On January 1, 2017, Lombard Co. sells property forwhich it had paid $690,000 to Sargent Company, receivingin return Sargent’s zero-interest-bearing note for$1,000,000 payable in 5 years. What entry would Lombardmake to record the sale, assuming that Lombardfrequently sells similar items of property for a cash salesprice of $640,000?

Q: On January 1, 2010, WPK Co. sold a transportation equipment with a historical cost of P1,000,000 and…

A: Net cost of the equipment = Historical cost - Accumulated depreciation Present value of note = Face…

Q: On January 1, 2019, Erwan Company sold land to Heaven Company. There was no established market price…

A: Discount on Notes payable = Face value of Notes - present value of Notes = (P2,400,000- P1,989,600)…

Q: On January 1, 2019, Pag-asa Co. sold a machine to Estudyante Co.. In lieu of cash payment,…

A: Half Year Beginning Balance Interest @ 6.2% semi annually Installment paid Ending Balance…

Q: On January 1, 2021, Jungkook Company sold equipment at a cost of P700,000 and accumulated…

A: These decisions commit a firm to invest its current funds in the operating assets with the hope of…

Q: On January 1, 2021, Ree Company sold a machine to Say Company. In lieu of cash payment, Say gave Ree…

A: PRESENT VALUE FACTOR TABLE @10% Year PVF @10% 1 0.9091 2 0.8264 3 0.7513 4 0.6830 5…

Q: On January 1, 2021, Lorry Manufacturing Company purchased equipment from Wales Inc. There was no…

A: Lets understand the basics. When asset is purchased using zero interest bearing notes payable then…

Q: lbatross Corporation acquired land for investment purposes in 2005 at a cost of $100,000. Albatross…

A: Gross profit + selling price = Gross profit percentage i.e. $ 300, 000 ( gross profit ) ÷$ 400,000 (…

Q: On January 1, 2021, Suga Company sold an equipment to Jin Company which had a carrying value on…

A: Present value of note on January 1, 2021 = Face value of note x PV of an ordinary annuity of P1…

Q: On January 1, 2021, ABC Co. sold a transportation equipment with a historical cost of ₱1,000,000 and…

A: Present value of note receivable = Face value of note receivable x present value factor (12%, 4…

Q: On December 31, 2014, Swan Company sold for $150,000 an old machine having an original cost of…

A: Annuity: The fixed amount paid or received in equal time periods is referred to as annuity.

Q: On January 1, 2021, Bambam Company sold an equipment to Lucas Company which had a carrying value on…

A: A note receivable is an asset account linked to an underlying promissory note that specifies in…

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: what total amount of revenue (including interest) should Clark Inc. recognize from the construction…

A: Revenue can be defined as any sum of money received or to be received from the regular business…

Q: On January 1, 2019, Tabor Company sold land with a book value of $50,000 to Wilson Company,…

A: Part 1: Present value is calculated for the firm as: Present value=$60,000×0.797(PVT)=$47,820 Tabor…

Q: On January 1, 2017, Persephone Company sold a piece of transportation equipment with a historical…

A: Cost of equipment : P1,000,000 Accumulated depreciation : P300,000 Note receivable : P800,000 , 12%

Q: On January 1, 2020, ABC Company sold property to the DEF Company. There was no established exchange…

A: Total amount payable at December 31, 2021= annual installments x no. of annual installments =…

Q: On January 1, 2019, Sobiono company sold land to Gliezel company.  There were no established market…

A: As per PFRS 9  Financial instruments, Note payable will be considered as financial instrument as…

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 December 31, 2009, Mill Co. sold construction equipment to Drew, Inc. for P1,800,00. The…

A: Correct answer is P 250,000   Total amount of revenue should mill recognise from the construction…

Q: On January 1,2021, ABC Corporation purchased a land for P 15,000,000. In exchange of the land, ABC…

A: Carrying value of notes payable as of December 31, 2024 = Face value of Notes x Present value factor…

Q: On January 1, 2018, Sana Madali Lang Company sold machinery costing P5,000,000 with accumulate…

A: “Since you have asked multiple sub-parts, we will solve the first three sub-parts for you. If you…

Q: On January 1, 2020, CPA Corporation sold a piece of equipment that was acquired ten years ago for…

A: Solution: Fair value of equipment sold = Present value of non interest bearing note = P300,000 * PV…

