HACC 340: External Reporting I (2016 Spring) Take Test: Quiz 6
Question # 00213232
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Updated on: 03/05/2016 01:50 AM Due on: 03/05/2016
2016/3/4 Take Test: Quiz 6 TVM, Spring 2016
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HACC 340: External Reporting I (2016 Spring) 2016SpringTACC340187682177221771 QUIZZES Take Test: Quiz 6 TVM, Spring 2016
Take Test: Quiz 6 TVM, Spring 2016
Description CH 6. This quiz is due on Friday, March 4th at 11:00 PM. You will be given (2) attempts to complete this quiz and your highest grade will be reported
in the grade book. To control rounding errors, tables are provided to you in this quiz. The factors are rounded to three decimal places. Because
blackboard is quite sensitive and doesn't recognize rounding differences, you must use these factors when answering the questions. When calculating
your answers, the instructions tell you to not round any of your answers until your final answer? then round to the nearest whole number. In this case, if
your answer was $1015.22, you would submit as your final answer 1015 (no dollar signs or commas). If your answer was $1015.82, your final answer to
submit would be 1016. For all responses, I have programmed blackboard to accept answers that are +/ $1 from the correct answer to avoid rounding
differences.
Instructions
Multiple
Attempts
This test allows 2 attempts. This is attempt number 1.
Force
Completion
This test can be saved and resumed later.
Save All Answers Save and Submit
NOTES RECEIVABLE. Use the following present value tables to answer all of the following questions.
* Do not round any answer until your final answer. Round your final answer to the nearest whole dollar. When entering your final answer, do not
use commas or $ sign. (Sorry...blackboard is very sensitive and will mark your answer incorrect due to rounding and punctuation.)
PV of $1 Periods 3% 4% 5% 6% 8% 10%
3 .915 .889 .863 .839 .793 .751
6 .837 .790 .746 .704 .630 .564
PVOA
3 2.828 2.775 2.723 2.673 2.577 2.486
6 5.417 5.242 5.075 4.917 4.622 4.355
USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (5) QUESTIONS:
Sparky sold merchandise to Bruins Company on June 1, 2016 and accepted an interestbearing note with an 8% APR. Bruins agreed to make annual payments of P&I
in the amount of $15,000 per year for 6 years with the first payment being made immediately. The remaining payments are to be remitted each June 1
st
. December
31
st
is the fiscal year end for both companies. Bruins normal cost to borrow is 8%.
Required: You are asked to answer each of the following blanks.
Determine the Sales Revenue Sparky can recognize
on Jun 1, 2016: $ Blank 1
Determine the Total Interest Revenue that Sparky
will recognize for the year ended December 31, 2017
on their Income Statement:
$ Blank 2
Prepare the Balance Sheet as of December 31,
2017:
Current Assets:
Interest Receivable $ Blank 3
Note Receivable $ Blank 4
LongTerm Investments:
Note Receivable $ Blank 5
1. Determine the Sales Revenue Sparky can recognize on Jun 1, 2016: $[Blank_1]
QUESTION 1
0.7142 points Save Answer
Using the information in #1 above,
Determine the Total Interest Revenue that Sparky will recognize for the year ended December 31, 2017 on their Income Statement: [Blank_2]
QUESTION 2
0.7142 points Save Answer
Using the information in #1 above, in preparing a classified Balance Sheet as of December 31, 2017, determine Interest Receivable: $[Blank_3]
QUESTION 3
0.7142 points Save Answer
Using the information in #1 above, in preparing a classified Balance Sheet as of December 31, 2017, determine the current portion of the Note Receivable: $[Blank_4]
QUESTION 4
0.7142 points Save Answer
Using the information in #1 above, in preparing a classified Balance Sheet as of December 31, 2017, determine the longterm portion of the Note Receivable: $[Blank_5]
QUESTION 5
0.7154 points Save Answer
QUESTION 6
0.7142 points
?
Question Completion Status:
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* Round all answers to the nearest whole dollar.
What amount of Service
Revenue was recorded on
January 1, 2015?
What amount of interest revenue
should be recognized on this note for
the year ending December 31, 2016?
What is the Carrying Value
of the Note Receivable at
December 31, 2016?
1. On January 1, 2015, ABC rendered services to Z Corp. in
exchange for a $105,000, 3 year note. The terms of the
agreement require Z Corp. to make semiannual installment
payments of P&I with the first installment due immediately. An
annual interest rate of 8% is imputed. Each payment is to be
received on Jan 1 and July 1. ABC’s yearend is Dec 31.
