On January 1,2021, Josh Co. sold a machine to Groban Co. In lieu of cash payment, Groban gave josh a 4-year, ₱100,000, 10% note. The note required interest to be paid annually on December 31. The machine has a cost of ₱500,000 and accumulated depreciation as of January 1,2021 of ₱350,000. The 10% interest rate is a realistic rate of interest for a note of its type. Based on the above data, answer the following: 1. How much is the gain (loss) on sale of machine in 2021? a. ₱50,000 c. (₱50,000) b. ₱250,000 d. (₱250,000) 2. How much is the interest income of 2021? a. ₱10,000 c. ₱35,000 b. ₱20,000 d. ₱50,000 3. How much is the current portion of the note on December 31,2021? a. Nil c. ₱100,000 b. ₱50,000 d. ₱25,000 4. How much is the noncurrent portion of the note on December 31,2021? a. Nil c. ₱100,000 b. ₱50,000 d. ₱25,000
On January 1,2021, Josh Co. sold a machine to Groban Co. In lieu of cash payment, Groban gave josh a 4-year, ₱100,000, 10% note. The note required interest to be paid annually on December 31. The machine has a cost of ₱500,000 and accumulated depreciation as of January 1,2021 of ₱350,000. The 10% interest rate is a realistic rate of interest for a note of its type. Based on the above data, answer the following: 1. How much is the gain (loss) on sale of machine in 2021? a. ₱50,000 c. (₱50,000) b. ₱250,000 d. (₱250,000) 2. How much is the interest income of 2021? a. ₱10,000 c. ₱35,000 b. ₱20,000 d. ₱50,000 3. How much is the current portion of the note on December 31,2021? a. Nil c. ₱100,000 b. ₱50,000 d. ₱25,000 4. How much is the noncurrent portion of the note on December 31,2021? a. Nil c. ₱100,000 b. ₱50,000 d. ₱25,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
On January 1,2021, Josh Co. sold a machine to Groban Co. In lieu of cash payment, Groban gave josh a 4-year, ₱100,000, 10% note. The note required interest to be paid annually on December 31. The machine has a cost of ₱500,000 and accumulated depreciation as of January 1,2021 of ₱350,000. The 10% interest rate is a realistic rate of interest for a note of its type.
Based on the above data, answer the following:
1. How much is the gain (loss) on sale of machine in 2021?
a. ₱50,000 c. (₱50,000)
b. ₱250,000 d. (₱250,000)
2. How much is the interest income of 2021?
a. ₱10,000 c. ₱35,000
b. ₱20,000 d. ₱50,000
3. How much is the current portion of the note on December 31,2021?
a. Nil c. ₱100,000
b. ₱50,000 d. ₱25,000
4. How much is the noncurrent portion of the note on December 31,2021?
a. Nil c. ₱100,000
b. ₱50,000 d. ₱25,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education