Assume the following information regarding a note received by HEERHUM YU Company: Principal amount of note receivable              P1,500,000 Date of note                                                    October 1, 2020 Term of note                                                  120 days Date of discounting                                      December 1, 2020 Discount rate                                               12% Interest income  for 120 days                     P50,000 How much loss on discounting is to be recognized on December  1, 2020?

Q: On June 30, 2020, OPQ Company discounted at the bank a customer P6,000,000, 6-month, 10% note…

A: Note receivable: It can be defined as an asset that represents a right on part of the holder to…

Q: On November 1, 2021, FDN Trading accepted a 90-day, 8% P8,000,000 note from ABC Co. FDN immediately…

A: Total Interest Expense = Value of Notes receivable x Interest Expense

Q: about the homework of Intermediate Accounting: Reporting and Analysis 3rd Edition Chapter 6, Problem…

A: Step 1 The discount on note receivable of $78 is obtained by multiplying the present value of…

Q: Note Company provided the following information on its notes payable as of December 31, 2020: Note…

A: Liability is a sum of money an individual or organization owns. Current liabilities are an…

Q: on july 31, 2020 clear company discounted at the bank a customer's 600,000 interest bearing note 6…

A: Maturity value of note = Face value + interest = 600000 + (600000*10%*6/12) = 630,000 Discount =…

Q: On July 31, 2020, Clear Company discounted at the bank a customer’s P600,000 interest-bearing note,…

A: Solution: Maturity value of note = Principal + interest  = 600000 + 600000*10%*6/12 = 600000 + 30000…

Q: On January 1, 2019, Johnson Corporation issued a 2-year note due December 31, 2020, with a face…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: MCM Company issued a note receivable to a customer on September 1, 2020. The face value of the note…

A: Note receivable is considered as a negotiable instrument. It represents the claim amount due on the…

Q: On July 31, 2020, Clear Company discounted at the bank a customer's 600,000 interest-bearing note,…

A: Solution: Maturity value of note = Principal + Interest = 600,000 + (600,000*10%*6/12) = 600,000 +…

Q: Use the information for the next two (2) questions. On December 31, 2020, Resistance Company…

A: A liability is a obligation which requires outflow of economic outflows of company for its…

Q: On September 30, 22, Choco Lanay Company discounted at the bank a customer's P1,750,000 6 month 12%…

A: Note receivable can be converted into cash by selling them to a financial institution at a discount.…

Q: Erza Company has a P180,000, 10%, 90-day note receivable outstanding at December 31. The note is…

A: Interest receivable is interest accrued but not received. Interest receivable is an asset. Increase…

Q: Morton Company had the following select transactions. 1, 2021 Accepted Remington Company's 1-year,…

A: Journal entries by far are one of the most crucial skills to develop in an accounting profession.…

Q: 22. Assume the following information regarding a note received by HEERHUM YU Company: P1,500,000…

A:

Q: 00,000 in principal plus accrued interest are due annually on July 1, 2021, 2022 and 2023. (Present…

A: An Interest is Accrued when it is incurred and not paid. In the above question, Interest on note…

Q: DE LA CRUZ Company received a 10%,180 day note from its customer on April 1, 2021. The note has a…

A: Solution : Given Face value          =P500,000 interest rate      =10% discount rate     = 12 % date…

Q: Company A reported a 10% Serial Notes Payable in its December 31, 2019 Statement of Financial…

A: Interest is the charge for using funds and is payable only for the period the funds are used. Hence,…

Q: (MODIFIED) Winter Corporation received the following notes in 2020: NOTE DATE PRINCIPAL INTEREST…

A: The note refers to the amount owed by the customer for the goods sold or services provided to them…

Q: On November 1, 2021, FDN Trading accepted a 90-day, 8% P4,000,000 note from ABC Co. FDN immediately…

A: Maturity value of the note = Face value + interest = 4000000+4000000*8%*90/360 = 4080000

Q: Swifty Company had the following select transactions. Apr. 1. 2020 Accepted Goodwin Company's…

A: Accrued interest on Dec 31, 2020 = Face value of notes x rate of interest x no. of months/12 =…

Q: On July 31, 2020, Clear Company discounted at the bank a customer's P600,000 interest-bearing note,…

A: The bill discount means getting money from bank against note receivable.

