of interest of 10%, The service revenue to be recognized for the year ended December 31, 2020 is A. 300,000 B. 273,953 C. 262,694 D. 247,920 23. The carrying amount of the note receivable as of December 31, 2021 is
Q: When a customer uses a credit card such as MasterCard or VISA to buy merchandise in a store, the…
A: Solution: When a customer pays for purchase using credit card, it is a cash sales for the seller as…
Q: On January 1, 2021
A: Assets are resources that are controlled which results from prior transactions that are expected to…
Q: The developing countries are usually characterized by _________. a. primary-product exports,…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: For each of the following situations, determine the amount of Producer Surplus generated a. Paul…
A: Paul lists his old iPod for sale on an online auction. He sets a minimum acceptable price, known as…
Q: STAR Company purchased 10,000 shares of MOON Corporation ordinary shares at P90 share on January 3,…
A: Here discuss about the details of dividend income and its accounting treatment which are received in…
Q: The financial statements of Kingbird Company appear below: KINGBIRD COMPANY Comparative Balance…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: 10- Kingeade Corporation keeps careful track of the time required to fill orders. Data concerning a…
A: Formula used: Manufacturing cycle efficiency = Process Time / Throughput Time
Q: The following are the relevant information about BOMM Company PPE and bonds payable at year end:…
A: Cash flow from investing activities: It is a section of the cash flow statement that shows the cash…
Q: 16. Use the following information for the next five (5) questions: Crusher Company reported the…
A: Here given the information which can be used to calculate the total Share capital which are incurred…
Q: Suppose Columbia Sportswear Company had accounts receivable of $277,236,000 at January 1, 2022, and…
A: Solution We are provided with the following information Sales revenue = $1,345,870,000 Beginning…
Q: 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 Series1 2016 32,446 2017 26,536 2018 27,581…
A: A cash flow statement shows the inflow or outflow of cash on account of operating activities,…
Q: If a wholesale company provides a discount to NetSolutions for early payment of purchases of…
A: Purchase discount is discount availed by purchaser on early payment of purchases of merchandise on…
Q: Marwick’s Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of…
A: Under contribution margin approach the costs are divided into variable and fixed costs .…
Q: In the foreclosure of there al property mortgaged in a contract of reale state mortgage, which of…
A: In the foreclosure of there all property mortgaged in a contract of real estate mortgage may…
Q: estions have been posed to you by clients for which your manager requires What is the difference…
A: Explanation of the concept IFRS- International Financial Reporting Standards are standards which…
Q: Garrison Co. produces three products - X, Y, and Z - from a joint process. Each product may be sold…
A: Joint cost means the cost incurred to produce more than one units and then joint cost need to be…
Q: Cost of goods sold is an operating expense. A.True B.False
A: Introduction:- Income statement shows company's income and expenses over a period of time. Formula…
Q: Danny owns an electronics outlet in Dallas. In 2021, he paid $620 to register for a four-day course…
A: A cost is a reduction in the asset's value as a result of its use to generate income. Depreciation…
Q: State the points of concern in your report to management with respect to the control issues and…
A: Auditing work is done by the auditors on the company’s financial statements in which all the things…
Q: In order to increase production capacity, Global Industries is considering replacement an existing…
A: Given: - Total cost of Machine= 160,000+30,000= 190,000 Useful life =5 year Tax rate= 40%
Q: On the Income Statement, what would the Gross Profit be for Lion Consulting? Lion Consulting…
A: Gross Profit = Sales - Cost of Merchandise Sold Total Administrative Expenses = Office Salaries…
Q: Q25 C Limited is a stock broking firm in the business of buying and selling shares on the JSE…
A: The amount that should be recorded as gain on fair value adjustment in the statement of profit or…
Q: e following statements are correct regarding interest component in the purchase price of bonds? (i)…
A: Explanation of Concept Bond is that debt instrument which is used by the organization to finance its…
Q: Expenses are the cost of providing goods and services and result in: A.increased assets or…
A: Expenses are the cost that involves the outflow of resources (assets), which means assets will be…
Q: 8) Salaries of $675 were paid in cash. The journal entry A) debit to Accounts Payable and a credit…
A: The journal entries are prepared to record day to day transactions of the business on regular basis…
Q: Following are the summarised Balance sheet of ABC Ltd.: Liabilities 2009 2010 Assets 2009 2010 $ $…
A: Ratio is the indicated quotient of two mathematical expressions and as the relationship between two…
Q: Why do you think fringe benefits are important enough to influence an employee's choice of employer…
A: Fringe Benefit: A fringe benefit is any non-wage payment or benefit that is provided to workers by…
Q: In the credit terms 1/10, n/30, what does the "1" represent? Group of answer choices number of days…
A: Solution Concept Meaning of term credit terms 1/10, n/30, It means that if the payment is made…
Q: There were following activities occurred during the first month of Babara Schmidt's new hair cutting…
A: Accounting Equation The accounting equation states that a company's total assets are equal to the…
Q: Part I A portion of the Stockholders' Equity section of Cailey Corporation's balance sheet as of…
A: Dividend means the amount given to shareholder of the company as profit distribution by company.…
Q: A company has purchases a new machine for $7,500, and the machine is expected to have a residual…
A: Formula : Depreciable cost = Asset cost - Salvage value. Deduction of Salvage vale from Asset value…
Q: How long will it take the car to be worth half its value?
