How would you put it in a amortization table?
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A:
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Q: On January 1, 2019, Love Co. sold merchandise to Kit Store in exchange for a non-interest bearing…
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Q: A 180-day promissory note was issued by FDNACCT Co. on November 1, 2021 in exchange of goods bought…
A: Interest receivable=Face value of the note×Interest rate×Term of the note
On August 1, 2022, Nelson Corp. sold inventory in exchange for a 2-year non-interest-bearing note having a face value of $26,000. The present value of this note has already been determined to be $20,727.
12% is a reasonable cost of borrowing for non-interest-bearing notes of this nature. The note’s face value will be paid back on August 1, 2024. Nelson Corp. has a calendar year-end, uses the effective interest method, and uses the periodic inventory system.
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- ML Company purchased merchandise for resale on January 1, 2021, for P5,000 cash plus a P20,000, two-year note payable. The principal is due on December 31, 2022; the note specified 8% interest payable each December 31. ML's going rate of interest for this type of debt was 15%. How much is the carrying amount of the note payable on December 31, 2021 (round off to four decimal places)? A.P20,000B.P19,142C.P17,724D.P18,783On November 1, 2022, Roberts Inc. provided consulting services in exchange for a one-year, 10% promissory note with a face value of $30,000. The note is interest-bearing. The note’s face value plus accrued interest compounded annually is due to be paid back when the nature matures on November 1, 2023. Roberts’s journal entry to record the collection of the note and interest on November 1, 2023, should include a: (round all calculations to the nearest whole dollar) Credit to “Interest Revenue” for $2,500. Credit to “Interest Revenue” for $3,000. Credit to “Interest Receivable” for $2,500. Credit to “Interest Receivable” for $3,000.On October 1, 2023, Marigold Corp. sold a harvesting machine to Bonita Industries. Instead of a cash payment, Bonita Industries gave Marigold a $170,000, two-year, 10% note; 10% is a realistic rate for a note of this type. The note required interest to be paid annually on October 1, beginning October 1, 2024. Marigold's financial statements are prepared on a calendar-year basis. (a) Your answer has been saved. See score details after the due date. Assuming that no reversing entries are used and that Bonita Industries fulfills all the terms of the note, prepare the necessary journal entries for Marigold for the entire term of the note. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Cr
- On April 1, 2021, ABC CO. issued a 9% interest bearing note with a face amount of P 30,000,000 for the purchase of a machine. The note is payable in five equal annual installments starting on March 31,2022. Interest is payable annually base on the remaining balance. There is no established cash price for the equipment. The prevailing market rate of interest for a note of this type is 12%.How much is the interest expense for the year 2023?On January 1, 2021, The Corporation sold goods to Adobo Company. Adobo signed a noninterest-bearing note requiring payment of P600,000 annually for seven years. The first payment was made on January 1, 2021.The prevailing rate of interest for this type of note at date of issuance was 10%.· PV of an ordinary annuity of 1 at 10% for 6 period- 4.36· PV of an ordinary annuity of 1 at 10% for 7 period- 4.87What is the carrying amount of the note receivable on January 1, 2021?On January 1, 2026, a company acquired inventory with a list price of 1, 300,000 and a cash price of 994,760 by issuing a 1, l,200,000, non interest bearing notes payable . Principal is due in three equal payments every December 31 beginning on December 31, 2026. The effective rate of interest interpolated or the cash price is 10% How much is the carrying amount of the note on initial recognition? How much is the interest expense for 2026? How much is the carrying amount of the note on Dec. 31, 2026? How much is the noncurrent portion of the note on Dec. 31, 2026? How much is the current portion of the note on Dec. 31, 2026?
- President Company purchased merchandise from Captain Corporation on September 30, 2024. Payment was made in the form of a noninterest-bearing note requiring President to make six annual payments of $4,600 on each September 30, beginning on September 30, 2027. Calculate the amount at which President should record the note payable and corresponding purchase on September 30, 2024, assuming that an interest rate of 10% properly reflects the time value of money in this situation. Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. Round your intermediate calculations to the nearest whole dollar. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)Lathrop has a 5%, $40,000 note receivable from the sale of merchandise on January 1, 2020. The note was issued when the market rate was 5%. The note is due December 31, 2024. Annual interest is due each December 31. On December 31, 2020, Lathrop reviews the collectibility of its note and determines that only $15,000 is likely to be received on the due date from this note. Although Lathrop received the 2020 interest payment, the company does not expect to receive further interest payments. What is included as part of the adjusting entry that Lathrop records on December 31, 2020? Select one: a. Credit to Accounts Receivable for $12,341. b. Debit to Bad Debt Expense of $27,659. c. Debit to Bad Debt Expense of $19,432 d. Credit to the Allowance for Doubtful Accounts for $25,000.On January 1, 2021, Jin Company sold equipment at a cost of P400,000. The consideration is a noninterest-bearing note. Related data of the note: The annual collection for three periods is P200,000 every end of the year. The effective rate is 12% What is the present value of the note on January 1, 2021?
- On January 1, 2025, Coronado Co. borrowed and received $150,000 from a major customer evidenced by a zero-interest-bearing note due in 4 years. As consideration for the zero-interest-bearing feature, Coronado agrees to supply the customer's inventory needs for the loan period at lower than the market price. The appropriate rate at which to impute interest is 9%. Prepare the journal entry to record the initial transaction on January 1, 2025. Prepare the journal entry to record any adjusting entries needed at December 31, 2025. Assume that the sales of Coronado's product to this customer occur evenly over the 4-year period and that the effective-interest method is used.On January 1, 2021, Cee Company sold a machine with a cost of P500,000 and carrying value of P150,000 to Tee Company. In lieu of cash payment, Tee Company gave Cee a 4-year, P100,000, 10% note. The note requires interest to be paid annually on December 31. The prevailing rate of interest for a note of this type is 16% and the principal amount of the note is to be paid in four equal annual instalments of P25,000 every December 31. Required: Compute the following: (Round off PV factors to 4 decimal places before multiplying.) 1. Gain or loss on sale of machinery (place parenthesis if loss) 2. Interest incomeOn January 1, 2020, the Dolce Corporation issued a three-year, non-interest bearing note with face value of P3,000,000 for a piece of land purchased from Jardine Corporation. The note is payable in annual installments of P1,000,000 every December 31, starting on December 31, 2020. The land has an equivalent cash price of P2,400,000, a price that provides the note an effective interest rate of 12%. Question: Using the infro above, what is tha balance of Discount on Notes Payable at December 31, 2020? ANSWER: P312,000 Explain why 132,000 is the answer. Provide a detailed solution.
