On December 31, 2020, the entity collected the dishonored note receivable in full plus 12% annual interest on the total amount due. What amount was received from the note receivable?
Q: On January 1, 2020, Victoria Company borrowed ₱600,000 8%, noninterest-bearing note due in four…
A: solution : given face value of note = 600,000 present value of note =441000 date of issue =…
Q: SAOD Company sold merchandise for $300,000 to RELANSE Company on January 1, 2021 and received a…
A: As per the term of restructuring on Dec 31, 2021, the Relanse Company will pay 210000 at the end of…
Q: On December 31, 2018, Cavite Company sold equipment to Bulacan Company for P380,000. Cavite…
A:
Q: On October 31, 2020, JP Company engaged in the following transactions: Obtained a P500, 000, six…
A: Here account receivable is given as pledge upto P500000
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A: Notes 1. Current Liability: A liability is current if it is payable within 12 months. 2. Non…
Q: On December 1, 2020, Lush Soma Company assigned specific accounts receivable totaling P5,000,000 as…
A: Part 1:
Q: On January 1, Gabriel Company sold land with a carrying value of P1,000,000 in exchange for a…
A: PARTICULAR DEBIT CREDIT sales 1,500,000 to land 1,000,000 to profit on sale…
Q: On January 1, 2020, CPA Co. sold land with carrying amount of P1,800,000 in exchange for a 10-month,…
A: Notes receivable are the asset of the firm where a borrower gives a written promise to lender to pay…
Q: Samson Corporation issued a 4-year, $75,000, zero-interest-bearing note to Brown Company on January…
A: Zero-interest bearing note is an obligation of an organization to pay its creditors in near future…
Q: On January 31, 2019, YZ Company engaged in the following transactions: * Obtained a P500,000,…
A: Amount received from loan = Loan amount - discount = P500000 - (500000 * 12% * 6/12) = P470,000
Q: On April 1, 2020 XYZ Company discounted with recourse a 9-month, 10% note dated January 1, 2020 with…
A: Interest amount=P6000000×0.10×912=P350,000
Q: On October 1, 2021, Home Company issued to Security Bank a P6,000,000, 8-month, noninterest-bearing…
A: Bonds- The note/bond issuer offers collateral as security in this type of transaction. Such…
Q: On July 1, 2019, GAH Company sold equipment to Babe Company for P2,000,000. GAH accepted a 10% note…
A: Net Proceeds = Value of note receivable less discount Discount = ( Value of note ) * Discount rate…
Q: On December 31, 2021, Chang Company sold a machihe in the ordinary course of business to Door…
A: Present value means the actual amount is adjusted with the interest rate so as to get the present…
Q: On January 1, 2020, Hamid Company sold goods to Khaled Company. Khaled signed a noninterest-bearing…
A: Present value of amount to be receved on January 1, 2020 = Intial payment + Annual payment x PV of…
Q: On January 1, 2020, Savage Company sold goods to another entity. The buyer signed a…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: On April 1, 2020, Neptune Company discounted with recourse a 9-month, 10% note dated January 1, 2020…
A: Face Value of note= P6,000,000 Duration and rate= 9-month, 10% note Bank discount rate= 12% Fee=…
Q: On November 1, 2021, FDN Trading accepted a 90-day, 8% P10,000,000 note from ABC Co. FDN immediately…
A: Maturity value of the note = Face value + interest = P10,000,000 +P10,000,000 *8%*90/360 = P10200000
Q: On January 1, 2021, CPA Corporation sold goods to IntAcc1 Company. IntAcc1 signed a…
A: Solution: carrying amount of the note receivable on January 1, 2021 = Present value note discounted…
Q: Marylett Company accepted from a customer in settlement of an account a 4,000,000, 90-day 12% note…
A: The note receivable is a current asset for the business, which is issued as a promissory note by…
Q: Prepare Grouper Corporation’s January 1 journal entry.
A: Compute the present value of the note.
