On January 1, 2020, X company acquired an equipment for P1,000,000 payable in 5 annual equal installments every December 31 of each year. Interest is 10% on the unpaid balance. Required: Prepare the all the relevant journal entries in 2020 and 2021
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On January 1, 2020, X company acquired an equipment for P1,000,000 payable in 5 annual equal installments every December 31 of each year. Interest is 10% on the unpaid balance.
Required:
Prepare the all the relevant
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- On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)Anderson Air is a customer of Handler Cleaning Operations. For Anderson Airs latest purchase on January 1, 2018, Handler Cleaning Operations issues a note with a principal amount of $1,255,000, 6% annual interest rate, and a 24-month maturity date on December 31, 2019. Record the journal entries for Handler Cleaning Operations for the following transactions. A. Entry for note issuance B. Subsequent interest entry on December 31, 2018 C. Honored note entry at maturity on December 31, 2019Koolman Construction Company began work on a contract in 2019. The contract price is 3,000,000, and the company determined that its performance obligation was satisfied over time. Other information relating to the contract is as follows: Required: 1. Compute the gross profit or loss recognized in 2019 and 2020. 2. Prepare the appropriate sections of the income statement and ending balance sheet for each year.
- On January 1, 2019, Boater Company issues a 20,000 non-interest-bearing, 5-year note for equipment. Neither the fair value of the note nor the equipment is determinable. Boaters incremental borrowing rate is 9%. The asset has a useful life of 7 years. Prepare the journal entry for Boater to record the issuance of the note on January 1.Discounting of Notes Payable On October 30, 2019, Sanchez Company acquired a piece of machinery and signed a 12-month note for 24,000. The lace value of the note includes the price of the machinery and interest. The note is to be paid in four 6,000 quarterly installments. The value of the machinery is the present value of the four quarterly payments discounted at an annual interest rate of 16%. Required: 1. Prepare all the journal entries required to record the preceding information including the year-end adjusting entry and any payments. Present value techniques should be used. 2. Show how the preceding items would be reported on the December 31, 2019, balance sheet.Jernigan Co. receives $240,000 when it issues a $240,000, 6%, mortgage note payable to finance the construction of a building at December 31, 2020. The terms provide for annual installment payments of $33,264 on December 31. Instruction: Prepare the journal entries to record the the first and second installment payments.
- Credulous Company purchased equipment on January 1, 2020 under the following terms: The same equipment was available at a cash price of Problem 23-2 (ACP) uisitions P200,000 downpayment b. Five annual payments of P100,000, the first installment note to be paid on December 31, 2020. a. ordinary P120 per alue of P580,000. cement Required: Prepare journal entries for 2020 and 2021. 00 for alued On January 1, 2020, Enrich Company purchased a machine under the following terms: Problem 23-3 (ACP) e of ch it nal b. Four annual payments of P200,000, the first installment a. P100,000 downpayment ue note to be paid on December 31, 2020. The fair value of the machine is not clearly determinable on The prevailing rate of interest for this type of obligation is 10%. The present value factors at 10% for four periods are: is the date of acquisition. .683 3.170 Present value of 1 Present value of ordinary annuity of 1 Required: Prepare journal entries for 2020 and 2021.Montiel Corporation purchased equipment from Welden Co., on January 1, 2023. In payment for $250,000 equipment, Montiel Corporation issued a 5-year note to be paid in five equal payments at the end of each year. The payments include interest at the rate of 8%. REQUIRED: Calculate the amount of each installment. Prepare the journal entry for purchase of equipment. Prepare the journal entries for the first two installment payments on December 31, 2023On January 2, 2020, Brook Company acquired machinery by issuing a 5%, $350,000 note due in 5 years on December 31, 2024. Annual payments are $81,099 each December 31. The payment schedule is: Year 2020 2021 2022 2023 2024 Annual Payment $81,099 81,099 81,099 81,099 81,099 Principal Portion of Payment $63,599 66,779 70,118 73,624 75,880 Current liabilities: Current portion of non-current debt Interest payable Non-current liabilities: Long-term debt Interest Portion of Payment $17,500 14,320 10,981 7,475 5,219 Required: Using the information provided, complete the following liabilities section of Brook Company's balance sheet at December 31: (Leave no cells blank- be certain to enter "0" wherever required.) 2020 $ $8.599 $ December 31, 2021 Principal Balance at Year-End- $286,401 219,622 149,504 75,880 0 66 2022 2023 75,880
- At the beginning of 2021 VHF Industries acquired a machine with a fair value of 7,985,420 by issuing a five year noninterest bearing note in the face value of $10,000,000. The note is payable in five annual installments of $2,000,000 at the end of each year. Journal entries?LCD Industries purchased a supply of electronic components from Entel Corporation on November 1, 2024. In payment for the $25.1 million purchase, LCD issued a 1-year installment note to be paid in equal monthly payments at the end of each month. The payments include interest at the rate of 12%. Required: 1. & 2. Prepare the journal entries for LCD's purchase of the components on November 1, 2024 and the first installment payment on November 30, 2024. 3. What is the amount of interest expense that LCD will report in its income statement for the year ended December 31, 2024? Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. EVA of $1, PVA of $1. FVAD of $1 and PVAD of $1) Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Prepare the journal entries for LCD's purchase of the components on November 1, 2024 and the first installment payment on November 30, 2024. Note: Enter your answers in whole dollars. If no entry is required for a…DAM Corporation, a lending institution, provided a loan to LAP company for $5,000,000 on Januray 1,2020. The loan has a term of 5 years with interest collectible annualy at 10%. Payment of principal will be equal installments at end of the yearDirect origination cost 20,445Origination fee 80,309Effective interest rate 10.50% Requirement:- Prepare the journal entry