Rob Lucci Company sold to another entity a tract of land costing P5,000,000 for P7,000,000 on January 1, 2019. The buyer paid P1,000,000 down and signed a two-year promissory note for the remainder of the purchase price plus 12% interest compounded annually. The note matures on January 1, 2021. REQUIRED: Prepare journal entries for 2019, 2020 and 2021.

Q: January 1, 2021, Dreamlover Corporation purchased equipment from Daydream Company for P3,600,000.…

A: As per the amortization method, the financial instrument is recognized at present value and interest…

Q: On May 7, 2021, Permission to Dance (PTD) Corporation sold a tract of land for P70,000 that resulted…

A: The correct answer for the above mentioned answer is given in the following steps for your…

Q: Cathymae Company acquired two items of machinery as follows: • On January 1, 2020, Cathymae Company…

A: Cost of machines refers to the amount of money at which the machine has been acquired.

Q: Cardinals Corporation purchased a computer on December 31, 2019, for $105,000, paying $30,000 down…

A: Calculate the present value of future payments as follows:  The present value of future payments is…

Q: On January 1,2021, ABC Corporation purchased a land for P 15,000,000. In exchange of the land, ABC…

A: Present value is the sum of the current value of money of future cash flows. It is also known as a…

Q: At the beginning of 2018, VHF Industries acquired a machine with a fair value of $6,074,700 by…

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

Q: Blue Corporation purchased a special tractor on December 31, 2020. The purchase agreement stipulated…

A: Down payment for purchase of special tractor $21,390     Annual Payment at the end of the year…

Q: At the beginning of 2021, VHF Industries acquired a machine with a fair value of $7,581,580 by…

A: Capital budgeting: When a firm makes a large investment on an asset for a long period of time, it is…

Q: On July 1, 2020, Manuel Corporation purchased machinery worth P 8,000,000. Terms: P 500,000 down…

A:

Q: Red Company sold to another entity a tract of land costing  P5,000,000 for P7,000,000 on January 1,…

A: Journal entry is a primary entry that records the financial transactions initially.

Q: On January 1, 2019, Billips Corporation purchased equipment having a fair value of $72,054.94 by…

A: Notes payable are promissory notes accepted by the debtor having specified interest rate and the…

Q: On January 1, 2019, Crouser Company sold land to Chad Company, accepting a 2-year, $150,000,…

A: Prepare journal entry.

Q: On January 1, 2020, Blossom Company makes the two following acquisitions. 1. Purchases land having a…

A: The notes payables are generally classified as a long-term liability. In case a note payable is due…

Q: )   Record the two journal entries that should be recorded by Sweet Company for the two purchases on…

A: Journal entry: Business Transaction are recorded through Journals. Interest Expenses are the…

Q: Webb Corporation purchased equipment from Shaw Corporation on January 1, 2019. Shaw accepted a…

A: Bonds:   Bonds are long-term promissory notes that are issued by a company while borrowing money…

Q: Sweet Corporation purchased a computer on December 31, 2019, for $140,700, paying $40,200 down and…

A: Here discuss about the purchase of equipment which are first to paid the down payment of certain…

Q: On January 1, 2020, South Company acquired a building for 5,000,000. The entity paid 500,000 down…

A: January 1st, 2020 Building     Dr.  5000000 Cash                    Cr. 500000 Note payable    Cr.…

Q: On January 1, 2019, Tabor Company sold land with a book value of $50,000 to Wilson Company,…

A: Part 1: Present value is calculated for the firm as: Present value=$60,000×0.797(PVT)=$47,820 Tabor…

Q: On January 1, 2019, West company acquired a tract of land for P1,000 000. West company paid P100,000…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: On January 1, 2019, South company acquired a building for P5,000,000. South company paid PS00,000…

A: Face value of Note (P5000000 - P500000) P45,00,000 Annual Installment (P4500000 / 3) P15,00,000…

Q: book value of P60,000, the term of the sale were as follows: P120,000 down payment  P120,000…

A: The amortized cost of note receivable will be the present value of three annual amount be received.

Q: On December 31,2021, PAUL Corporation sold for P480,000 an old machine having an original cost of…

A: Sale price                               480000 less: down payment.              120000  Balance to…

Q: On December 31, 2021, AAA Company sold for P3,000,000 an old equipment having an original cost of…

A: This question deals with the calculation of interest income and carrying value of notes receivable.…

Q: BROWN Company is indebted to WHITE Company under a ₱4,000,000, 12%, three-year note dated December…

A: Debt restructuring schemes are those schemes which are implementing for changing the the structure…

Q: Explosib, Inc. acquired two units of equipment on December 31, 2021. The first equipment was…

A: When equipment are purchased for credit, the cost to be capitalized is to be based on present value…

