On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at P800,000, 5 years ago. The carrying value of the equipment is P500,000. There is no established selling price for the equipment. Upon executing the sale, ABC received P100,000 down payment and a non-interest bearing promissory note which gives the holder the right to collect 150,000 annually starting December 200A until December 200C, when the interest rate prevailing in the market is 11%. The initial amount of the note receivable is
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On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at P800,000, 5 years ago. The carrying value of the equipment is P500,000. There is no established selling price for the equipment. Upon executing the sale, ABC received P100,000 down payment and a non-interest bearing promissory note which gives the holder the right to collect 150,000 annually starting December 200A until December 200C, when the interest rate prevailing in the market is 11%.
The initial amount of the note receivable is
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- On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at P800,000, 5 years ago. The carrying value of the equipment is P500,000. There is no established selling price for the equipment. Upon executing the sale, ABC received P100,000 down payment and a non-interest bearing promissory note which gives the holder the right to collect 150,000 annually starting December 200A until December 200C, when the interest rate prevailing in the market is 11%. At the end of December 200A, the carrying value of the current portion of note receivable is (Round off the resulting present value of the note to the nearest hundreds.)On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at P800,000, 5 years ago. The carrying value of the equipment is P500,000. There is no established selling price for the equipment. Upon executing the sale, ABC received P100,000 down payment and a non-interest bearing promissory note which gives the holder the right to collect 150,000 annually starting December 200A until December 200C, when the interest rate prevailing in the market is 11%. At the end of December 200A, the carrying value of the noncurrent portion of note receivable is (Round off the resulting present value of the note to the nearest hundreds.)On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at P800,000, 5 years ago. The carrying value of the equipment is P500,000. There is no established selling price for the equipment. Upon executing the sale, ABC received P100,000 down payment and a 12% promissory note which gives the holder the right to collect 150,000 annually starting December 200A until December 200C, when the interest rate prevailing in the market is 13%. The initial amount of the note receivable is (Round off the resulting present value of the note to the nearest hundreds.)
- On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at P800,000, 5 years ago. The carrying value of the equipment is P500,000. There is no established selling price for the equipment. Upon executing the sale, ABC received P100,000 down payment and a 12% promissory note which gives the holder the right to collect 150,000 annually starting December 200A until December 200C, when the interest rate prevailing in the market is 13%. At the end of December 200A, the carrying value of the noncurrent portion of note receivable isOn January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at P800,000, 5 years ago. The carrying value of the equipment is P400,000. There is no established selling price for the equipment. Upon executing the sale, ABC received P100,000 down payment and an 11% 3 year promissory note amounting to P450,000, when the interest rate prevailing in the market is 12%. At the end of December 200A, how much is the total amount of income that should be shown in ABC’s income statement. Round off the resulting present value of the note to the nearest hundreds.On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at P800,000, 5 years ago. The carrying value of the equipment is P400,000. There is no established selling price for the equipment. Upon executing the sale, ABC received P100,000 down payment and an 11% 3 year promissory note amounting to P450,000, when the interest rate prevailing in the market is 12%. At the end of December 200A, the carrying value of the note receivable is (Round off the resulting present value of the note to the nearest hundreds.)
- . On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at P800,000, 5 years ago. The carrying value of the equipment is P400,000. There is no established selling price for the equipment. Upon executing the sale, ABC received P100,000 down payment and an 11% 3 year promissory note amounting to P450,000, when the interest rate prevailing in the market is 10%. The initial amount of the note receivable is (Round off the resulting present value of the note to the nearest hundreds.)On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at P800,000, 5 years ago. The carrying value of the equipment is P400,000. There is no established selling price for the equipment. Upon executing the sale, ABC received P100,000 down payment and an 11% 3 year promissory note amounting to P450,000, when the interest rate prevailing in the market is 10%. At the end of December 200B, the carrying value of the noncurrent note receivable is (Round off the resulting present value of the note to the nearest hundreds.)On June 1, 200A, ABC Company sells to XYZ, 5 used factory equipment, each of which was acquired at P20,000, 3 years ago. The carrying value of each equipment is P5,000. The selling price of each equipment is P5,200. Upon executing the sale, ABC received P6,000 down payment and a 11% 1 year promissory note for the balance. At the end of December 200A, how much is the total amount of income that should be shown in ABC’s income statement.
- On 1 January, 2010, Ahafoman Contractors (AC) bought an Heavy Duty Crane machine from Tractor and EquipmentCompany (TEC) on Hire Purchase. The terms of the agreement were that an initial deposit of GHS200,000 was payable , followed by three installments of GHS189,890 on 31 December in each of the years from 2010 onwards.. TEC sells the machine for cash at GHS600,000. AC depreciates cranes at the rate of 25% on cost (assuming a nil residual value) The accounting years for both TEC and AC end on 31 December. Required a) Calculate the hire purchase interest included in the hire purchase price.On 1 January, 2010, Ahafoman Contractors (AC) bought an Heavy Duty Crane machine from Tractor and EquipmentCompany (TEC) on Hire Purchase. The terms of the agreement were that an initial deposit of GHS200,000 was payable , followed by three installments of GHS189,890 on 31 December in each of the years from 2010 onwards.. TEC sells the machine for cash at GHS600,000. AC depreciates cranes at the rate of 25% on cost (assuming a nil residual value) The accounting years for both TEC and AC end on 31 December. Required b) Apportion the Hire Purchase Interest over the relevant years using the Sum of the digits methodOn 1 January, 2010, Ahafoman Contractors (AC) bought an Heavy Duty Crane machine from Tractor and EquipmentCompany (TEC) on Hire Purchase. The terms of the agreement were that an initial deposit of GHS200,000 was payable , followed by three installments of GHS189,890 on 31 December in each of the years from 2010 onwards.. TEC sells the machine for cash at GHS600,000. AC depreciates cranes at the rate of 25% on cost (assuming a nil residual value) The accounting years for both TEC and AC end on 31 December. Required d) Show the relevant extracts from AC’s Income Statement and statement of financial position in respect of the hire purchase agreement for the relevant years.