On April 1, 2022 Blo Inc. receives a 6-year $60,000 note in exchange for a parcel of land.  The cost of the land was $35,000.  Neither the market rate nor the fair value of the land can be determined.  Notes of similar risk carry a 12% imputed rate of interest.  The financial year ends December 31. a.    The present value of the note is $Answer b.     There was a (gain or loss) Answer on the sale of the land of $Answer

Q: On January 1, 2021, More Co. received a 3-year, noninterest bearing note of P900,000 in exchange for…

A: Noninterest-bearing notes receivable refers to the notes receivable that do not carry periodic…

Q: On January 1, 2022. TGIG sold equipment with historical cost of P10,000,000 and accumulated…

A: Carrying amount of the Note = Present value of the annual instalments where, Present value of the…

Q: How much of the Notes payable, net of discount, should be reported as part of current liabilities on…

A: Year Beginning Carrying value Installment paid Interest Expense Principal paid Ending carrying…

Q: On January 1, 2021, Roy Company sold a machine with a cost of P500,000 and carrying value of…

A: Cumulative present value of 14% for 3 years = 2.322

Q: The company purchased the equipment 600,000. The interest rate of bank is 12,400. The loan is…

A: The correct answer is  Option c. OMR 31,000

Q: on december 31, 2020, bones corporation sold an old machine, the terms of the sale were as follows:…

A: Annuity: The fixed amount paid or received in equal time periods is referred to as annuity.

Q: On January 1, 2021, PARCELLE Inc. sold a piece of undeveloped land in exchange for a six-year…

A: Whenever a transaction happens between a buyer and a seller, the terms of the transaction are…

Q: Sandhill Company sells land with a book value of $165625 to Teal Mountain Corp. in exchange for a…

A: Zero coupon bonds are those which don't pay any interest during their lifetime. The bond value gets…

Q: On January 1, 2021, Lorry Manufacturing Company purchased equipment from Wales Inc. There was no…

A: Lets understand the basics. When asset is purchased using zero interest bearing notes payable then…

Q: n April 1, 2023 Blo Inc. receives a 6-year $60,000 note in exchange for a parcel of land. The cost…

A: Present value is the equivalent value today of the future money based on time value of money.Given:…

Q: On January 1, 2020, Billy Company sold equipment that originally cost $5,000,000 to Selecta Company.…

A: It is the amount of difference between the face value of the bond issued and the amount actually…

Q: On January 1, 2021, Hosana Co. sold equipment in exchange for a P 850,000, 4 year, 11% note,…

A: Lets understand the basics. Compounded interest means interest on interest. In other words, it is a…

Q: On April 19, 2018, Millipede Machinery sold a tractor to Thomas Hartwood, accepting a note promising…

A:

Q: On January 1, 2021, Dreamlover Corporation purchased equipment from Daydream Company for P3,600,000.…

A: Present value refers to the current value of all the cash flows which is to be received in the…

Q: Lathrop Inc. purchased equipment on January 1, 2020, for $30,000 cash plus a note payable. The fair…

A: Mortgage Note Payable - A mortgage note payable is a written promise to repay a specific amount of…

Q: On April 1, 2028, A Company issued a P 9.000,000 non-interest-bearing note due March 31, 2031, for a…

A: Interest expense = P469,112

Q: Lathrop Inc. purchased equipment on January 1, 2020, for $150,000 cash plus a note payable. The fair…

A: Date  Accounts, explanation and title  Debit  Credit  1 January 2020  Equipment (542,666 -…

Q: R On April 1, 2024, Donyel Boats Company sold a yacht to Darien Resorts & Company for $450,000.…

A: Notes receivable refers to a written agreement containing consent of the borrower indicating to pay…

Q: On January 1, 2019, Mariz Company acquired a tract of land for 21,000,000.  The entity paid a…

A: Face value of Note = Cost of land - down payment = 21,000,000 - 5,000,000  = 16,000,000

Q: n January 1, 20x9, Detail Inc sold a tract of land that was acquired years ago for P 3M. Detail…

A: The carrying amount of assets is the present value of installment and the gain on sale is the excess…

Q: On June 1, 2023, Redwood Manufacturin Co. sold equipment to Caramel Company in exchange for a…

A: Accrual accounting records revenue and expenses when they are earned or incurred, regardless of when…

Q: Last year the company exchanged a piece of land for a non-interest - bearing note. The note is to be…

A: The objective of the question is to calculate the fair value of the non-interest-bearing note that…

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 September 1, 2017, Fantastic Company sold a piece of land in exchange for a 5-year note with face…

A: As interest received on 31st Aug each year but the company have to make an entry for accrued income…

Q: On December 31, 2022, Shamrock plc acquired a computer from Plato Group by issuing a £606,000…

A: Future Value :— Future Value Means The Value of assets in Future. the value of a current asset at a…

Q: On December 31, 2025, Concord Company acquired a computer from Plato Corporation by issuing a…

A: Given information:Face value of the note = $570,000Cash received (initial proceeds) =…

Q: On June 1, 2021, Blossom & Sons sold equipment to James Landscaping Service in exchange for a…

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

Q: st-bearing note due in 4 years. Because the note was zero-interest-bearing, Sage Furniture agreed to…

A: Answer : a) Journal entry : Date General Journal Dr. Cr. 1/1/2025 Cash $5900000     Discount…

Q: On January 1, 2022, ABC Company signed a note payable to a bank for P3,000,000 with a stated rate of…

A: The notes payable are generally considered a long-term liability because it is issued normally for a…

Q: On January 1, 2022, Balance Bar Co. receives a 5-year, $100,000 zero-interest-bearing note for…

A: Fv=100,000 N=5 years i=6% Then principal:$100,000 (PVF$5,6%) = $100,000 x .74726 =$74,726…

Q: On January 1, 2020, Adobo Incorporated sold its aggregate equipment.  The buyer issued a promissory…

A: Principal Outstanding   Principal amount received   Interest   Total amount received   PV…

Q: January 1, 2023, Pelicans Company sold an equipment to Hornets Company which had a carrying value on…

A: Note receivable is an asset which binded with a promissory note. This promissory note includes term…

Q: On January 1, 2025, Waterway Co. sold equipment in exchange for an $820000 zero-interest-bearing…

A: Interest revenue is the amount of money earned by the entity on notes, bonds or debentures issued.…

Q: ompany sold a machine with a cost of P500,000 and accumulated depreciation of P350,000 to Gee…

A: Notes receivables refer to the written form of promissory notes that provides the holder the…

Q: The Montana Company paid for the acquisition of an equipment by signing a $100,000 three year 6%…

A: Year cash flows Pv factor @ 10% Present value a b c d= b x c 1 6000 0.9091 5455 2 6000 0.8264…

Q: On January 1, 2021, Mumbleford & Sons Co. sold equipment to Mulligan Care Service in exchange for a…

A: Zero coupon bonds means those bonds which were issued for money or any assets but for which no…