Q: On January 1, 2020, Toto Company sold goods to Snow Company. Snow signed a noninterest-bearing note…
A: SOLUTION- THE PRESENT VALUE FACTOR IS USED TO DETERMINE THE WORTH OF THE AMOUNT OF MONEY RECEIVABLE…
Q: On January 01, 2021, The Company sold equipment costing P760,000 with accumulated depreciation of…
A: Solution: Present value of notes on Jan 1, 2021 = P800,000 * PV of 1 at 5% for 4th period = P800,000…
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 December 31,2021, LBJ company finished consultation services and accepted in exchange a…
A: It is pertinent to note that the issue price of the note receivable is the present value of the cash…
Q: On January 1, 2020, ABC Company sold property to the DEF Company. There was no established exchange…
A: Total amount payable at December 31, 2021= annual installments x no. of annual installments =…
Q: On January 01, 2022, TGIF Company sold equipment costing P10,000,000 with accumulated depreciation…
A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…
Q: On January 1, 2019, Lithium Company sold equipment with a carrying amount of P4,800,000 in exchange…
A: As note is non interest bearing it will be recorded at discounted value To determine the interest…
Q: On January 01, 2022, Legit Company sold equipment costing P10,000,000 with accumulated depreciation…
A: No. of installment to be received = Face value of notes / annual installments Carrying amount of the…
Q: On January 1, 2021, Bambam Company sold an equipment to Lucas Company which had a carrying value on…
A: A note receivable is an asset account linked to an underlying promissory note that specifies in…
Q: A 180-day promissory note was issued by FDNACCT Co. on November 1, 2021 in exchange of goods bought…
A: Interest income is the amount of money received as an interest either from an investment, bonds, or…
Q: On January 1, 2020, Akin Company sold equipment with a carrying amount of P4,800,000 in exchange for…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
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: On January 1, 2020, ABC Company sold property to the DEF Company. There was no established exchange…
A: Total amount payable at December 31, 2021= annual installments x no. of annual installments =…
Q: n interest rate of 8% and is to be repaid in three annual installments of P200,000 plus interest on…
A: From the given values, the interest revenue as,
Q: On December 31, 2020, Company sold a machine in the ordinary course of business to Space-X Company…
A: Annuity refers to series of equalized payments that are either made start or end of specific…
Q: On January 1, 2020, Uniform Co. sold its 2-year old equipment to XYZ Inc. for a cash down-payment of…
A: Impairment is the loss of reduction of net realizable value of assets below the carrying value of…
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 January 1, 2021, ABC Co. sold equipment with a carrying amount of P480,000 in exchange for a…
A: Note Receivable is a form of current asset for the business, which means promise to receive amount…
Q: On January 2, 2020, Magsaysay Company sold equipment with a carrying amount of P400,000 in exchange…
A:
Q: On January 1, 2021, Marigold Corp. sold property to Cullumber Company which originally cost Marigold…
A: Option (d). $345,693 is the correct answer.
Q: On January 2, 2020, Zyrus Company sold equipment with a carrying amount of P480,000 in exchange for…
A: Carrying value is considered as the cost of an asset minus accumulated depreciation. It is regarded…
Q: On December 31, 2020, Queen Company sold an equipment with carrying amount of P2,000,000 and…
A: The notes receivable is an asset account in the balance sheet of an organization. It is recorded…
Q: On January 1, 2020, VKS Incorporated sold its aggregate equipment. The buyer issued a promissory…
A: Principal Outstanding Principal amount received Interest Total amount received PV factor…
Q: On January 1, 2022, State Co. sold an equipment to Nation Co. The latter issued a five-year…
A: Present value of the Note = Present value of principal + Present value of interest payments where,…
Q: a dealer in equipment. On December 21, 2021, the enitity sold an equipment in exchange for a…
A: The carrying value is the present value of annual installments that are to be paid in the future.
