Mega Corporation, a domestic corporation, deposited P1,000,000 in a 7- 2 point year time deposit with BPI which pays 7% annual interest. Compute the corporation's net interest income in the first year of the deposit. 70,000

Mega Corporation, a domestic corporation, deposited P1,000,000 in a 7- 2 point year time deposit with BPI which pays 7% annual interest. Compute the corporation's net interest income in the first year of the deposit. 70,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Halep Inc. borrowed $56,000 from Davis Bank and signed a 4-year note payable stating the interest…

A: Amortization refers to expensing the acquisition cost minus residual value of assets in a systematic…

Q: • Assume Strand Corp borrowed $200,000 from the bank on 7/1/20; Strand is a calendar year-end.…

A: Journal entry on 07/1/20 , 12 /31/ 20 are as follows

Q: Data of Marimar Company as of December 31, 2021: Accounts payable P97,500 Accrued expense 85,000…

A: Following is the answer to the given question

Q: White Co. received cash from the following transactions issued on January 1 Year 1. Transaction 1:…

A: Table Value are Based on:n = 8i = 8%Cash FlowAmountTable ValuePresent ValueMaturity Value of…

Q: Prepare an amortization table showing the principal and interest in each payment.

A: Interest calculation : Outstanding principal amount * rate of interest Year 1 = $58,000 * 4%…

Q: The December 31, Year 2 carrying amount in the amortization table for this installment note will be…

A: The person who promised to pay the specified amount by signing a note is treated as notes payable as…

Q: Halep Inc. borrowed $54,000 from Davis Bank and signed a 4-year note payable stating the interest…

A: Given: Period = 4 years Payment = $14,876.46 Loan = $54,000 Interest rate = 4%

Q: On January 1, 20x1, SCRUPULOUS EXACT Co., acquired a piece of equipment by issuing a P 12,000,000,…

A: Calculating the carrying amount as on January 1, 20X3:Total Amount= $12,000,000Installment Amount=No…

Q: Swifty owes $ 3.6 million that is due on February 28. The company borrows $ 3000000 on February 25…

A: Since the $3.6 million note is repayable within 12 months from December 31 on the coming February…

Q: • Assume Strand Corp borrowed $200,000 from the bank on 7/1/20; Strand is a calendar year-end.…

A: It is pertinent to note that under the accrual basis of accounting transactions are recorded as and…

Q: Prepare an amortization table showing the principal and interest in each payment. Annual Period…

A: Loan Amortization Table is a statement used to determine annual payment and differentiate principal…

Q: Question 24. Torpedo plc took out a bank loan on 1 April 20X0 for $10,000. It is due to be paid back…

A: Lets understand the basics.Liabilities are divided into current and non current liabilities. Current…

Q: Gingerbread Corp was issued a $250,000 loan at 8% with a five year maturity date. The partial…

A: Given: Loan = $250,000 Interest rate =8% Years = 5

Q: hal.0

A: The objective of the question is to create an amortization table for a three-year loan of $500,000…

Q: Skysong Corporation issued a 4-year, $64,000, zero-interest-bearing note to Brown Company on January…

A: Zero-interest notes are available to investors at a discount, which means they pay less than the…

Q: Lime Co. incurs a $4,000 note with equal principal installment payments due for the next eight…

A: Introduction: Non current liability: The liabilities which are to be paid more than 1 year period of…

Q: Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest…

A: Given that Halep Inc. borrowed $30,000 from Davis4-year note payable stating the interest rate was…

Q: Mega Corporation, a domestic corporation, deposited P1,000,000 in a 7-year time deposit with BPI…

A: Amount deposited = 1000000 7 years Time Deposit Rate of interest 7% ( annual Interest)

Q: nts) On April 1 each year, TAEL Co. receives interest on a $161,000, 6%, 6 year note receivable. On…

A: Interest income is what a business receives from its investments or obligations. Due to the accrual…

Q: On Jan 1, 20X1 ABC received a P1,200,000 3-year non interest note. Interest and principal is…

A: Maturity value is the obligation amount due or payable to the holder of the note on the due date of…

Q: Savvy Drive-Ins borrowed money by issuing $3,500,000 of 9% bonds payable at 99.5. Interest is paid…

A: Bonds payable is a type of instrument where by an amount is borrowed for a fixed period with fixed…

Q: 6 - The company has accrued TL 9000 of interest on its 6-month maturity account opened at the bank…

A: Withholding amount will be calculated as follows: Witholding Rate= 15%Interest Amount=…

Q: miley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley…

A: Bond premium refers to the excess price received for a bond issued over and above its face value.

Q: Subject : Accounting On January 1, Boston Company completed the following transactions (use a 7%…

A: PV is the way of calculating the present value of cash flows arising in the future present value of…

Q: LMN Corp has the following data showing for the current year: Interest on peso savings account, net…

A: Solution Concept The interest deduction allowable is 20% of the interest income that is chargeable…

Q: Kingbird, Inc. owns the following assets at December 31, 2020: Cash in bank savings account…

A: Cash which is restricted for current use is not considered under cash and cash equivalents.…

Q: An entity records on December 31, 20x1 show the following account balances: Trade accounts…

A: Liabilities are the obligations or dues which needs to be settled down or being paid by the…

Q: (c) Pearl Inc. loans money to John Kruk Corporation in the amount of $832,000. Pearl accepts an 8%…

A: Note can be defined as the debt security that is ask the issuers to repay the principal amount of…

Q: Entity A invested $18,000 in 10.00% loan notes. The loan interest is paid in arrears. The loan…

A: Statement of profit or loss is prepared to show the total revenues, total expenses and resulting…

Q: 17. Walnut company received from a customer an 1-year, P200,000 note bearing annual interest of 8%.…

A: The maturity value of note is calculated as sum of principal value of note and interest earned.

