On November 1, 2021, FDN Trading accepted a 90-day, 8% P4,000,000 note from ABC Co. FDN immediately discounted with recourse the note to a bank that offers a 12% discount rate. FDN assumes the interest expense associated with this transaction. How much interest expense should FDN Trading debit on its records? Calculate the total interest expense and NOT the net interest expense.
Q: On February 1st, 2021, Seen This Before Inc. (STB) accepted a non-interest-bearing note from its…
A: GIVEN On February 1st, 2021, Seen This Before Inc. (STB) accepted a non-interest-bearing note from…
Q: On May 20, 2021, Gordon Company discounted with recourse a P75,000, 90-day, 8% note that was…
A: Maturity value of the note = Face value of note + interest = P75,000 + (P75,000*8%*90/360) = P75,000…
Q: On November 1, 2021, FDN Trading accepted a 90-day, 8% P8,000,000 note from ABC Co. FDN immediately…
A: Total Interest Expense = Value of Notes receivable x Interest Expense
Q: On January 1, 2022, Easy Company sold merchandise for 500,000 by accepting a note for 6 months with…
A:
Q: On April 1, 2020, Shalimar Company discounted with recourse a 9-month, 10% note dated January 1,…
A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…
Q: On December 1, 2020, Company assigned specific accounts receivable totalling P4,000,000 as…
A: given that, The company assigned specific accounts receivable totaling P4,000,000 as collateral on a…
Q: On January 1, 2019, Love Co. sold merchandise to Kit Store in exchange for a non-interest bearing…
A: Formula: Interest amount = Bond face value x Interest rate Multiplying bond face value with interest…
Q: On November 1, 2021, FN Trading accepted a 90-day, 8% P9,000,000 note from ABC Co. FN immediately…
A: Given data, Face value=P9,000,000 Bank processing fee =P80,000 Maturity value of the note = Face…
Q: On November 1, 2021, FDN Trading accepted a 90-day, 8% P7,000,000 note from ABC Co. FDN immediately…
A: Maturity value of the note = Face value of the not + Interest on the note = 7000000 +…
Q: On December 1, 2020, ABC Company assigned specific accounts receivable totaling P5,000,000 as…
A: Accounts receivable can be defined as the money balance due for the goods being delivered or…
Q: On April 1, 2020, Aljean Company discounted with recourse a 9-month, 10% note dated January 1, 2020…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: On September 1, 2021, Middleton Corp. lends cash and accepts a $10,000 note receivable that offers…
A: Interest revenue Middleton Corp. will report during 2022 = Face value of note receivable x rate of…
Q: 1, 2020, DEF Company assigned specific accounts receivable totaling P5,000,000 as collateral on a…
A: A note payable( short tern loan) is taken from a bank and accounts receivables are given as…
Q: DE LA CRUZ Company received a 10%,180 day note from its customer on April 1, 2021. The note has a…
A: Solution : Given Face value =P500,000 interest rate =10% discount rate = 12 % date…
Q: On November 12, 2021, Jones Corporation borrows money at James National Bank by issuing a $10,000, 3…
A: Discount on note = face value of notes x rate of discount x no. of months/12 =$10000 x 12% x 3/12 =…
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 December 1, 2020, Company assigned specific accounts receivable totalling P4,000,000 as…
A: Accounts receivable refers to the amount of goods and services rendered on credit but not payment…
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 November 1, 2021, FDN Trading accepted a 90-day, 8% P4,000,000 note from ABC Co. FDN immediately…
A: Maturity value of the note = Face value + interest = 4000000+4000000*8%*90/360 = 4080000
Q: The trial balance for BLUE Corporation prepared at December 31, 2020 showed a balance of P4,000,000…
A: Interest income on the non-interest-bearing note is calculated by applying the market interest rate…
Q: On November 1, 2021, Calexico Trading accepted a 90-day, 8% P2,000,000 note from ABC Co. Calexico…
A: Notes Payable / Receivable The purpose issuing the Notes receivable / Notes payable to collect the…
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 December 1, 2020 LOVELY Company assigned on a non-notification basis accounts receivable of…
A: Here interest is charged on loan balance not on note payable
Q: On April 1, 2020, Aljean Company discounted with recourse a 9-month, 10% note dated January 1, 2020…
A: The amount received from the note receivable discounting on April, 1 2020: (P) Principal…
Q: On September 1, 2021, Middleton Corp. lends cash and accepts a $1,200 note receivable that offers 6%…
A: Interest revenue for the period from September 1, 2021 to December 31, 2021 will be recognized in…
Q: Anama Company is a dealer of equipment. On January 1, 2021, the entity sold equipment in exchange…
A: As per amortized cost method, the financial instrument is recognized at present value and increases…