Q: On April 1, 2020 UVW Company discounted with recourse a 9-month, 10% note dated January 1, 2020 with…
A: Note receivables is an instrument issued for evidencing debt. It is generally issued for shorter…
Q: On April 1, 2020 JKL Company discounted with recourse a 9-month, 10% note dated January 1, 2020 with…
A: When an asset is exchanged at a fair price between two parties, the sum for which the asset is…
Q: On January 1, 2021, NOBLE Company sold goods in exchange for a P5,000,000, 1- year,…
A: Discount on notes = Face value of note x market rate of interest x no. of months/12 = P5000000 x 12%…
Q: On April 1, 2020 ZAB Company discounted with recourse a 9-month, 10% note dated January 1, 2020 with…
A: Interest expense is the expense on the cost of borrowing money. This price is charged by lender to…
Q: Shlee Corporation issued a 4-year, $60,000, zero-interest-bearing note to Garcia Company on January…
A: Calculation of discount on note payable:
Q: On April 1, 2020 RST Company discounted with recourse a 9-month, 10% note dated January 1, 2020 with…
A: Note receivable: Note receivable refers to a written promise for the amounts to be received within…
Q: On April 1, 2020 JKL Company discounted with recourse a 9-month, 10% note dated January 1, 2020 with…
A: Note receivable can be defined as a written contract between two parties under which one party…
Q: On January 1, 2020, Gibson Co. purchases equipment having a fair value of $200,000 by issuing a…
A: Zero coupon bonds means those bonds which were issued for money or any assets but for which no…
Q: On July 1, 2017, KYU Co. discounted a 90-day, P850,000, 12% note, received from a customer on June…
A: Bills of exchange: Bills of exchange or notes are prepared for the smooth functioning of trade.…
Q: On April 23, 2021, Bong Company received from a customer on an overdue account a 90-day, 8%,…
A: Maturity value of the note = Face value of note + interest = P500000 + (500000*8%*90/360) = P500,000…
Q: On January 1, 2021, Lizelle Company signed a P100,000, 12% note due in three years at a discount…
A: Working :- The value of…
Q: On April 23, 2021, Bong Company received from a customer on an overdue account a 90-day, 8%,…
A: Maturity value of the note = Face value of note + interest = P500000 + (500000*8%*90/360) = P500,000…
Q: On Nov 1 2021, Calixo Co. accepted a 90 day, 8% $2,000,000 note from Harmony Trading. Calixo Co.…
A: Maturity value of the note = Face value + interest = $2,000,000+2,000,000 *8%*90/360 =…
Q: On January 1, 2020, Jonathan Company borrowed P500,000 8% note due in four years. The present value…
A: "Since you have asked multiple sub part question we will solve the first three sub part question for…
Q: On November 1, 2021, FDN Trading accepted a 90-day, 8% P9,000,000 note from ABC Co. FDN immediately…
A: Maturity value of the note = Face value of the not + Interest on the note = 9000000 +…
Q: On December 31, 2021, Roth Company issued a P1,000,000 face value note payable to Wake Company in…
A: Note payable - A promissory note or a written agreement is what a note payable is. The creator of…
Q: On January 1, 2020, Jonathan Company borrowed P500,000 8% note due in four years. The present value…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: On December 31, 2020, Olaer Company received two P5,000,000 notes receivable from customers in…
A: financial statement is statement that shows the company financial information of company activities…
Q: January 1, 2021, VKS Corporation sold goods to IntAcc2 Company. IntAcc2 signed a noninterest-bearing…
A: Solution: Present value is value of an amount which is computed for any future amount to be received…
Q: CPA Co. received from a customer a one-year, P1,000,000 note bearing annual interest of 10%. After…
A: Factoring is the financial institution where firm can sell their account receivable at a discount…
Q: On April 1, 2020 JKL Company discounted with recourse a 9-month, 10% note dated January 1, 2020 with…
A: Notes receivable refers to an item which is present at the balance sheet of the company which…
Q: Marylett Company accepted from a customer in settlement of an account a 4,000,000, 90-day 12% note…
A: Interest till maturity = 4,000,000 x 90/360 x 12% =120,000 Discount value = Maturity value x Rate x…
Q: Clancy Co. accepted a two-year noninterest-bearing note for $1,166,400 on January 1, 2020. The note…
A:
Q: On January 1, 2020, Jonathan Company borrowed P500,000 8% note due in four years. The present value…
A: ●1.What is the carrying amount of the note payable on December 31, 2020? Answer: Option 3: 408,150…
Q: On January 1, 2021, Glanville Company sold goods to Otter Corporation. Otter signed an installment…
A: Sales revenue: The amount earned by selling goods or services is known as sales revenue. This is the…
Q: Max Corp. sold goods for $36,000 on July 17, 2020, and accepted a 12%, 90-day note. On August 1, the…
A: Meaning of Journal Entries: Journal entries are the record of business…
Q: On December 31, 2021, Chang Company sold a machine in the ordinary course of business to Door…
A: Answer to Question: The carrying amount of the note receivable on December 31, 2022 is d)57,50,000…
Q: A Company discounted a customer's 10%, 120-day note for P300,000 dated September 20, 2021 with BPI…
A: Solution: In case of discounting of note, proceeds received will be maturity value which is deducted…
Q: On July 1, 2019, Kay Company sold equipment to Mando Company for P 1,000,000. Kay accepted a 10%…
A: Total interest for the year 2020 = Principal outstanding on December 31, 2019 x interest rate x no.…
On April 1, 2020 JKL Company discounted with recourse a 9-month, 10% note dated January 1, 2020 with face amount of P6,000,000. The bank discount rate is 12%. The discounting transaction is accounted for as a conditional sale with recognition of
