Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. please give explanations assume that cardinal co

please give explanations Assume that Cardinal Corporation provides services to Sparrow Co. and...

70.2K

Verified Solution

Question

Accounting

imageplease give explanations
Assume that Cardinal Corporation provides services to Sparrow Co. and receives in exchange a three-year $25,000 note bearing interest at 10% annually. The market rate of interest for a note of similar risks 12%. A schedule of the note amortization is as follows: Cardinal Corporation Schedule of Note Discount Amortization Discount Amortized Cash Effective Date Interest interest Date of issue End of year 1 $2,500.00 $ 2,855.00 End of year 2 2,500.00 2,897.50 End of year 3 TOTALS Carrying Value $23,800.00 24,155.00 $335.00 397.50 Complete the last line of the amortization schedule What is the total discount on this note? What is the total amount of interest Morgan will earn on this note? What is the total cash collect over the life of this note? What is the carrying value of the note at the end of the 2nd year? Prepare the journal entry to record issuance of the note. Prepare the journal entry to record first annual interest payment. Prepare the journal entry to record collection of the note and interest at the end of the 3rd year

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

Finance
1.2K views

Using the following 5 year data series, calculate the correlation between interest rates and US new...

Finance
1.2K views

The most obvious cost in a capital budget is the actual cost of the capital expenditure...

Biology
1.2K views

The vagus nerve is the cranial nerve numbering (a) 7 (b) 5 (c) 10 (d) 9.

Medical Sciences
1.2K views

An individual finds himself infected by a previously undiscovered pathogen, Transmissio (this is what my teacher put) What...

Electrical Engineering
1.2K views

5.1 Sketch the energy band diagram for an n-type MOS-C under accumulation bias conditions and sketch...

Biology
1.2K views

The principal focus of Subpart I is:a) to explain some of the real dangers of...

Physics
1.2K views

A 4500 lines/cm grating is illuminated by a single wavelength laser. What is the wavelength...

Statistics
1.2K views

Which plot below would correlation not be an accurate summary of the association O Land...

Accounting
1.2K views

PREPARE A STATEMENT OF CASH FLOWS FOR THE QUEEN CORPORATION FOR THE YEAR ENDED DECEMBER...

Accounting
1.2K views

1 Whirly Corporation's contribution format income statement for the most recent month is shown below:...

Accounting
1.2K views

Antwar eacye al da itrites b. procos b) Antwar eacye al da itrites b. procos...

Accounting
1.2K views

Cash Payback Period, Net Present Value Method, and Analysis Elite Apparel Inc. is considering two...