Q: On April 1,2020, Aljean Company discounted with recourse a 9-month, 10% note dated January 1, 2020…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: On June 30, 2020, Dive Company discounted at the bank a customer's P6,000,000, 6-month, 10% note…
A: Solution 1: Maturity value of note = P6,000,000 + P6,000,000*10%*6/12 = P6,300,000 Net proceeds from…
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: The following transactions relate to A Inc. in 2020: Aug 1: Assigned P6,000,000 of accounts…
A: Accounts Receivable - Assigned The purpose of using the assigned account in the accounts receivable…
Q: On May 1, 2022, FDN Trading accepted a 120-day, 8% P60,000 note from ABC Co. 30 days after, FDN…
A: Let's understand some basics Notes are usually discounted with recourse, when it is discounted with…
Q: On January 1, 2019, Love Co. sold merchandise to Kit Store in exchange for a non-interest bearing…
A: Value of notes receivable as of January 1, 2019 = Annual payment x PVIAF (8%, 10 years) = P100,000 x…
Q: On April 1, 2020, Ironmon Company discounted with recourse a 9-month 10% note dated January 1, 2020…
A: Interest accrued = Face value of note x rate of interest x no. of months /12 = P6000000 x 10% x…
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: The trial balance for BLUE Corporation prepared at December 31, 2020 showed a balance of P4,000,000…
A: Carrying value of the non-interest bearing promissory note is calculated by discounting the face…
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: Pina Colada Corp. has the following transactions related to notes receivable during the last 2…
A: Introduction: A journal entry is used in a company's accounting records to disclose a business…
Q: The trial balance for BLUE Corporation prepared at December 31, 2020 showed a balance of P4,000,000…
A: Notes receivable is the financial instrument issued by the debtor for the item or goods purchased on…
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: n December 1, 2020, P Company assigned specific accounts receivable totaling P200,000 as collateral…
A: In the given situation, P Company takes a note payable of P150,000 by assigning collateral of…
Q: The trial balance for BLUE Corporation prepared at December 31, 2020 showed a balance of P4,000,000…
A: The carrying value of the notes receivable is the sum of the notes receivable initially recognized…
Q: A company sold goods to a customer in exchange for a 5-year, zero-interest-bearing note on January…
A: Face Value of Notes Receivable=$308,000 Interest Rate = 10% The goods sold in exchange for a 5 year…
Q: On April 1, 2020, ABC Company discounted with recourse a 9-month, 10% note dated January 1, 2020…
A: The calculation of note interest and maturity value of note has been made as follows: Note…
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: 1. On November 1, 2021, FDN Trading accepted a 90-day, 8% P10,000,000 note from ABC Co. FDN…
A: We shall answer the first question since the exact question wasn't specified. Please resubmit a new…
Q: Buffalo Corporation issued a 4-year, $64,000, zero-interest-bearing note to Brown Company on January…
A: Solution: - Preparation of journal entries of Buffalo corporation as follows under: -
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…
![On November 1, 2021, FDN Trading accepted a 90-day, 8% P4,000,000 note from ABC Co. FDN
immediately discounted with recourse the note to a bank that offers a 12% discount rate. FDN
assumes the interest expense associated with this transaction. How much interest expense should
FDN Trading debit on its records? Calculate the total interest expense and NOT the net interest
expense.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffc26ca20-6e63-4707-95c0-ed357209f28c%2F8fcb17f1-d9bd-42a0-8252-37189886f357%2F7omujwa_processed.jpeg&w=3840&q=75)
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- On November 1, 2021, Calexico Trading accepted a 90-day, 8% P2,000,000 note from ABC Co. Calexico immediately discounted with recourse the note to a bank that offers a 10% discount rate. Calexico assumes the interest expense associated with this transaction. How much interest expense should Calexico Trading debit on its records? Calculate the total interest expense and NOT the net interest expense. Show ur solutionOn November 1, 2021, FDN Trading accepted a 90-day, 8% P45,000,000 note from ABC Co. FN immediately discounted with recourse the note to a bank that offers a 12% discount rate. FDN assumes the interest expense associated with this transaction. How much interest expense should FN Trading debit on its records? Calculate the total interest expense and NOT the net interest expense.GRANT COMPANY accepted from a customer a P 5,000,000, 90-day, 12% interest bearing dated October 31, 2021. On November 30, 2021, the entity discounted the note with recourse at the DHVSU State Bank at 15% What is the amount received from the discounting of notes receivable? What is the loss on note receivable discounting?