A: Answer is B . 48 months Linear equation Y = mx+c Consider y is the value of car M is constant rate…
Q: PA2-3 (Algo) Part 4 4. Summarize the journal entry effects from part 3 using T-accounts. Use the…
A: Journal is a financial book in which all business transactions are recorded when they occur. All…
Q: The Waterston Group (WG) provides tax advice to multinational firms. WG charges clients for (a)…
A: Step 1 We have the following information: The WongGroup (WG) provides tax advice to multinational…
Q: of
A: Contribution margin The additional profit gained for each unit sold is calculated by subtracting the…
Q: Which of the following assets are required to be impaired every yea? (i) Goodwill acquired in a…
A: In simple words, an entity should not carry an asset in its books at an amount, higher than the…
Q: A. Find the employer's FICA deductions for each of the following employ B. Find the amounts of the…
A: This question is based on the real time interest rate for social security, Medicare and FUTA. Total…
Q: Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed…
A: A variable cost is one that varies according to the volume of output or the quantity of services…
Q: Aika wishes to set aside a total of P 60,000 as savings for the year 2022. She plans to deposit her…
A: Compound Interest is the interest earned on interest calculated on the initial principal and the…
Q: The following data were compiled prior to preparing the statement of financial position of Arms…
A: Share Premium: A share premium is the difference in price that is credited to a business between the…
Q: The management of Oriole Company is trying to decide whether it can increase its dividend. During…
A: Formula used: company’s free cash flow = Net cash provided by operating activities - Paid cash…
Q: On 1 January 2020, the company entered into a lease agreement for a production equipment which has a…
A: The Initial lease liability is the present value of all lease payments at the lease commencement…
Q: Question 1 Q.1.1 Study the extract from the statement of comprehensive income of Sandton Traders for…
A: Given, Operating expenses for the Year 2018 = R85,000 Operating expenses for the Year 2019 = R92,000…
Q: Case 1: No separate records are maintained a. Prepare the journal entries for transactions (a) to…
A: Journal Entries in the books of Joint Operation for the transaction (a) to (f) mentioned above:…
Q: Mr. Carlo had the following income during the year: Gross compensation income (including 13th month…
A: Gross income is the total earnings a person receives before paying for taxes and other deductions.…
Q: The following data were compiled prior to preparing the statement of financial position of Arms…
A: Contributed Capital: Contributed capital, also known as paid-in capital, refers to the cash and…
Q: A taxpayer received during the taxable year the following passive income derived from within the…
A: The income is the income earned without the use of time and labor of the taxpayer. Passive income…
Q: How is merchandise inventory classified on the balance sheet and what is its normal balance of…
A: Merchandise inventory is a current Asset as it is expected to be sold within 12 months from the…
Q: PB9, LO 5.2 Assuming the following Adjusted Trial Balance, create the Post-Closing Trial Balance…
A: Closing entry means the entries passed at the end of specified period where all the balances of…
Step by step
Solved in 2 steps with 2 images
- On 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.On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major customer in exchange for used equipment. The equipment had originally cost Park 200,000 and had a book value of 20,000 on the date of the sale. At the 12% imputed interest rate for this type of loan, the present value of the note is 25,500 on January 1, 2019. Park uses the effective interest rate. What is the carrying value of the note receivable on Parks December 31, 2019, balance sheet? a. 28,560 b. 29,000 c. 32,500 d. 36,000(Appendix 14.1)Pamlico Company has a 500,000, 15%, 3-year note dated January 1, 2019, payable to Forest National Bank. On December 31, 2020, the bank agreed to settle the note and unpaid interest of 75,000 for 50,000 cash and marketable securities having a current market value of 375,000. Pamlicos acquisition cost of the securities is 385,000. Ignoring income taxes, what amount should Pamlico report as a gain from the debt restructuring on its 2020 income statement? a. 65,000 b. 75,000 c. 140,000 d. 150,000
