On January 1, 2020, Gibson Co. purchases equipment having a fair value of $200,000 by issuing a three-year, zero-interest-bearing note in the amount of $251,942. The effective interest rate on the note is 8%. How much interest should Gibson recognize on the note in the year ended December 31, 2020?

Q: On January 1, 2020, Victoria Company borrowed ₱600,000 8%, noninterest-bearing note due in four…

A: solution : given face value of note  = 600,000 present value of note    =441000 date of issue   =…

Q: On July 1, 2019, Lp Manufacturing Co. issued a five-year note payable with a face amount of P250,000…

A: The current liabilities section would include the maturity payment of $50000 and the interest…

Q: On December 31, 2019, Bart Company purchased a machine in exchange for a noninterest bearing note…

A: Note payable is the amount of loan or debt that is borrowed by the business, on which regular…

Q: What should be recorded as the carrying value of the note receivable as of December 31, 2021 balance…

A: Notes receivables refers to a kind of promissory note that is issued by the company that gives the…

Q: SAOD Company sold merchandise for $300,000 to RELANSE Company on January 1, 2021 and received a…

A: As per the term of restructuring on Dec 31, 2021, the Relanse Company will pay 210000 at the end of…

Q: On January 1, 2019, Love Co. sold merchandise to Kit Store in exchange for a non-interest bearing…

A: Formula: Interest amount = Bond face value x Interest rate Multiplying bond face value with interest…

Q: On October 1, 2020, Kingbird Equipment Company sold a pecan-harvesting machine to Valco Brothers…

A: Interest is paid on October, so From Oct 1 to Dec 31 = 3 months. Annual Interest = 169,200*8% =…

Q: On January 1, 2022, De Vera Company loaned Dagpin Company amounting to P2,000,000 and received a…

A: The usage rate is known as the effective interest rate that is actually paid by the borrower of the…

Q: On Jan 1, 2021, XYZ Co. sold a machine in exchange for a P1500,000, non-interest-bearing note…

A: Carrying amount of the Note = face value of the non-interest-bearing note x Present value factor…

Q: On January 1, 2020, Happy Inc. sold a hot tub to Monica, receiving a two-year, noninterest-bearing…

A:

Q: On January 1, 2020, Billy Company sold equipment that originally cost $5,000,000 to Selecta Company.…

A: It is the amount of difference between the face value of the bond issued and the amount actually…

Q: On April 1, 2020, Aljean Company discounted with recourse a 9-month, 10% note dated January 1, 2020…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: On December 31, 2020, Precious Company sold an equipment with carrying amount of P2,000,000 and…

A: Present value: It is the value of investment that will be worth more than in future.

Q: Samson Corporation issued a 4-year, $75,000, zero-interest-bearing note to Brown Company on January…

A: Zero-interest bearing note is an obligation of an organization to pay its creditors in near future…

Q: On December 31, 2019, Bart Company purchased a machine in exchange for a noninterest bearing note…

A: Note: Since you have posted a question with multiple sub-parts, we will solve first three subparts…

Q: How much was Bae’s proceeds from the discounted note?

A: Bae inc. Sold equipment to Beau Inc. On july 1, 2020 for P250000.  Bae accepted a note receivable…

Q: On January 1,2021, Mickey Mouse Corporation sells a Furniture and Fixtures costing P1,500,000 and…

A: Note receivable is a type of promissory note that promises to pay the debt over a period of time.

Q: On January 1, 2020, Savage Company sold goods to another entity. The buyer signed a…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: On December 31, 2021, Boston Company purchased a machine from Helix Company in exchange for a…

A: Non bearing interest notes are capitalized at present value of future installments. Hence the…

Q: On December 31, 2020, Sheridan Company has $5970000 of short-term notes payable due on February 14,…

A: ANSWER : Correct option is- $840,000.

