land should recognize a gain on the partial settlement and restructure of the debt of

Q: Bramble Company owes $236,000 plus $21,500 of accrued interest to Sunland State Bank. The debt is a…

A: a. Prepare journal entries for Bramble Company and Sunland State Bank to record this debt…

Q: On January 1, 2020, the office of Everlasting Company was burned to ashes due to a fire incident.…

A: As we do not know about the date of issue of promissory note, we will calculate the present value of…

Q: On December 31, 2010, EEEE Company was indebted to AFE Company on a P2,000,000, 10% note. Only…

A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…

Q: Contina Co. owed Maunlad Bank a P3,000,000, three-year, 10% note payable dated January 1, 2012. The…

A: Restructuring in Notes Payable For the Restructuring of the Debt which are provided by the financial…

Q: On January 1, 2019, Pag-asa Co. sold a machine to Estudyante Co.. In lieu of cash payment,…

A: Half Year Beginning Balance Interest @ 6.2% semi annually Installment paid Ending Balance…

Q: On January 1, 2021, Jungkook Company sold equipment at a cost of P700,000 and accumulated…

A: These decisions commit a firm to invest its current funds in the operating assets with the hope of…

Q: On January 1, 2019, A Company purchased equipment. There was no established market price for the…

A: Interest expense is a non operating expense shown on the income statement. It represents interest…

Q: On December 31, 2010 a company was indebted to Creditor Co. on a P2,000,000 10% note. Only interest…

A: On 31.12.2010, 10% Notes payable = P2000000 Interest rate = 10% Interest amount per annum = P2000000…

Q: Ivanhoe Company owes $179,000 plus $15,800 of accrued interest to Shamrock State Bank. The debt is a…

A: Debt settlement: A way to settle the debt or resolve the debt by allowing the debtor to pay a lump…

Q: On January 1, 2021, ABC Co. sold a transportation equipment with a historical cost of ₱1,000,000 and…

A: Present value of note receivable = Face value of note receivable x present value factor (12%, 4…

Q: On January 1, 2019, VINX Corporation sold equipment costing P380,000 with accumulated depreciation…

A: Present value of note on January 1, 2019 = Face value of note x present value factor (1 at 10% for…

Q: On July 31, 2021, JUNGKOOK  Company borrowed from a bank via issuing a 13.2% note. Transaction costs…

A: Meaning of the note is that it is a legal document that acts as an IOU from the borrower to the…

Q: n interest rate of 8% and is to be repaid in three annual installments of P200,000 plus interest on…

A: From the given values, the interest revenue as,

Q: In 2X19, Land Corporation acquired land by paying P2,000,000 and signing a note with a face value of…

A: NOTE : As per BARTLEBY guidelines, when multiple sub parts are given then first three sub parts are…

Q: On January 1, 2020, Uniform Co. sold its 2-year old equipment to XYZ Inc. for a cash down-payment of…

A: Impairment is the loss of reduction of net realizable value of assets below the carrying value of…

Q: interest income

A: Interest income on note receivable = Value of note receivable * Rate of interest

Q: On July 27, 2011, Panda, Inc. sold goods to Small Company for P1,850,000 in exchange for a 4-year…

A: The notes receivables means a document in which the borrower issues a note to the lender that he…

Q: What amount should Columbia recognize in profit or loss for the year 2012 as a result of this…

A: The amount of profit or loss to be recognized on the loan would depend on the outstanding balance of…

Q: ABC Company is in financial difficulties and was not able to pay the 10% interest of P100,000 due on…

A: One of the source used by the business entities so as to raise the funds and meet the financial…

Q: On July 31, 2021, Sampaguita Company borrowed from a bank via issuing a 13.5% note. Transaction…

A: The interest expense is the charge against the profit or net income of the business. It is shown in…

Q: How much is the interest expense for 2020?