Q: On December 31, 2018, COVID Company finished consultation services and accepted in exchange a…
A: Value of service is determined by using present value factor. Interest Revenue = Carrying Value…
Q: On January 1, 2020, CPA Incorporated sold its aggregate equipment. The buyer issued a promissory…
A: Principal Outstanding Principal amount received Interest Total amount received PV…
Q: On January 1, 2020, Pedro Company sold land that originally cost P400,000 to Buyer Company. As…
A: Answer - Part 4 - Calculation of the correct carrying amount of the notes receivable at December…
Q: On January 2, 2020, Magsaysay Company sold equipment with a carrying amount of P400,000 in exchange…
A: It is a general practice that a company sells its Fixed Asset in exchange of Non-Interest bearing…
Q: Solar Co. sold a machine in exchange for a P00.000, 4-year, 5% note, interest is payable annually.…
A: The question is based on the concept of Financial Management.
Q: On January 1, 2020, Gibson Co. purchases equipment having a fair value of $200,000 by issuing a…
A: Zero coupon bonds means those bonds which were issued for money or any assets but for which no…
Q: On January 2, 2020, Janice Company sold equipment with a carrying amount of 400,000 in exchange for…
A: Cost Accounting is the process of collecting, recording, analyzing the cost, summarizing cost,…
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: Persever Company is a dealer in equipment. On December 21, 2021, the enitity sold an equipment in…
A: The present value of total payment = P500000 x 3.99 = 1995000
Q: On January 2, 2020, Magsaysay Company sold equipment with a carrying amount of P400,000 in exchange…
A: Bearing note - P600,000 Prevailing rate (10%) after two years -…
Q: On January 1, 2020, Pedro Company sold land that originally cost P400,000 to Buyer Company. As…
A: Answer - Part 1 - PV of consideration receivable (see computation b 503,105Carrying…
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, 2021, Gobert Company sold property to Beasley Company. There was no established…
A: Introduction: A journal entry is used to record a commercial transaction in the accounting records…
Q: On December 31, 2020, Sun Company sold a machine in the ordinary course of business to Space-X…
A: The annuity is a series of equal payments or receipts that lasting for a specific period of time at…
Q: On January 1, 2021, ABC Company sold property to the DEF Company. There was no established exchange…
A: Non-current liabilities are amount payable after 12 months. Annual Payment P4,00,000 Present…
Q: On January 1, 2021, ABC Co. sold transportation equipment with a historical cost of P12,000,000 and…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: On January 01, 2021, Scottie Boo sold equipment costing P10,000,000 with accumulated depreciation of…
A: Note means an instrument issued by company acknowledging the debt due from company to bond holder.…
Q: On January 1, 2021, Hornets Company sold land that originally cost P400,000 to Egi Company. As…
A: Stated rate of interest & market rate of interest rate are same. Therefore Interest revenue for…
Q: On January 1, 2020, ABC Company sold property to the DEF Company. There was no established exchange…
A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…
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, 2021, ABC Company sold property to the DEF Company. There was no established exchange…
A: Annual Payment P4,00,000 Present value of an ordinary annuity of $1 at 9% for 5 period 3.88965126…
Q: On January 2, 2020, Magsaysay Company sold equipment with a carrying amount of P400,000 in exchange…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: On January 1, 2022, State Co. sold an equipment to Nation Co. The latter issued a five-year…
A: Present value of the Note = Present value of principal + Present value of interest payments where,…
Q: On December 30, 2021, JALINON Company sold a machine to GONZALES Company in exchange for a…
A: The notes receivable is an account in the balance sheet generally under the current assets if the…
Q: On January 2, 2020, Zyrus Company sold equipment with a carrying amount of P480,000 in exchange for…
A: “Since you have posted a many questions, we will solve first question for you. To get the remaining…
On January 2, 2019, Anne Inc. sold equipment which has a carrying amount of $400,000 in exchange for a $600,000 4-year non-interest-bearing note that will be due on January 2, 2023. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type on January 2, 2019 was 10%. What should be recorded as the carrying value of the note receivable as of December 31, 2021
