(d)Riverbed Inc. wishes to accumulate $1,274,000 by December 31, 2030, to retire bonds outstanding. The company deposits$196,000 on December 31, 2020, which will earn interest at 10% compounded quarterly, to help in the retirement of this debt. Inaddition, the company wants to know how much should be deposited at the end of each quarter for 10 years to ensure that$1,274,000 is available at the end of 2030. (The quarterly deposits will also earn at a rate of 10%, compounded quarterly) (Roundfactor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, eg. 458,581)Annuity of value of quarterly deposits

A target value has to be accumulated in future through an initial deposit and periodic quarterly…

Answered: Riverbed Inc. wishes to accumulate…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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Pearl Inc. wishes to accumulate $1,352,000 by December 31, 2030, to retire bonds outstanding. The company deposits $208,000 on December 31, 2020, which will earn interest at 12% compounded quarterly, to help in the retirement of this debt. In addition, the company wants to know how much should be deposited at the end of each quarter for 10 years to ensure that $1,352,000 is available at the end of 2030. (The quarterly deposits will also eam at a rate of 12%, compounded quarterfy.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Annuity of value of quarterly deposits
Riverbed Inc wishes to accumulate $1274000 by December 31, 2030 to retire bonds outstanding. The company deposits $196000 on December 31,2020 which will earn interest at 10% compounded quarterly to help in the retirement of this debt. In addition, the company wants to know how much should be deposited at the end of each quarter for 10 years to ensure that 1274000 is available at the end of 2030. Please do not give solution and formulae in image format..thanku
On January 1, 2020 , the lending company made a 200,000 8% loan . The interest is receivable at the end of each year , with the principal amount to be received at the end of 5 years . As of December 31, 2020 the interest for the current year has not been recer nor recorded because the borrower is experiencing financial difficulties . The lending company negotiated a restructuring of the loa The payment of all of the interest based on the original will be delayed until the end the 5 year loan term In addition , the amount of principal repayment will be dropped from P 200,000 to P 100,000 The prevailing interest rate for similar type of the loan as of December 312020 is 10 %The loan impairment loss to be recognize in 2020 profit or loss is Select the correct response 77,492 P 67,700 73,506
Vargo Corp. owes $270,000 to First Trust. The debt is a 10-year, 12% note due December 31, 2020. Because Vargo Corp. is in financial trouble, First Trust agrees to extend the maturity date to December 31, 2022, reduce the principal to $220,000, and reduce the interest rate to 5%, payable annually on December 31. Instructions a. Prepare the journal entries on Vargo's books on December 31, 2020, 2021, 2022. b. Prepare the journal entries on First Trust's books on December 31, 2020, 2021, 2022.
Concord Corp. owes $251,000 to Marigold Trust. The debt is a 10-year, 12% note due December 31, 2020. Because Concord Corp. is in financial trouble, Marigold Trust agrees to extend the maturity date to December 31, 2022, reduce the principal to $204,000, and reduce the interest rate to 7%, payable annually on December 31. (a) Prepare the journal entries on Concord's books on December 31, 2020, 2021, 2022. (b) Prepare the journal entries on Marigold Trust's books on December 31, 2020, 2021, 2022. Click here to view factor tables. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) Date Account Titles and Explanation Concord Corp.'s 2020 2021 2022 Notes Payable Gain on Restructuring of Debt Notes Payable Cash Notes…
On January 1, 2021, Banco de Oro made a 1,000,000 8% loan with interest receivable at the end of each year in the amount of 80,000 and the principal amount to be received at the end of five years. At the end of 2021, the borrower is experiencing financial difficulties so the interest for the first year in the amount of 80,000 has not yet been received. The borrower negotiated a restructuring of the loan. The payment of all of the interest for 5 years will be delayed until the end of the 5-year loan term. In addition, the amount of principal repayment will be dropped from P1,000,000 to P500,000. The PV of 1 at 8% for 4 periods is 0.735. No interest revenue has been recognized in 2021 in connection with the loan. What amount should be reported as interest income for 2022?
On January 1, 2021, Oceanic Bank made a P1,000,000, 8% loan. The P80,000 interest is receivable at the end of each year, with the principal amount to be received at the end of five years. At the end of 2021, the first year's interest of P80,000 has not yet been received because the borrower is experiencing financial difficulties. The borrower negotiated a restructuring of the loan. The payment of all of the interest for 5 years will be delayed until the end of the 5- year loan term. In addition, the amount of principal repayment will be dropped from P1,000,000 to P500,000.The PV of 1 at 8% for 4 periods is .735. No interest revenue has been recognized in 2021 in connection with the loan. What is the loan impairment loss on December 31, 2021? a. 338,500 O b. 238,500 c. 388,000 O d. 288,000
Assume that on September 1, 2022, Brannigan, which has a year-end of December 31, borrows $120,000,000 on a three-year, 7%note. The note requires annual interest payments and repayment ofthe principal plus the final year's interest at the end of the thirdyear.Even though no payment is due on December 31, interest must beaccrued for the period
Could you help me solve this accounting homework problem for me? and please show all your work so I can understand it On January 1, 2020, TPM Inc. acquires a piece of equipment for a list price of $300,000. It pays$20,000 immediately and writes a note for the remainder. Annual interest of 3% is due everyDecember 31st, and the principal of the note is payable in 6 years.TPM’s incremental borrowing rate is 6%, while the seller’s incremental borrowing rate is 7%.TPM is a public company. It depreciates its equipment using the diminishing balance method at15%. The equipment’s residual value is $40,000 at the end of its useful life. 1) Prepare all required journal entries for the years 2020 and 2021.2) Determine the Asset’s net book value on January 1, 2024.3) Determine the note payable carrying value on January 1, 2024.
VKS Bank loaned P5,000,000 to IntAcc1 Company on January 1, 2018. The terms of the loan require principal payments of P1,000,000 each year on December 31 for 5 years plus interest at 8%. The first principal and interest payment is due on December 31, 2018. IntAcc1 Company made the required payments during 2018 and 2019. However, during 2020 IntAcc1 Company began to experience financial difficulties and was not able to pay the next installment of principal and interest, this required VKS to reassess the collectibility of the loan. On December 31, 2021, Sinopharm determined that the remaining principal payment will be collected starting December 31, 2022 but the collection of the interest is unlikely. Assume that VKS accrued interest on December 31, 2020 but did not continue to accrue interest because of its uncollectibillity. Use two-decimal places for PV factors. What is the loan impairment loss on December 31, 2021?
Groudon Bank loaned P12,000,000 to Kyogre Company on January 1, 2020, the terms of the loan require principal payments of P2,000,000 each year for 6 years plus interest at 6%. The first principal and interest payment is due on December 31, 2020. Kyogre made the required payments on December 31, 2020, and December 31, 2021. However, Kyogre began to experience financial difficulties during 2022 which requires the bank to reassess the collectibility of the loan. On December 31, 2022, the bank determined that the remaining principal payments will be collected but the collection of the interest is unlikely. The bank did not accrue the interest for 2022. Expected Principal Payments December 31, 2024 P4,000,000 December 31, 2025 2,500,000 December 31, 2026 1,500,000 Note: Round off present value factors up to four decimal points; round off the final value up to two decimal points. E.g., 0.7812 and 123,518.25 Questions: How much is the impairment loss to be recorded on December…
Sally Corp. borrowed $360,000 from County Bank on January 1, 2020 signing a 15 year note payable. The loan has an interest rate of 4% and a fixed annual payment of $32,379. Annual payments begin January 1, 2021. What amount of the payment made on January 1, 2022 will be interest expense?

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