Q: On October 1, Year 1 Hernandez Company loaned $60,000 cash to Acosta Company. The one-year note…

A: Journal entries for accrued interest income: Interest receivable account is debited and Interest…

Q: On Jan. 1, 2021, ABC Corporation entered into a P5,000,000 IRG 1-10, 9% contract with its bank.…

A: The cash to be received from a contract at any point in time is equal to the initial value of the…

Q: Lime Co. incurs a $4,000 note with equal principal installment payments due for the next eight…

A: 1.The Note payable is one of the form of liability of an business which needs to be settled either…

Q: (Algo) Amortization schedule for an installment note LO 10-1 On January 1, Year 1, Beatie Company…

A: Amortization Schedule: It refers to a detailed table or schedule that shows both interest and…

Q: Abardeen Corporation borrowed $90,000 from the bank on October 1, Year 1. The note had an 8 percent…

A: A. AMOUNT OF CASH PAID : = $0 B. INTEREST EXPENSE : = $90,000 X 8% X 3MONTHS / 12 MONTHS =…

Q: 5. CCC Plc paid interests on shareholder Peter's current account for 9 months at the rate of 15%…

A: The deductible interest can be defined as the interest which is deductible as per the laws of the…

Q: Adams Acrobats lent $17,147 to Donaldson, Inc., accepting Donaldson's 2-year, $20,000,…

A: Journalizing is one of the important and beginning processes in the accounting cycle. According to…

Q: Bulldogs Inc. loaned a certain amount from a reputable bank for a term of one year at 8% quoted rate…

A: Calculation of Effective rate of interest EIR = Interest / usable fund x 12/12 = 33200 /…

Q: On January 1, 20x1, SAUCY BOLD Co. acquired a machine by issuing a 3-year, 3%, P4,800,000 note…

A: Total note payable amount= $4,800,000No of period= 3 yearsInterest = 3%…

Question

70,000

56,000

14,000

Answer not given

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Fellen Inc. borrowed $150,000.00 at 3.15% for 100 days. The company paid $30,000.00 on day 30 and another $50,000.00 on day 60. How much does the company need to pay on the due date using the ordinary interest method (round to the nearest cent)? O a. $70,709.78 O b. $70,957.27 O c. $120,393.75 O d. $150,525.00 P Type here to search 24 13 16 A 14 f5 f7
Tony Acrobats lent $44,639 to Donaldson, Inc., accepting Donaldson's 2-year, $55,000, zero-interest-bearing note. The implied interest rate is 11%. Prepare Tony's journal entries for the initial transaction, recognition of interest each year, and the collection of $55,000 at maturity. (Round answers to O decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation (To record the initial transations) (To record the recognition of interest in year one) Debit I Credit
14. Gingerbread Corp was issued a $220,000 loan at 6%. The amortization schedule created by the company accountant is presented below. How much interest will Gingerbread Corp record in interest expense over a period of 6 years?
Assuming a 360-day year, the interest charged by the bank, at the rate of 8%, on a 90-day, discounted note payable of $105,987 is a.$4,240 b.$8,479 c.$2,120 d.$105,987
Listed below are the current liability section and Note 7 of the Year 7 balance sheet of Joli Roma Corporation (the Company), a major oil company. $ millions Year 7 Year 6 Current Liabilities Current portion of long-term obligations Short-term obligations Accounts payable Accrued liabilities Taxes payable (including income taxes) $175 $89 691 530 2,996 3,196 1,046 1,099 1,289 997 $6,197 $5,911 Note 7 Short-Term Obligations The Company's "short-term obligations" consist of notes payable and commercial paper. Notes payable as of December 31, Year 7, totaled $102 million at an average annual interest rate of 5.7%, compared with $29 million at an average annual interest rate of 5.7% at year-end Year 6. Commercial paper borrowings at December 31, Year 7, were $839 million at an average annual interest rate of 5.7% compared with $260 million at an average annual interest rate of 5.9% as of December 31, Year 6. Bank lines of credit available to support existing commercial paper borrowings of…
104.
Halep Inc. borrowed $36,000 from Davis Bank and signed a 4-year note payable stating the interest rate was 4% compounded annually. Halep Inc. will make payments of $9,917.64 at the end of each year. Prepare an amortization table showing the principal and interest in each payment. Round your answers to two decimal places. Year BeginningBalance Payment Interest To Principal EndingBalance 1 $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 $fill in the blank 5 2 fill in the blank 6 fill in the blank 7 fill in the blank 8 fill in the blank 9 fill in the blank 10 3 fill in the blank 11 fill in the blank 12 fill in the blank 13 fill in the blank 14 fill in the blank 15 4 fill in the blank 16 fill in the blank 17 fill in the blank 18 fill in the blank 19 fill in the blank 20
A company issues $12 million in term bonds on March 1, Year One, for face value. The bonds pay a stated cash interest rate of 10 percent per year. Interest payments are made every February 28 and August 31. On financial statements for Year One, what is recognized as interest expense on the income statements? Responses $12,000,000 $300,000 $1,200,000 $1,000,000
13, please read the question carefully and follow the instructions. thanks
Hermosa Vista Company issued $180,000 5-year, 6.00% bonds and received $183,843 in cash. The market rate of interest when the bonds were issued was 5.50%. What is the amount of interest expense to be recorded for the first annual interest period if the company uses simplified effective-interest amortization? Multiple Choice $9,900.00 $10,111.37 $10,800.00 $11,030.58
S6. Account