What amount of income from this loan should money report

Assignment Help Financial Accounting
Reference no: EM131894681

On December 1, year 1, Money Co. gave Home Co. a $200,000, 11% loan. Money paid proceeds of $194,000 after the deduction of a $6,000 nonrefundable loan origination fee. Principal and interest are due in sixty monthly installments of $4,310, beginning January 1, year 2. The repayments yield an effective interest rate of 11% at a present value of $200,000 and 12.4% at a present value of $194,000. What amount of income from this loan should Money report in its year 1 income statement?

Reference no: EM131894681

Questions Cloud

What amount should the note payable be reported in december : At what amount should the note payable be reported in Roth's December 31, year 1 balance sheet?
Ideas of compulsory heterosexuality : Dominant ideas about love and relationships (including friendships) are rooted in ideas of compulsory heterosexuality, however, love relationships
Discuss the pros and cons of clinical integration : Discuss the pros and cons of clinical integration between physicians, allied health, nurses, and administrators with hospitals and other types of healthcare.
Why did this conflict escalate to physical violence : Why did this conflict escalate to physical violence? What assumptions does your answer reveal?
What amount of income from this loan should money report : The repayments yield an effective interest rate of 11% at a present value of $200,000 and 12.4% at a present value of $194,000. What amount of income from
Describe the three concepts of classroom management : Please describe the three concepts of classroom management, engagement, and motivation in reference to education.
What would be the advantages of having a large mtu : The MTUs range from 296 to 65,535. What would be the advantages of having a large MTU? What would be the advantages of having a small MTU?
Advise the company whether the machinery should be purchased : Advise the company whether the machinery should be purchased or not on the basis of the Net Present Value
Provide a definition of plagiarism : Provide a definition of "plagiarism", and a statement why academic integrity is important.

Reviews

Write a Review

Financial Accounting Questions & Answers

  How much must the firm borrow to achieve the target debt

using the proceeds from the borrowing to buy back common stock at its book value. How much must the firm borrow to achieve the target debt ratio?

  Question unified chemical company has a joint production

question unified chemical company has a joint production process that converts zeta into two chemicals beta and alpha.

  Compare income statement and balance sheet effects

Compare and contrast the income statement and balance sheet effects of these two transactions. How should Cypres Appliance Store structure this transaction to ensure that it qualifies as a sale instead of a collateralized loan?

  Contemporary healthcare facilities-refocusing facilities

Just as the state of the healthcare industry and the concept of the patient have changed so have healthcare facilities. Physicians’ offices aren’t always offices anymore. Healthcare facilities can be mobile, virtual or traditional. This week we will ..

  Worksheet entries to recognize effects of intraentity bonds

Cairns owns 80 percent of the voting stock of Hamilton, Inc. The parent’s interest was acquired several years ago on the date that the subsidiary was formed. Consequently, no goodwill or other allocation was recorded in connection with the acquisitio..

  Question fasb asc 14-1 settlement and curtailment of a

question fasb asc 14-1 settlement and curtailment of a defined benefit pension plansearch fasb asc database for answers

  Ratios for the current year-current ratio-acid-test ratio

Compute the following ratios for the current year: Current ratio, Acid-test ratio, Inventory turnover

  Does contract exist between conroy and blackburn

On November 23, Blackburn, a dress manufacturer, mailed to Conroy a written and signed offer to sell one thousand sundresses at $50 per dress. The offer stated that it would "remain open for ten days" and that it could "not be withdrawn prior to that..

  What are the constraints equations

The Waikiki enterprise corp. produces 2 types of computers at its manufacturing plant in CA. Profit on computer A is $900 per unit and for computer B it is $600. The manufacturing plant can produce not more than 50 of computer A and 100 of computer B..

  Financial statements for bernard company

Financial statements for Bernard Company to calculate the Working capital, Current ratio and  Quick ratio

  Record the sale of the equipment

Computer equipment (office equipment) purchased 6 1/2 years ago for $170,000, with an estimated life of 8 years and a residual value of $10,000, is now sold for $60,000 cash.

  Amounts were distributed as dividends

Sandpiper Company has 25,000 shares of cumulative preferred 1% stock, $150 par and 50,000 shares of $15 par common stock. The following amounts were distributed as dividends: Year 1 $93,800 Year 2 15,000 Year 3 112,500 Determine the dividends per sha..

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