On December 31, 2019, Bart Company purchased a machine in exchange for a noninterest bearing note requiring eight payments 0 P200,000. The first payment was made on December 31, 2019 and the others are due annually on December 31. At date of issuance, the prevailing rate of interest for this type of note. was 11%. The present value of an ordinary annuity of 1 at 11% for 8 periods is 5.146 and the present value of an annuity of 1 in advance at 11% for 8 periods is 5.712   What is the carrying amount of note payable on December 31, 2020?

Q: On December 31, 2017, Park Company sold used equipment with carrying amount of P2,000,000 in…

A: The note requires ten equal payments of P500,000 for the next 10 year. The first annual payment is…

Q: Persevere Company is a dealer in equipment. On December 31, 2020, the entity sold an equipment in…

A: Present Value of Notes Receivable = P500,000 x 3.99…

Q: On July 1, 2019, Lp Manufacturing Co. issued a five-year note payable with a face amount of P250,000…

A: The current liabilities section would include the maturity payment of $50000 and the interest…

Q: On January 1, 2020, Toto Company sold goods to Snow Company. Snow signed a noninterest-bearing note…

A: SOLUTION- THE PRESENT VALUE FACTOR IS USED TO DETERMINE THE WORTH OF THE AMOUNT OF MONEY RECEIVABLE…

Q: On Jan 1, 2021, XYZ Co. sold a machine in exchange for a P1500,000, non-interest-bearing note…

A: Carrying amount of the Note = face value of the non-interest-bearing note x Present value factor…

Q: Fame Company has an 8% note receivable dated June 30, 2019 in the original amount of P 1,500,000.…

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…

Q: Persever Company is a dealer in equipment. On December 21, 2021, the enitity sold an equipment in…

A: Annual payment of note = P500,000 Period = 5 years Total annual payments = P500,000*5 = P2,500,000…

Q: On december 31, 2020, Precious Company sold an equipment with carrying amount of 2,000,000 and…

A: The present value of the annuity factor is used when there is an equal series of cash flows and the…

Q: On December 31, 2020, Precious Company sold an equipment with carrying amount of P2,000,000 and…

A: Present value: It is the value of investment that will be worth more than in future.

Q: April 1, 2021, ABC CO. issued a 9% interest bearing note with a face amount of P 30,000,000 for the…

A: Equated principal payments over 5 year period = P30, 000,000/5 =P6000, 000

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, Pindang Co. received a P1,000,000, noninterest bearing note in exchange land…

A: The note receivable can be referred to as a contractual note which specifies an amount to be…

Q: January 1, 2018, Cursor Company sold goods to Matrix Company. Matrix signed a non-interest bearing…

A: Amortized cost: It is the accumulated cost in which expenses have been adjusted.

Q: On June 30, 2019, BM Corporation issued a five-year note payable with a face amount of P1,000,000…

A: Accrued interest on December 31,2020 = (face value of note -  annual payment made on June 30, 2020)…

Q: On July 1, 2019, GAH Company sold equipment to Babe Company for P2,000,000. GAH accepted a 10% note…

A: Net Proceeds = Value of note receivable less discount  Discount = ( Value of note ) * Discount rate…

Q: On December 31, 2021, Chang Company sold a machihe in the ordinary course of business to Door…

A: Present value means the actual amount is adjusted with the interest rate so as to get the present…

Q: On January 1, 2020, Hamid Company sold goods to Khaled Company. Khaled signed a noninterest-bearing…

A: Present value of amount to be receved on January 1, 2020 = Intial payment + Annual payment x PV of…

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: What is the unearned interest income on January 1, 2021?

A: Investment: It is a monetary asset purchased with the idea that the asset will provide income in the…

Q: On December 31, 2021, Bart Company purchased a machine from fell company in exchange for a…

A: Calculation of Initial Cost of Machine:- Annual Installment x PV of Annuity in Advance:- 200,000 x…

Q: On January 1, 2020, Jackie Company issued a note with a face amount of P5,000,000. The note carried…

A: Working note: Computation of carrying amount of note payable on June 30, 2022:

Q: On January 1, 2020, Jackie Company issued a note with a face amount of P5,000,000. The note carried…

A: When a creditor defaults in the payments of principal as well as interest, then debtor allows him to…

Q: RED Corporation

A: Current liabilities square measure a company's short-run money obligations that square measure due…

Q: On January 1, 2021, Jin Company sold equipment at a cost of P400,000           The consideration is…

A: Unearned interest income on January 1, 2021 = Total annual payments - Present value of notes

