Entity A received a 12% P200,000, one-year, note receivable on October 1, 2001. Entity A uses a calendar year period. The principal and interest on the note are due on October 1, 2002. How much is the interest income to be accrued on December 31, 2001.

Q: On June 8, Alton Co. issued an $77,100, 7%, 120-day note payable to Seller Co. Assume that the…

A: Interest:   An interest is the cost of the funds loaned to the business by any lender.

Q: On June 1, Davis Inc. issued an $85,500, 10%, 120-day note payable to Garcia Company Assume that the…

A: Calculate the total interest as follows: Interest = Bonds amount * interest rate Interest = $85,500…

Q: On November 1, Alan Company signed a 120-day, 10% note payable, with a face value of $20,700. What…

A: Adjusting entries are a collection of journal entries produced at the end of an accounting period to…

Q: On January 1, 2020, Sunland Company, a calendar-year company, issued $897000 of notes payable, of…

A: Solution: Current liability = Amount due in next 1 year = 224,250 Long term Debt = Due after 1 year…

Q: Mann Corporation’s liability account balances at June 30,2001, included a 10% note payable in the…

A: Given information, Note payable in the amount of P3,600,000. The first payment was made on on…

Q: Company A received a 5-year Non-interest bearing note payable to Company A on December 31, 2024, P…

A: Given, Note Payable on 31 Dec. 2024 = P 5,000,000 Market Interest Rate = 12%

Q: On January 1, 2001, XDR Bank extended a P900,000 loan to SRN, Inc. Principal is due on December 31,…

A: Impairment loss means amount which will not be recovered from whom the loan was given. It is…

Q: On Aug 31, 20X1, ABC Corp received a P2,000,000 12% 4-year note from a customer. Note is collectible…

A: Principal payment on September 1, 20X2 = P2,000,000 / 4 = P500,000

Q: Included in Panera Corporation’s liability account balances at December 31, 2004 was a Note payable…

A: We shall first calculate the Outstanding note balance on December 31, 2005 Out of this amount, the…

Q: Apex Company accepted from a customer P1,000,000 face amount, 6 month, 8% note dated April 1, 2021…

A: Maturity value of note = Face value of note + interest = P1000000 + 1000000*8%*6/12 = P1040000

Q: On June 1, Davis Inc. issued an $76,100, 12%, 120-day note payable to Garcia Company Assume that the…

A: No. of days for which interest to be recognized in the following year = Total days of notes - total…

Q: On December 31, 2011 , Bunny Co. received a 10% note with face amount of P1,500,000. Both principal…

A: Interest receivable on December 31, 2012 = Face value of notes x rate of interest x no. of months in…

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: On October 1, 2009, a company received a one-year note receivable bearing an interest rate at market…

A: Interest income represents the percentage of interest accrued on the amount lend. It is paid over a…

Q: On June 1, Davis Inc. issued an $81,200, 8%, 120-day note payable to Garcia Company Assume that the…

A: Interest revenue = face value of not x rate of interest x No. of days / 360 days

Q: Mann Corporation’s liability account balances at June 30,2001, included a 10% note payable in the…

A: Formula: Interest expense = Notes amount x Interest amount x Interest rate

Q: Pink Company had a warranty liability of P350,000 at the beginning of current year and P310,000 at…

A: The warranty expense is the expense estimated on the basis of previous years warranty expenses on…

Q: FDNACCT Co. purchased merchandise and issued a twelve-month promissory note with 8% interest and…

A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…

Q: Justin Company signed a $90,000, three-month, 9% note payable, on December 1. If the accounting…

A: Interest accrued on December 31= Face value of bonds x rate of interest x no. of month/12 = $90000 x…

Q: Company is due in five years. On both notes, interest is calculated on the outstanding principal The…

A: Answer:       Amounts that should these two notes receivable be reported in Jet's December 31,…

Q: An seven-year promissory note for $31 000 dated May 2, 2002, bearing interest at 8% compounded…

A: A promissory note is a financial instrument that contains a written promise by one party (the note's…

Q: On July 8, Jones Inc. issued an $85,000, 8%, 120-day note payable to Miller Company. Assume that the…

A: From July 8 to July 31 = 23 days Interest expense has been accrued for 23 days for the note payable.…

Q: on March 1, 20x1 Nick Co. issued a P6000, 12%note dated January 1, 20x1 in exchange an outstanding…

