How much was Bae’s proceeds from the discounted note?
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A: SOLUTION- THE PRESENT VALUE FACTOR IS USED TO DETERMINE THE WORTH OF THE AMOUNT OF MONEY RECEIVABLE…
Q: LINDT Corporation manufactures and sells electrical generators. On May 31, 2020, it sold an…
A: Present value of Note = Installments x present value of an ordinary annuity of 1 for three periods…
Q: On December 31,2021, Teresa Co. sold goods costing ₱300,000 and with sales price of ₱550,000 to…
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Q: On April 1, 2020, Shalimar Company discounted with recourse a 9-month, 10% note dated January 1,…
A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…
Q: On January 1, 2019, Love Co. sold merchandise to Kit Store in exchange for a non-interest bearing…
A: Formula: Interest amount = Bond face value x Interest rate Multiplying bond face value with interest…
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A:
Q: On November 1, 2021, FN Trading accepted a 90-day, 8% P9,000,000 note from ABC Co. FN immediately…
A: Given data, Face value=P9,000,000 Bank processing fee =P80,000 Maturity value of the note = Face…
Q: On Jan 1, 2021, XYZ Co. sold a machine in exchange for a P1500,000, non-interest-bearing note…
A: Carrying amount of the Note = face value of the non-interest-bearing note x Present value factor…
Q: The following transactions transpired during the year for Teresa Company: • On January 1,2021,…
A: Since we answer upto three sub-parts, we shall answer first three. Please resubmit a new question…
Q: On April 1, 2020, Aljean Company discounted with recourse a 9-month, 10% note dated January 1, 2020…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: On July 1, 2019, GAH Company sold equipment to Babe Company for P2,000,000. GAH accepted a 10% note…
A: Net Proceeds = Value of note receivable less discount Discount = ( Value of note ) * Discount rate…
Q: On January 1, 2020, Hamid Company sold goods to Khaled Company. Khaled signed a noninterest-bearing…
A: Present value of amount to be receved on January 1, 2020 = Intial payment + Annual payment x PV of…
Q: On January 1, 2020, Savage Company sold goods to another entity. The buyer signed a…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: On December 31, 2020, Sheridan Company has $5970000 of short-term notes payable due on February 14,…
A: ANSWER : Correct option is- $840,000.
Q: On April 1, 2020, Neptune Company discounted with recourse a 9-month, 10% note dated January 1, 2020…
A: Face Value of note= P6,000,000 Duration and rate= 9-month, 10% note Bank discount rate= 12% Fee=…
Q: On January 1, 2020, Jackie Company issued a note with a face amount of P5,000,000. The note carried…
A: When a creditor defaults in the payments of principal as well as interest, then debtor allows him to…
Q: On April 1, 2020, Bonita Company assigns $533,000 of its accounts receivable to the Third National…
A: given that, loan due by Bonita Company = $332400 interest rate on loan = 10% calculation of…
Q: On January 1, 2020, Jackie Company issued a note with a face amount of P5,000,000. The note carried…
A: solution
Q: On April 1, 2020, Aljean Company discounted with recourse a 9-month, 10% note dated January 1, 2020…
A: The amount received from the note receivable discounting on April, 1 2020: (P) Principal…
Q: On January 1, 2020, Jackie Company issued a note with a face amount of P5,000,000. The note carried…
A: Working note: Computation of carrying value of note payable on June 30, 2022 before modification of…
Q: On July 1, 2021, ABC Co. issued a 9% interest bearing note with a face amount of P 10,000,000 for…
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Q: On January 1, 2021, Lizelle Company signed a P100,000, 12% note due in three years at a discount…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: On January 1, 2020, MWB, Inc. borrowed cash by issuing a $600,000, 6-year note that specified 6%…
A: solution given Face value $600000 Life 6 year Coupon rate 6% If interest to…
Q: On January 1, 2021, NOBLE Company sold goods in exchange for a P5,000,000, 1- year,…
A: Discount on notes = Face value of note x market rate of interest x no. of months/12 = P5000000 x 12%…
Q: On January 1, 2020, Jackie Company issued a note with a face amount of P5,000,000. The note carried…
A: SOLUTION- WORKING NOTES- 1- COMPUTATION OF FAIR VALUE OF NOTE AFTER MODIFICATION OF TERMS UNDER…
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A: Calculation of discount on note payable:
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A: Notes Payables: A liability account for notes payable is where a borrower records a written…
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Q: On January 1, 2020, Jackie Company issued a note with a face amount of P5,000,000. The note carried…
A: Working note: Computation of carrying amount of note payable on June 30, 2022:
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A: The notes receivable is an account in the balance sheet generally under the current assets if the…
Q: The following transactions transpired during the year for Teresa Company: • On January 1,2021,…
A: NOTE : As per BARTLEBY guidelines, when multiple questions are given, then first question is to be…
Q: On September 1, 2020, ABC Company borrows $40,000 on a 2-month note that charges an annual interest…
A: Maturity Amount = Amount Borrowed + Interest Rate
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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: How much is the noncurrent portion of the note on December 31, 2018?
