How much was Bae’s proceeds from the discounted note?
Q: On January 1, 2020, Toto Company sold goods to Snow Company. Snow signed a noninterest-bearing note…
A: SOLUTION- THE PRESENT VALUE FACTOR IS USED TO DETERMINE THE WORTH OF THE AMOUNT OF MONEY RECEIVABLE…
Q: LINDT Corporation manufactures and sells electrical generators. On May 31, 2020, it sold an…
A: Present value of Note = Installments x present value of an ordinary annuity of 1 for three periods…
Q: On December 31,2021, Teresa Co. sold goods costing ₱300,000 and with sales price of ₱550,000 to…
A: On 31.12.2021, Teresa Co. sold goods to Perfina Inc. on account = P550000 Cost of sales = P300000…
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 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 December 31, 2018, Cavite Company sold equipment to Bulacan Company for P380,000. Cavite…
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 Jan 1, 2021, XYZ Co. sold a machine in exchange for a P1500,000, non-interest-bearing note…
A: Carrying amount of the Note = face value of the non-interest-bearing note x Present value factor…
Q: The following transactions transpired during the year for Teresa Company: • On January 1,2021,…
A: Since we answer upto three sub-parts, we shall answer first three. Please resubmit a new question…
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 July 1, 2019, GAH Company sold equipment to Babe Company for P2,000,000. GAH accepted a 10% note…
A: Net Proceeds = Value of note receivable less discount Discount = ( Value of note ) * Discount rate…
Q: On January 1, 2020, Hamid Company sold goods to Khaled Company. Khaled signed a noninterest-bearing…
A: Present value of amount to be receved on January 1, 2020 = Intial payment + Annual payment x PV of…
Q: On January 1, 2020, Savage Company sold goods to another entity. The buyer signed a…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: On December 31, 2020, Sheridan Company has $5970000 of short-term notes payable due on February 14,…
A: ANSWER : Correct option is- $840,000.
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 January 1, 2020, Jackie Company issued a note with a face amount of P5,000,000. The note carried…
A: When a creditor defaults in the payments of principal as well as interest, then debtor allows him to…
Q: On April 1, 2020, Bonita Company assigns $533,000 of its accounts receivable to the Third National…
A: given that, loan due by Bonita Company = $332400 interest rate on loan = 10% calculation of…
Q: On January 1, 2020, Jackie Company issued a note with a face amount of P5,000,000. The note carried…
A: solution
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 January 1, 2020, Jackie Company issued a note with a face amount of P5,000,000. The note carried…
A: Working note: Computation of carrying value of note payable on June 30, 2022 before modification of…
Q: On July 1, 2021, ABC Co. issued a 9% interest bearing note with a face amount of P 10,000,000 for…
A: carrying value of the notes as of December 31,2022 is P 8,227,384.90 accrued interest P 354,289.30…
Q: On January 1, 2021, Lizelle Company signed a P100,000, 12% note due in three years at a discount…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: On January 1, 2020, MWB, Inc. borrowed cash by issuing a $600,000, 6-year note that specified 6%…
A: solution given Face value $600000 Life 6 year Coupon rate 6% If interest to…
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: On January 1, 2020, Jackie Company issued a note with a face amount of P5,000,000. The note carried…
A: SOLUTION- WORKING NOTES- 1- COMPUTATION OF FAIR VALUE OF NOTE AFTER MODIFICATION OF TERMS UNDER…
Q: On January 1,2021, Mickey Mouse Corporation sells a Furniture and Fixtures costing P1,500,000 and…
A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…
Q: Shlee Corporation issued a 4-year, $60,000, zero-interest-bearing note to Garcia Company on January…
A: Calculation of discount on note payable:
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 January 1, 2021, Mahogany Company issued a note with a face amount of P2,000,000. The note…
A: Notes Payables: A liability account for notes payable is where a borrower records a written…
Q: January 1, 2021, Hopper Company sold merchandise costing P150,000 to Eleven , who issued a…
A: Sale price = P250000 merchandise costing P150,000 Gross profit is P100000 Gross profit ratio=…
Q: On January 1, 2020, Jackie Company issued a note with a face amount of P5,000,000. The note carried…
A: Working note: Computation of carrying amount of note payable on June 30, 2022:
Q: On July 1, 2020, Jolly Company sold goods in exchange for P2,000,000, 8-month, noninterest-bearing…
A: The notes receivable is an account in the balance sheet generally under the current assets if the…
Q: The following transactions transpired during the year for Teresa Company: • On January 1,2021,…
A: NOTE : As per BARTLEBY guidelines, when multiple questions are given, then first question is to be…
Q: On September 1, 2020, ABC Company borrows $40,000 on a 2-month note that charges an annual interest…
A: Maturity Amount = Amount Borrowed + Interest Rate
Q: On June 1, 2008, Dara Corporation loaned Irvin P20,000,000 on a 12% note, payable in five annual…
A: Interest Receivables: When it comes to notes receivable, the interest rate is usually fixed, and the…
Q: On January 1, 2021, Jin Company sold equipment at a cost of P400,000. The consideration is…
A: The present value is the amount of the money received at time 0 or the current period.
Q: How much is the noncurrent portion of the note on December 31, 2018?
