of interest of 10%, The service revenue to be recognized for the year ended December 31, 2020 is A. 300,000 B. 273,953 C. 262,694 D. 247,920 23. The carrying amount of the note receivable as of December 31, 2021 is
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- On December 31,2021, LBJ company finished consultation services and accepted in exchange a promissory note with a face value of P200,000, a due date of December 31,2024 and a started rate of 5%, with interest receivable at the end of the each year. The fair value of the service is not readily determinable and the note is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 10%. What is the amortized cost of the note on December 31,2022? P 175,131 P182,645 P190,909 P200,000On January 1, 2023, Green Company finished consultation services and accepted in exchange a promissory note with a face value of $600,000, a due date of January 1, 2026, and a stated rate of 4%, with interest receivable at the beginning of each year (the first interest will be received on January 1, 2024). The fair value of the services is not easily determined and the note is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 10%. The company has a fiscal year-end of December 31. Required: a) Calculate the present value of the note, using a financial calculator. b) Prepare a Schedule of Note Discount Amortization for Green Company under the effective interest method. (Round to whole dollars) c) Prepare the journal entries for 2023. Plz answer fast i give up voteOn December 31, 2019, Magtuba Company finished consultation services and accepted in exchange a promissory note with a face value of P300,000, a due date of December 31, 2022, and a stated rate of 5%, with interest receivable at the end of each year. The fair value of the services is not readily determinable and the note is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 10%. 13. The service revenue to be recognized for the year ended December 31, 2019 is 14. The carrying amount of the note receivable as of December 31, 2020 is
- On December 31, 2012, Grin Company finished consultation services and accepted in exchange a promissory note with a face value of P600,000, a due date of December 31, 2015, and a stated rate of 5%, with interest receivable at the end of each year. The fair value of the services is not readily determinable and the note is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 10%. The following interest factors are provided: Interest Rate Table Factors For Three Periods 10% 1.33100 .75132 5% Future Value of 1 1.15763 Present Value of 1 .86384 Future Value of Ordinary Annuity of 1 Present Value of Ordinary Annuity of 1 3.15250 3.31000 2.72325 2.48685 Instructions (a) Determine the present value of the note. (b) Prepare a Schedule of Note Discount Amortization for Green Company under the effective interest method. (Round to whole dollars.)On January 1, 2021, Enigma Company sold an equipment costing P500,000 which had a carrying amount of P350,000, receiving a P125,000 down payment and, as additional consideration, a P400,000 noninterest bearing note due on January 1, 2024. There was no established exchange price for the equipment, and the note had no ready market. The prevailing rate of interest for a note of this type at January 1, 2021 was 12%. The present value of 1 at 12% for three periods is 0.7118. Required: Prepare journal entries for 2021, 2022, 2023 and 2024.At year-end, Jovial Company received two P1,000,000 notes receivable from customers in exchange for services rendered. On both note, interest is calculated on the outstanding principal balance at the annual rate of 3% and payable at maturity. The note from Zeta Company, made under customary trade terms, is due in nine months and the note from Yola Company is due in five years. The market interest rate for similar notes was 8%. The present value of 1 due in nine months is .944 and the present value of 1 due in five years is .68. At what amount should the note receivable from Zeta Company be reported at year- end? A.1,000,000 B.944,000 C.965,200 O D.972,320
- SOSKE Company finished consultation services and accepted in exchange a promissory note with a face value of P200,000, a due date of December 31, 2020, and a stated rate of 5%, with interest receivable at the end of each year. The fair value of the services is not readily determinable and the note is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 10%. The following interest factors are provided: Interest Rate Table Factors for Three Period 5% 10% Future value of 1 1.15763 1.33100 Present value of 1 0.86384 0.75132 Future value of ordinary 3.15250 3.31000 annuity of 1 Present value of ordinary 2.72325…Fill in the blanks: On Jan 1, 2021, XYZ Co. sold a machine in exchange for a P1500,000, non-interest-bearing note receivable in a lump sum payment on December 31, 2024. The prevailing interest rate for this type of note is 10%. How much is the carrying amount of the note on January 1, 2021? How much is the unearned income on Dec 31, 2022? ( Previous Continue >On January 2, 2019, Anne Inc. sold equipment which has a carrying amount of $400,000 in exchange for a $600,000 4-year non-interest-bearing note that will be due on January 2, 2023. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type on January 2, 2019 was 10%. What should be recorded as the carrying value of the note receivable as of December 31, 2021 balance sheet?
- On January 2, 2020, Tamarisk Inc. sells goods to Carla Vista Company in exchange for a zero-interest-bearing note with a face value of $7,920, with payment due in 12 months. The fair value of the goods at the date of sale is $7,200 (cost $6,500). Assume that the company chooses to reflect the interest component. How much total revenue should be recognized in 2020? determine the interest rate that will be earned by Tamarisk.On January 1, 2020, Akin Company sold equipment with a carrying amount of P4,800,000 in exchange for a P6,000,000 noninterest-bearing note due January 1, 2023. There was no established exchange price for the equipment. The prevailing rate of interest for a similar note was 10%. The present value of 1 at 10% for three periods is 0.75. 1. What amount should be reported as interest income for 2020? a. 600,000 b. 500,000 c. 450,000 d. 400,000 2. What amount should be reported as gain or loss on sale of equipment for 2020? a. 1,200,000 gain b. 2,700,000 gain c. 300,000 gain d. 300,000 lossOn January 2, 2020, Magsaysay Company sold equipment with a carrying amount of P400,000 in exchange for a P600,000 4-year non-interest-bearing note due January 2, 2024. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type at January 2, 2020 was 10%. What is the carrying value of the note receivable as of December 31, 2022 Statement of Financial Position? Sandy Company owns 15,000 of the 100,000 ordinary shares of X Corporation. The investment is accounted as Financial Assets at Fair Value Through Profit or Loss (FA-FV-P/L) and has a carrying value of P3,300,000. X Corporation declared a 10% stock dividend but gave the investors the option to receive P210 per whole stock of dividend. How much cash will Sandy receive? In your solutions, show the journal entry to record the dividends if Sandy opted to receive cash.