On December 31, 2020, ABC Co. purchased a machine under a deferred payment contract where it is required to make 8 annual payments of P140,000 beginning December 31, 2021. IF interest rate is 8%, the purchase price of the machine must be closest to *   P1,389,190 P1,120,000 P 868,900 P804,530

Q: On January 1, 2021, QuickStream Communications leased telephone equipment from Digium, Inc. Digium’s…

A:

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, 2020, Sarasota Company contracts to lease equipment for 5 years, agreeing to make a…

A: Lease: It’s just a kind of loan when the investor shall be invested in the big amount in the company…

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: 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, Kimchi jjigae Inc. leased a machine by signing a four-year lease contract.…

A: As lease period is 4 years and lease contains bargain purchase option, therefore lease should be…

Q: Use the following information to answer the next 2 questions: On January 1, 2020, Aggie Company…

A: Present value interest factor of an annuity (PVIAF) is used for calculation of present value of a…

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 December 31, 2020, ABC Co. purchased a machine under a deferred payment contract where it is…

A: Present value of future payment can be calculated by applying the appropriate rate of interest or…

Q: On December 31,2019, ABC Company leased equipment to DEF Company for a 4 year period ending December…

A: Lease:  Lease refers to an agreement where the Lessor permit to use of the asset to Lessee in return…

Q: On August 1, 2021, DASHER Company leased a machine to SANTA Company for a 6-year period requiring…

A: Solution:  At the inception of the lease, gross lease receivable account balance be = Present value…

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: Crosley Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020. The…

A: a.Compute the amount of the lease receivable.

Q: Blue Inc. has decided to purchase equipment from Central industries on January 2, 2022, to expand…

A: The non interest bearing note issued for the purchase of equipment will be recorded at face value…

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: Sweet Corporation purchased a computer on December 31, 2019, for $140,700, paying $40,200 down and…

A: Here discuss about the purchase of equipment which are first to paid the down payment of certain…

Q: Teari Company purchased a machine on September 1, 2021. The purchase agreement required Teari to pay…

A: Calculation of Fair value of machinery on September 1, 2021 is as follows: Resultant table:

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

A: Notes Payable: In the financial world, notes payable are short-term obligations that represent the…

Q: Kizaru Company leased equipment to Fujitora Company on January 1, 2020 for an eight-year period…

A: Lease liability is recognized at cash selling price and the ROU asset is the sum of lease liability…

Q: On December 31, 2020,  Company sold a machine in the ordinary course of business to Space-X  Company…

A: Annuity refers to series of equalized payments that are either made start or end of specific…

Q: Blue Inc. has decided to purchase equipment from Central industries on January 2, 2022, to expand…

A: Solution: Present value of note = $162,000 * PVA of $1 at 11% for 5 periods = $162,000 * 3.69590 =…

Q: On May 1, 2022, Cuba Company purchased factory machinery having an installment price of P4,000,000.…

A: Cash price of equipment = Down payment + Present value of installments = P1,000,000 + (P4,000,000 -…

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

A: Fair Value of Bonds = Present Value of Future Cash flows relating to bond @ market rate

Q: On January 1, 2022, Cage Company contracts to lease equipment for 5 years, agreeing to make a…

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

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

A: A note payable is indeed a promissory note that has been drafted. A borrower borrows a particular…

Q: On February 5, 2020, Diamond Company purchased a new machine on a deferred payment basis. A down…

A: Solution: Capitalized cost of machine = Cash equivalent price of machine + Installation cost

Q: Novak Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2020, to…

A: Here in this question, we are required to make journal entry for purchase of asset. When purchase of…

Q: On January 1, 2020, Vaughn Manufacturing borrows $ 3150000 from National Bank at 12% annual…

A: Computation of Cash inflow and outflow On borrowing 315000, Company has to pay interest of (315000 x…

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: Chippewas Inc. has decided to purchase equipment from Central Michigan Industries on January 2,…

A: Chippewas issues $ 800000 market interest rate = 12% installments = 5 each installment = 160000…

Q: Telephone Limited signed a contract with Machinery Leasing Company at 1st January 2020 to lease a…

A: Telephone Limited signed a contract with Machinery Leasing Company at 1st January 2020 to lease a…

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

A: Total Amount of Notes Payable, including Accrued Interest - P7,253,656

Q: On January 1, 2020, sold a machinery and immediately leases it back for a period of 4 years.…

A:

Q: On February 5, 2020, Diamond Company purchased a new machine on a deferred payment basis. A down…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: The Moustache Company is replacing most of the windows in its Alden factory by purchasing them under…

A: Interest expense for 2019 = face value of notes x rate of interest x period = $37,908,000 x 10% =…

Q: cost of the machine.

A: Asset recognition refers to the expenditure that results in the economic benefits flow to the…

Q: 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed…

A: Down payment=15000 Annual cash outflows=7000

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

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: On February 5, 2020, Diamond Company purchased a new machine on a deferred payment basis. A down…

A: Fixed assets means the asset which is used by company for many years to come for the purpose of…

Q: Begin Again Company sold an equipment with carrying amount of P2,000,000 and received a…

A: Carrying amount of the note receivable on December 31, 2020 = Present value of the note where,…

Q: On September 1, 2021, Confused Company purchased a machine. The purchase agreement required Confuse…

A: Fair value of future payments can be calculated by using present value rates. If the payment is…

Q: n December 31, 2020, Company sold a machine in the ordinary course of business to Space-X Company in…

A: Amount of sales revenue can be computed by calculating Present vale of annuity with the help 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: Notes Parables: Notice the image for Notes Payable: Notes payable are long-term obligations that…

Q: On December 31, 2020, Sun Company sold a machine in the ordinary course of business to Space-X…

A: The annuity is a series of equal payments or receipts that lasting for a specific period of time at…

Q: The lessor company signs a lease agreement on December 31, 2020 to lease equipment to the lessee…

A: Given: The Time period of lease is 8 years Rental payment at the end of each year is $87000 (From…

Q: On Dec. 31, 2020, Boss Company purchased a machine from Len Company in exchange for a noninterest…

A: Note means an instrument issued by company acknowledging the debt due from company to bond holder.…

Q: : How much is the interest expense for 2021? QUESTION 2: How much is the gain or loss on partial…

A: 1. If only 1 floor is rented - The annual lease payments will be reduced to P400,000 - The…

Q: In August 2021, Commonlo Corp. commits to selling 100 of its merchandise to M&H Co. for P30,000…

A: SOLUTION INITIAL CONTRACT AMOUNT =30000 MODIFICATION IN CONTRACT =21600 TOTAL CONTRACT AMOUNT AFTER…

Q: PRAISEWORTHY Company is a dealer in equipment. On January 1, 2020, PRAISEWORTHY Company sold an…

A: Present value of note = face value of note x PV of 1 at 8% for 5 periods = P3500000 x 0.68 =…

Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.