Q: On November 1, 2021, Calexico Trading accepted a 90-day, 8% P2,000,000 note from ABC Co. Calexico…

A: Notes Payable / Receivable The purpose issuing the Notes receivable / Notes payable to collect the…

Q: PINK Company reported a 10% note payable of ₱3,600,000 on June 30, 2021. The note is dated October…

A: Accrued interest payable on June 30, 2021 = Amount of note payable x rate of interest x no. of…

Q: Compute for the total interest income to be recognized in 2020 in relation to the four note…

A: Promissory Note:- It is a written document where the writer has to pay the agreed amount to the…

Q: On November 1, 2019, Edwin Inc. borrowed cash and signed a $60,000, 1-year note payable.…

A: Every business transaction should indeed be documented in at least two locations, according to the…

Q: On july 31, 2020, Clear company discounted at the bank a customer's P 600,000 interest-bearing note,…

A: Maturity Value = Principal + (Principal * Rate * Time) = P 600,000 + (P 600,000 * 0.10 * 6/12) = P…

Q: On October 1, 2021, Home Company issued to Security Bank a P6,000,000, 8-month, noninterest-bearing…

A: Note payable: Note payable is a current liability reported in the company's balance sheet at the…

Q: On April 1, 2020 UVW Company discounted with recourse a 9-month, 10% note dated January 1, 2020 with…

A: Note receivables is an instrument issued for evidencing debt. It is generally issued for shorter…

Q: On June 30, 2020, Dive Company discounted at the bank a customer's P6,000,000, 6-month, 10% note…

A: Solution 1: Maturity value of note = P6,000,000 + P6,000,000*10%*6/12 = P6,300,000 Net proceeds from…

Q: On June 30, 2020, GHI Company discounted at the bank a customer P6,000,000, 6-month, 10% note…

A: A note receivable is an instrument that promises the holder of the note a certain amount of sum…

Q: Indicate the best answer(s) for each question: On June 1, 2018, Coast Financial loaned Barr…

A: The revenue that is earned but not received yet is recorded as accrued revenue and it's an asset for…

Q: On May 1, 2022, FDN Trading accepted a 120-day, 8% P60,000 note from ABC Co. 30 days after, FDN…

A: Let's understand some basics  Notes are usually discounted with recourse, when it is discounted with…

Q: 26. Assume the following information regarding a note received by LENDYOU Company: January 1, 2020 6…

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

Q: On July 1, 2019, Maricris Company received a P20,000 promissory note from Jordyn Company. The annual…

A: Interest receivable: It can be defined as the interest earned on the investment made but not yet…

Q: Seifert Supply Company sold merchandise to a customer on December 1, 2020 for $100,000. The…

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

Q: Silver Company purchased merchandise for resale on January 1, 2021, for P5,000 cash plus a P20,000,…

A: Carrying amount of the note payable = Present value of principal + Present value of interest…

Q: STFU Company accepted from a customer P1,000,000 face amount, 6-month, 8% note dated April 15, 2019.…

A: Maturity value of note = Face value + interest = P1,000,000 + (P1,000,000  x 8% x 6/12) = P1,040,000…

Q: A 10% P1,000,000 note payable of Mango Company had a carrying amount of P870,296 and P896,489 on…

A: Ending Balance = Beginning Balance + Interest Expense - Interest Payment

Q: ML Company purchased merchandise for resale on January 1, 2021, for P5,000 cash plus a P20,000,…

A: Carrying amount of the note payable = Present value of principal + Present value of interest…

Q: 18.Booster Company received a three-year, non-interest bearing note for P500,000 for merchandise…

A: Notes Receivable Notes receivable which was issued by the entity to the customers while the goods…

Q: On August 1, 2020, Vann Company’s P5,000,000 one year,non interest bearing note due July 31, 2021,…

A: Bonds payable is a long-term liability in which the bonds has been issued in lieu of amount borrowed…

Q: On October 31 2022. BB Company discounted at the bank a customer's P600,000 interest-bearing note, 6…

A: Maturity value of the Note = Face value of the Note + Interest on the note where, Interest on the…

Q: . FDN Trading received the following promissory notes from various customers during 2020 in the…

A: Answer: As per Q/A guideline, first question has been answered. Please repost remaining questions.…

Q: . What is the loss on note receivable discounting?

A: 1. Net Proceeds from discounting =Maturity Value-Discount on note Maturity Value…

Q: On July 31, 2020, Clear Company discounted at the bank a customer's P600,000 interest-bearing note,…

A: Net Proceeds from discounted note = Maturity Value - Discount on note

Q: 31,2021 ( interest is payable annually)    b.) 12%,P 2,500,000, interest bearing note , issuance…

A: Current liabilities is short term financial obligation which is required to be paid or due in one…

Q: dan Company had a five-month, 5%, $79,200 note receivable that was issued on October 1, 2021.…

A: Journal entry refers to the process of inspecting and documenting all the transactions of a company…

Q: 3. Assume the following information regarding a note received by LENDYOU Company: January 1, 2020 6…

A: Solution Date of note January 1 2020 Term of note 6 months Interest rate 12%…

Q: Tan Company accepted from a customer a 4,000,000, 90- day, 12% interest bearing noted dated August…

A: Interest = Principal x Interest rate x Full term of the Note Receivable Maturity Value = Principal +…

Q: A Company discounted a customer's 10%, 120-day note for P300,000 dated September 20, 2021 with BPI…

A: Solution: In case of discounting of note, proceeds received will be maturity value which is deducted…