A $20,000 note payable is retired at its ccarrying value in exchange for cash
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A $20,000 note payable is retired at its ccarrying value in exchange for cash
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- A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest ExpenseSTFU Company accepted from a customer P1,000,000 face amount, 6-month, 8% note dated April 15, 2019. On the same date, the entity discounted the note without recourse at a 10% discount rate. What amount of cash was received from the discounting?On October 31, 2018 Garamond Company discounted at the bank a customer's P600,000, 6-month, 10% note receivable dated Aug 31, 2018. The bank discounted the note at 12%. What amount of gain or loss should Garamond Company recognize from the transfer assuming the discounting is treated as a sale?
- On January 1 2020, Machete Company sold land with a carrying amount of P1 500 000 in exchange for a 9 month 10% note with face value of P2 000 000. The 10% rate properly reflects the time value of money for this type of note. On April 1 2020 the entity discounted the note with recourse. The bank discount rate is 12%. The discounting transaction is accounted for as a secured borrowing. On October 1 2020, the make dishonored the note receivable. The entity paid the bank the maturity value of the note plus the protest fee of P10 000. On December 31 2020, the entity collected the dishonored note receivable in full plus 12% annual interest on the total amount due. Required: Prepare journal entries to record the transaction.STU Company accepted from a customer P1,000,000 face amount, 6-month, 8% note dated April 15, 2019. On the same date, the entity discounted the note without recourse at a 10% discount rate. What amount of cash was received from the discounting?On January 1, Gabriel Company sold land with a carrying value of P1,000,000 in exchange for a 1-year, 8% note with a face value of P1,500,000. The 8% rate properly reflects the time value of money for this type of note.On March 1, Gabriel Company discounted the note with recourse and accounted as a conditional sale. The bank discount rate is 10%.On September 1, the maker dishonored the notes receivable. In return, Gabriel Company pays the factor the maturity value of the note plus a protest fee of P5,000.At the end of the year, Gabriel Company collected the dishonored note in full plus a 10% interest on the total amount due.Requirements:1. Prepare the necessary journal entry to record the above transactions.2. Assuming that the March 1 transaction did not happen, prepare the necessary journal entry to record the above transactions.
- On December 1, 2022, Grenade Company assigned specific accounts receivable totaling P2,000,000 as collateral on a P1,500,000, 9% note from a bank. In addition to the interest on the note, the bank also charged a 2.5% finance fee deducted in advance on the P1,500,000 value of the note.The December collections of assigned accounts receivable amounted to P1,000,000 less cash discounts of P20,000. The company accepted sales returns of P50,000 on the assigned accounts and wrote off assigned accounts of P75,000.The company notified the customers that their accounts have been assigned to the bank and must direct their payments to the assignee. 1. What amount of cash was received from the assignment of accounts receivable on December 1, 2022? 2. What is the carrying amount of note payable on December 31, 2022? 3. What is the balance of accounts receivable — assigned on December 31, 2022? 4. What amount should be disclosed as the equity of Grenade Company in assigned accounts on…On December 31, 2021, Park Company sold used equipment with carrying amount of 2,000,000 in exchange for noninterest-bearing note of 5,000,000 requiring ten annual payments of 500,000. The first payment was made on December 31, 2022. The market interest for similar note was 12%. What is the carrying amount of the note receivable on December 31, 2021?Note Company provided the following information on its notes payable as of December 31, 2020: Note payable - due April 31, 2021 ₱1,000,000 Note payable - due Feb 28, 2021 ₱800,000 Note payable - due December 31, 2021 ₱2,000,000 On December 18, 2020 the note payable of P1,000,000 was replaced by an 24-month note for the same amount. The Company had the right to refinance the note payable on Feb 28, 2021 for at least 13 months from report date. The note payable maturing on December 31, 2021, which was acquired on June 30, 2018. Was refinanced on December 24, 2020. With the agreement that the refinancing should not exceed 75% of the collateral provided by the company. The estimated value of the collateral as of December 31, 2020 is P1,800,000. How much is the total current liabilities as of December 31, 2020?
- On October 31 2022. BB Company discounted at the bank a customer's P600,000 interest-bearing note, 6 month, 12% note, dated July 1, 2020 with recourse. The bank discounted the note at 10%. How much is the gain or loss should the company recognize as a result of discounting the notes receivable?On December 1, 2020, Papa Po Company assigned specific accounts receivable totaling P200,000 as collateral on P150,000, 12% note from a Bangko Bank. Papa Po Company will continue to collect the assigned accounts receivable. In addition to the interest on the note, the bank also charged 5% finance fee deducted in advance on the 150,000 value of the note. The December collections of assigned accounts receivable amounted to 100,000 less cash discounts of 5,000. On December 31, 2020 Papa Po Company remitted the collections to the bank in payment for the interest accrued on December 31, 2020 and the note payable. What amount should be disclosed as the equity of Papa Po Company in assigned accounts on December 31, 2020?On December 1, 2020, Papa Po Company assigned specific accounts receivable totaling P200,000 as collateral on P150,000, 12% note from a Bangko Bank. Papa Po Company will continue to collect the assigned accounts receivable. In addition to the interest on the note, the bank also charged 5% finance fee deducted in advance on the 150,000 value of the note. The December collections of assigned accounts receivable amounted to 100,000 less cash discounts of 5,000. On December 31, 2020 Papa Po Company remitted the collections to the bank in payment for the interest accrued on December 31, 2020 and the note payable. In the previous problem, what is the carrying amount of note payable on December 31, 2020?