RED Corporation
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A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
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A: solution
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On July 1, 2020, RED Corporation issued a five-year note payable with a face value of ₱250,000 and a 10% interest rate. The terms of the note require RED to make five annual payments of ₱50,000 plus accrued interest, with the first payment due on June 30, 2021. With respect to the note, how much would be included in the current liabilities section of RED’s December 31,
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- 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 July 1, 2020, KOLA Corporation issued a five-year note payable with a face value of ₱250,000 and a 10% interest rate. The terms of the note require KOLA to make five annual payments of ₱50,000 plus accrued interest, with the first payment due on June 30, 2021. With respect to the note, how much would be included in the current liabilities section of KOLA’s December 31, Statement of Financial Position? * a. ₱ 50,000 b. ₱ 12,500 c. ₱ 62,500 d. ₱ 75,000On July 1, 2020, KOLA Corporation issued a five-year note payable with a face value of ₱250,000 and a 10% interest rate. The terms of the note require KOLA to make five annual payments of ₱50,000 plus accrued interest, with the first payment due on June 30, 2021. With respect to the note, how much would be included in the current liabilities section of KOLA’s December 31, Statement of Financial Position?
- On May 1, 2018, the DCM issued a 9% promissory note with a face value of ₱8,339,760 for a piece of land. The principal and interest, compounded annually, are due on April 30, 2021. How much will the Notes payable will be shown on December 31, 2020 statement of financial position?PINK Company reported a 10% note payable of ₱3,600,000 on June 30, 2021. The note is dated October 1, 2019 and payable in three equal annual payments of ₱1,200,000 plus interest. The first interest and principal payment was made on October 1, 2020. On June 30, 2021, what amount should be reported as accrued interest payable for this note?On June 1, 2020, Taby Company loaned ₱500,000 on a 12% note, payable in five annual installments of ₱100,000 beginning January 1, 2021. Interest on the note is payable on the first date of each month beginning July 1, 2020. The borrower made timely payments through November 1, 2020. On January 1, 2021, the entity received payment of the first principal installment plus all interest due. On December 31, 2020, what amount should be reported as accrued interest receivable? _________________________ (Use four decimal points)
- On June 30, 2019, Bengbeng Corporation issued a five-year note payable with a face amount of P1,000,000 and an interestrate of 10%. The terms of the note require Bengbeng to make five annual payments of P200,000 plus accrued interest,with first payment due June 30, 2020. With respect to the note, the current liabilities section of Bengbeng‘s December 31,2020 statement of financial position should include:a. P280,000 b. P240,000 c. P200,000 d. P40,000On June 30, 2019, BM Corporation issued a five-year note payable with a face amount of P1,000,000 and an interestrate of 10%. The terms of the note require Bengbeng to make five annual payments of P200,000 plus accrued interest,with first payment due June 30, 2020. With respect to the note, the current liabilities section of BM‘s December 31, 2020 statement of financial position should include:a. P280,000 b. P240,000 c. P200,000 d. P40,000On July 1, 2019, Lp Manufacturing Co. issued a five-year note payable with a face amount of P250,000 and an interest rate of 10%. The terms of the note require Love Song to make five annual payments of P50,000 plus accrued interest, with the first payment due June 30, 2020. With respect to the note, the current liabilities section of Lp’s December 31, 2019, statement of financial position should include P12,500 P62,500 P50,000 P75,000
- PINK Company reported a 10% note payable of ₱3,600,000 on June 30, 2021. The note is dated October 1, 2019 and payable in three equal annual payments of ₱1,200,000 plus interest. The first interest and principal payment was made on October 1, 2020. On June 30, 2021, what amount should be reported as accrued interest payable for this note? ₱ 180,000 ₱ 270,000 ₱ 90,000 ₱ 60,000On July 1, 2019, Lp Manufacturing Co. issued a five-year note payable with a face amount of P250,000 and an interestrate of 10%. The terms of the note require Lp to make five annual payments of P50,000 plus accrued interest, with the first payment due June 30, 2020. With respect to the note, the current liabilities section of Lp’s December 31, 2019,statement of financial position should includea. P12,500 c. P62,500b. P50,000 d. P75,000On January 1, 2021, Mahogany Company issued a note with a face amount of P2,000,000. The note carried an interest rate of 10% payable every yearend for three years. The market rate of interest on similar notes is 12.5%. How much is the interest expense for 2022 and carrying amount of the note on December 31, 2021