- 1. On November 1, 2021, FDN Trading accepted a 90-day, 8% P10,000,000 note from ABC Co. FDN immediately discounted with recourse the note to a bank that offers a 15% discount rate. On maturity date, ABC Co dishonoured the note. The bank charged processing fee of P80,000. How much is the total receivable of FDN Trading from ABC Co? 2. On November 10, 2021, FDN Trading purchased goods for resale at a list price of P500,000 less 10-5 on terms 40% down payment, balance 2/10, n/30. On November 13, FDN issued a debit memo for defective merchandise purchased amounting to P10,500. The account was paid in full on November 30, 2021. How much is the amount to be recorded as Purchases on November 10, 2021? 3. On November 15, FDN Trading signed a P370,000, 13 percent, 180-day note payable with the bank. The note was issued at a discount. How much cash did FDN Trading receive from this transaction?On November 1, 2021, FDN Trading accepted a 90-day, 8% P10,000,000 note from ABC Co. FDN immediately discounted with recourse the note to a bank that offers a 15% discount rate. On maturity date, ABC Co dishonoured the note. The bank charged processing fee of P80,000. How much is the total receivable of FDN Trading from ABC Co?On November 1, 2021, FN Trading accepted a 90-day, 8% P9,000,000 note from ABC Co. FN immediately discounted with recourse the note to a bank that offers a 10% discount rate. On maturity date, ABC Co dishonoured the note. The bank charged processing fee of P80,000. How much is the total receivable of FDN Trading from ABC Co?
- On January 1, 2019, Love Co. sold merchandise to Kit Store in exchange for a non-interest bearing note requiring 10 annual payments of P100,000. Kit Store made the first payment on December 31, 2019. The prevailing market interest rate for similar notes is 8%. a. How much is the value of notes receivable as of December 31, 2020? b. How much is the Interest income recognized during 2020?Example 4 (Notes Receivable): On November 30, 2020, James Co. lent money to Scott Co. and issued a 5-month, $120,000, 8% note receivable. Scott paid James the full amount of interest and principal on April 30, 2021. What is the journal entry for James Co. to record the issuance of the note receivable? What is the end-of-year adjusting journal entry for James Co. to record interest revenue earned as of December 31?On June 30, 2020, Dive Company discounted at the bank a customer's P6,000,000, 6-month, 10% note receivable dated April 30, 2020. The bank discounted the note at 12%. 1.What amount should be reported as net proceeds from the discounted note receivable? 2.What is the loss on note receivable discounting?
- On March 11, 2022, FDNÁCCT Services issued to a lender a 120-day, non- interest-bearing P400,000 note for a down payment to purchase a delivery van. When was the maturity date of the note? Enter your answer as month/day/year. Examples: April 2, 2022 as 04/02/2022 [no spaces in between the /] May 15, 2022 as 05/15/2022 [no spaces in between the /]ABC Company showed the following balances on December 31, 2021: Accounts receivable P4,000,000 Allowance for doubtful accounts- credit 120,000 The following transactions transpired for ABC Company during the year 2021: o On May 1, received a P600,000, six-month, 12% interest bearing note from CD, a customer, in settlement of an account. o On June 30, factored P800,000 of its accounts receivable to a finance company. The finance company charged a factoring fee of 5% of the accounts factored and withheld 20% of the amount factored. On August 1, ABC Company discounted the CD note at the bank at 15%. On November 1, CD defaulted on the P600,000 note. ABC Company paid the bank the total amount due plus a P24,000 protest fee and other bank charges. On December 31, ABC Company assigned P1,200,000 of its accounts receivable to a bank under non-notification basis. The bank advanced 80% less service fee of 5% of the accounts assigned. ABC Company signed a promissory note for the loan. On December…Starr Corporation loaned P90,000 to another corporation on December 1, 2021 and received a 3-month, 6% interest-bearing note with a face value of P90,000. What adjusting entry should Starr make on December 31, 2021? a. Debit Interest Receivable and credit Interest Revenue, P1,350. b. Debit Cash and credit Interest Revenue, P450. c. Debit Interest Receivable and credit Interest Revenue, P450. d. Debit Cash and credit Interest Receivable, P1,350.
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