On 30 April 2006, Pinto Products received a cash payment of $30,000 as a deposit on production of a custom machine to be delivered in August 2006. Th is transaction would most likely result in which of the following on 30 April 2006? C . An increase in liabilities of $30,000.
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On 30 April 2006, Pinto Products received a cash payment of $30,000 as a deposit on production of a custom machine to be delivered in August 2006. Th is transaction would most likely result in which of the following on 30 April 2006? C . An increase in liabilities of $30,000.
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- Whole Leaves wants to upgrade their equipment, and on January 24 the company takes out a loan from the bank in the amount of $310,000. The terms of the loan are 6.5% annual interest rate, payable in three months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on February 24, and the entry for payment of the short-term note and final interest payment on April 24. Round to the nearest cent if required.Tran Company acquired an equipment from a manufacturer on June 30, 2018 and signed a $540,000, 18 month interest-bearing note in exchange. The company is obligated to pay a total of $562,500 when the note matures. Determine accrued interest on December 31, 2018? C. $7,500 is the Answer. Please explain how you get to this answer and explain math computation thoroughly.On January 1, 2021, Wooten Technology Associates sold computer equipment to the Denison Company. Delivery was made on January 1, 2021, but payment for the equipment of $10,000 is not due until December 31, 2021. Assuming that Wooten views the time value of money to be a significant component of this transaction and that an 8% interest rate is applicable, how much sales revenue would Wooten recognize on January 1, 2021?
- Braxton Technologies, Inc., constructed a conveyor for A&G Warehousers that was completed and ready for useon January 1, 2018. A&G paid for the conveyor by issuing a $100,000, four-year note that specified 5% interestto be paid on December 31 of each year, and the note is to be repaid at the end of four years. The conveyor wascustom-built for A&G, so its cash price was unknown. By comparison with similar transactions it was determined that a reasonable interest rate was 10%.Required:1. Prepare the journal entry for A&G’s purchase of the conveyor on January 1, 2018.2. Prepare an amortization schedule for the four-year term of the note.3. Prepare the journal entry for A&G’s third interest payment on December 31, 2020.4. If A&G’s note had been an installment note to be paid in four equal payments at the end of each year beginning December 31, 2018, what would be the amount of each installment?5. Prepare an amortization schedule for the four-year term of the…Braxton Technologies, Inc., constructed a conveyor for A&G Warehousers that was completed and ready for use on January 1, 2016. A&G paid for the conveyor by issuing a $100,000, four-year note that specified 5% interest to be paid on December 31 of each year, and the note is to be repaid at the end of four years. The conveyor was custom-built for A&G, so its cash price was unknown. By comparison with similar transactions it was determined that a reasonable interest rate was 10%. Required: 1. Prepare the journal entry for A&G’s purchase of the conveyor on January 1, 2016. 2. Prepare an amortization schedule for the four-year term of the note. 3. Prepare the journal entry for A&G’s third interest payment on December 31, 2018. 4. If A&G’s note had been an installment note to be paid in four equal payments at the end of each year beginning December 31, 2016, what would be the amount of each installment? 5. Prepare an amortization schedule for the four-year term of…On January 1, 2021, Hodge Beanery received $8,000 from the Kennedy Company in exchange for a coffee roaster that it will deliver to Kennedy on December 31, 2021. Assuming that Hodge views the time value of money to be a significant component of this transaction, and that a 9% interest rate is applicable, how much deferred revenue would Hodge recognize on January 1, 2021?