- On December 31,2021, LBJ company finished consultation services and accepted in exchange a promissory note with a face value of P200,000, a due date of December 31,2024 and a started rate of 5%, with interest receivable at the end of the each year. The fair value of the service 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%. What is the amortized cost of the note on December 31,2022? P 175,131 P182,645 P190,909 P200,000On January 1, 2023, Green Company finished consultation services and accepted in exchange a promissory note with a face value of $600,000, a due date of January 1, 2026, and a stated rate of 4%, with interest receivable at the beginning of each year (the first interest will be received on January 1, 2024). The fair value of the services is not easily determined and the note is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 10%. The company has a fiscal year-end of December 31. Required: a) Calculate the present value of the note, using a financial calculator. b) Prepare a Schedule of Note Discount Amortization for Green Company under the effective interest method. (Round to whole dollars) c) Prepare the journal entries for 2023. Plz answer fast i give up voteSOSKE Company finished consultation services and accepted in exchange a promissory note with a face value of P200,000, a due date of December 31, 2020, 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%. The following interest factors are provided: Interest Rate Table Factors for Three Period 5% 10% Future value of 1 1.15763 1.33100 Present value of 1 0.86384 0.75132 Future value of ordinary 3.15250 3.31000 annuity of 1 Present value of ordinary 2.72325…
- 655. On December 31, 2010, Green Company finished consultation services and accepted inexchange a promissory note with a face value of P300,000, a due date of December 31, 2013,and a stated rate of 5%, with interest receivable at the end of each year. The fair value of theservices 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%The carrying amount of the note receivable as of December 31, 2020 isa. 262,694b. 247,920c. 300,000d. 273,953On January 2, 2020, Magsaysay Company sold equipment with a carrying amount of P400,000 in exchange for a P600,000 4-year non-interest-bearing note due January 2, 2024. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type at January 2, 2020 was 10%. What is the carrying value of the note receivable as of December 31, 2022 Statement of Financial Position? * The answer is 545454.55. Explain how you arrived at the answer.On January 2, 2019, Anne Inc. sold equipment which has a carrying amount of $400,000 in exchange for a $600,000 4-year non-interest-bearing note that will be due on January 2, 2023. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type on January 2, 2019 was 10%. What should be recorded as the carrying value of the note receivable as of December 31, 2021 balance sheet?
- On January 1, 2020, Akin Company sold equipment with a carrying amount of P4,800,000 in exchange for a P6,000,000 noninterest-bearing note due January 1, 2023. There was no established exchange price for the equipment. The prevailing rate of interest for a similar note was 10%. The present value of 1 at 10% for three periods is 0.75. 1. What amount should be reported as interest income for 2020? a. 600,000 b. 500,000 c. 450,000 d. 400,000 2. What amount should be reported as gain or loss on sale of equipment for 2020? a. 1,200,000 gain b. 2,700,000 gain c. 300,000 gain d. 300,000 loss10. On January 1, 2020, ABC Co. sold a transportation equipment with a historical cost of P1,000,000 and accumulated depreciation of P300,000 in exchange for cash of P100,000 and a noninterest-bearing note receivable of P800,000 due on January 1, 2023. The prevailing rate of interest for this type of note is 12%. How much is the carrying amount of the receivable on December 31, 2021?a. 800,000 b. 569,424c. 714,286d. 637,755 11. Present value isa. the value now of a future amount.b. the amount that must be invested now to produce a known future value.c. always smaller than the future value.d. all of these. 12. A higher interest rate results toa. increased amount of present value.b. decreased amount of present value.c. same amount of present value.d. Answer cannot be determined due to insufficient data PLEASE ANSWER IMMEDIATELYOn January 2, 2020, Tamarisk Inc. sells goods to Carla Vista Company in exchange for a zero-interest-bearing note with a face value of $7,920, with payment due in 12 months. The fair value of the goods at the date of sale is $7,200 (cost $6,500). Assume that the company chooses to reflect the interest component. How much total revenue should be recognized in 2020? determine the interest rate that will be earned by Tamarisk.