A: Interest expenses are those expenses which the company has to pay on amount which is outstanding and…

Q: Due to extreme financial difficulties, Armada Company has negotiated a restructuring of its 10%…

A: Calculation of total present value of new debt: = (Debt amount ×PVF @10%, 3 years) +(Debt…

Q: In 2X19, Land Corporation acquired land by paying P2,000,000 and signing a note with a face value of…

A: NOTE: As per BARTLEBY guidelines, when multiple sub parts are given then first three sub parts are…

Q: On January 1, 2020, Alpha Company issued a noninterest-bearing note for a piece of equipment…

A:

Q: On July 1, 2021, LIBAGO Company sold a machine costing P500,000 with accumulated depreciation of…

A: Profit or loss of the company is measured by preparing income statement which shows the difference…

Q: Extended the maturity to December 31, 2X23. • The P480,000 interest due on December 31, 2X21 was…

A: NOTE : As per BARTLE BY guidelines, when multiple sub parts are given then  the first three sub…

Q: At January 1, 2021, Transit Developments owed First City Bank Group $720,000, under an 9% note with…

A: Prepare the journal entries to record the restructuring of the debt by Transit Developments:…

Q: At January 1, 2016, Transit Developments owed First City Bank Group $600,000, under an 11% note with…

A: Prepare the journal entries to record the restructuring of the debt by Transit Developments

Q: On July 1, 2021, HAZELNUT Company acquired machinery worth ₱2,500,000 from PINE NUTS Corporation.…

A: SOLUTION- CURRENT LIABILITIES ARE AN ENTERPRISE'S OBLIGATIONS OR DEBT THAT ARE DUE WITH IN ONE YEAR…

Q: • On January 1, 2018, San Vicente Company sold equipment with a carrying amount of P3,200,000 to…

A: The current portion of loan term debt represents the amount that will be received within 12 months…

Q: On December 31 , 2018 Nicholas Co. is in financial difficulty and cannot pay a note due that day .…

A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: During 2021, PUMPKIN Company experienced financial difficulties and is likely to default on a…

A: Here in this question, we are required to calculate how much gain or loss should recorded on…

Q: On July 1, 2014, Mark Company acquired machinery worth P 2,500,000 from Julian Corporation. Terms of…

A: Note payable=Equipment value-Down payment=P 2,500,000-P 500,000=P 2,000,000

Q: Gatsby, Inc. owed $500,000 on account for inventory purchased on November 1, 2020. The company's…

A: Note payable is a financial instrument that creates a liability to a person signing it. It contains…

Q: On July 31, 2021, Sampaguita Company borrowed from a bank via issuing a 13.5% note. Transaction…

A: The interest expense is the charge against the profit or net income of the business. It is shown in…

Q: ABC Company has an outstanding receivable of P1,000,000 as of December 31, 2020. A test of…

A: Formula: Net relizable value of the Account receivable = Account receivable  -  Allowance for…

Q: On July 31, 2021, ABC Company borrowed from a bank via issuing a 13.2% note. Transaction costs of…

A: No expense in 2020 because no point related to the 2020 year. Where as in 2021 the interest expense…

Q: Gottlieb Co. owes $199,800 to Ceballos Inc. The debt is a 10-year, 11% note. Because Gottlieb Co. is…

A: a.

Q: January 1, 2019, Worthylake Company sold used machinery to Brown Company, accepting a $25,000,…

A: As per IFRS 16 Property plant and equipment Sale value of machine is the Present value of Note…

Q: On January 1, 2021, Hornets Company sold land that originally cost P400,000 to Egi Company. As…

A: Stated rate of interest & market rate of interest rate are same. Therefore Interest revenue for…

Q: On December 31, 2021, Empoy Company has overdue notes payable of P5,000,000 with accrued interest of…

A:

Q: On December 31, 2021, Empoy Company has overdue notes payable of P5,000,000 with accrued interest of…

A: Debt means total liabilities to be paid by the company. Debt restructuring means modifying the terms…

Q: On January 1, 2019, Mar Co. sold a piece of equipment acquired ten years ago for P35,000. At the…

A: Solution: Fair value of equipment sold = Present value of note = P30,000 * PV of 1 at 12% for 2nd…

Q: In relation to this transaction, what is the total income to be recognized in Optimistic’s 2019…

A: Present value of the note is calculated as 300,000 / ((1.13^2.5) * (1.12^0.5)) = 208,841.1782 The…

Q: On January 1, 2019, VWX Corporation sold equipment costing P380,000 with accumulated depreciation of…

A: Present value of note on January 1, 2019 = Face value of note x present value factor (1 at 10% for…

Q: On January 01, 2021, VKS Company sold equipment costing P760,000 with accumulated depreciation of…

A: Present value of the note on January 01, 2021 = Face value of the Note x PV factor (5%, 4 years) =…