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S-6 (AICPA Adaptet e Company had the following ac 2019: le from sale of an idle building -le from an officer

S-6 (AICPA Adaptet e Company had the following ac 2019: le from sale of an idle building -le from an officer

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Remarkable Company had the following account balances c interest at 9% and represents the balance of the consideration The P7,500,000 note receivable is dated May 1, 2018, bears received from the sale of an idle building to Solid Company. Problem 6-6 (AICPA Adapted) on January 1, 2019: Note receivable from sale of an idle building Note receivable from an officer 7,500,000 2,000,000 Principal payments of P2,500,000 plus interest are a. annually beginning May 1, 2019. Solid Company made first principal and interest payment on May 1, 2019. The P2,000,000 note receivable is dated December 31, 2016 bears interest at 8% and is due on December 31, 2021. T note is due from the president of Remarkable Company Interest is payable annually on December 31 and all interest payments were made through December 31, 2019. On July 1, 2019, Remarkable Company sold a parcel of land to Boom Company for P4,000,000 under an installment sale contract. Boom Company made a P1,200,000 cash down paymént on July 1, 2019, and signed a 4-year 10% note for the P2,800,000 balance. The equal annual payments of principal and interest on the note totaled P880,000, payable on July 1 of each year from 2020 through 2023. The fair value of the land at the date of sale was P4,000,000. The cost of the land was P3,000,000. Required: 1. Determine the amount of notes receivable including accrued interest that should be classified as current asset on December 31, 2019. 2. Determine the amount of notes receivable that should be classified as noncurrent asset on December 31, 2019.
Transcribed Image Text:Remarkable Company had the following account balances c interest at 9% and represents the balance of the consideration The P7,500,000 note receivable is dated May 1, 2018, bears received from the sale of an idle building to Solid Company. Problem 6-6 (AICPA Adapted) on January 1, 2019: Note receivable from sale of an idle building Note receivable from an officer 7,500,000 2,000,000 Principal payments of P2,500,000 plus interest are a. annually beginning May 1, 2019. Solid Company made first principal and interest payment on May 1, 2019. The P2,000,000 note receivable is dated December 31, 2016 bears interest at 8% and is due on December 31, 2021. T note is due from the president of Remarkable Company Interest is payable annually on December 31 and all interest payments were made through December 31, 2019. On July 1, 2019, Remarkable Company sold a parcel of land to Boom Company for P4,000,000 under an installment sale contract. Boom Company made a P1,200,000 cash down paymént on July 1, 2019, and signed a 4-year 10% note for the P2,800,000 balance. The equal annual payments of principal and interest on the note totaled P880,000, payable on July 1 of each year from 2020 through 2023. The fair value of the land at the date of sale was P4,000,000. The cost of the land was P3,000,000. Required: 1. Determine the amount of notes receivable including accrued interest that should be classified as current asset on December 31, 2019. 2. Determine the amount of notes receivable that should be classified as noncurrent asset on December 31, 2019.
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