect with the poem in some personal way
Use present value of annuity table : How much money does Melinda need to deposit into her investment account today if she wishes to withdraw $8,000 a year for twenty years? She expects to earn an average rate of return of 11 percent. (Choose the closest answer, use present value of annu..
Will the author be happy with the book company output choice : Will the author be happy with the book company's output choice? Does the selected output maximize the joint profits (for both the author and company) from the book?
Separation performed by flash vaporization in a drum : Consider a vapor/liquid separation performed by flash vaporization in a drum:

Reviews

Write a Review

Accounting Basics Questions & Answers

  During your audit of miles company you prepared the

during your audit of miles company you prepared the following bank transfer schedule miles company bank transfer

  Calculate the prepaid insurance balance

Select the formula you will use to calculate the prepaid insurance balance at December 31, 2009. Then enter the amounts and calculate the balance. Round your answer to the nearest whole number.

  The wexler company is considering the purchase of a new

the wexler company is considering the purchase of a new machine costing 250000. this machine is estimated to cost 5000

  Describe the primary advantages and disadvantages of

discuss the primary advantages and disadvantages of applying the direct write-off and the allowance method of writing

  What is the cost of goods manufactured

The materials inventory increased from the beginning to the end of the period by $12,000, while the work in process inventory decreased from the beginning to the end of the period by $5,000. What is the cost of goods manufactured?

  Internal auditors-forensic accounting investigations

How should internal auditors help, if at all, with forensic accounting investigations?

  Bronze corporation has the following information month

bronze corporation has the following information month budgeted sales may 46000 june 50000 july 52000 august 48000 the

  Hart is aware that cost studies can be threatening to

lynn hart is a managerial accountant at paibec corporation. paibec is under intense cost competition and hart has been

  Assume that on september 1 office depot had an inventory

assume that on september 1 office depot had an inventory that included a variety of calculators. the company uses a

  Prepare the general journal entries required to record all

the following are the transactions for smiley inc.1. the company is authorized to sell 1000000 shares of 10 par value

  What amount of cash does gore co. receive

Gore Co. issued $200,000 of bonds with a stated annual rate of 8% at a time when the market rate of interest is 6% per year. Interest is paid semiannually, and the bonds mature in 3 years. What amount of cash does Gore Co. receive when the bond..

  Banking and the money supply

Using your understanding of the financial system, the demand for money, banking and the money supply, the stock market, interest and spending, interest and investment, how money moves, and how monetary policy affects aggregate supply and demand an..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd