On April 1, 2020, NYC Corporation secures a loan with a finance company, using its accounts receivable of $80,000 as collateral for the loan. NYC Corporation agrees to remit customer collections as payments on the loan. Loan proceeds are 85% of the receivables less a 2% finance charge on the balance of the assigned receivables. In addition, the finance company charges 10% interest on the unpaid loan balance, payable at the end of each month. Record the April 1, 2020, entry for NYC Corporation.

Q: On December 31, 2020, Coronado Company has $6,976,000 of short-term debt in the form of notes…

A: Balance Sheet includes: Assets accounts Liabilities accounts Capital accounts Assets accounts…

Q: At January 1, 2020, Student Ltd owes Tultion Corp for a $120,000 note payable. The note bears…

A: Restructuring in accounting refers to the process of significant changes in financial statements…

Q: On December 1, 2020, Lieza Mae assigned on a non notification basis accounts receivable of…

A: Current liability represents the obligation that has to be paid within a year.

Q: Solid Bank loaned P5,000,000 to a borrower on January 1, 2018 The terms of the loan require…

A: Calculation of carrying amount of loan as on 31 December 2021 - Year Instalments Interest Total…

Q: On April 1, 2020, Super Enterprises sold $750,000 of accounts receivable to Convenience Factors,…

A: Journal entries refers to the process of systematic documentation of the financial transactions of a…

Q: On October 1, 2020, Chung, Inc. assigns $1,000,000 of its accounts receivable to Seneca National…

A: Date Account Titles and Explanation Debit Credit October 1, 2020 Cash $730,000     Interest…

Q: On December 31, 2021, The Essence Finance Company had P5,000,000 note receivable from Galena…

A: When there are certain indications that the recoverable amount from the asset has been declined…

Q: On June 30, 2019, Franz Inc. borrowed P1,800,000 for one year from the bank with an interest of 12%.…

A: Bank charges = accounts receivable  x 8.46% = 2500000 x 8.46% = P211,500

Q: On December 31, 2020, Holmes Company has $7,000,000 of short-term debt in the form of notes payable…

A: Prepare partial balance sheet for Holmes Company at December 31, 2020.

Q: On April 1, 2020, Rasheed Company assigns $400,000 of its accounts receivable to the Third National…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: On February 10, 2021, after issuance of its financial statements for 2020, Ikli Company entered into…

A: Current liabilities: Liabilities that have to be paid within one year or one operating cycle,…

Q: On December 31, 2020, Culver Company has $7,051,000 of short-term debt in the form of notes payable…

A: The low range of expectation of payment in May 2021 would be multiplied with the permit it to borrow…

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 January 1, 2019, Makakaya Co. granted a five year loan to a borrower amounting to P6,000,000. The…

A: The impairment loss on the financial assets arises if the fair value of financial assets is lower…

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 June 30, 2019, Franz Inc. borrowed P1,800,000 for one year from the bank with an interest of 12%.…

A: Answer: correct answer is option C C. P 1,588,500; P 319,500

Q: Solid Bank loaned P5,000,000 to a borrower on January 1, 2018. The terms of the loan require…

A:

Q: On January 1, 2019, Zoom Bank provided a loan of P4,000,000 to D Company. Under the loan agreement,…

A: An impairment loss is the amount by which the carrying amount of an asset or a cash-generating unit…

Q: On January 1, 2021, Mickey Mouse Corporation borrowed P1,500,000 from Minnie Mouse Bank and issued a…

A: In the given question, Mickey Mouse Corporation bought P1,500,000 from Minnie Mouse Bank and issue…

Q: Solid Bank loaned P5,000,000 to a borrower on January 1, 2018. The terms of the loan require…

A: As per amortized cost method, the financial instrument is measured at fair value which is  increased…

Q: On April 1, 2020, ABC Corporation borrows $50,000 on a 6-month note that charges an annual interest…

A: Total cash paid on maturity = Face value of the Notes + Interest on Notes where, Interest on Notes =…

Q: At December 31, 2020, Kisu Company’s liabilities include the following:A. P10 million of 10% notes…

A: Current liabilities are the company's short term financial obligations which are due within one year…

Q: On February 10, 2012, after issuance of its financial statements for 2011, House Company entered…

A: Financial obligations that are projected to be paid off within a year are referred to as short-term…

Q: On December 31, 2020, Gibson Company has $18,200,000 of short-term debt in the form of notes payable…

A: Prepare partial balance sheet for Gibson Company at December 31, 2020.

