On December 31, 2005, Jet Co. received two $10,000 notes receivable from customers in exchange for services rendered. On both notes, interest is calculated on the outstanding principal balance at the annual rate of 3% and payable at maturity.
The note from Hart Corp., made under customary trade terms, is due in nine months and the note from Maxx, Inc. is due in five years. The market interest rate for similar notes on December 31, 2005 was 8%. The compound interest factors to convert future values into present values at 8% follow:
Present value of $1 due in nine months:.944
Present value of $1 due in five years:.680
At what amounts should these two notes receivable be reported in Jet's December 31, 2005, balance sheet?
Hart Maxx
a. $9,440 $6,800
b. $9,652 $7,820
c. $10,000 $6,800
d. $10,000 $7,820
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On December 31, 2005, Jet Co. received two $10,000 notes receivable from customers in exchange for services rendered. On both notes, ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Under the lower-of-cost-or-market method, the replacement cost of an inventory item would be used as the designated market value:a. when it is below the net realizable value less the normal profit margin. b.
Answers (1)
A firm has redesigned its production process so that it now takes 10 hours for a unit to be made. Using the old process, it took 15 hours to make a unit.
Answers (1)
The balance in Accounts receivable was $650000 at the beginning of the year and $760000 at the end of the year. Credit Sales totaled $4,130,000. During the year, $410,000 in customer accounts were written off.
Answers (1)
Judd Corporation has a weighted average cost of capital of 10.25%, and its value of operations is $57.50 million. Free cash flow is expected to grow at a constant rate of 6.00% per year.
Answers (1)
The most widely used method of job analysis for determining the duties and responsibilities of a job is the
Answers (1)
New Questions in Business
John has two hours of free time this evening. He ranked his alternatives, first go to a concert, second go to a movie, third study for an economics exam, and fourth answer his e-mail. What is the opportunity cost of attending the concert for John? a.
Answers (1)
Identity theft is when someone takes your personal information and steals your identity. Based on the lessons, what are some of the ways to reduce your risk of becoming a victim of identity theft?
Answers (1)
Barb's aunt gave her $100 for her birthday with the condition that Barb buy herself something. In deciding how to spend the money, Barb narrows her options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100.
Answers (1)
To calculate the unit price of an item, divide the total number of units by the total price. t/f
Answers (1)
The prime minister of Equalia has called for the nation's legislators to enact new legislation designed to shift the country away from socialism toward a more capitalistic system.
Answers (1)