Q: On January 1, 2020, VKS Corporation sold a piece of equipment that was acquired ten years ago for…

A: Net book value of equipment  sold = Purchase costs -  accumulated depreciation = P350,000 - 240,000…

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 January 1, 2020, Toot Company sold a piece of equipment costing P1,500,000 with accumulated…

A: Basic Accounting  Non Interest bearing note, Valuation and amortization

Q: On January 1, 2021, Suga Company sold an equipment to Jin Company which had a carrying value on…

A: Present value of note on January 1, 2021 = Face value of note x PV of an ordinary annuity of P1…

Q: On December 15, 2011, Rigsby Sales Co. sold a tract of land that cost $3,600,000 for $4,500,000.…

A: The correct option is Option “C”.   An installment receivables (net) of $3,200,000

Q: On January 1, 2008, Rex Co. sold a used machine to Lake, Inc. for P525,000. On this date, the…

A: This question deals with the installment sales method. In installment sales method, gross profit is…

Q: On January 1, 2017, Persephone Company sold a piece of transportation equipment with a historical…

A: solution given The equipment is sold for cash and non interest-bearing note receivable The cash…

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 2, 2009, Easy Pay Co. sold a plant to Menchie Co. for P1,500,000. On that date, the…

A: Sales Price of Plant=P1,500,000 Cost or carrying value=P1,000,000 Gross Profit=P500,000 Sales…

Q: On January 1, 2021, Ree Company sold a machine to Say Company. In lieu of cash payment, Say gave Ree…

A: Liabilities are the amounts which are owed by the organization at the date of the preparation of the…

Q: On January 1, 2021, J Company sold equipment at a cost of P700,000 and accumulated depreciation of…

A: A note or debt where there is no requirement to pay-off the interest on note is known as…

Q: Prepare an amortization table. Prepare all journal entries to record the transactions from January…

A: Year Opening balance Installment Interest Total Cash flow Closing balance 2020    60,00,000…

Q: Danica Corporation sold one of its buildings on January 1, 2007 for P20,000,000. Danica received a…

A: Notes receivable December 31, 2008, will include only the principal portion of the P3,957,000. The…

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: Ann Company sold one of its factories on January 1, 2020 for ₱7,000,000. The entity received a cash…

A: Carrying amount can be defined as the original cost of the asset after making adjustment of the…

Q: what total amount of revenue (including interest) should Clark Inc. recognize from the construction…

A: Revenue can be defined as any sum of money received or to be received from the regular business…

Q: On January 1, 2021, Gobert Company sold property to Beasley Company. There was no established…

A: Introduction: A journal entry is used to record a commercial transaction in the accounting records…

Q: Cubao Short Ribs Company sold a tract of land with carrying amount of $3,000,000 to Anonas Pot Corp.…

A: Formula: Notes receivable amount = Principal amount - Installment amount with interest.

Q: On December 31, 2021, Empoy Company has overdue notes payable of P5,000,000 with accrued interest of…

A:

Q: On December 31, 2021, Empoy Company has overdue notes payable of P5,000,000 with accrued interest of…

A: Debt means total liabilities to be paid by the company. Debt restructuring means modifying the terms…

Q: On January 1, 2021, ABC Company sold property to the DEF Company. There was no established exchange…

A: Answer- Total amount payable at December 31, 2021= annual installments x no. of annual installments…

Q: On January 1, 2021, Gee Company sold a machine with a cost of P500,000 and accumulated depreciation…

A: Note: Hi! Thank you for the question As per the honor code, We’ll answer the first question since…

Q: On January 1, 2019, Mar Co. sold a piece of equipment acquired ten years ago for P35,000. At the…

A: Solution: Fair value of equipment sold = Present value of note = P30,000 * PV of 1 at 12% for 2nd…

Q: In relation to this transaction, what is the total income to be recognized in Optimistic’s 2019…

A: Present value of the note is calculated as 300,000 / ((1.13^2.5) * (1.12^0.5)) = 208,841.1782 The…

Q: Smithfield Farms purchased a combine from John Deere for $175,000 on January 2, 2017. Smithfield…

A: Note Receivable:The financial asset that arises when one party promises in a documented way to the…

Q: On January 01, 2021, VKS Company sold equipment costing P760,000 with accumulated depreciation of…

A: Present value of the note on January 01, 2021 = Face value of the Note x PV factor (5%, 4 years) =…