10. On Jan. 1, 20x1, Parya Co. received a 3-year, P900,000receivable dueas follownotenoninterest-bearingP400,000 on Dec. 31, 20x1, P300,000 on Dec. 31, 20x2, andP200,000 on Dec. 31, 20x3. The prevailing rate of interest forthis type of note is 10%. How much is the carrying amount ofthe receivable on Dec. 31, 20x1?c. 376,345d. 428,346b. 438,016a. 467,354

Introduction: The present value (PV) of a future sum of money or stream of revenue is its current…

Answered: 3-year, P900,000 receivable due as…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6MC: On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest...

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Similar questions

Lime Co. incurs a $4,000 note with equal principal installment payments due for the next eight years. What is the amount of the current portion of the noncurrent note payable due in the second year? A. $800 B. $1,000 C. $500 D. nothing, since this is a noncurrent note payable
Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?
On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest payments are paid annually, each interest payment will be ________. A. $120,000 B. $60,000 C. $7,500 D. $15,000
Proceeds from notes payable On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a 45-day note with a face amount of 150,000. A. Determine the proceeds of the note, assuming the note carries an interest rate of 10%. B. Determine the proceeds of the note, assuming the note is discounted at 10%.
Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
On Jan 1, 20X1, ABC Corp received a P300,000 3-year note from a customer. The principal and interest of the note is collectible on Jan 1, 20X4. Effective interest rate is 10% . How is the interest income at Dec 31, 20X1? PV of P1 at 10% for 3n = .75131 PV of ordinary annuity of P1 at 10% for 3n = 2.48685 7,461 22,539 24,868 30,000
On Jan 1, 20X1, ABC Corp received a P450,000 3-year note from a customer. The principal and interest of the note is collectible on Jan 1, 20X4. Effective interest rate is 10% . How much is value of the note at Jan 1, 20X1? PV of P1 at 10% for 3n = .75131 PV of ordinary annuity of P1 at 10% for 3n = 2.48685 338,090 373,028 111,910 76,972
On Jan 1, 20X1 ABC received a P1,200,000 3-year non interest note. Interest and principal is collectible on due date. How much is the maturity value? 120,000 360,000 1,200,000 1,560,000
ABC Co. receives P210,000 3-year non-interest bearing note. Collections is on the principal and interest is to be made every 12 months. Effective rate was 12%. How will ABC measure the note on initial recognition? 210,000 X PV of P1 at 12% for 3n 70,000 X PV of ordinary annuity at 12% for 3n 210,000 X PV of ordinary annuity at 12% for 3n 70,000 X PV of P1 at 12% for 3n
ABC Co received from a customer a 5-year non-interest bearing note of P120,000 on Jan 1, 20X1. Effective rate is 12% and due on Dec 31, 20X5. PV of P1 at 12% for 5n = .56743 PV of an ordinary annuity of P1 at 12% for 5n = 3.60478The note would be initially recorded on Jan 1, 20X1 at: a. 120,000 b. 86,515 c. 68,092
On Jan 1, 20X1 ABC received a P1,200,000 3-year 10% note. Interest and principal is collectible on due date. How much is the maturity value? 120,000 360,000 1,200,000 1,560,000
On 1 January 2022, Rodney Inc. provided services to Smith Co. in exchange for Smith’s $300,000, 2-year 8% note with interest compounded semi-annually on July 1 and January 1. The current market rate of similar notes is 12%. Rodney Inc. financial year ends December 31. REQUIRED: 1. Provide the following input values from your financial calculator: N = I/Y = PMT = FV = 2. The note was issued at = 3. The present value of the note is =

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