A: In exchange for accounts payable, if notes payable are issued then accounts payable should be…

Q: On December 1, Martin Company signed a $5,000 3-month 6% note payable, with the principle plus…

A: Interest accrued at December 31 on the note = Face value of the note x rate of interest x no. of…

Q: Siomai Company estimates its annual warranty expense as 2% of annual net sales. The following data…

A: Warranty expense during the year = Net sales x estimated % of warranty expense

Q: On January 1. 2020, Sheridan Company, a calendar-year company, issued S608000 of notes payable, of…

A: A current liability is an obligation which needs to be settled within a period of 12 months and any…

Q: On July 8, Jones Inc. issued an $66,300, 11%, 120-day note payable to Miller Company. Assume that…

A: Accrued interest: Accrued interest is the outstanding interest expense in the accounting period as…

Q: y 8, Jones Inc. issued an $79,100, 6%, 120-day note payable to Miller Company. Assume that the…

A: In the given situation, there is a note payable with 6% rate for 120 days. We need to find the…

Q: PHAGE COMPANY estimates its annual warranty expense at 4% of net sales. The following balances are…

A: Estimated warranty expenses = sales x 4% = 1500000 x 4% = 60,000

Q: Martinez Co. borrowed $69,589 on March 1 of the current year by signing a 60-day, 6%,…

A: Introduction: Journals: Each and every business transactions are to be recorded in journals. All the…

Q: On January 1,2021, Mickey Mouse Corporation sells a Furniture and Fixtures costing P1,500,000 and…

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

Q: On July 8, Jones Inc. issued an $84,700, 11%, 120-day note payable to Miller Company. Assume that…

A: Annual Interest=Issue amount×Interest rate=$84,700×11%=$9,317

Q: On June 1, Davis Inc. issued an $84,000, 5%, 120-day note payable to Garcia Company. Assume that the…

A: Answer: The exact answer is $1,061 . So the nearest option to $1,061 is option D - $1,050 .

Q: A company has a $5,000, 6%, 3-month note ceivable on its books that was issued May 1. ne amount of…

A: The note receivable is the current asset for the business. The Accrued interest is the interest that…

Q: The following amortization schedule indicates the interest and principal that Chip’s Cookie…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: The business receives a promissory note of P50,000, carrying an interest rate of P10%. The note is…

A: Accrued income is that income which are earned by the business but the amount is yet to be received…

Q: On May 31, Baker Co. issued an $35,679, 8%, 120-day note payable to Samunck Co. Assume Baker's…

A: Solution a:  Interest EXPENSE recognized by Baker in the current fiscal year = $35,679*8%*30/360 =…

Q: Mackenzie Corp, is preparing the December 31, 2020, year-end financial statements. Following are…

A: Adjusting Entries :— It is the journal entry made at the ending the accounting period to adjust the…

Q: Twice KPOP Company disclosed the following information on December 31, 2021:   SSS payable P20,000…

A: The phrase "current liabilities" refers to a company's short-term financial commitments that are due…

Q: 33. On August 1, 2011, Hampton Construction received a 9 percent, six-month note receivable from…

A: Answer: Assuming that Dusty Roads pays the note plus accrued interest in full. Entry for Collection…

Q: On July 1 of the current year, an entity obtained a two-year 8% note receivable for services…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: On June 1, Davis Inc. issued an $64,900, 7%, 120-day note payable to Garcia Company Assume that the…

A: Interest to be received is calculated by multiplying the principal with rate of interest and time .…

Q: On January 1, 2021, Jin Company sold equipment at a cost of P400,000.          The consideration is…

A: The present value is the amount of the money received at time 0 or the current period.

Q: On July 8, Jones Inc. issued an $72,300, 7%, 120-day note payable to Miller Company. Assume that the…

A: Solution:  Jones Inc should recognize the interest expense for 23 days. = From July 8 to July 31= 23…

Q: On June 1, Davis Inc. issued an $84,000, 5%, 120-day note payable to Garcia Company. Assume that the…

A: Solution: Days in current year = June 30 - June 1 = 29 days Days in following year = 120 - 29 = 91…

Q: On December 1, a company signed a $6,000, 90-day, 5% note payable, with principal plus interest due…

A: Answer:   Option b.

Q: On July 8, Jones Inc. issued an $76,900, 10%, 120-day note payable to Miller Company. Assume that…

A: Answer:   Option c.

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.