PREPARE AN AMORTIZATION TABLE
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Q: On December 31, 2024, Samuels Bakery Company purchased $700,000 of property by paying $100,000 in…
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Q: On January 1, 2021, Stoops Entertainment purchases a building for $550,000, paying $10,000 down and…
A: Lets understand the basics. For recording financial event or transaction occur during a particular…
Q: The company purchased equipment and agreed to make payments of $5,400 at the end of each year for…
A: Present value is the current amount which is expected to be received or incurred by investors over…
Q: Moranex Corporation borrowed $75,000.00 at 8% compounded annually for 15 years to buy a warehouse.…
A: When we take a loan we pay equal periodic payments. Here the payments are being made annually. The…
Q: Give the journal entries on May 1, 2020, December 31, 2020 and May 1, 2021. Answer the following:…
A: Working notes:- Cost of 5 trucks payable…
Q: cember 31, 2023. After
A: Carrying value is the accounting value gauge wherein the value of a firm or resource is determined…
Q: On January 1, 2021, Palalay Bus Co. received a 4-year, noninterest bearing note of P1,000,000 in…
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Q: On January 1, 2020, Smith Company signed a five-year Note for the acquisition of equipment. Annual…
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Q: On January 1, 2021, Takemichi Company sold a piece of equipment to Hina Company with a cost of…
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Q: On July 1, 2020, Manuel Corporation purchased machinery worth P 8,000,000. Terms: P 500,000 down…
A:
Q: On December 31, 2019, Magnet company sold for P 3,000,000 an old equipment having an original cost…
A: The sale consideration is receivable as follows: On December 31, 2019 (Down Payment) = P 600,000…
Q: On January 1, 2020, ABC Company sold a piece of land for P10,000,000. The company received a 10%,…
A: The asset is sold in exchange of a financial asset, which is a 10 year 10% note, whose carrying…
Q: Sweet Corporation purchased a computer on December 31, 2019, for $140,700, paying $40,200 down and…
A: Here discuss about the purchase of equipment which are first to paid the down payment of certain…
Q: Teari Company purchased a machine on September 1, 2021. The purchase agreement required Teari to pay…
A: Calculation of Fair value of machinery on September 1, 2021 is as follows: Resultant table:
Q: On January 1, 2020, South Company acquired a building for 5,000,000. The entity paid 500,000 down…
A: January 1st, 2020 Building Dr. 5000000 Cash Cr. 500000 Note payable Cr.…
Q: On January 1, 2021, Gundy Enterprises purchases an office for $360,000, paying $60,000 down and…
A: Monthly interest expense = Value of mortgage outstanding at the end of previous month * 7% * 1/12
Q: A company owes $20,000 on a truck purchased. Assume the company makes timely principle payments of…
A: Definition: Current portion of long-term notes payable: The principal amount of notes payable which…
Q: On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to…
A: I am answering the first question as per bartleby policies. Please re-submit the remaining questions…
Q: On January 1, 2022. AA Company sold an equipment costing P5,000,000 and accumulated depreciation of…
A: Interest Income is the income which is generated by the investing assets. In general the interest…
Q: On January 1, 2021, Nima Inc., a publicly traded company that follows IFRS, purchased a piece of…
A: Depreciation is used to decrease in value of fixed assets. depreciation is a permanent and…
Q: Lathrop Inc. purchased equipment on January 1, 2020, for $150,000 cash plus a note payable. The fair…
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Q: Oriole Company issues a $378,000, 9%, 10-year mortgage note on December 31, 2019. The proceeds from…
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Q: On January 1, 2019, South company acquired a building for P5,000,000. South company paid PS00,000…
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Q: ABC Realty sold a piece of land for P250,000. A down payment of P50,000 was made and the remainder…
A: Present Value of Loan = Present Value Factor x Cash Flow during the period
Q: On February 5, 2020, Diamond Company purchased a new machine on a deferred payment basis. A down…
A: Solution: Capitalized cost of machine = Cash equivalent price of machine + Installation cost
Q: On September 1, 2017, Fantastic Company sold a piece of land in exchange for a 5-year note with face…
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Q: On January 1, 2020, South Company purchased five delivery trucks for P 10,000,000 from West…
A: If payments terms on acquisition of property plant and equipment are beyond the normal credit terms…
Q: On January 1, 2021, Stoops Entertainment purchases a building for $610,000, paying $110,000 down and…
A: 1. Prepare the journal entry to record the purchase of the building on January 1, 2021.
