Please put solutions. Thank you. Remarkable Company had the following account balances cinterest at 9% and represents the balance of the considerationThe P7,500,000 note receivable is dated May 1, 2018, bearsreceived from the sale of an idle building to Solid Company.Problem 6-6 (AICPA Adapted)onJanuary 1, 2019:Note receivable from sale of an idle buildingNote receivable from an officer7,500,0002,000,000Principal payments of P2,500,000 plus interest are a.annually beginning May 1, 2019. Solid Company madefirst principal and interest payment on May 1, 2019.The P2,000,000 note receivable is dated December 31, 2016bears interest at 8% and is due on December 31, 2021. Tnote is due from the president of Remarkable CompanyInterest is payable annually on December 31 and all interestpayments were made through December 31, 2019.On July 1, 2019, Remarkable Company sold a parcel of landto Boom Company for P4,000,000 under an installment salecontract. Boom Company made a P1,200,000 cash downpaymént on July 1, 2019, and signed a 4-year 10% note forthe P2,800,000 balance.The equal annual payments of principal and interest on thenote totaled P880,000, payable on July 1 of each year from2020 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 includingaccrued interest that should be classified as currentasset on December 31, 2019.2. Determine the amount of notes receivable that should beclassified as noncurrent asset on December 31, 2019.

a. Total Present Value of Notes Receivable Dec. 31, 2021 9,800,000 b. Accrued Interest Receivable…

Answered: S-6 (AICPA Adaptet e Company had the…

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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

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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Problem 6-6 (AICPA Adapted) On January 1, 2021, Remarkable Company had the following account balances: Note receivable from sale of an idle building Note receivable from an officer 7,500,000 2,000,000 The P7,500,000 note receivable is dated May 1, 2020, bears interest at 9% and represents the balance of the consideration received from the sale of an idle building to Solid Company. Principal payments of P2,500,000 plus interest are due annually beginning May 1, 2021. Solid Company made the first principal and interest payment on May 1, 2021. The P2,000,000 note receivable is dated December 31, 2018, bears interest at 8% and is due on December 31, 2023. The 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, 2021. On July 1, 2021, 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 payment…
Problem 6-6 (AICPA Adapted) On January 1, 2021, Remarkable Company had the following account balances: Note receivable from sale of an idle building Note receivable from an officer 7,500,000 2,000,000 The P7,500,000 note receivable is dated May 1, 2020, bears interest at 9% and represents the balance of the consideration received from the sale of an idle building to Solid Company. Principal payments of P2,500,000 plus interest are due annually beginning May 1, 2021. Solid Company made the first principal and interest payment on May 1, 2021. The P2,000,000 note receivable is dated December 31, 2018, bears interest at 8% and is due on December 31, 2023. The 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, 2021. On July 1, 2021, 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 payment…
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