$ Blank_1 $ Blank 2
$ Blank 3
2. On January 1, 2015 ABC rendered services in exchange for a
$20,000 cash down payment (this down payment is NOT a
PVAD? it is simply made to reduce the amount being financed)
and a 3 year $90,000, 6% note. Interest is to be remitted each
June 30 and Dec 31. Principal will be remitted at maturity. This
customer has a credit rating which requires that money be
borrowed at 10%.
$ Blank 4 $ Blank 5
$ Blank 6
2. Continued…
For Scenario #2 above, determine the Total Interest Revenue
ABC will recognize over the entire threeyear lending
agreement.
$ Blank 7
1. From Scenario #1, Determine how much Service Revenue was recorded on January 1, 2015: $[Blank_1]
0.7142 points Save Answer
From Scenario #1, Determine how much interest revenue should be recognized on this note for the year ending December 31, 2016: $[Blank_2]
QUESTION 7
0.7142 points Save Answer
For Scenario #1 above, Determine the carrying value of the note as of December 31, 2016: $[Blank_3]
QUESTION 8
0.7142 points Save Answer
From Scenario #2 above, Determine how much Service Revenue should be recognized on January 1, 2015: $[Blank_4]
QUESTION 9
0.7142 points Save Answer
From Scenario #2 above, Determine how much Interest Revenue should be reported for the year ended December 31, 2016: $[Blank_5]
QUESTION 1 0
0.7142 points Save Answer
For Scenario #2, Determine the Carrying Value of the Note as of December 31, 2016: $[Blank_6]
QUESTION 1 1
0.7142 points Save Answer
For Scenario #2 above, determine the Total Interest Revenue ABC will recognize over the entire threeyear lending agreement: $[Blank_7]
QUESTION 1 2
0.7142 points Save Answer
QUESTION 1 3
0.7142 points Save Answer
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* Round all answers to the nearest whole dollar. What amount of Service Revenue was
recorded on January 1, 2015?
Determine the amount of
(1) P&I Payment
3. On January 1, 2015, ABC rendered services to Z Corp.
accepting $30,000 down and a 3 year, $150,000, 8% note
with P&I payments to be made each June 30 and December
31
st
. The 8% APR is considered reasonable.
$ Blank 8 $ Blank 9
What amount of Service Revenue was recorded on January 1, 2015? $[Blank_8]
From Scenario #3 above, Determine the amount of (1) P&I payment: $[Blank_9]
QUESTION 1 4
0.7142 points Save Answer
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HACC 340: External Reporting I (2016 Spring) 2016SpringTACC340187682177221771 QUIZZES Take Test: Quiz 6 TVM, Spring 2016
Take Test: Quiz 6 TVM, Spring 2016
Description CH 6. This quiz is due on Friday, March 4th at 11:00 PM. You will be given (2) attempts to complete this quiz and your highest grade will be reported
in the grade book. To control rounding errors, tables are provided to you in this quiz. The factors are rounded to three decimal places. Because
blackboard is quite sensitive and doesn't recognize rounding differences, you must use these factors when answering the questions. When calculating
your answers, the instructions tell you to not round any of your answers until your final answer? then round to the nearest whole number. In this case, if
your answer was $1015.22, you would submit as your final answer 1015 (no dollar signs or commas). If your answer was $1015.82, your final answer to
submit would be 1016. For all responses, I have programmed blackboard to accept answers that are +/ $1 from the correct answer to avoid rounding
differences.
Instructions
Multiple
Attempts
This test allows 2 attempts. This is attempt number 1.
Force
Completion
This test can be saved and resumed later.
Save All Answers Save and Submit
NOTES RECEIVABLE. Use the following present value tables to answer all of the following questions.
* Do not round any answer until your final answer. Round your final answer to the nearest whole dollar. When entering your final answer, do not
use commas or $ sign. (Sorry...blackboard is very sensitive and will mark your answer incorrect due to rounding and punctuation.)
PV of $1 Periods 3% 4% 5% 6% 8% 10%
3 .915 .889 .863 .839 .793 .751
6 .837 .790 .746 .704 .630 .564
PVOA
3 2.828 2.775 2.723 2.673 2.577 2.486
6 5.417 5.242 5.075 4.917 4.622 4.355
USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (5) QUESTIONS:
Sparky sold merchandise to Bruins Company on June 1, 2016 and accepted an interestbearing note with an 8% APR. Bruins agreed to make annual payments of P&I
in the amount of $15,000 per year for 6 years with the first payment being made immediately. The remaining payments are to be remitted each June 1
st
. December
31
st
is the fiscal year end for both companies. Bruins normal cost to borrow is 8%.
Required: You are asked to answer each of the following blanks.