A: The determination of non current portion of the note receivable is shown hereunder : Apple company…
Q: On December 31, 2020, Olaer Company received two P5,000,000 notes receivable from customers in…
A: financial statement is statement that shows the company financial information of company activities…
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: On December 31, 2021, MATARLO Company received two P1,000,000 notes receivable from customers in…
A: Interest rate = 3% Notes receivables = P 1000000 Interest = receivable at maturity Terms = 9 months…
Q: On September 1, 2019, Tange company borrowed on a P5,400,000 note payable from a bank. The note…
A: An interest bearing note represents funds loaned by a lender to a borrower, on which interest is…
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: 2024. Scenario B: The terms of the note were modified on June 30, 2022. The principal is reduced by…
A: Computation of amount of liability after modification of terms:
Q: On December 31, 2020, LILY Company received two ₱2,000,000 notes receivable from customers. On both…
A: Present value of first note = Present value of principal + Present value of interest payments = face…
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: ecember 31, 2024. Scenario B: The terms of the note were modified on June 30, 2022. The principal…
A: Working note: Computation of carrying value of note payable on June 30, 2022 before modification of…
Q: On Dec 30, 2020 Fox purchased a machine from Grisley Corp in exchange for a zero-interest bearing…
A: Number of Payments= 8 Down payment date= Dec 30, 2020 (Ist payment date) Rate of Interest= 11%…
Q: On December 30, 2021, JALINON Company sold a machine to GONZALES Company in exchange for a…
A: The notes receivable is an account in the balance sheet generally under the current assets if the…
Q: On December 31, 2021, Chang Company sold a machine in the ordinary course of business to Door…
A: Answer to Question: The carrying amount of the note receivable on December 31, 2022 is d)57,50,000…
Q: On July 1, 2019, Kay Company sold equipment to Mando Company for P 1,000,000. Kay accepted a 10%…
A: Total interest for the year 2020 = Principal outstanding on December 31, 2019 x interest rate x no.…
On July 1, 2020, Bae Inc. sold equipment to Beau Inc. for P250,000. Bae Inc. accepted a 10% note receivable of the entire sales price. This note is payable in 2 equal installments of P125,000 plus accrued interest on December 31, 2020, and December 31, 2021. On July 1, 2021, Bae Inc. discounted the note at a bank at an interest rate of 12%. How much was Bae’s proceeds from the discounted note?
Step by step
Solved in 2 steps
- On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major customer in exchange for used equipment. The equipment had originally cost Park 200,000 and had a book value of 20,000 on the date of the sale. At the 12% imputed interest rate for this type of loan, the present value of the note is 25,500 on January 1, 2019. Park uses the effective interest rate. What is the carrying value of the note receivable on Parks December 31, 2019, balance sheet? a. 28,560 b. 29,000 c. 32,500 d. 36,000Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First National Bank, on which 16,651 of interest has accrued. On January 2, 2019, the bank agrees to restructure the note. It forgives the accrued interest, extends the repayment date to December 31, 2021, and reduces the interest rate to 10%. Required: Prepare a schedule for Northfield to compute the annual interest expense in regard to the preceding note for each year of the restructuring agreement.
- On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9% U.S. Treasury notes for 194,000. The notes mature July 1, 2020, and pay interest semiannually on January 1 and July 1. The notes were sold on December 1, 2019, for 199,000. Aldrich normally uses straight-line amortization on all of its notes. In its income statement for the year ended December 31, 2019, what amount should Aldrich report as a gain on the sale of the available-for-sale security? a. 2,500 b. 3,500 c. 5,000 d. 6,000On 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.Spath Company borrows 75,000 by issuing a 4-year, noninterest-bearing note to a customer on January 1, 2019. In addition, Spath agrees to sell inventory to the customer at reduced prices over a 5-year period. Spaths incremental borrowing rate is 12%. The customer agrees to purchase an equal amount of inventory each year over the 5-year period so that a straight-line method of revenue recognition is appropriate. Required: Prepare the journal entries on Spaths books for 2019 and 2020. (Round answers to 2 decimal places.)
- On December 31, 2018, Cavite Company sold equipment to Bulacan Company for P380,000. Cavite accepted a 10% note receivable for the entire sales price. This note is payable in two equal installments of P190,000 plus accrued interest on December 31, 2019 and December 31, 2020. On July 1, 2020, Cavite discounted the note at a bank at a discount rate of 12%. Cavite Company's proceeds from the discounted note were A. P196,460 B. P191,330 C. P187,530 D. P183,920On July 1, 2019, GAH Company sold equipment to Babe Company for P2,000,000. GAH accepted a 10% note receivable for the entire sales price. This note is payable in two equal installments of P1,000,000 plus accrued interest on December 31, 2019 and December 31, 2020. On July 1, 2020, the entity discounted the note at a bank at an interest rate of 12%. What is the amount received from the discounting of note receivable? 968,000 987,000 1,007,000 1,034,000On January 1, 2021, Chantal Company purchased equipment from Heidi Company amounted to P2,400,000. Chantal issued a noninterest-bearing note with an effective interest rate of 9% as payment. It is payable in 8 equal payments beginning January 1, 2021, and afterward, every end of the year. (Use 2 decimal places for PVF). How much is the present value of the note payable on December 31, 2021?
- On July 1, 2019, Kay Company sold equipment to Mando Company for P 1,000,000. Kay accepted a 10% note receivable for the entire sales price.This note is payable in two equal installments of P 500,000 plus accrued interest on December 31, 2019 and December 31, 2020.On July 1, 2020, the entity discounted the note at a bank at an interest rate of 12%.What is the amount received from the discounting of note receivable? a. 484,000 b. 493,500 c. 503,500 d. 517,000On 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?On December 31, 2021, Park Company sold used equipment with carrying amount of 2,000,000 in exchange for noninterest-bearing note of 5,000,000 requiring ten annual payments of 500,000. The first payment was made on December 31, 2022. The market interest for similar note was 12%. What is the carrying amount of the note receivable on December 31, 2021?