A: The determination of non current portion of the note receivable is shown hereunder : Apple company…
Q: On December 31, 2020, Olaer Company received two P5,000,000 notes receivable from customers in…
A: financial statement is statement that shows the company financial information of company activities…
Q: n December 1, 2020, P Company assigned specific accounts receivable totaling P200,000 as collateral…
A: In the given situation, P Company takes a note payable of P150,000 by assigning collateral of…
Q: On December 31, 2021, MATARLO Company received two P1,000,000 notes receivable from customers in…
A: Interest rate = 3% Notes receivables = P 1000000 Interest = receivable at maturity Terms = 9 months…
Q: On September 1, 2019, Tange company borrowed on a P5,400,000 note payable from a bank. The note…
A: An interest bearing note represents funds loaned by a lender to a borrower, on which interest is…
Q: On June 1, 2021, Dirty Harry Co. borrowed cash by issuing a 6-month noninterest-bearing note with a…
A: Carrying value of note on June 1, 2021 is = Face/Maturity value of note - Discount on note
Q: 2024. Scenario B: The terms of the note were modified on June 30, 2022. The principal is reduced by…
A: Computation of amount of liability after modification of terms:
Q: On December 31, 2020, LILY Company received two ₱2,000,000 notes receivable from customers. On both…
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Q: On April 1, 2020, ABC Company discounted with recourse a 9-month, 10% note dated January 1, 2020…
A: The calculation of note interest and maturity value of note has been made as follows: Note…
Q: ecember 31, 2024. Scenario B: The terms of the note were modified on June 30, 2022. The principal…
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Q: On Dec 30, 2020 Fox purchased a machine from Grisley Corp in exchange for a zero-interest bearing…
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On July 1, 2020, Bae Inc. sold equipment to Beau Inc. for P250,000. Bae Inc. accepted a 10% note receivable of the entire sales price. This note is payable in 2 equal installments of P125,000 plus accrued interest on December 31, 2020, and December 31, 2021. On July 1, 2021, Bae Inc. discounted the note at a bank at an interest rate of 12%. How much was Bae’s proceeds from the discounted note?
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- On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9% U.S. Treasury notes for 194,000. The notes mature July 1, 2020, and pay interest semiannually on January 1 and July 1. The notes were sold on December 1, 2019, for 199,000. Aldrich normally uses straight-line amortization on all of its notes. In its income statement for the year ended December 31, 2019, what amount should Aldrich report as a gain on the sale of the available-for-sale security? a. 2,500 b. 3,500 c. 5,000 d. 6,000On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First National Bank, on which 16,651 of interest has accrued. On January 2, 2019, the bank agrees to restructure the note. It forgives the accrued interest, extends the repayment date to December 31, 2021, and reduces the interest rate to 10%. Required: Prepare a schedule for Northfield to compute the annual interest expense in regard to the preceding note for each year of the restructuring agreement.Spath Company borrows 75,000 by issuing a 4-year, noninterest-bearing note to a customer on January 1, 2019. In addition, Spath agrees to sell inventory to the customer at reduced prices over a 5-year period. Spaths incremental borrowing rate is 12%. The customer agrees to purchase an equal amount of inventory each year over the 5-year period so that a straight-line method of revenue recognition is appropriate. Required: Prepare the journal entries on Spaths books for 2019 and 2020. (Round answers to 2 decimal places.)
- Lime Co. incurs a $4,000 note with equal principal installment payments due for the next eight years. What is the amount of the current portion of the noncurrent note payable due in the second year? A. $800 B. $1,000 C. $500 D. nothing, since this is a noncurrent note payableChemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.
- Element Surfboards issued a $210,800 note on January 1, 2018 to a customer, Leona Marland, in exchange for merchandise. Terms of the note are 9-month maturity date on October 1, 2018 at a 10.2% annual interest rate. Leona Marland does not pay on her account and dishonors the note. On December 2, 2018, Element Surfboards decides to sell the dishonored note to a collection agency for 30% of its value. Record the journal entries for Element Surfboards for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on October 1, 2018 C. Receivable sale on December 2, 2018Hamlet Corporation purchases computer equipment at a price of 100,000 on January 1, 2019, paying 40,000 down and agreeing to pay the balance in three 20.000 annual instalments beginning December 31, 2019. It is not possible to value either the equipment or the 60,000 note directly; how-ever, Hamlet's incremental borrowing rate is 12%. Required: 1. Prepare a schedule to compute the interest expense and discount amortization on the note. 2. Prepare all the journal entries for Hamlet to record the issuance of the note, each annual interest expense, and the three annual installment payments.On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
- Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise. The merchandise had a cost to Resin Milling of $170,000. The terms of the note are 24-month maturity date on December 31, 2019 at a 5% annual interest rate. The customer does not pay on its account and dishonors the note. Record the journal entries for Resin Milling for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturityOn January 1, Kilgore Inc. accepts a 20,000 non-interest-bearing, 5-year note from Dieland Company for equipment. Neither the fair value of the note nor the equipment is determinable. Kilgore had originally purchased the equipment for 18,000, and the equipment has a book value of 14,000 on January 1. Kilgore knows Dielands incremental borrowing rate of 9%. Prepare the journal entry for Kilgore to record the sale of the equipment on January 1.Mystic Magic issued a $120,250 note on January 1, 2018 to a customer, Amy Arnold, in exchange for merchandise. Terms of the note are 9-month maturity date on October 1, 2018 at a 9.6% annual interest rate. Amy Arnold does not pay on her account and dishonors the note. On November 10, 2018, Mystic Magic decides to sell the dishonored note to a collection agency for 25% of its value. Record the journal entries for Mystic Magic for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on October 1, 2018 C. Receivable sale on November 10, 2018