Q: On January 1, 2020, TPM Inc. acquires a piece of equipment for a list price of $300,000. It pays…
A: 1. Journal entries in the books of TPM Inc. Date Particulars Debit Credit 1-Jan-20 Property,…
Q: Rashford Inc. financed the purchase of equipment costing $480000 on April 1, 2022, by making a down…
A: Equated monthly instalment: It is fixed payment amount paid to a lender by a borrower to at a…
Q: On January 1, 2021, South Company acquired a building for P5,000,000. The entity paid P500,000 down…
A: The question is related to Journal entries to record purchase of Building by signed non interest…
Q: On April 1, 2028, Dugong Company issued a P 9,000,000 non-interest-bearing note due March 31, 2031,…
A: The carrying amount of the note on initial recognition is equivalent to the cash price of land. The…
Q: On September 1, 2021, Confused Company purchased a machine. The purchase agreement required Confuse…
A: Fair value of future payments can be calculated by using present value rates. If the payment is…
Q: Lukas Center acquired a new Laser Machine worth ₱580,000.00. The center plans to pay 35% advance…
A: Amortization means the expensed off the asset account over the life of an asset.
Q: On July 1, 2021, Kiko Company (a calendar-year company) sold a tract of land that originally cost…
A: First we should calculate carrying value of note on June 30, 2022 = Fair value on date of issue +…
Q: Mewto Bank granted a loan to Mew Company on January 1, 2020. The interest on the loan is 12% payable…
A: The loan borrowing and the cost of loan borrowing has a proper mechanism to calculate the cost…
Q: On January 1, 2020 SANA ALL MAHAL Co. acquired land by issuing a three-year, 12%, P4,000,000 note…
A: Working note: Computation of carrying amount of notes payable on January 1, 2021:
Q: Christopher sold a piece of property P1,300,00.00. A down payment of P500,000 was made and the…
A: Here, Note: We are providing the solution of first three sub parts as per the specifications given…
Q: The following three situations involve the capitalization of interest. Situation I: On January 1,…
A: Hey, Since there are multiple questions posted, we will answer first question. If you want any…
Q: Anxious Company acquired two items of machinery as follows: On December 31, 2019, Anxious company…
A: All amounts are in (P).
Q: PREPARE AN AMORTIZATION TABLE AND FIND HOW MUCH IS THE NET PROCEEDS FOR THE FOLLOWING CASES: Case…
A: Par value = 5,000,000 Coupon rate = 8% Semi annual coupon amount = 5,000,000*0.08/2 = 200,000 Period…
Q: Tricana Corporation borrowed $79,000.00 at 3% compounded quarterly for 8 years to buy a warehouse.…
A: The loan here is an amortized loan. An amortized loan is that loan in which interest is charged on…
Q: february 5, 2020, diamond company purchased a new machine on a deferred payment basis. a down…
A: Installment+Downpayment=P11,00,000.. Installation costs:::P30,000... Interest…
Q: ABC Marketing sold an item worth 200,000 for 250,000. As agreed 20,000 will the down payment while…
A: A loan amortization schedule is a schedule prepared to know the annual payments, annual interest…
Q: On January 1, 2021, Stoops Entertainment purchases a building for $550,000, paying $110,000 down and…
A: Loan amount = $ 440,000 Annual interest rate = 9% Monthly interest rate = 9%/12 = 0.75% Monthly…
Q: The note shall be paid in equal annual installments (this is the series of amounts that Krisha will…
A: Calculation of Present value of note receivable Year Cash inflow Present Value factor @12%…
PREPARE AN AMORTIZATION TABLE AND FIND HOW MUCH IS THE NET PROCEEDS FOR THE FOLLOWING CASES:
Case 2:
On January 1, 2020 Square company purchase a property by issuing 15% promissory note with face amount of 5,000,000 to yield 12% interest and principal payable annually for 5 years.
