# strayer

ACC422 – Intermediate Accounting II
Learning Team D Assignment – Week 2

This assignment is worth a total of 75 points distributed evenly among the two problems. It will be graded based upon both the accuracy of your solutions (2/3) and effort (1/3). Points for effort will be impacted by poor formatting, poor organization, clear lack of effort, lack of supporting calculations, and careless errors. Any simple arithmetic errors, unbalanced journal entries, or unbalanced schedules will result in zero effort points for that problem. Show your work and double check your math and entries!

Problem 1:

The following information pertains to UZM Company’s receivables:

Note receivable 1:

On August 1, 2011 UZM Company accepted a note receivable in the amount of \$666,000 for the sale of an old factory building to another company. The note carries an annual interest rate of 6% and provides for annual payments of \$111,000 plus interest beginning on August 1, 2012 and ending on August 1, 2017. All payments due as of December 31, 2013 have been paid.

Note receivable 2:

On January 1, 2013 UZM Company loaned \$397,000 to The LRP Company, a valuable vendor that was experiencing some cash flow difficulties. The note carries a 10% interest rate compounded annually. The note calls for full payment, including all interest, on December 31, 2015. The note is collateralized by 35,000 shares of LRP Company common stock with a December 31, 2013 market value of \$15 per share. The note provides that if the overall value of the LRP Company stock should fall below 102% of the note receivable amount including accrued interest, UZM Company may sell the LRP Company stock to satisfy the outstanding note receivable.

Note receivable 3:

On August 1, 2013 UZM Company sold the formula for a secret process to another company in exchange for a \$142,000 zero-interest-bearing note due on August 1, 2017. The formula had no established exchange price and there is no ready market for the note. The current market rate of interest for such a note was 10% on the date the note was created. (The present value of \$1 for 4 periods at 10% is 0.68301.)

Note receivable 4:

On September 1, 2013 UZM Company sold land for its fair market value of \$540,000 under an installment sales contract that provided for a \$108,000 down payment and annual payments of \$167,630 beginning on July 1, 2014 and ending on July 1, 2016. The contract carries a 8% interest rate.

Collection of the payments due under each of the notes is reasonably assured.

Instructions:

A. Prepare the long-term receivables section of UZM Company’s balance sheet as of December 31, 2013.

1. 👍 0
2. 👎 0
3. 👁 61
1. Please note that we don't do students' assignments for them. Be sure to go back into your textbook or use a good search engine. http://hanlib.sou.edu/searchtools/

Once YOU have attempted to complete YOUR assignment, please re-post and let us know what you think. Then someone here will be happy to comment on your thinking.

1. 👍 0
2. 👎 0

## Similar Questions

1. ### Accounting

I have almost completed my assignment, but am stuck on this question. I researched my text and other outside sources and can't seem to find the answer. Can anyone provide any guidance on this for me? What are the strengths and

asked by Jen on February 28, 2010
2. ### ETH

Assignment: Learning Styles · Review Ch. 2 of the text. · Complete the Multiple Pathways to Learning assessment and the Personality Spectrum assessment. · Relate results to your personal study habits. · Post a 350- to 700-word

asked by keisha on January 16, 2011
3. ### Accounting

I am taking an accounting class and the instructor is refusing to give the formula needed to perform a quick ratio for a non profit organization (capital one). The typical formula Current Assets – Inventory/ Current Liabilities

asked by Steph on May 1, 2011
4. ### Fallacy

My assignment is to find fallacies in a newspaper editorial and a opinion magazine. I am having trouble understanding what a fallacy is. I know that it is a false or misleading argument. I am not understanding how to detect

asked by rindi on December 1, 2006
5. ### english

Write down the COMPLETE VERB(s) in each of the following sentences. 1. She had been going to the mall. 2. The class seems to be learning! 3. We might be going to the Gallery later. 4. Did I not give you the assignment? 5. Did I

asked by kate on January 7, 2010
6. ### Statistics

Based on sq foot and home prices :Create an inferential statistics (hypothesis) test using the research question and two variables your learning team developed for the Week 2 Business Research Project Part 1 assignment. Include:

asked by Brenda on March 5, 2017
7. ### English

In your own opinion 1. How do objectives assist a student in completing the assignment? 2. Describe what needs to be done for the assignment found in a sample syllabus? 3. If you were to complete the assignment found in a sample

asked by Anonymous on June 17, 2018
8. ### Legal Research Studies

This is my first assignment in University and in a law course. I have learning disabilities and have trouble remembering and reading/writing. This is my first assignment. I read it but I don't understand a thing. Please help me

asked by Hina on January 20, 2015
9. ### English/Film and Media studies

Hi My assignment is to talk about a documentary that doesn't exist. We had to pretend to create one and one of the things we need to discuss is our shot construction so everything from lighting, location to shot sizes. Then we

asked by Em on July 19, 2011
10. ### Sociology

Okay... here's the assignment. I've been trying this for a week and I'm screwed. Spend 30 minutes on each of these sites and answer the following questions in a 3-5 page paper, APA style. pchrgaza (dot) ps memri (dot) org/archives

asked by Marie on February 7, 2007

More Similar Questions