Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. cypress oil company's december 31, 2021, balance s

Cypress Oil Company's December 31, 2021, balance sheet listed $1,143,000 of notes receivable and $22,500...

70.2K

Verified Solution

Question

Accounting

image

Cypress Oil Company's December 31, 2021, balance sheet listed $1,143,000 of notes receivable and $22,500 of interest receivable included in current assets. The following notes make up the notes receivable balance: Note 1 Dated 8/31/2021, principal of $450,000 and interest at 8% due on 2/28/2022 Note 2 Dated 6/30/2021, principal of $350,000 and interest due 3/31/2022. Note 3 $350,000 face value noninterest-bearing note dated 9/30/2021, due 3/31/2022 Note was issued in exchange for merchandise. The company records adjusting entries only at year-end. There were no other notes receivable outstanding during 2021. Required: 1. Determine the rate used to discount the noninterest-bearing note. 2. Determine the explicit interest rate on Note 2. (Round your intermediate calculations to the nearest whole dollar amount.) 3. What is the amount of interest revenue that appears in the company's 2021 income statement related to these notes? 8% 1. Discount rate % 2. Interest rate Interest revenue 3

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

Find the standard matrix of the composite transformation from R2 to R Reflection in the...

Physics
1.2K views

Q3a. Define the specific heat capacity, and state its units. b. A Cu bar, 0.5 m long and...

Psychology
1.2K views

Identify and explain the “roadmap” concept within coaching. Provide a clear example of a) why this...

Biology
1.2K views

Which of the following demonstrates an example of aerobic respiration A Lactic acid fermentation B...

Basic Math
1.2K views

A mortgage is paid off in 30 years with a total of $124,000. It had...

Accounting
1.2K views

Neymar earned a lot of money in 2022 and knows that he owes...

Accounting
1.2K views

QUICKBOOKS: You reconcile a clients bank account up to today and see that their Undeposited...

Accounting
1.2K views

Exercise 11-10 (Algo) Disposal of property, plant, and equipment [LO11-2] Mercury Incorporated purchased equipment in...

Accounting
1.2K views

How did they get the contribution ratio margin of 65%???? Mickey & Mo Drive-In sells...

Accounting
1.2K views

Las empresas a menudo optan por mantener una lnea de productos, un segmento o un...

Accounting
1.2K views

Group Project Final submission due in Unit 10 Worth 15% of the final grade...

Finance
1.2K views

Royal Mediterranean Cruise Line's common stock is selling for $65.98 per share. T new stock...