Determine the Sales Revenue Sparky can recognize
on Jun 1, 2016: $ Blank 1
Determine the Total Interest Revenue that Sparky
will recognize for the year ended December 31, 2017
on their Income Statement:
$ Blank 2
Prepare the Balance Sheet as of December 31,
2017:
Current Assets:
Interest Receivable $ Blank 3
Note Receivable $ Blank 4
LongTerm Investments:
Note Receivable $ Blank 5
1. Determine the Sales Revenue Sparky can recognize on Jun 1, 2016: $[Blank_1]
QUESTION 1
0.7142 points Save Answer
Using the information in #1 above,
Determine the Total Interest Revenue that Sparky will recognize for the year ended December 31, 2017 on their Income Statement: [Blank_2]
QUESTION 2
0.7142 points Save Answer
Using the information in #1 above, in preparing a classified Balance Sheet as of December 31, 2017, determine Interest Receivable: $[Blank_3]
QUESTION 3
0.7142 points Save Answer
Using the information in #1 above, in preparing a classified Balance Sheet as of December 31, 2017, determine the current portion of the Note Receivable: $[Blank_4]
QUESTION 4
0.7142 points Save Answer
Using the information in #1 above, in preparing a classified Balance Sheet as of December 31, 2017, determine the longterm portion of the Note Receivable: $[Blank_5]
QUESTION 5
0.7154 points Save Answer
QUESTION 6
0.7142 points
?
Question Completion Status:
2016/3/4 Take Test: Quiz 6 TVM, Spring 2016
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* Round all answers to the nearest whole dollar.
What amount of Service
Revenue was recorded on
January 1, 2015?
What amount of interest revenue
should be recognized on this note for
the year ending December 31, 2016?
What is the Carrying Value
of the Note Receivable at
December 31, 2016?
1. On January 1, 2015, ABC rendered services to Z Corp. in
exchange for a $105,000, 3 year note. The terms of the
agreement require Z Corp. to make semiannual installment
payments of P&I with the first installment due immediately. An
annual interest rate of 8% is imputed. Each payment is to be
received on Jan 1 and July 1. ABC’s yearend is Dec 31.
$ Blank_1 $ Blank 2
$ Blank 3
2. On January 1, 2015 ABC rendered services in exchange for a
$20,000 cash down payment (this down payment is NOT a
PVAD? it is simply made to reduce the amount being financed)
and a 3 year $90,000, 6% note. Interest is to be remitted each
June 30 and Dec 31. Principal will be remitted at maturity. This
customer has a credit rating which requires that money be
borrowed at 10%.
$ Blank 4 $ Blank 5
$ Blank 6
2. Continued…
For Scenario #2 above, determine the Total Interest Revenue
ABC will recognize over the entire threeyear lending
agreement.
$ Blank 7
1. From Scenario #1, Determine how much Service Revenue was recorded on January 1, 2015: $[Blank_1]
0.7142 points Save Answer
From Scenario #1, Determine how much interest revenue should be recognized on this note for the year ending December 31, 2016: $[Blank_2]
QUESTION 7
0.7142 points Save Answer
For Scenario #1 above, Determine the carrying value of the note as of December 31, 2016: $[Blank_3]
QUESTION 8
0.7142 points Save Answer
From Scenario #2 above, Determine how much Service Revenue should be recognized on January 1, 2015: $[Blank_4]
QUESTION 9
0.7142 points Save Answer
From Scenario #2 above, Determine how much Interest Revenue should be reported for the year ended December 31, 2016: $[Blank_5]
QUESTION 1 0
0.7142 points Save Answer
For Scenario #2, Determine the Carrying Value of the Note as of December 31, 2016: $[Blank_6]
QUESTION 1 1
0.7142 points Save Answer
For Scenario #2 above, determine the Total Interest Revenue ABC will recognize over the entire threeyear lending agreement: $[Blank_7]
QUESTION 1 2
0.7142 points Save Answer
QUESTION 1 3
0.7142 points Save Answer
2016/3/4 Take Test: Quiz 6 TVM, Spring 2016
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Save All Answers Save and Submit
* Round all answers to the nearest whole dollar. What amount of Service Revenue was
recorded on January 1, 2015?
Determine the amount of
(1) P&I Payment
3. On January 1, 2015, ABC rendered services to Z Corp.
accepting $30,000 down and a 3 year, $150,000, 8% note
with P&I payments to be made each June 30 and December
31
st
. The 8% APR is considered reasonable.
$ Blank 8 $ Blank 9
What amount of Service Revenue was recorded on January 1, 2015? $[Blank_8]
From Scenario #3 above, Determine the amount of (1) P&I payment: $[Blank_9]
QUESTION 1 4
0.7142 points Save Answer
-
Rating:
/5
Solution: HACC 340: External Reporting I (2016 Spring) Take Test: Quiz 6 (Solution)