Q: On December 31, 2020, an entity sold a piece of land costing P800, 000 and received a 3-year, 3%,…

A: Working note: Computation of present value of the note receivable:

Q: On January 1, 2020, Bake Company sold a piece of equipment costing P1,200,000 with accumulated…

A: Here selling price  is determined as follows  = down payment  received  + Present value of non…

Q: n December 15, 2018, Rigsby Sales Co. sold a tract of land that cost $3,900,000 for $5,000,000.…

A: Computation of gross profit ratio :- Gross profit ratio= (Sales-costs)/ Sales…

Q: In 2019, Cheongsan sold a piece of land which had a cost of P1M for a selling price of P4M. The sale…

A: An installment sale is one of several possible approaches to revenue recognition under the rules of…

Q: Buttercup Company leased a property to Dickies Corporation on January 1, 2020 for a period of 8…

A: Lease receivable on January 1, 2020 =present value on January 1, 2020 - First payment on January 1,…

Q: On January 1, 2021, Byner Company purchased a used tractor. Byner paid $5,000 down and signed a…

A: Requirement 1:   First determine the present value of the note, value of tractor, and discount on…

Q: On December 31, 2019, Univ Corporation sold for 50,000 an old machine having an original cost of…

A: The fair value of note receivebale is the present value of cash inflows from trade receivable using…

Q: On December 31,2019, Innovation Company sold a machinery costing P5,200,000 whicl a carrying amount…

A: These are the accounting transactions that are having a monetary impact on the financial statement…

Q: Kingbird Corp. sells idle machinery to Enyart Company on July 1, 2020, for $46,000. Kingbird agrees…

A: Given information, Sale of machinery=$46,000 Repurchase price of machinery=$49,680   Journal entry…

Q: On January 1, 2021, West Company acquired a tract of lana for P1,000,000. The entity paid P100,000…

A: Accrued interest on December 31,2021 = (P1000, 000 - P100000) ×10% = P90000

Q: On January 1, 2021, Anna Company sold a piece of equipment to Banana Company with a cost of…

A: Basic Accounting Concept  Sales of Assets in exchange of Note receivable Amortization of Loan…

Q: n 2019, Bright Inc. sold its parking lot for P2,400,000 payable on installment. The lot was…

A: We know that in Installment method profit is defer till the time we received actual cash from sale…

Q: On January 1, 2016, Crouser Company sold land to Chad Company, accepting a 2-year, $150,000,…

A:

Q: Remington Corporation purchases a patent from Durler Company on January 1, 2020, for $84,000. The…

A: Journal Entry:   It is a systematic record of a financial transaction recorded in chronological…

Q: Cramer Corp. sells idle machinery to Enyart Company on July 1, 2020, for $40,000. Cramer agrees to…

A: A ) Journal entry: Date Particulars Debit ( $ ) Credit ( $ ) July 01 , 2020 Cash A/c  40000…

Q: On July 1, 2021, Kiko Company (a calendar-year company) sold a tract of land that originally cost…

A: First we should calculate carrying value of note on June 30, 2022 = Fair value on date of issue +…

Q: On January 1, 2020 SANA ALL MAHAL Co. acquired land by issuing a three-year, 12%, P4,000,000 note…

A: Working note: Computation of carrying amount of notes payable on January 1, 2021:

Q: Buttercup Company leased a property to Dickies Corporation on January 1, 2020 for a period of 8…

A: Lease receivable on January 1, 2020 =present value on January 1, 2020 - First payment on January 1,…

Q: January 1, 2019, Worthylake Company sold used machinery to Brown Company, accepting a $25,000,…

A: As per IFRS 16 Property plant and equipment Sale value of machine is the Present value of Note…

Q: On January 1,2021, ABC Corporation purchased a land for P 15,000,000. In exchange of the land, ABC…

A: When an item of property, plant and equipment is acquired through an issue of monetary or…

Q: On January 1, 2019, West company acquired a tract of land for P1,000 000. West company paid PI00,000…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: BROWN Company is indebted to WHITE Company under a ₱4,000,000, 12%, three-year note dated December…

A: Here Brown company indebted to White company for the Notes payable of P 4000000 with the interest…

Q: On January 1, 2020, Concord Company makes the two following acquisitions. 1.   Purchases land…

A: Period PV factor Remark 1          0.90090  = 1 / 1.11 2          0.81162  = 0.9009 / 1.11 3…

Q: Hips Company purchased an asset with a list price of P130,000 to be delivered on July 1, 2021 with…

A: Since the asset is purchased on July 1, 2021, just half-year depreciation expense would be charged…

Q: On April 1, 2021, Leni Company (a calendar-year company) sold a tract of land that originally cost…

A: Interest revenue for the year ended December 31, 2021 = fair value of the note x prevailing rate of…