Solar Co. sold a machine in exchange for a P00.000, 4-year, 5% note, interest is payable annually. Prevailing market rate of interest for this type of note is 1o% How much is the carrying amount of the note receivable on January 1, 2021? How much is the carrying amount of the note receivable on December 31, 2021? How much is the interest income received on December 31, 2023? ( Previous
Q: What is the effect of deferred tax asset and deferred tax liability on the current year’s income tax…
A: Deferred tax assets and deferred tax liability arises because of the timing differences of the…
Q: Express the following income statement information in common-size percents and assess whether this…
A: Income statement shows the net profit earned or loss incurred during the year.
Q: Andretti Company has a single product called a Dak. The company normally produces and sells 84,000…
A: As per the guidelines, we are supposed to answer only the first 3 sub-parts of the question. As per…
Q: COMPANY AND PARTNERSHIP LAW QUESTION “In all partnerships, whether…
A: “In all partnerships, whether it is expressed in the deed or not, the partners are bound to be true…
Q: Through the effects of financial leverage, when EBIT decreases, earnings per share will
A: EBIT(Earnings before interest and taxes) is a measurement of a company's profitability directly…
Q: Tax Rate Schedules uals e X-Single -le income is over:But not over: The ta $ 9,950 $ 40,525 $ 86,375…
A: A tax liability is the total amount of tax debt owed by an individual, corporation, or other entity…
Q: Use the following to answer questions 1 – 5 Reporting Method A. Current Liability B. Long term…
A: Balance sheet: Balance sheet is an accounting report that furnishes an overall financial status of a…
Q: An automobile repair shop renders various car repair services for P25,000 on April 12. The shop sent…
A: Solution: under accrual method of accounting, revenues and expenses are recognized as and when they…
Q: What is the break-even level of output for each scale of operation? Round your answers to the…
A: As per our protocol we provide solution to the one question or to the first-three sub-parts but you…
Q: With all investments, there are an expected percentage return and certain types of return that can…
A: Solution Investment means an asset which a investor invest with a aim to get return by the money…
Q: Castillo, Labasan and Hollanes are partners with average capital balances during 2021 of P472,500,…
A: Answer - Computation of amount that Castillo’s and Hollanes capital account change -…
Q: Use the following to answer questions 19 – 24 The following balance sheet items, listed in…
A: Solution Total assets is the assets which include both current assets and non current assets .
Q: Find the denreciation amount in the second year using either 150% or 200%
A: Answer:
Q: VIIller Toy Company manufactures a plastic SWI as shown by its June contribution format income…
A:
Q: January 25 Received $1150 cash for laundry services provided in January 2022.
A: Amount received from laundry services is service revenue
Q: The amount to be invested by Nicole is
A: Balance Sheet of Nicole Business Liabilities Amount Assets Amount Capital 350000…
Q: A liability is classified as a current liability if it is expected to be settled within the next…
A: A liability shall be classified as current when it satisfies any of the following criteria:(a) it is…
Q: Viktor Hovland purchases land with natural gas reserves for $500,000. He expects to extract 2,000…
A:
Q: explain why payback period is not a preferred method
A: The payback period is a period in which the total costs of an investment are recovered through cash…
Q: January 3 Purchased equipment for $55000, paying $45000 in cash and signing a 10000, 4-month, 10%…
A: Journal entries are the basic method for recording financial transactions in the books of accounts.…
Q: Using the declining-balance method, complete the table as shown (twice the straight-line rate):…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: 28. A business pays weekly salaries of $20,000 on Friday for a five-day week ending on that day. The…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Complete the missing information: AMAZON.COM, INC. In Dollar US in MILLIONS Vertical Vertical…
A: Please see Step 2 for required information.
