Canton Cave Company provided the following schedule of liabilities on December 31, 2014:P6,500,000Accounts payableUnearned revenue5,000,000Notes payable - bank (a)8,000,000Bonds payable (b)4,000,000Additional Information:a. Bank notes payable include two separate notes payable to First Bank:• A P3 million, 10% note issued March 1, 2014, payable on demand. Interest is payable every 6months.• A one-year term note amounting to P5 million, with 11% interest issued on January 2, 2014.b. The bonds payable are 10-year, 8% bonds, issued June 30, 2013. Interest is payable semi-annuallyon June 30 and December 31.C.There is a pending litigation against Canton Cave Company because for copyright issues. The legalcounsel estimates that the company would have to pay P4,000,000 in damages expected to besettled within 12 months. He assesses that the chance the company would pay is probable.d. During the year, Canton Cave introduced a new product that carries a warranty against defects.Expected warranty claims amount to 8% of total sales. Total sales for 2014 is 2,000,000 and theactual warranty expenditures is 70,000. The company recorded actual warranty expenditures directlyas warranty expense.Present a partial statement of financial position, showing the current liabilities and noncurrent liabilitiesand the total liabilities. Follow the format below. (10 pts.)Format:Statement of Financial PositionAs of LiabilitiesCurrent liabilitiesXXXXNoncurrent liabilitiesXXXXTOTAL LIABILITIESTotal current liabilitiesTotal noncurrent liabilities

Answered: le include tv 1, 10% note term note a…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.6AP

