On April 19, 2018, Millipede Machinery sold a tractor to Thomas Hartwood, accepting a note promising payment of $120,000 in five years. The applicable effective interest rate is 7%. What amount of sales revenue wouldMillipede recognize on April 19, 2018, for the Hartwood transaction?

Q: Green Industries purchased a machine from Cyan Corporation on October 1, 2021. In payment for the…

A: Calculate the monthly interest rate.

Q: On January 1, 2021, Roy Company sold a machine with a cost of P500,000 and carrying value of…

A: Cumulative present value of 14% for 3 years = 2.322

Q: GAMAY Corporation sold a machine on July 1, 2021. The cash price of the machine is P79,000. The…

A: The answer is as fallows

Q: Lowlife Company defaulted on a $250,000 loan that was due on December 31, 2018. The bank has agreed…

A: Annuity: An annuity is referred as a sequence of payment of fixed amount of cash flows that occurs…

Q: On April 1, 2018, John Vaughn purchased appliances from the Acme Appliance Company for $1,200. In…

A: Given information is: On April 1, 2018, John Vaughn purchased appliances from the Acme Appliance…

Q: On December 31, 2019, Bart Company purchased a machine in exchange for a noninterest bearing note…

A: Note payable is the amount of loan or debt that is borrowed by the business, on which regular…

Q: On January 1, 2019, Northern Manufacturing Company bought a piece of equipment by signing a…

A: Fair value of equipment = Present value of installments       Quarterly installments $20,000.00…

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 April 19, 2021, Millipede Machinery sold a tractor to Thomas Hartwood, accepting a note promising…

A: Note receivable: Note receivable refers to a written promise received by the creditor from the…

Q: On April 1, 2021, John Vaughn purchased appliances from the Acme Appliance Company for $1,200. In…

A:

Q: On January 1, 2021, Hodge Beanery received $8,000 from the Kennedy Company in exchange for a coffee…

A: Meaning of Deferred Revenue Deferred Revenue refer as the advance revenue which the company will…

Q: On January 1, 2021, Hodge Beanery received $8,000 from the Kennedy Company in exchange for a coffee…

A: Since requirement is not given in the question, I am calculating deferred revenue to be recognized…

Q: On January 1, 2020, Happy Inc. sold a hot tub to Monica, receiving a two-year, noninterest-bearing…

A:

Q: On January 1, 2020, Billy Company sold equipment that originally cost $5,000,000 to Selecta Company.…

A: It is the amount of difference between the face value of the bond issued and the amount actually…

Q: VKS Bank loaned P5,000,000 to IntAcc1 Company on January 1, 2018. The terms of the loan require…

A: In order to determine the impairment loss, the present value of the loan is required to be…

Q: y 2, 2022, Toyota sold a car to Irish for P1,050,000. On this date, the car cost P735,000. Irish…

A: The the car are sold on the installment than the present value of these installments would be the…

Q: On December 31, 2019, Bart Company purchased a machine in exchange for a noninterest bearing note…

A: Note: Since you have posted a question with multiple sub-parts, we will solve first three subparts…

Q: On January 1, 2021, Nima Inc., a publicly traded company that follows IFRS, purchased a piece of…

A: Working note: Computation of initial recognition value of equipment:

Q: A) Brock purchases equipment that has a fair value of $50,000. Brock pays $10,000 as a downpayment,…

A: Fair Value of Equipment is $50,000 Downpayment is $10,000 Principal amount of note is $60,000 Annual…

Q: require an annual fee of 50,000 and an interest of 1% per month. On March 1, 2020, 3,000,000 is used…

A: Interest on remaining period on purchase value in credit line Purchase value = 30,00,000 used upto…

Q: On January 1,2021, Fiona Co. sold an office equipment with cost of ₱1,000,000 and accumulated…

A: 1) Calculation of gain on sale of equipment - Present value of note receivable = 2000000 x…

Q: On January 1, 2021, Nima Inc., a publicly traded company that follows IFRS, purchased a piece of…

A: Depreciation is used to decrease in value of fixed assets. depreciation is a permanent and…

