On November 1, 2021, FDN Trading accepted a 90-day, 8% P8,000,000 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 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 December 1, 2020, Papa Po Company assigned specific accounts receivable totaling P200,000 as…
A: Written promissory notes grant the receiver, or bearer, the right to obtain the sum specified in an…
Q: On December 1, 2020, Lieza Mae assigned on a non notification basis accounts receivable of…
A: Current liability represents the obligation that has to be paid within a year.
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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 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: The trial balance for BLUE Corporation prepared at December 31, 2020 showed a balance of P4,000,000…
A: Notes receivable refers to the promissory note issued by the debtor for the credit purchase made by…
Q: Sheffield Company had the following select transactions. Apr. 1, 2020 Accepted Goodwin Company’s…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
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A: Date Account Titles and Explanation Debit Credit October 1, 2020 Cash $730,000 Interest…
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: 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 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 December 1, 2020, Papa Po Company assigned specific accounts receivable totaling P200,000 as…
A: Carrying amount is defined as the asset original cost minus the accumulated depreciation, and at…
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: 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 October 1, 2021, Home Company issued to Security Bank a P6,000,000, 8-month, noninterest-bearing…
A: Note payable: Note payable is a current liability reported in the company's balance sheet at the…
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 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 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 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 September 1, 2021, Sheffield Corp. issued a note payable to National Bank in the amount of…
A: A promissory note seems to be a signed promissory note. The borrower borrows a particular amount 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: 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: On December 1, 2020, Company assigned specific accounts receivable totalling P4,000,000 as…
A: The balance due to the company for goods and services provided but not yet charged by customers is…
Q: . What is the loss on note receivable discounting?
A: 1. Net Proceeds from discounting =Maturity Value-Discount on note Maturity Value…
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: On June 1, 2021, Dirty Harry Co. borrowed cash by issuing a 6-month noninterest-bearing note with a…
A: Carrying value of note on June 1, 2021 is = Face/Maturity value of note - Discount on note
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% P8,000,000 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.
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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 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.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 solution
- 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 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?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?
- 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?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?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…
- On Nov 1 2021, Calixo Co. accepted a 90 day, 8% $2,000,000 note from Harmony Trading. Calixo Co. immediately discounted with recourse the note to a blank that offers a 10% discount rate. On maturity date, Harmony Trading dishonored the note. The bank charged processing fee of $8,000. How much is the total receivable of Calixo Co. from Harmony Trading? show solutionDE LA CRUZ Company received a 10%,180 day note from its customeron April 1, 2021. The note has a face value of P500,000. The companyendorsed the note, without recourse, to a bank on May 31, 2021. Thebank discounted the note at 12%.The debit to loss on discounting amounts at discount dateamounted to?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.