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9% U.S. Treasury notes for 194,000. The notes mature July 1, 2020, and pay interest semiannually on January 1 and July 1. The notes were sold on December 1, 2019, for 199,000. Aldrich normally uses straight-line amortization on all of its notes. In its income statement for the year ended December 31, 2019, what amount should Aldrich report as a gain on the sale of the available-for-sale security? a. 2,500 b. 3,500 c. 5,000 d. 6,000On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First National Bank, on which 16,651 of interest has accrued. On January 2, 2019, the bank agrees to restructure the note. It forgives the accrued interest, extends the repayment date to December 31, 2021, and reduces the interest rate to 10%. Required: Prepare a schedule for Northfield to compute the annual interest expense in regard to the preceding note for each year of the restructuring agreement.Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise. The merchandise had a cost to Resin Milling of $170,000. The terms of the note are 24-month maturity date on December 31, 2019 at a 5% annual interest rate. The customer does not pay on its account and dishonors the note. Record the journal entries for Resin Milling for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturity
- Element Surfboards issued a $210,800 note on January 1, 2018 to a customer, Leona Marland, in exchange for merchandise. Terms of the note are 9-month maturity date on October 1, 2018 at a 10.2% annual interest rate. Leona Marland does not pay on her account and dishonors the note. On December 2, 2018, Element Surfboards decides to sell the dishonored note to a collection agency for 30% of its value. Record the journal entries for Element Surfboards for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on October 1, 2018 C. Receivable sale on December 2, 2018On January 2, 2020, Janice Company sold equipment with a carrying amount of 400,000 in exchange for a 600,000 4-year non-interest-bearing note due January 2, 2024. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type at January 2, 2020 was 10%. What is the carrying value of the note receivable as of December 31, 2022 Statement of Financial Position?On January 2, 2020, Magsaysay Company sold equipment with a carrying amount of P400,000 in exchange for a P600,000 4-year non-interest-bearing note due January 2, 2024. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type at January 2, 2020 was 10%. What is the carrying value of the note receivable as of December 31, 2022 Statement of Financial Position? Sandy Company owns 15,000 of the 100,000 ordinary shares of X Corporation. The investment is accounted as Financial Assets at Fair Value Through Profit or Loss (FA-FV-P/L) and has a carrying value of P3,300,000. X Corporation declared a 10% stock dividend but gave the investors the option to receive P210 per whole stock of dividend. How much cash will Sandy receive? In your solutions, show the journal entry to record the dividends if Sandy opted to receive cash.
- On January 2, 2020, Magsaysay Company sold equipment with a carrying amount of P400,000 in exchange for a P600,000 4-year non-interest-bearing note due January 2, 2024. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type at January 2, 2020 was 10%. What is the carrying value of the note receivable as of December 31, 2022 Statement of Financial Position? * The answer is 545454.55. Explain how you arrived at the answer.On January 2, 2020, Magsaysay Company sold equipment with a carrying amount of P400,000 in exchange for a P600,000 4-year non-interest-bearing note due January 2, 2024. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type at January 2, 2020 was 10%. What is the carrying value of the note receivable as of December 31, 2022 Statement of Financial Position? Solutions must be in good accounting form.On January 1, 2025, Vaughn Co. sold equipment in exchange for an $930000 zero-interest-bearing note due on January 1, 2028. The prevailing rate of interest for a note of this type at January 1, 2025 was 10%. The present value of $1 at 10% for three periods is 0.75131. What amount of interest revenue should be reported in Vaughn's 2026 income statement? O $93000 $69872 O $0 O $76859
- On January 1, 2019, Lithium Company sold equipment with a carrying amount of P4,800,000 in exchange for a P6,000,000 noninterest bearing note due January 1, 2022. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type on January 1, 2019 was 10%. The present value of 1 at 10% for three periods is 0.75. 1. What amount should be reported as interest income for 2019?On January 1, 2019, DEXTER Company sold equipment with a carrying amount of P4,800,000 in exchange for a P6,000,000 non-interest bearing note due January 1, 2022. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type on January 1, 2019 was 10%. 1. What amount should be reported as gain or loss on sale of equipment? 2. What amount should be reported as interest income for 2019?On January 1, 2020, Crane Company exchanged equipment for an $800000 zero-interest-bearing note due on January 1, 2023. The prevailing rate of interest for a note of this type at January 1, 2020 was 9%. The present value of $1 at 9% for three periods is 0.77. What amount of interest revenue should be included in Crane's 2021 income statement?
