Andrews Inc. issues a $497,000, 10% 3-year mortgage note on January 1. The note will be paid in three annual installments of $200,000, each payable at the end of the year. What is the amount of interest expense that should be recognized by Andrews Inc. in the second year

Q: On 1 November, Year 1, Noble Co. borrowed P80,000 from South Bank and signed a 12%, six-month note…

A: Solution: Interest on note at maturity = P * R* T = P80,000 * 12%*6/12 = P4,800

Q: DAM Corporation, a lending institution, provided a loan to LAP company for $5,000,000 on Januray…

A: Loan origination fees include but are not limited to fees charged to the borrow as prepaid…

Q: On November 1, 2019, Norwood borrows $410,000 cash from a bank by signing a five-year installment…

A: Journal is the book of original entry in which all the transactions of the business are recorded…

Q: unland Resort Corp. issued a 20-year, 6%, $274,000 mortgage note payable to finance the construction…

A: The practice of capturing commercial transactions for the first time in the books of accounts is…

Q: On January 1, 2016, Brubeck Company purchased equipment and signed a six-year mortgage note for…

A: The amount of mortgage payable needs to be determined after the payment of first installment which…

Q: On January 1, Gemstone Company obtained a $165,000, 7%, 10-year installment note from Guarantee…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: On January 1, 2020, Empress Bank granted a loan to a borrower. The interest rate on the loan is 10%…

A: As per IFRS 9, Financial instruments, the financial asset recognized at amortized cost is initially…

Q: Wolf Creek Inc has available for issue a $3,200,000 bond due in eight years. Interest at the rate of…

A: The accrued interest is the interest due but not paid yet. It is recorded as liability in the…

Q: On January 1, 20x1, SAUCY BOLD Co. acquired a machine by issuing a 3-year, 3%, P4,800,000 note…

A: All amount are (P).

Q: On January 1st, year one, zero company obtained a 52,000, for year, 6.5% installment note from…

A: Note payable is a form of liability for the business on which it has to make regular interest…

Q: Sunland Resort Corp. issued a 20-year, 6%, $274,000 mortgage note payable to finance the…

A: Journal entries shows the recording of transactions during an accounting year and every transaction…

Q: On December 31, 2017, Eppel, Inc. borrowed $900,000 on an eight percent, 15‑year mortgage note…

A: Adjusting journal entry: To record any unrecognized income or expenses for the period company made…

Q: Carla Vista Electronics issues a $353,500, 3%, 15-year mortgage note on December 31, 2019. The…

A: The installment payment schedule is one in which the yearly payment for the debt taken and the…

Q: On January 1, 2021, Ganda Company issued P5,000,000, 8% serial bonds payable to be repaid in the…

A: Interest expense on December 31, 2021 = present value of the bonds x yield rate x no. of the months…

Q: On January 1, a company borrowed cash by issuing a $390,000, 4%, installment note to be paid in…

A: Compute amount of each installment as shown below:

Q: On January 1, 2018, Allgood Company purchased equipment and signed a six =year mortgage note for…

A: For calculating interest expense, we will need to make amortization schedule of loan over a period…

Q: On January 1, a company issues 8%. 5 year, $300,000 bonds that pay interest semiannually. On the…

A: Organisation to raise money for various purposes issue bonds in which interest has to be paid to the…

Q: On the first day of the fiscal year, Shiller Company borrowed $33,000 by giving a seven-year, 8%…

A: Journal entry

Q: At the beginning of the year, your company borrows $33,600 by signing a six-year promissory note…

A: Solution A promissory note is a promise made by a party to pay a specified sum to another party at…

Q: On January 1, Year 1, Bryson Company obtained a $22,000, four-year, 12% installment note from…

A: Workings: Calculation of Interest: Year 1: 22000 x 12 % = 2640 Decrease in Notes payable = Notes…

Q: Carla Vista Electronics issues a $353,500, 3%, 15-year mortgage note on December 31, 2019. The…

A: Installment schedule

Q: $60,000, 5-year bonds, with a 10% stated rate of interest are issued at $55,584 on January 1, 2021.…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: On January 1, 2021, Splash City issues $400,000 of 8% bonds, due in 15 years, with interest payable…

