On December 30, 2021, JALINON Company sold a machine to GONZALES Company in exchange for a non-interest bearing note requiring ten annual payments of P10,000. GONZALES made the first payment on December 30, 2021. The market interest rate for similar notes at date of issuance was 8%. Information on present value factors is as follows: Period Present value of 1 at 8% Present value of ordinary annuity of 1 at 8% 9 0.50 6.25 10 0.46 6.71 38. In its December 31, 2021 statement of financial position, what amount should JALINON report as non-current portion of the note receivable?
On December 30, 2021, JALINON Company sold a machine to GONZALES Company in exchange for a non-interest bearing note requiring ten annual payments of P10,000. GONZALES made the first payment on December 30, 2021. The market interest rate for similar notes at date of issuance was 8%. Information on present value factors is as follows: Period Present value of 1 at 8% Present value of ordinary annuity of 1 at 8% 9 0.50 6.25 10 0.46 6.71 38. In its December 31, 2021 statement of financial position, what amount should JALINON report as non-current portion of the note receivable?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 10MC: On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major...
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On December 30, 2021, JALINON Company sold a machine to GONZALES Company in
exchange for a non-interest bearing note requiring ten annual payments of P10,000.
GONZALES made the first payment on December 30, 2021. The market interest rate
for similar notes at date of issuance was 8%. Information on present value factors is
as follows:
Period
Present value
of 1 at 8%
Present value of
ordinary annuity of 1
at 8%
9 0.50 6.25
10 0.46 6.71
38. In its December 31, 2021 statement of financial position , what amount should
JALINON report as non-current portion of the note receivable?
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