Q: On January 1,2021, Josh Co. sold a machine to Groban Co. In lieu of cash payment, Groban gave josh a…

A: Depreciation: It is the gradual fall in the value of the asset due to its normal usage in the…

Q: On December 31, 2019, Speedo’s Limited bought a yacht for $55,000, but made a down payment of…

A: Given, Cost of yacht= $55,000 Down payment =$10,000 Balance amount =$55000 -$10000  Balance amount…

Q: On September 1, 2018, Speedy Lube signed a 30-year, $1,080,000 mortgage note payable to Jonstown…

A:

Q: On January 1,2021, Mickey Mouse Corporation sells a Furniture and Fixtures costing P2,500,000 and…

A: Present value of the note = Annual installment x Present value factor (10% x 3 years) = P300,000 x…

Q: On June 30, 2016, Kimberly Farms purchased custom-made harvesting equipment from a local producer.…

A: Determine the initial value of the equipment.

Q: On December 30, 2021, Jack company purchased an aircraft from Jill Co. in exchange for a noninterest…

A: Answer to Question: Cost of the Machine is the Present Value of Non Interest bearing Note…

Q: On January 1, 2019, ABC Company sold an equipment with carrying amount of P1,500,000. The customer…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: How much revenue does Hideki recognize on January 1, 2022?

A: Solution:- Given, On January 1, 2022 Hideki Matsuyama provides services in exchange for a $10,000…

Q: On January 1, 2020, Heavy Corporation that manufactures heavy equipment sold an equipment for…

A: In the instalments type of sale, the income is not recognized until full instalments are received…

Q: On January 1 2017, George Company purchased a new building.  George paid $25,000 as a down payment…

A: Here, Down Payment is $25,000 Yearly Payment is $55,000 Interest Rate is 4% Time Duration of Note is…

Q: On January 1, 2018, Jimbo Enterprises purchased new equipment for its training center.  The…

A: Following are the calculation of total interest expense will pay over the life of loan:

Q: In connection with this note, how much Jane Co. would pay at March 31, 2019?

A: Given information is: Jane's Donut Co. borrowed OMR 50,000 on March 1, 2018, and signed a one-year…

Q: On January 1, 2020, Pedro Company sold land that originally cost P400,000 to Buyer Company. As…

A: Answer -  Part 4 - Calculation of the correct carrying amount of the notes receivable at December…

Q: On January 1, 2020, Pedro Company sold land that originally cost P400,000 to Buyer Company. As…

A: Answer -  Part 1  - PV of consideration receivable (see computation b            503,105Carrying…

Q: On November 1, 2020, Slow Inc. purchased a delivery truck from DW Trucks, costing $94,000. However,…

A: When a fixed asset is purchased, then fixed asset account is debited and liability for payment is…

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: The Schitt Company borrowed $900 on January 1, 2020 at an annual rate of interest of eight percent.…

A: Interest Expense - Interest Expense is the amount payable on the borrowed money. It is the expense…

Q: On April 15, 2021, Sampson Consulting provides services to a customer for $110,000. To pay for the…

A: Journal Entry:   Journal entry has two effects for every transaction. The journal entry is passed by…

Q: Jem Riane Delos Reyes Bank granted a loan of P3,000,000 to a borrower on January 1, 2021. The terms…

A: given, loan amount = $3000,000 which is not paid for first two years.

Q: On April 1, 2021, John Vaughn purchased appliances from the Acme Appliance Company for $1,000. In…

A: Purchased Amount = $1,000 Time Period = 18 Months Annual Interest Rate = 24%

Q: Use the following information for the next two questions. Funan Industries purchases new…

A: PV of notes payable=Cash price-down payment =79000-10000=69000

Q: On January 1, 2020, Billy Company sold equipment that originally cost $5,000,000 to Selecta Company.…

A:

Q: On January 1, 2022 Hideki Matsuyama provides services in exchange for a $10,000 zero-interest…

A: Solution: Present value of note on Jan 1, 2022 = $10,000 * PV of 1 at 15% for 4 periods = $10,000 *…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.