Q: Upon January 1, 2020, Sally Corp. borrowed $360,000 from County Bank and signed a 15-year note…

A: It is simply a fee levied against the borrower for the use of an asset. Borrowed assets might…

Q: On April 1, 2020, Bonita Company assigns $533,000 of its accounts receivable to the Third National…

A: Finance Charge = Accounts receivable  x 3% = $533,000 x 3% = $15,990

Q: On October 31, 2021, COVID borrowed $400,000 at 11% interest and pledged $500,000 in accounts…

A: The loan is the amount a business organization borrows from any financial institution or any third…

Q: On December 31, 2020, Oriole Company has $6,941,000 of short-term debt in the form of notes payable…

A: Notes payable  that expected to be refinanced Minimum= 5949000×52% =$3093480 Maximum=7947000× 52%…

Q: DBC Company has received a confirmation letter from the First National Bank of Miami (FNBM) about a…

A: 1) Prepare a table calculating average used balance, interest rate applicable, interest on unused…

Q: Solid Bank loaned P5,000,000 to a borrower on January 1, 2018. The terms of the loan require…

A: Impairment loss is the amount by which the carrying value of asset exceeds its recoverable value.…

Q: On July 1, 2020, Jason Corporation pledged P5,000,000 of its accounts receivable to Philippine Bank…

A: Accounts Receivable Pledging:- It is the use of accounts receivable as collateral to secure loans…

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

Q: On January 1, 2021, Banco de Oro made a 1,000,000 8% loan with interest receivable at the end of…

A: Principal Repayment- A principal payment is an imbursement that goes toward the reimbursement of the…

Q: On June 1, 2008, Dara Corporation loaned Irvin P20,000,000 on a 12% note, payable in five annual…

A: Interest Receivables: When it comes to notes receivable, the interest rate is usually fixed, and the…

Q: On December 31, 2021, Roth Company issued a P1,000,000 face value note payable to Wake Company in…

A: Note payable -  A promissory note or a written agreement is what a note payable is. The creator of…

Q: On December 31, 2020, Culver Company has $7,051,000 of short-term debt in the form of notes payable…

A: Balance sheet is a financial statement which shows the position of a firm at a particular point of…

Q: On April 1, 2020, Bonita Company assigns $533,000 of its accounts receivable to the Third National…

A: journal entry for cash collected from accounts recievable =  cash account XX     To Accounts…

Q: Megabank granted an 8% 3-year loan to Global Company on January 1, 2018. The interest on the loan is…

A: Step 1 An amortized loan is a loan accounting over the tenure of loan subject to the cash flows over…

Q: On January 1, 2020, Apple, gave a loan to Samsung Nokia Inc. amounting to P1,000,000 and received a…

A: A should recognize $1200,000 as impairment losses for the current year in the statement of…

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: On December 31, 2023, JFG Company, a financing institution, lent P4,000,000 to MFG Company due 3…

A: Impairment Loss-:An Impairment Loss is a prominent reduction in the carrying amount of an investment…

Q: On August 1, 2021, Stucko Company borrowed $21,000 on an 8-month, 3%, short-term note payable. Which…

A: Interest expense on note = Amount borrowed x rate of interest x no. of month /12 = $21,000 x 3% x…

Q: On Jan. 1, 2021, XYZ Bank extended a 3-year P5,000,000 loan to ABC Corporation. The interest rate…

A: On 01.01.2021, XYZ bank extended 3 year loan = P5000000 to ABC corporation Interest rate = 7%…

Q: Trisha Company had a ₱2,400,000 note payable due June 30, 2021. On December 31, 2020, the entity…

A: Current liabilities are those dues and obligations which needs to be settled or paid in short period…

Q: On December 31, 2020, LILY Company received two ₱2,000,000 notes receivable from customers. On both…

A: Present value of first note = Present value of principal + Present value of interest payments = face…

Q: The following information are provided by Narra Company on its fiscal year ending October 31, 2020.…

A: Current liabilities refer to the amount of liability for which payment is due within a year or the…

Q: What is the total receivable related to the loan to ABC on Dec. 31, 2021?

A: Calculation of carrying amount of loan  Loan Amount 5,000,000 Direct origination costs…

Q: Eastwest Bank extended a 3-year $5,000,000 loan to Nick Company on January 1, 2020. The interest…

A: As per amortized method,  the transaction is recognized at transaction price less transaction cost…

Q: Prepare 2020 entries for Larkspur assuming that the warranties are not an integral part of the sale…

A: Sales of Rollomatic  = 600 × $5,800  = $3,480,000