A: Given data: Issued 8% bonds = $400,000 Interest payment = semi-annually Market interest rate = 9%…

Q: Andrews Inc. issues a $497,000, 10% 3-year mortgage note on January 1. The note will be paid in…

A: Interest expense = Beginning carrying value of principal*Interest rate

Q: ABC Bank granted a loan to a client on January 1, 20x1. The interest on the loan is 10% payable…

A: Effective Interest rate: It is the rate at which initial carrying amount of the loan receivable is…

Q: Donner Corporation issues 4-year bonds with a face value of $5,000,000 and a stated rate of 5% on…

A: Interest Expenses are calculated on book value of bonds as per market rate of interest i.e. 6%

Q: On the first day of the fiscal year, a company issues $69,000, 9%, seven-year installment notes that…

A: Note​ : Note is an instrument through which borrower obtains money from a person called lender and…

Q: At the beginning of 2020. Wallace Corporation issued 10% bonds with a face value of P900,000. These…

A: This question deals with the calculation of interest expense that needs to record during the year…

Q: Extreme Motion issues $500,000 of 6% bonds due in 20 years with interest payable semiannually on…

A: Bond: It can be defined as a financial instrument of indebtedness that reflects a loan made by the…

Q: On October 1, Dalton Corp. borrows $100,000 fromNational Bank, signing a six-month note payable for…

A: Interest amount: Interest charged on the borrowed principal amount. Interest is charged…

Q: Ahrens Industries issues a $450,000, 9%, 10-year mortgage note on January 1, 2020. Terms provide for…

A: Issue 9% mortgage note = $450,000 Installment payment = $68,405 Following is calculation

Q: Mewto Bank granted a loan to Mew Company on January 1, 2020. The interest on the loan is 12% payable…

A: The loan borrowing and the cost of loan borrowing has a proper mechanism to calculate the cost…

Q: On January 1, 2016, Brubeck Company purchased equipment and signed a six-year mortgage note for…

A:

Q: On the first day of the fiscal year, a company issues $35,000, 5%, eight-year installment notes that…

A: Introduction: Journals: Recording of a business transactions in a chronological order. first step in…

Q: An installment note payable for a principal amount of $48,000 at 6% interest requires Lawson Company…

A: preparation of an amortization table amount borrowed = 48,000 rate of interest = 6%annually annual…

Q: Milton Company borrowed $95,000 on January 1, 2020, by signing a 6% promissory note. The note is to…

A: The question is based on the concept of Financial Accounting.

Q: On January 1, 2019, a company borrows $1,000 cash by signing a four-year, 5% installment note. The…

A: Given: Borrowed amount = $ 1,000 Rate of note = 5 % Amount for equal payment = $ 282

Q: On January 1, Gemstone Company obtained a $165,000, 10-year, 7% installment note from Guarantee…

A: An installment note can be defined as a promissory note that is a type of debt financing that…

Q: Crane Resort Corp. issued a 20-year, 4%, $298,000 mortgage note payable to finance the construction…

A: The question is based on the concept of Financial Accounting.

Q: ual installments of $65,051 (payable on June 30 and December 31). Each mortgage payment includes…

A: Balance Sheet A balance sheet is a summary of all of your company's assets and liabilities. It shows…

Q: Comly Communications issues a $600,000, 10%, 20-year mortgage note on January 1. The terms provide…

A: Correct option is A. $590,068   After first installment payment, the principal balance is $590,068

Q: Novak Corp. receives $375,600 when it issues a $375,600, 10% mortgage note payable to finance the…

A: Mortgage can be referred to as a source of long term financing which is used to finance purchase or…

Q: Jernigan Co. receives $240,000 when it issues a $240,000, 6%, mortgage note payable to finance the…

A: Given that: Mortgage payable = $240,000 Interest expense on first instalment payment= 240,000 *6% =…

Q: 4. At the beginning of 2020. Wallace Corporation issued 10% bonds with a face value of P900,000.…

A: In this question we are require to calculate the interest expense need to record in year 2020 under…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.