Q: On January 1, 2020, Jackie Company issued a note with a face amount of P5,000,000. The note carried…

A: solution

Q: On January 1, 2020, Jackie Company issued a note with a face amount of P5,000,000. The note carried…

A: Working note: Computation of carrying value of note payable on June 30, 2022 before modification of…

Q: On April 1, 2021, ABC CO. issued a 9% interest bearing note with a face amount of P 30,000,000 for…

A: It is pertinent to note that non-current liabilities are those obligations that need to be paid…

Q: oninterest bearing note requiring five annual payments of P500,000. The first payment was made on…

A: A noninterest bearing note is the one that does not carry any interest component but is transacted…

Q: On July 1, 2020, KOLA Corporation issued a five-year note payable with a face value of ₱250,000 and…

A: Current liabilities represent the obligation that has to be paid within a year.

Q: On July 1, 2019, Lp Manufacturing Co. issued a five-year note payable with a face amount of P250,000…

A: Interest accrued on December 31, 2019 = Face value of note x rate of interest x no. of months/12 =…

Q: On January 1, 2020, Jackie Company issued a note with a face amount of P5,000,000. The note carried…

A: SOLUTION-   WORKING NOTES- 1- COMPUTATION OF FAIR VALUE OF NOTE AFTER MODIFICATION OF TERMS UNDER…

Q: a dealer in equipment. On December 21, 2021, the enitity sold an equipment in exchange for a…

A: The carrying value is the present value of annual installments that are to be paid in the future.

Q: On January 1, 2021, Mahogany Company issued a note with a face amount of P2,000,000. The note…

A: Issue price of the Notes = Present value of principal + Present value of interest payments = face…

Q: On January 1, 2019, Love Co. sold merchandise to Kit Store in exchange for a non-interest bearing…

A: Value of notes receivable as of January 1, 2019 = Annual payment x PVIAF (8%, 10 years) = P100,000 x…

Q: Solar Co. sold a machine in exchange for a P00.000, 4-year, 5% note, interest is payable annually.…

A: The question is based on the concept of Financial Management.

Q: current liabilities section

A: The first annual payment of P200,000 is made on June 30, 2020. The balance of note payable will be…

Q: Hot issue company sold its machine with a carrying amount of P2,000,000 in exchange for 2,500,000…

A: Solution: Let us assume that date of sale of machine is Jan 1, 2021. Sale value of machine = Present…

Q: XYZ Company is a dealer of equipment. On January 1 2020, the entity sold an equipment in exchange…

A: Given: Sold the equipment in exchange for non-interest bearing note requiring three annual payments…

Q: On January 1, 2020, Jackie Company issued a note with a face amount of P5,000,000. The note carried…

A: Working note:  Computation of fair value of note after the modification of terms under Scenario A:…

Q: On January 1, 2021, The Corporation sold goods to Adobo Company. Adobo signed a noninterest-bearing…

A: Carrying amount of the note receivable on January 1, 2021 = Amount payable on January 1, 2021 +…

Q: On January 1, 2019, a company acquired transportation equipment by paying cash of P400,000 and…

A: calculation of installment value of note Payable= P 4000000 PV of payment=  4000000*3.037349 = P…

Q: XYZ Company is a dealer of equipment. On January 1 2020, the entity sold an equipment in exchange…

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

Q: On December 31, 2021, Bart Company purchased a machine in exchange for a noninterest bearing note…

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

Q: On June 1, 2021, Dirty Harry Co. borrowed cash by issuing a 6-month noninterest-bearing note with a…

A: Carrying value of note on June 1, 2021 is = Face/Maturity value of note - Discount on note

Q: On December 30, 2005, Bart, Inc. purchased a machine from Fell Corp. in exchange for a non-interest…

A: Present Value of Note = Annual Payment * The present value of the annuity in advance of 1 at 11% (…

Q: ecember 31, 2024. Scenario B: The terms of the note were modified on June 30, 2022. The principal…

A: Working note: Computation of carrying value of note payable on June 30, 2022 before modification of…

Q: LINDT Corporation manufactures and sells electrical generators. On May 31, 2020, it sold an…

A: Equal annual installment on note = 900,000/3 = 300,000 Present value of note = 300,000 * Cumulative…

Q: On December 30, 2021, JALINON Company sold a machine to GONZALES Company in exchange for a…

A: The notes receivable is an account in the balance sheet generally under the current assets if the…

Q: On July 1, 2019, Kay Company sold equipment to Mando Company for P 1,000,000. Kay accepted a 10%…

A: Total interest for the year 2020 = Principal outstanding on December 31, 2019 x interest rate x no.…