"ROBLEM 15 In December 30, 2021, JALINON Company sold a machine to GONZALES Company in xchange for a non-interest bearing note requiring ten annual payments of P10,000. SONZALES made the first payment on December 30, 2021. The market interest rate or similar notes at date of issuance was 8%. Information on present value factors is s follows: Present value of ordinary annuity of 1 at 8% 6.25 Present value of 1 at 8% Period 0.50 10 0.46 6.71 8. In its December 31, 2021 statement of financial position, what amount should JALINON report as non-current portion of the note receivable?

"ROBLEM 15 In December 30, 2021, JALINON Company sold a machine to GONZALES Company in xchange for a non-interest bearing note requiring ten annual payments of P10,000. SONZALES made the first payment on December 30, 2021. The market interest rate or similar notes at date of issuance was 8%. Information on present value factors is s follows: Present value of ordinary annuity of 1 at 8% 6.25 Present value of 1 at 8% Period 0.50 10 0.46 6.71 8. In its December 31, 2021 statement of financial position, what amount should JALINON report as non-current portion of the note receivable?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 79E

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Problem 10 On December 31, 2020, Olaer Company received two P5,000,000 notes receivable from customers in exchanged for consulting services rendered. On both notes, interest is calculated on the outstanding principal balance at the annual rate of 4% and payable at maturity. The note from Nazareno Corporation, made under customary trade terms, is due on October 1, 2021 and the note from Mudag Corporation is due on December 31, 2025. The market interest rate for similar notes on December 31, 2020 was 10%. The compound interest factors to convert future value into present value at 10% follow: present value of 1 due in nine months, 0.93, and present value of 1 due in five years, 0.62. 1. At what amounts should these two notes receivable be reported in Nazareno’s December 31, 2020 statement of financial position? 2. At what amounts should these two notes receivable be reported in Mudag’s December 31, 2020 statement of financial position?
Problem 19 Marianne Company is a dealer in equipment. On December 31, 2019, Marianne Company sold equipment in exchange for a noninterest bearing note requiring five annual payments of P1, 000,000. The first payment was made on December 31, 2020. The market interest for similar notes was 8%. The relevant present value factors are: PV of lat 8% for 5 periods PV of an ordinary annuity of 1 at 8% for 5 periods 0.68 3.99 In its December 31, 2020statement of financial position, what should Marianne report as note receivable? а. 4, 000,000 b. 3,990,000 с. 3,309,200 d. 4,309,200
PROBLEM 1 On December 31, 2023, JFG Company, a financing institution, lent P4,000,000 to MFG Company due 3 years after. The loan is supported by an 8% note receivable. Transaction costs incurred to originate the loan amounted to P248,000. P374,000 was chargeable to MFG as origination fees. Interest on the loan is collectible at the end of each year. The yield rate on the loan after considering the direct origination fees and origination costs incurred is 9.25%. JFG was able to collect interest as it became due at the end of 2024. During 2025, however, due to MFG Company's business deterioration and due to political instability and faltering global economy, the company was not able to collect amounts due at the end of 2025. After reviewing all available evidence at December 31, 2025, JFG determined that it was probable that MFG would pay back only P3,400,000 collectible as follows: December 31, 2027 December 31, 2028 December 31, 2029 December 31, 2030 P1,400,000 1,000,000 600,000…
PROBLEM 8 On January 1, 2022, Clark Co. received a P3,000,000, 10% note from a customer upon the sale of its goods. The note is to be paid in six equal semi-annual installments, plus interest on the outstanding balance every June 30 and December 31, starting June 30, 2021. The effective rate on the note is 9%. 1. How much is the note upon initial recognition? 2. How much is the interest income recognized by Clark in 2022? 3. How much is the carrying amount of the note on December 31, 2023?
on June 8th Alton Co issued an $70620 11% 120 Day note payable to seller Co. Assuming a 360 day year for your calculations what is the maturity value of the note? When required, round your answer to the nearest dollar.
Problem 11 On January 1, 2020, Molina Company sold a special machine that had a cash price of P900,000. The buyer paid P100,000 cash and signed a 4-year note. The note specified that it would be paid off in four equal annual payments of P274,565 each starting on December 31, 2020. The payments include 14% interest. 1. The carrying amount of the receivable on December 31, 2020 is
January 1, 2018, Cursor Company sold goods to Matrix Company. Matrix signed a non-interest bearing note requiring payment of P60,000 annually every December 31 for seven years. The prevailing rate of interest for this type of note at the date of issuance was 10%. Information on present value factors is as follows: Periods Present Value of 1 at 10% PV of ordinary Annuity of 1 at 10% 6 0.56447 4.35526 7 0.51315 4.86842 What should be the amortized cost of the receivable on December 31, 2018?
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Pr On December 31, 2021, Precious Company sold an equipment with earrying amownt of P2,000,000 and received On the for of 1 annually for ten years. The first payment is due December 31, 2022. The prevailing rate of interest for this type of note at date of issuance is 12%. Th Th wa 0.322 Present value of 1 at 12% for 10 periods Present value of ordinary annuity of 1 at 12% for 10 periods PV PV 5.650 1. On December 31, 2021, what is the carrying amount of the note receivable? 1. a. 5,000,000 b. 2,175,000 c. 1,610,000 d. 2,825,000 2. What amount should be recognized as gain on sale of equipment in 2021? a. 3,000,000 b. 2,175,000 825,000 d. c. 3. What amount of interest income should be recognized for 2022? 3. a. 600,000 b. 339,000 c. 319,800 d. 300,000 4. What is the carrying amount of the note receivable on December 31, 2022? a. 2,325,000 b. 4,500,000 c. 2,825,000 d. 2,664,000 AI QUAD CAMERA Shot by jeremy 194 2021/10/06 1O:40 2.
Problem 6-4 (IAA) Gullible Company is a dealer in equipment. On December 31, 2020, the entity sold an equipment in exchange for a noninterest bearing note requiring five annual payments of P500,000. The first payment was made on December 31, 2021. The market interest for similar notes was 8%. The relevant present value factors are: PV of 1 at 8% for 5 periods PV of an ordinary annuity of 1 at 8% for 5 periods 0.68 3.99 Required: 1. Prepare journal entries for 2020 and 2021. 2. Determine the carrying amount of the note receivable on December 31, 2021. 8. Determine the interest income for 2022.
QUESTION 3 On 1 January 2022, Rodney Inc. provided services to Smith Co. in exchange for Smith's $300,000, 2-year 8% note with interest compounded semi-annually on July 1 and January 1. The current market rate of similar notes is 12%. Rodney Inc. financial year ends December 31. REQUIRED: 1. Provide the following input values from your financial calculator: N = I/Y= PMT = $ 2. The note was issued at 3. The present value of the note is $ FV = $ %
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