- Transactions for 2021 were as follows: An new elevator system costing P800,000 was installed on the company’s Office Building and was completed in early January. On March 31, the company traded a new factory machinery with a cash price of P6M for one of its old Factory Machinery with an original cost of P4M. The trade-in value agreed upon on the old machinery was at P2.2M. The company paid the difference in cash. On September 1, a piece of office equipment was sold for P2M. The office equipment had an original cost of P3.2M. On October 31, a replacement office equipment was acquired on installment basis. A P500,000 down-payment was made plus a P3M note payable in three equal installments starting October 31, 2022. The interest rate appropriate for this transaction was ascertained at 10%. Installation and commissioning cost were incurred at P65,890. Estimated decommissioning cost upon retirement was also estimated at P101,302.What is the gain on sale of the office equipment on…The following transaction relate to Tool Company’s contingencies. The financial statements are dated December 31, 2023 and were issued on March 31, 2024. a. Tool’s products carry one –year warranty against manufacturer defects. Based on past experience, warranty costs are expected to be 4% of sales. Sales for 2023 were P2,000,000 and actual warranty cost incurred was P30,000. b. In December 2023, an NGO filed suit against Tool seeking penalties for violation of clean air laws. Tool’s counsel advised that is probable that the entity will lose the case and that the amount of penalty is P2,000,000. Appropriately, the entity recorded the liability. On January 15, 2024, Tools reached a settlement to pay P1,500,000 in penalty. c. Tools is the plaintiff in a P4,000,000 suit filed against a supplier. The attorney advised that it is probable that the entity will win the case and that the award is P2,500,000. On March 15, 2024, the court ruled in favor of Tools and received P2,000,000.…Dexter Company is preparing its financial statement for the year ended December 31, 2020. Accounts Payable amounted to P 1,200,000 before any necessary year-end adjustments related to the following: • At December 31, 2020, Dexter Company has P200,000 debit balance in its accounts payable to DEF, a supplier, resulting from a P 200,000 advance payment for goods to be manufactured to Dexter's specifications. . Checks in the amount of P300,000 were written to vendors and recorded on December 29, 2020. The checks were picked up on January 5, 2021 • Checks in the amount of P 150,000 were written to vendors and recorded on December 30, 2020. The checks were received by the vendors on December 31, 2020. What amount should Dexter Company report as accounts payable in its December 31, 2019 balance sheet?
- Lyle Company is preparing financial statements for the year ended December 31,2021.Accounts payable amounted to P360,000 before any necessary year-end adjustment related to the following:On December 31, 2021, Lyle has a P50,000 debit balance in accounts payable to Reese, a supplier, resulting from a P50.000 advance payment for goods to be manufactured.Checks in the amount of P100,000 were written to vendors and recorded on December 20, 2021. The checks were mailed on January 5, 2022.Goods shipped FOB shipping point on December 20, 2021 were received and recorded by Lyle on January 2, 2022. The invoice cost was P45,000.What amount should be reported as accounts payable on December 31, 2021? a. 555,000b. 455,000C. 310,000d. 460,000On 1 January 2011, Sherry Co. Ltd entered into a GH ¢ 11,000,000 contract for theconstruction of an office complex in Kumasi. The building was completed at the end ofDecember 2011. During the period, the following payments were made to thhecontractor:Payment date Amount (GH ¢’000)1 January 2011 1,00031 March 2011 3,00030 September 2011 6,00031 December 2011 1,00011,000Sherry’s borrowings as at its year end of 31 December 2011 were as follows: 10% 4-year Loan Note with simple interest payable annually, which relatesspecifically to the building project; debts outstanding at 31 December 2011amounted to GH ¢ 3,500,000. Interest of GH ¢ 350,000 was incurred on theseborrowings during the year, and interest income of GH ¢ 100,000 was earned onthese funds while they were held in anticipation of payments. 12.5% Five-year Loan Note with simple interest payable annually; debt outstandingat 1 January 2011 amounted to GH ¢ 5,000,000 and remained unchanged during theyear 10% Five year Loan Note…On April 1, 2028, A Company issued a P 9,000,000 non-interest-bearing note due March 31, 2031, for a piece of land with a cash price of P 6,949,800. Effective interest rate is 9%. Determine the interest expense for the year ended December 31, 2029? A company sells 3-year service contracts for air conditioning units for P1,500 each. Sales of service contracts and repairs are made evenly throughout each year. The company estimates that 15% of repairs are done in the first year from the date of sale, 35% in the second year and 50% in the third year. Service contracts sold in 2021, 2022 and 2023 were 1,400, 1,820 and 1,650, respectively. How much is the unearned revenue from service contracts as of December 31, 2024?