M issued a negotiable promissory note payable to the order of P for P100,000. This was for the merchandise M purchased from P. P, however, was only able to deliver merchandise worth P70,000 only. Later, P endorsed the note to A, A to B, and B to C. A and C knew about this, while B did not. Upon maturity, how much can C collect from M?

6. On December 31, 2010, Chelsea Co. provides a service for its customer Villas Boas Co. inexchange for a promissory note requiring five annual payments of $1,000 each. The paymentsare to occur on December 31 of each year beginning on December 31, 2011. The note does notspecify any interest, and there is no market for the note. Based on the credit worthiness of VillasBoas Co. and the length of the note, it is estimated that Villas Boas Co. would have to pay 10%interest if it borrowed a similar amount from a bank. The amount of interest revenue recognizedby Chelsea for the year ended December 31, 2013 is:a. $174b. $249c. $317d. $347

On 1 July 2019, Sitara Ltd sells a computer to Kitara Ltd. The computer cost Sitara Ltd $9000. Rather than selling the item for a cash price or a short-term claim for cash of $12 009, Sitara Ltd accepts a promissory note that requires Kitara Ltd to make four annual payments of $4000 each, the first one to be made on 30 June 2020. The difference between the gross receipts and the current sales price represents interest revenue earned by Sitara Ltd over the note period. The rate implicit in the arrangement is 12 per cent. Provide a journal entry with a clear distribution of instalment payment into interest and principal amount as of 30/6/2021.

On January 2, 2025, Oriole Inc. sells goods to Sheridan Company in exchange for a zero-interest-bearing note with face value of $10,500, with payment due in 12 months. The fair value of the goods at the date of sale is $9,500 (cost $5,700). (a1) Prepare the journal entry to record this transaction on January 2, 2025. (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 Jan. 2, 2025 Jan. 2, 2025 Account Titles and Explanation (To record sales) (To record cost of goods sold) Debit Credit

Which of the following bills of exchange may be treated as promissory note by the holder?   a. To BDO. Pay Php10,000 to bearer. Signed Mr. Lit. b. To C. Pay Php10,000 to the order of P. Signed A. c. To X. Pay Php10,000 to P or bearer. Signed X. d. To Drawee. Pay Php10,000 to P or order. Signed Drawer.

On Jan. 1, 20x4, Bernie Bird Co. sold a building, which had a carrying amount of P350,000, receiving a P125,000 down payment and, as additional consideration, a P400,000 noninterest bearing note due on January 1, 20x7. There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a note of this type at January 1, 20x4, was 10%. What amount of interest income should be included in the entity’s 20x4, income statement? a. 0 b. 35,053 c. 30,053 d. 40,109

The entity sold its inventory to a foreign entity with credit term of n/60. On the 60th day from invoice, the entity accepted the $200 payment from a client. It converted this amount on the spot rate. The entity's approach to the foreign exchange risk is  A. AvoidanceB. MitigationC. Acceptance

Max Corp. sold goods for $36,000 on July 17, 2020, and accepted a 12%, 90-day note. On August 1, the note was sold to a bank at a 15% discount rate. Required: a. Compute the proceeds. Assume a 360-day year. b. If the maker dishonored the note at maturity, prepare the entry for Max Corp. assuming $75 of bank protest fees. If an amount box does not require an entry, leave it blank.

Grouper Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The goods have a sales price of $550,100 (cost of $510,000). The terms are net 30. If Danone pays within 5 days, however, it receives a cash discount of $10,100. Past history indicates that the cash discount will be taken. On January 28, 2020, Danone makes payment to Grouper for the full sales price. (a)Prepare the journal entry(ies) to record the sale and related cost of goods sold for Grouper Company on January 2, 2020, and the payment on January 28, 2020. Assume that Grouper Company records the January 2, 2020, transaction using the net method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) (b)Prepare the journal entry(ies) to record the sale and related cost of goods sold for Grouper Company on January 2, 2020, and the payment on January 28,…

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