On December 30 of the current year, Azrael, Inc., purchased a machine from Abiss Corp. in exchange for a noninterest-bearing note requiring eight payments of $20,000. The first payment was made on December 30, and the others are due annually on December 30. At date of issuance, the prevailing rate of interest for this type of note was 11%. On Azrael's current year December 31 balance sheet, the note payable to Abiss was A. $94, 244 B. $114, 244 C. $102, 922 D. $104, 611

Answers

Answer 1
Answer:

Answer:

A) $94, 244  

Explanation:

The agreement required 8 installment payment of $20,000 each, the first one was due on the same day the agreement was made (December 30). The December 31 balance account of the note payable equals the present value of the 7 remaining payments:

the present value factor of an ordinary annuity for 7 years ans 11% interest rate = 4.712

so the present value of the note payable = $20,000 x 4.7122 = $94,244


Related Questions

I need help with all those questions
Sometimes compensation packages include bonuses designed to provide performance incentives to employees. The difficulty a bonus can cause accountants is not an accounting problem, but a math problem. The complication is that the bonus formula sometimes specifies that the calculation of the bonus is based in part on the bonus itself. This occurs anytime the bonus is a percentage of income because expenses are components of income, and the bonus is an expense.Regalia Fashions has an incentive compensation plan through which a division manager receives a bonus equal to 8% of the division's net income. Division income in 2013 before the bonus and income tax was $245,000. The tax rate is 30%.Calculate the amount of the bonus.
Leon is catering a luncheon. He is only supplying the food. What kind of catering service is he providing?
Blank______ constrain a firm's ability to export its products by raising the price of the exported product, which could put the firm at a competitive disadvantage with domestic firms in that country. Multiple choice question
Refer to the given list of assets. 1. Large-denominated ($100,000 and over) time deposits 2. Non Checkable savings deposits 3. Currency (coins and paper money) in circulation 4. Small-denominated (under $100,000) time deposits 5. Stock certificates 6. Checkable deposits 7. Money market deposit accounts 8. Money market mutual fund balances held by individuals 9. Money market mutual fund balances held by businesses 10. Currency held in bank vaults The M2 definition of money includes ________.

An ad for Mongoose mountain bikes shows a serious biker traversing remote and rugged but beautiful terrain and states, "There are places that are so awesome and so killer that you'd like to tell the whole world about them. But please, don't." This ad uses the ________ appeal.

Answers

Answer:

sensory  

Explanation:

Sensory appeal: The term "sensory appeal" is described as one of the types of market branding that tends to appeal to every sense associated with a specific brand. Sensory appeal ought to utilize the senses to associate with different customers on a particular "emotional level". However, brands can even forge "emotional associations" in a customer's mind through senses appealing.

In the question above, the given statement represents sensory appeal.

Final answer:

The advertisement uses the emotional appeal technique, aiming to invoke a sense of adventure, independence, and exclusivity in its audience by portraying a rugged, beautiful terrain.

Explanation:

The ad you are referring to uses the emotional appeal method. Emotional appeals are utilized when advertisers want the audience to connect with the message on a deeper, often subconscious, level. In this context, the ad tries to invoke a sense of adventure, independence, and belonging in the viewer. The phrase "There are places that are so awesome and so killer that you'd like to tell the whole world about them. But please, don't." emphasizes the exclusivity and uniqueness of owning a Mongoose mountain bike, thus appealing to emotions and desires of the intended audience.

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What are the three choices that profit-maximizing firms have to make?a. how much to demand, how to generate goods, and what to price outputted goods
b. how much to supply, how to produce output, and how much of each input to demand
c. how much to demand, how to produce input, and how much of each output to demand
d. how much to supply, how to market supplied goods, and how to advertise supplied goods

Answers

The right answer for the question that is being asked and shown above is that: "b. how much to supply, how to produce output, and how much of each input to demand." the three choices that profit-maximizing firms have to make are b. how much to supply, how to produce output, and how much of each input to demand

When the return on investment for each division of a corporation is greater than what the return would be if each division were an independent business, that corporation is said to have achieved A. synergy. B. its hurdle rate. C. the status of a true conglomerate. D. Stage III. E. a leveraged buyout.

Answers

Answer: A. Synergy

Explanation:

Apart from being a great sounding word, Synergy is a concept that is usually used for mergers between 2 or more companies to show that the value and performance of combined companies can be greater than them working independently.

In this scenario however, Synergy would refer to each division of this company working better together as opposed to apart.

Which of the following is not a cabinet position?a: Vice President
b: Attorney General
c: Ambassador to the United Nations
d: Secretary of Treasury

Answers

C: Ambassador to the United Nations is not a member of the cabinet
The vice president is not a cabinet position. He/she is selected by the presidentail nominee and does not require approval by the senate or the house.

The first step in developing an ABC system is A. calculate an activity cost allocation rate for each activity.
B. allocate the costs to the cost object using the activity cost allocation rates.
C. select an allocation base for each activity.
D. identify the primary activities and estimate a total cost pool for each.

Answers

Answer:

D

Explanation:

Activity based costing (ABC) is a costing system that uses production activities as basis for cost allocation.All the activities related to production are identified and the cost of each activity are assigned to manufactured goods in the proportion of respective activities consumed.

It entails tracing cost to activities and activities to product.

The first step in developing this model is identifying primary activities and estimate a total cost pool for each.

Which of the following can increase your credit card's APR?

Answers

APR? That's interest.  You don't want to add interest. If you are trying to increase your credit limit you can ask the credit card company - but you need to make sure your payments have been on time

Final answer:

Missed or late payments, Maxing out credit limit, Changes in the market can increase your credit card's APR.

Explanation:

APR stands for Annual Percentage Rate, which is the interest rate charged on your credit card balance. There are several factors that can increase your credit card's APR, including:

  • Missed or late payments: If you consistently miss payments or make late payments, your credit card issuer may increase your APR as a penalty.
  • Maxing out your credit limit: If you use up all of your available credit, it can negatively impact your credit score and result in a higher APR.
  • Changes in the market: The overall economy and market conditions can influence interest rates, which can in turn affect your credit card's APR.

It's important to manage your credit card responsibly to avoid potentially higher APRs. Paying your bills on time and keeping your credit utilization low can help maintain a lower APR.

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