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Based on the above and the result of your audit, answer the following(Round off present value  factors to four decimal places and final answers to nearest hundred)  5. The interest income to be recognized in 2022 is

Based on the above and the result of your audit, answer the following(Round off present value  factors to four decimal places and final answers to nearest hundred)  5. The interest income to be recognized in 2022 is

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 15P: Comprehensive Receivables Problem Blackmon Corporations December 31, 2018, balance sheet disclosed...
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A. Based on the above and the result of your audit, answer the following(Round off present value 
factors to four decimal places and final answers to nearest hundred) 

5. The interest income to be recognized in 2022 is 

C. RECEIVABLES The Vigan Company included the following in its notes receivable as of December 31, 2022: Note receivable from sale of land Note receivable from consultation P 880,000 1,200,000 1,600,000 Note receivable from sale of equipment In connection with your audit, you were able to gather the following transactions during 2022 and other information pertaining to the company's notes receivable: • On January 1, 2022, Vigan Company sold a tract of land. The land, purchased 10 years ago, was carried on Vigan Company's books at a value of P500,000. Vigan received a noninterest- bearing note for P880,000. The note is due on December 31, 2023. There is no readily available market value for the land, but the current market rate of interest for comparable notes is 10%. • On January 1, 2022, Vigan Company finished consultation services and accepted in exchange a promissory note with a face value of P1,200,000, a due date of December 31, 2024, and a stated rate of 5%, with interest receivable at the end of each year. The fair value of the services is not readily determinable and the note is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of __ 10%. • On January 1, 2022, Vigan Company sold equipment with a carrying amount of P1,600,000 to X Company. As, payment, X gave Vigan Company a P2,400,000 note. The note bears an interest rate of 4% and is to be repaid in three annual installments of P800,000 (plus interest on the outstanding balance). The first payment was received on December 31, 2022. The market price of the equipment is not reliably determinable. The prevailing rate of interest for notes of this type is 14%. QUESTIONS. A. Based on the above and the result of your audit, answer the following (Round off present value factors to four decimal places and final answers to nearest hundred)
Transcribed Image Text:C. RECEIVABLES The Vigan Company included the following in its notes receivable as of December 31, 2022: Note receivable from sale of land Note receivable from consultation P 880,000 1,200,000 1,600,000 Note receivable from sale of equipment In connection with your audit, you were able to gather the following transactions during 2022 and other information pertaining to the company's notes receivable: • On January 1, 2022, Vigan Company sold a tract of land. The land, purchased 10 years ago, was carried on Vigan Company's books at a value of P500,000. Vigan received a noninterest- bearing note for P880,000. The note is due on December 31, 2023. There is no readily available market value for the land, but the current market rate of interest for comparable notes is 10%. • On January 1, 2022, Vigan Company finished consultation services and accepted in exchange a promissory note with a face value of P1,200,000, a due date of December 31, 2024, and a stated rate of 5%, with interest receivable at the end of each year. The fair value of the services is not readily determinable and the note is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of __ 10%. • On January 1, 2022, Vigan Company sold equipment with a carrying amount of P1,600,000 to X Company. As, payment, X gave Vigan Company a P2,400,000 note. The note bears an interest rate of 4% and is to be repaid in three annual installments of P800,000 (plus interest on the outstanding balance). The first payment was received on December 31, 2022. The market price of the equipment is not reliably determinable. The prevailing rate of interest for notes of this type is 14%. QUESTIONS. A. Based on the above and the result of your audit, answer the following (Round off present value factors to four decimal places and final answers to nearest hundred)
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