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- Sharapovich Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the interest rate was 5% compounded annually. Sharapovich Inc. will make payments of $11,548.74 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.On August 1, 2019, Kern Company leased a machine to Day Company for a 6-year period requiring payments of 10,000 at the beginning of each year. The machine cost 40,000 and has a useful life of 8 years with no residual value. Kerns implicit interest rate is 10%, and present value factors are as follows: Present value for an annuity due of 1 at 10% for 6 periods4.791 Present value for an annuity due of 1 at 10% for 8 periods5.868 Kern appropriately recorded the lease as a sales-type lease. At the inception of the lease, the Lease Receivable account balance should be: a. 60,000 b. 58,680 c. 48,000 d. 47,910Using the information provided, what transaction represents the best application of the present value of an annuity due of $1? A. Falcon Products leases an office building for 8 years with annual lease payments of $100,000 to be made at the beginning of each year. B. Compass, Inc., signs a note of $32,000, which requires the company to pay back the principal plus interest in four years. C. Bahwat Company plans to deposit a lump sum of $100.000 for the construction of a solar farm In 4 years. D. NYC Industries leases a car for 4 yearly annual lease payments of $12,000, where payments are made at the end of each year.
- Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest rate was 4% compounded annually. Halep Inc. will make payments of $8,264.70 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.PREPARE AN AMORTIZATION TABLE AND FIND HOW MUCH IS THE NET PROCEEDS FOR THE FOLLOWING CASES: Case 1: On December 31, 2019 Triangle company purchase a property by issuing 8% promissory note with face amount of 5,000,000 to yield 10% interest semi annual for 10 years.On January 1, 2020, South Company acquired a building for P5,000,000. The entity paid P500,000 down and signed a noninterest bearing note for the balance which is payable in 3 equal annual installments every December 31 of each year. The prevailing interest rate for a note of this type is 12%. The present valueof an ordinary annuity of 1 for three periods is 2.4018. Required: Prepare Journal entries to record purchase of building on January 1, 2020, first installment payment on December 31, 2020 and interest for 2020.
- On January 1, 2020, South Company acquired a building for 5,000,000. The entity paid 500,000 down and signed a noninterest bearing note for the balance which is payable in 3 equal annual installments every December 31 of each year. The prevailing interest rate for a note of this type is 12%. The present value of an ordinary annuity of 1 for three periods is 2.4018. Required: 1. Prepare journal entries to record purchase of building on January 1, 2020, first installment payment on December 31, 2020 and interest expense for 2020.On January 1, 20X1 Blu Corporation acquired a building for P10M. The entity paid P1M down and signed a non-interest bearing note for the balance. Note is payable in 3 equal annual installment every Dec 31. Prevailing rate for the note of this type is 12%. REQUIRED: Journal entries to record the purchase of the building up to the settlement of the note. Prepare an amortization table. How should the note be presented in the statement of financial position at Dec 31, 20X1?On January 1, 2020, South Company purchased five delivery trucks for P 10,000,000 from West Company.South Company gave West Company 1 year non-interest bearing note (stated interest/nominal interest rate is 0) payable on January 1, 2021. At the date of purchase, the interest rate for this type of purchase is 13%. Round present value factors to four decimal places. Prepare an amortization table. Required: 1. What is the amount of Notes Payable that shall be reflected in the statement of financial position on December 31, 2020?______________ 2. What is the interest expense that shall be reported in the statement of financial performance on December 31, 2020?____________________
- On January 1, 2019, South company acquired a building for P5,000,000. South company paid P500,000 down and signed noninterest bearing note for the balance which is payable in 3 equal annual installments every December 31 of each year. The prevailing interest rate for a note of this type is 12%. The present value of an ordinary annuity of 1 for three periods is 2.4018. Required: Prepared journal entries to record: 1. Purchase of building on January 1, 2019 2. First installment payment on December 31, 2019 3. Interest expense for 2019On June 30, 2022, Making Waves, LLC, purchased land for $400,000 and a building for $560,000, paying $360,000 cash and issuing a 5% note for the balance secured by a mortgage on the property. The terms of the note provide for 20 semi-annual payments of $30,000 on the principal plus the accrued interest from the date of the preceding payment. What journal entry would be required to record the first installment on December 31? Explain the answers below. How are these the answers? Show how to calculate it. Debit 5% Notes Payable, $30,000 Debit Interest Expense, $15,000 Credit Cash, $45,000On June 30, 2022, Making Waves, LLC, purchased land for $400,000 and a building for $560,000, paying $360,000 cash and issuing a 5% note for the balance secured by a mortgage on the property. The terms of the note provide for 20 semi-annual payments of $30,000 on the principal plus the accrued interest from the date of the preceding payment. What journal entry would be required to record the first installment on December 31?