Q: to reflect the fact that DD could no longer devote any time to the store’s operations. The new…
A: partnership is considered we one of the most easiest way of doing business which involved agreement…
Q: On January 15, Ross Furniture, Inc, accepts a $5,000, 180-day, 10 percent note from a customer at…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: MT Environmental provides cost effective solutions for managing regulatory requirements and…
A: GIVEN Assume that on July 1st, the company borrows $1,000,000 by issuing a one-year note, simple…
Q: Jennifer has been very successful in operating her business for the last five years. Her financial…
A: Partnership refers to an agreement between two or more persons to share profit and losses and carry…
Q: equirements Reconstruct the company’s comparative balance sheet for 2020/2021 using the information…
A: Comparative balance sheet A comparative balance sheet is very useful as it provides insights to the…
Q: Question 15 The accountant's work sheet: A serves as the basis for completing the adjusting process…
A: An Accountant worksheet is comprised of various account balances in columnar format containing the…
Q: Bridgeport SA uses a calendar year for financial reporting. The company is authorized to issue…
A: Earnings per share = Net Income/Weighted average ordinary shares.
Q: Alaskan Frontier provides rail and bus tours c finance operations. The bonds are due in 20 y year.
A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value…
Q: þ. Post the journal entries in the ledger accounts on the next page for Sheila McFarlane, a lawyer,…
A: Introduction:- A trial balance is a list of all of a company's general ledger accounts (including…
Q: Assume the following: Purchases of raw materials $ 38,000 Indirect materials used in production $…
A: Direct materials are the materials or resources used in the production of a product that are…
Q: On February 3, the billing date, Carol Ann Bluesky had a balance due of $128.66 on her credit card.…
A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…
Q: On October 01, 2019, Benny and Joey pooled their resources in a partnership with the firm taking…
A: Assets = Liabilities + Capital Adjustments made in Joey's assets: Balance - inventory - Allowance…
Q: True or False. 1. The functional presentation of expenses in the income statement is usually shown…
A: Solution : 1. True, The functional presentation of expenses in the income statement is usually shown…
Q: A company is planning to launch a new product. It currently has four possible new products under…
A: Breakeven Point (BEP) is the unit level of production which cover the total cost. In BEP point,…
Q: Explain Nominal and real interest rates.
A: Inflation: Inflation is the speed of increase in costs throughout a given time span. Inflation is…
Q: TIME VALUE OF MONEY (use BAII Plus Financial Calculator to answer questions 25 – 30). If you do not…
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: This functions as a financial diary of a business and ensures that the double-entry bookkeeping…
A: Solution 1: "Trial balance" functions as a financial diary of a business to ensure that the double…
Q: Problem 6 Epoch Record Company is negotiating with two banks for a P100,000 loan. Trust Bank…
A: Effective Rate of Interest- After taking into account the compounding element, the effective rate of…
Q: QUESTION “In all partnerships, whether it is expressed in the deed or not, the partners are bound to…
A: Sec. 34-152. Sharing of profits and losses “In all partnerships, whether it is expressed in the…
Q: For its three investment centers, Blue Spruce Company accumulates the following data: II II Sales…
A: Solution The calculation of ROI is shown below ROI = (Controllable Margin / Average Operating…
Q: In the January 1, 2020 Kalaw and Borromeo formed partnership with each contributing the following:…
A: Partnership refers to agreement between one or more person to share profit and losses of a business…
Q: 1 Preparing the statement of changes in owner's equity is part of the step financial statements…
A: Financial statements are the formal records of the financial activities and position of a business…
Q: Chapter3 PROBLEMS A. The following information is extracted from the general ledger of Super Massage…
A: Owner's equity: The owner's equity refers to the share of the total value of net assets which…
Q: The Jordah Moris Company issues 8%, 3-year bonds with a par value of $440,000 and semiannual…
A:
Q: On April 1, Year 1, Halo Co. issued a $5,000 face value discount note to the Capri Bank. The note…
A: Formula: Discount amount = face value amount x Discount rate
Q: If a computer is bought by a company for $100 and is depreciated using the 3-year GDS recovery…
A: Depreciation: Depreciation is the concept applied on reporting of fall in original value of fixed…
Q: determine the cash received by ABC from nC20 after the full collection of client’s accounts. Round…
A: Receivables finance is a term that describes a number of different strategies that an entity can use…
Step by step
Solved in 4 steps
- On 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 carrying amount of the note on December 31, 2021?On 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, 2021Answer the following questions regarding a four-month promissory note for $1,850 issued June 1, 2021, and bearing an interest rate of 5% p.a. a) What was the maturity date of the note? b) How much was the note worth at maturity? c) How much was the note traded for on Sep 1, 2021, if money was worth 6% p.a.?