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- On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9% U.S. Treasury notes for 194,000. The notes mature July 1, 2020, and pay interest semiannually on January 1 and July 1. The notes were sold on December 1, 2019, for 199,000. Aldrich normally uses straight-line amortization on all of its notes. In its income statement for the year ended December 31, 2019, what amount should Aldrich report as a gain on the sale of the available-for-sale security? a. 2,500 b. 3,500 c. 5,000 d. 6,000Element Surfboards issued a $210,800 note on January 1, 2018 to a customer, Leona Marland, in exchange for merchandise. Terms of the note are 9-month maturity date on October 1, 2018 at a 10.2% annual interest rate. Leona Marland does not pay on her account and dishonors the note. On December 2, 2018, Element Surfboards decides to sell the dishonored note to a collection agency for 30% of its value. Record the journal entries for Element Surfboards for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on October 1, 2018 C. Receivable sale on December 2, 2018
- On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major customer in exchange for used equipment. The equipment had originally cost Park 200,000 and had a book value of 20,000 on the date of the sale. At the 12% imputed interest rate for this type of loan, the present value of the note is 25,500 on January 1, 2019. Park uses the effective interest rate. What is the carrying value of the note receivable on Parks December 31, 2019, balance sheet? a. 28,560 b. 29,000 c. 32,500 d. 36,000Spath Company borrows 75,000 by issuing a 4-year, noninterest-bearing note to a customer on January 1, 2019. In addition, Spath agrees to sell inventory to the customer at reduced prices over a 5-year period. Spaths incremental borrowing rate is 12%. The customer agrees to purchase an equal amount of inventory each year over the 5-year period so that a straight-line method of revenue recognition is appropriate. Required: Prepare the journal entries on Spaths books for 2019 and 2020. (Round answers to 2 decimal places.)Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise. The merchandise had a cost to Resin Milling of $170,000. The terms of the note are 24-month maturity date on December 31, 2019 at a 5% annual interest rate. The customer does not pay on its account and dishonors the note. Record the journal entries for Resin Milling for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturity
- Interest-Bearing and Non-Interest-Bearing Notes On December 11, 2019, Hooper Inc. made a credit sale to Marshall Company and required Marshall to sign a 12,000,60-day note. Required: Prepare the journal entries necessary to record the receipt of the note by Hooper, the accrual of interest on December 31, 2019, and the customers repayment on February 9, 2020, assuming: 1. Interest of 12% was in addition to the face value of the note. 2. The note was issued as a 12,000 non-interest-bearing note with a present value of 11,765. The implicit interest rate on the note receivable was 12%. Assume a 360-day year. (Round to the nearest dollar.)Mystic Magic issued a $120,250 note on January 1, 2018 to a customer, Amy Arnold, in exchange for merchandise. Terms of the note are 9-month maturity date on October 1, 2018 at a 9.6% annual interest rate. Amy Arnold does not pay on her account and dishonors the note. On November 10, 2018, Mystic Magic decides to sell the dishonored note to a collection agency for 25% of its value. Record the journal entries for Mystic Magic for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on October 1, 2018 C. Receivable sale on November 10, 2018Non-Interest-Bearing Notes Payable On November 16, 2019, Clear Glass Company borrowed 20,000 from First American Bank by issuing a 90-day, non-interest-bearing note. The bank discounted this note at 12% and remitted the difference to Clear Glass. Required: 1. Prepare the journal entries of Clear Glass to record the preceding information, the related calendar year-end adjusting entry, and payment of the note at maturity. 2. Show how the preceding items Would be reported on the December 31, 2019, balance sheet. 3. Next Level What is Clear Glass Companys effective interest rate?
- Rain T-Shirts issued a $440,600 note on January 1, 2018 to a customer, Larry Potts, in exchange for merchandise. The merchandise had a cost to Rain T-Shirts of $220,300. The terms of the note are 24-month maturity date on December 31, 2019 at a 4.5% annual interest rate. Larry Potts does not pay on his account and dishonors the note. Record journal entries for Rain T-Shirts for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturityOn April 1, 2020, Shalimar Company discounted with recourse a 9-month, 10% note dated January 1, 2020 with face of P6,000,000. The bank discount rate is 12%. The discounting transaction is accounted for as a conditional sale with recognition of a contingent liability. On October 1, 2020, the maker dishonored the note receivable. The entity paid the bank the maturity value of the note plus protest fee of P50,000. On December 31, 2020, the entity collected the dishonored note in full plus 12% (annual interest rate) from the maturity date up to settlement date based on face amount of the note for humanitarian reasons. What is the total amount collected from the customer on December 31, 2020?On April 1, 2020 JKL Company discounted with recourse a 9-month, 10% note dated January 1, 2020 with face amount of P6,000,000. The bank discount rate is 12%. The discounting transaction is accounted for as a conditional sale with recognition of contingent liability. On October 1, 2020, the maker dishonored the note receivable. The entity paid the bank the maturity value of the note plus protest fee of P50,000. On December 31, 2020, the entity collected the dishonored note receivable in full plus 12% annual interest on the total amount due. If the discounting is secured borrowing, how much is the interest expense included in the transaction to record transaction cost?