Q: On December 31, 2021, Precious Company sold an equipment with carrying amount of P2,000,000 and…

A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: On April 1, 2020, Aljean Company discounted with recourse a 9-month, 10% note dated January 1, 2020…

A: The amount received from the note receivable discounting on April, 1 2020:   (P) Principal…

Q: On January 1, 2019, ABC Company sold an equipment with carrying amount of P1,500,000. The customer…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: On January 1, 2021, Lizelle Company signed a P100,000, 12% note due in three years at a discount…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: On January 1,2021, Mickey Mouse Corporation sells a Furniture and Fixtures costing P1,500,000 and…

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

Q: Shlee Corporation issued a 4-year, $60,000, zero-interest-bearing note to Garcia Company on January…

A: Calculation of discount on note payable:

Q: On January 1, 2020, Coleman Auto sold a Tracktor to Southern Energy in exchange for a 5-year…

A: Calculation of Interest and profit made by Coleman: Particulars Amount ($) Face Amount of Truck…

Q: On April 1, 2020, Ironmon Company discounted with recourse a 9-month 10% note dated January 1, 2020…

A: Interest accrued = Face value of note x rate of interest x no. of months /12 = P6000000 x 10%  x…

Q: Greene Corporation loaned $150,000 to another corporation on December 1, 17) 2021 and received a…

A: solution note dear student as per the Q&A guideline we are required to answer the first question…

Q: On September 1, 2020, SMD Company borrowed P5,000,000, 10% interest-bearing note due in five years.…

A: Notes payable: Notes Payable is a written promise to pay a certain amount on a future date, with…

Q: December 11, 2019, Hooper Inc. made a credit sale to Marshall Company and required Marshall to sign…

A: Journal is the book of original entry in which all the financial transactions of the business are…

Q: On December 31, 2020, Precious Company sold an equipment with carrying amount of P2,000,000 and…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: On January 1, 2021, Lizelle Company signed a P100,000, 12% note due in three years at a discount…

A: Working :-                                                 The value of…

Q: On January 1, 2019, a company acquired transportation equipment by paying cash of P400,000 and…

A: Carrying value of note payable is the present value of all the payments to be made on the note…

Q: The Pita Pit borrowed $197,000 on November 1, 2021, and signed a six-month note bearing interest at…

A: Notes payable is the amount that is being borrowed and will have to be paid to another person.…

Q: current liabilities section

A: The first annual payment of P200,000 is made on June 30, 2020. The balance of note payable will be…

Q: On January 1, 2021, The Corporation sold goods to Adobo Company. Adobo signed a noninterest-bearing…

A: Carrying amount of the note receivable on January 1, 2021 = Amount payable on January 1, 2021 +…

Q: On January 1, 2020, Jonathan Company borrowed P500,000 8% note due in four years. The present value…

A: "Since you have asked multiple sub part question we will solve the first three sub part question for…

Q: Lathrop has a 5%, $40,000 note receivable from the sale of merchandise on January 1, 2020. The note…

A: The collectibility of  note = $15000 which is after end of 4th year from December 31,2020

Q: On October 1, 2020, Arden Farm Equipment Company sold a pecan-harvesting machine to Valco Brothers…

A: Journal: Journal is the method of recording monetary business transactions in chronological order.…

Q: On January 1, 2020, Jonathan Company borrowed P500,000 8% note due in four years. The present value…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: n December 31, 2020, Company sold a machine in the ordinary course of business to Space-X Company in…

A: Amount of sales revenue can be computed by calculating Present vale of annuity with the help of…

Q: On January 1, 2019, a company acquired transportation equipment by paying cash of P400,000 and…

A: calculation of installment value of note Payable= P 4000000 PV of payment=  4000000*3.037349 = P…

Q: On January 1, 2020, the Dolce Corporation issued a three-year, non-interest bearing note with face…

A: Given, effective interest rate = 12%, annual installments = P1,000,000, The land has an equivalent…

Q: Assuming the customer’s borrowing rate is 5%, prepare all journal entries for 2019 and 2020 under…

A: At first, we will find out the present value of the note payable.

Q: On April 1, 2020, ABC Company discounted with recourse a 9-month, 10% note dated January 1, 2020…

A: The calculation of note interest and maturity value of note has been made as follows: Note…

Q: At December 31, 2018, Burr AG owes €500,000 on a note payable due February 2019. (a) If Burr intends…

A: Current liability: Current liability is an obligation that the companies need to pay from the…

Q: Clancy Co. accepted a two-year noninterest-bearing note for $1,166,400 on January 1, 2020. The note…

A:

Q: On January 1, 2020, Jonathan Company borrowed P500,000 8% note due in four years. The present value…

A: ●1.What is the carrying amount of the note payable on December 31, 2020? Answer: Option 3: 408,150…