- On January 1,2022, Ace Company finished landscaping services and accepted in exchange a 5% $400000 promissory note with a due date of December 31,2024. Interest is receivable at January 1 each year. Notes with similar risks have a market rate of interest of 10%. (A.) Determine the value of the following N, I/Y, PMT, FV. B The present value of the note was $_______. (C) Prepare a schedule of Note Discount/Premium Amortization for Ace Company under the effect interest method. (d) Prepare the journal entries for Jan 1 2022 and Dec 31 2022On January 1,2022, Ace Company finished landscaping services and accepted in exchange a 10% $400000 promissory note with a due date of December 31,2024. Interest is receivable at December 31 each year. Notes with similar risks have a market rate of interest of 5%. (A.) Determine the value of the following N, I/Y, PMT, FV. B The present value of the note was $_______. (C) Prepare a schedule of Note Discount/Premium Amortization for Ace Company under the effect interest methodOn January 1,2022, Ace Company finished landscaping services and accepted in exchange a 10% $400000 promissory note with a due date of December 31,2024. Interest is receivable at December 31 each year. Notes with similar risks have a market rate of interest of 5%. (A.) Determine the value of the following N, I/Y, PMT, FV. B The present value of the note was $_______. (C) Prepare a schedule of Note Discount/Premium Amortization for Ace Company under the effect interest method (D) Prepare the journal entries on the following dates: Jan 1, 2022 and Dec 31, 2023
- An $9,000 note dated 06/22/2020, matures on 12/22/2020 at 8.15%. (Banker’s Rule) In how many days is the note due? What interest is paid on the note?A promissory note is a written statement agreeing to pay a sum of money either on demand or at a definite future time. When a note is purchased for its present value at a given interest rate, the note is said to be discounted and the interest rate is called the discount rate. Suppose a $10,000 note due 7 years from now is sold to a financial institution for $5600. What is the nominal discount rate with quarterly compounding? The nominal rate is %. (Type an integer or decimal rounded to two decimal places as needed.)Persever Company is a dealer in equipment. On December 21, 2021, the enitity sold an equipment in exchange for a noninterest bearing note requiring five annual payments of P500,000. The first payment was made on December 31, 2022. The market interest rate for similar notes was 8%. PV of 1 at 8% for 5 periods 0.68 PV of an ordinary annuity of 1 at 8% for periods 3.99 What is the amount of interest income should be reported for 2023?
- A non-interest bearing note has a face value of $3000. The note is due 96 days from today. Money is currently worth 8% per annum. Find the present value of the note. Select one: a. $2938 b. $3063 c. $2778 d. $2923On December 30, 2021, JALINON Company sold a machine to GONZALES Company in exchange for a non-interest bearing note requiring ten annual payments of P10,000. GONZALES made the first payment on December 30, 2021. The market interest rate for similar notes at date of issuance was 8%. Information on present value factors is as follows: Period Present value of 1 at 8% Present value of ordinary annuity of 1 at 8% 9 0.50 6.25 10 0.46 6.71 38. In its December 31, 2021 statement of financial position, what amount should JALINON report as non-current portion of the note receivable?Persever Company is a dealer in equipment. On December 21, 2021, the enitity sold an equipment in exchange for a noninterest bearing note requiring five annual payments of P500,000. The first payment was made on December 31, 2022. The market interest rate for similar notes was 8%. PV of 1 at 8% for 5 periods 0.68 PV of an ordinary annuity of 1 at 8% for periods 3.99 What amount of interests income should be reported for 2022?