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KKK Inc. provided the following schedule of liabilities on December 31,2021: Accounts payable P6,500,000 Bank note payable – 10% 3,000,000 Bank note payable – 11% 5,000,000 Interest payable 150,000 Mortgage note payable – 10% 2,000,000 Bonds payable 4,000,000 --- The P3,000,000, 10% was issued March 1,2021, payable on demand. Interest is payable every six months. ---The one-year P5,000,000,11% note was issued January 15,2021. On December 31,2021, KKK negotiated written agreement with the bank to replace the note with a 2-year. P5,000,000 note to be issued January 15,2022. ---The 10% mortgage note was issued October 1,2018, with a term of 10 years. Terms of the note give the holder the right to demand immediate payment if the entity fails to make a monthly…
Problem 4:Canton Cave Company provided the following schedule of liabilities on December 31, 2019:Accounts payable 6,500,000Notes payable-bank 8,000,000Interest payable 150,000Mortgage payable-10% 2,000,000Bonds payable 4,000,000*Bank notes payable include two separate notes payable to First Bank A ₱ 3, 000,000, 10% note issued March 1, 2018, payable on demand. Interest is payable every six months. A one-year, ₱5,000,000, 11% note issued January 2, 2019. On December 31, 2019, Canton Cave negotiated a written agreement with First Bank to replace the note with a 2-year, ₱5,000,000, 10% note issued January 2, 2020.*The 10% mortgage note was issued October 1, 2016 with a term of 10 years. Terms of the note give the holder the right to demand immediate payment if the entity fails to make a monthly interest within 10 days of the date the payment is due.On December 31, 2019, Canton Cave is three months behind in paying its required initial payment.The bonds payable are 10-year, 8% bonds,…
Cicamore Company had the following information related to its current liabilities for the year ended December 31, 2022. Notes payable arising from 5-year bank loans, on which a security valued at P600,000 have been pledge as security, due on December 31, 2023. P500,000 Accounts payable, net of debit balances of P50,000 770,000 Trade notes payable due in 15 months 280,000 Salaries payable 90,000 Employee income tax withheld 11,000 Bonus and profit sharing payable 70,000 Liability for income taxes 250,000 Cash dividends payable 100,000 Share dividend payable 150,000 Dividend in arrears on preference shares 200,000 How much should Cicamore report as current liabilities in its December 31, 2022 statement of financial position?
Val Company disclosed the following information on December 31, 2021: Accounts Payable P20,000 Notes Payable P40,000 Notes payable due to bank, 12% interest bearing note payable yearly,issued on August 31, 2021, maturing on August 31, 2022 P1,000,000 Note: In the case of the notes payable due to bank, supposing the entity has the discretion to refinance the obligation for at least 12 months after the given maturity date (not reporting period), as seen in its loan agreement, Compute for the non-current liabilities as of December 31, 2021 *Be reminded of the 12% interest whether you include it or not.
Lappy Company disclosed the following information on December 31, 2021: Accounts Payable P20,000 Notes Payable P40,000 Notes payable due to bank, 12% interest bearing note payable yearly,issued on August 31, 2021, maturing on August 31, 2022 P1,000,000 Compute for the CURRENT LIABILITIES as of December 31, 2021 *take note of the interest-bearing note
Cavalier Company provided the following information December 31, 2019: Accounts payable Notes payable - bank Interest payable Mortgage note payable - 10% Bonds payable 6,500,000 8,000,000 150,000 2,000,000 4,000,000 Bank notes payable include two separate notes payable to First Bank. A P3,000,000, 10% note issued March 1, 2018, payable on demand. Interest is payable every six months. A one-year, P5,000,000, 11% note issued January 2, 2019. On December 31, 2019, the entity negotiated a written agreement with First Bank to replace the note with a 2-year, P5,000,000, 10% note to be issued January 2, 2020. The 10% mortgage note was issued October 1, 2018 with a term of 10 years. Terms of the note give the holder the right to demand immediate payment if the entity fails to make a monthly interest payment within 10 days of the date the payment is due. On December 31, 2019, the entity is three months behind in paying the required interest payment. The bonds payable are 10-year, 8% bonds,…
continue to collect the assigned accounts receivable. On December 1, 2020, Solvent Company assigned specific accounts receivable totaling P5,000,000 as collateral on a P4,000,000 12% note from a certain bank. The entity will Problem 8-14 (IAA) addition to the interest on the note, the bank also charged 506 finance fee deducted in advance on the asigned accounts. The December collections of assigned accounts receivable amounted to P2,000,000 less cash discount of P200,000. On December 31, 2020, the entity remitted the collections to the bank in payment for the interest accrued on December 31, 2020 and the note payable. The entity accepted sales returns of P100,000 on the assigned accounts and wrote off assigned accounts of P300,000. 1. What amount of cash was received from the assignment of accounts receivable on December 1, 2020? a. 4,000,000 b. 3,800,000 c. 4,750,000 d. 3,750,000 2. What is the carrying amount of note payable on December 31, 2020? a. 1,840,000 b. 2,140,000 c.…
CC had the following information related to its current liabilities for the year ended December 31, 2022. Notes payable arising from 5-year bank loans, on which a security valued at P600,000 have been pledge as security, due on December 31, 2023. P500,000 Accounts payable, net of debit balances of P50,000 770,000 Trade notes payable due in 15 months 280,000 Salaries payable 90,000 Employee income tax withheld 11,000 Bonus and profit sharing payable 70,000 Liability for income taxes 250,000 Cash dividends payable 100,000 Share dividend payable 150,000 Dividend in arrears on preference shares 200,000 How much should CC report as current liabilities in its December 31, 2022 statement of financial position?
what is the carrying amount of the note payable on December 31, 2020? what is the equity of the assignor in assigned accounts on December 31, 2020?
Company A received a 5-year Non-interest bearing note payable to Company A on December 31, 2024, P 5,000,000. The market interest rate for this type of transaction is 12%. What is the amount that shall be reported on the statement of financial position on December 31, 2022, as Notes Receivable (net of discount or premium)?
On December 31, 2021, the bookkeeper of Grand Company provided the following information: Accounts payable, including deposits and advances from customers Of P500,000 Notes payable, including note payable to bank due on December 31, 2023 for P1,000,000 Share dividends payable P2,500,000 3,000,000 800,000 Credit balance in customers' accounts 400,000 Serial bonds, payable in semi annual installments of P1,000,000 Accrued interest on bonds payable 10,000,000 300,000 Contested BIR tax assessment 600,000 Unearned rent income 100,000 In the December 31, 2021 statement of financial position, how much current liabilities should be reported?
Cypress Oil Company's December 31, 2024, balance sheet listed $905,000 of notes receivable and $22,400 of interest receivable included in current assets. The following notes make up the notes receivable balance: Note 1 Dated 8/31/2024, principal of $450,000 and interest at 8% due on 2/28/2025. Note 2 Dated 6/30/2024, principal of $260,000 and interest due 3/31/2025. Note 3 $200,000 face value noninterest-bearing note dated 9/30/2024, due 3/31/2025. Note was issued in exchange for merchandise. The company records adjusting entries only at year-end. There were no other notes receivable outstanding during 2024. Required: 1. Determine the rate used to discount the noninterest-bearing note. 2. Determine the explicit interest rate on Note 2. 3. What is the amount of interest revenue that appears in the company's 2024 income statement related to these notes? Answer is complete but not entirely correct. 1. Discount rate 10 % 2. Interest rate 80 % 3. Interest revenue $ 53,696

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le include tv 1, 10% note term note a le are 10-yea