29. The entity purchased land paying P200,000 cash and non-interest bearing note amounting to P1,000,000. The note is payable in 4 equal annual installments. The first installment payment is at the transaction date. If the effective rate of the note is equal to 10%, how much is the cost of the equipment? Group of answer choices 792,466 992,466 1,071,713 781,713

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A:

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Q: Cambodia Company purchased a machinery on December 31, 2020, paying P80,000 and issuing a P240,000…

A: Present value of note = Annual installments  x Present value factor (12%, 4 years)

Q: On January 1, 20x8, JINX Corp. purchased land by issuing P1 million non-interest bearing note…

A: The question is based on the concept of calculation of present value (carrying charges) for future…

Q: On January 1, 20x9, Fairness Company sold a tract of land that was acquired years ago for P 3M.…

A: As per the below table, the CV of note on Dec 2010 is P 18,18,182    * Please note that the…

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: On January 1, 20x1, ABC Co. received a 3-year, noninterest bearing note of ₱133,100 in exchange for…

A: Notes payable are the promissory notes issued by the borrower, to acknowledge the debt. Notes…

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: 11. How much is the interest income in 20x1? a. 88,825 b. 177,649 c. 128,964 d. 164,591 12. How much…

A: Historical Cost of Machinery            3,000,000 Less: Accumulated Depreciation…

Q: What is the interest expense for the first year?

A: Present value = Equal annual installment × Present value of ordinary annuity of 1 at 12% for 5 years…

Q: On April 1, 2028, A Company issued a P 9.000,000 non-interest-bearing note due March 31, 2031, for a…

A: Interest expense = P469,112

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A: “Since you have asked multiple sub-parts, we will solve the first three sub-parts for you. If you…

Q: On January 1, 2022, AA Company sold an equipment costing P5,000,000 and accumulated depreciation of…

A: GIVEN   On January 1, 2022, AA Company sold an equipment costing P5,000,000 and accumulated…

Q: Use the following information for the next two questions: On January 1, 20x1, ABC Co. sold machinery…

A: The question is related to calculation of interest income abd carrying amount of receivable in…

Q: inx Company acquired two items of machinery:  On December 31, 2021, Jinx Company purchased a…

A: Non-interest bearing note It is a note in which  there is a deduction of interest  from the face…

Q: On January 1, 2021, Kongguksu Co. acquired an equipment by issuing two-year, noninterest bearing…

A: Given, Note amounting = P1,000,000 Present value of $1 (n=2,i=12%) = 0.7972

Q: 2. ABC Realty sold a piecę of land for P250,000. A down payment of P50,000 was made and the…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: On January 1, 2022, State Co. sold an equipment to Nation Co. The latter issued a five-year…

A: Present value of the Note = Present value of principal + Present value of interest payments where,…

Q: On January 1, 20x1, ABC sold a used vehicle with a historical cost of P2,000,0000 and accumulated…

A: Carrying value of Vehicle sold: Historical cost = p2,000,000 Accumulated depreciation = p700,000…

Q: 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed…

A: Down payment=15000 Annual cash outflows=7000

Q: On February 1, 20x1, TSR Co. sold machinery with historical cost of P3,000,000 and accumulated…

A: A debt with no stated interest rate is known as a noninterest-bearing note. However, a…

Q: Begin Again Company sold an equipment with carrying amount of P2,000,000 and received a…

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Q: On January 1, 2021, Kongguksu Co. acquired an equipment by issuing two-year, noninterest bearing…

A: Solution:- Calculation of the cost of equipment if the equipment has no cash price equivalent as…

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A: Fair value of future payments can be calculated by using present value rates. If the payment is…

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A: a) Let the first payment = P Payment growth rate = 15% r = 18% per annum = 1.5% per month

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A: Here, Note: We are providing the solution of first three sub parts as per the specifications given…

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A: Present value of the Note  = Present value of principal + Present value of interest payments where,…

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A: 12 months from the end of reporting period date. in this case reporting period date is 31 dec 2021

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A: Solution Given Amount paid at the beginning of each year 10000 Number of years 5 years…

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A: Note receivable: Note receivable is the amount recorded in the company's balance sheet as an asset.…

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