On January 1, 2020, Company A issued 10% bearing note payable in ten semi-annual instalments every June 30 and December 31 starting June 30, 2020; P 5,0000,000. The market interest rate for this type of transaction is 12%. Get: Present Value/ Carrying Value Beg. Carrying Value December 31, 2022

On January 1, 2020, Company A issued 10% bearing note payable in ten semi-annual instalments every June 30 and December 31 starting June 30, 2020; P 5,0000,000. The market interest rate for this type of transaction is 12%. Get: Present Value/ Carrying Value Beg. Carrying Value December 31, 2022

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 11E

See similar textbooks

Related questions

Q: On January 1, 2019, the Philippines Inc. issued P3,000,000, 12% promissory note for an equipment…

A: Carrying amount of the note payable on December 31, 2019 = Present value of principal + Present…

Q: On January 1, 2020 West Co. exchanged equipment for an $800,000 non-interest-bearing note due on…

A: The income statement is prepared to record all the revenues and expenses of the current period and…

Q: At the end of 2020, the business has a notes payable with maturity value of TL18.000. The maturity…

A: Notes payable can be defined as the promissory note that is issued in behalf of the payment with the…

Q: On January 1, 2020, the India Inc. issued P3,000,000, 13% promissory note for an equipment…

A: The carry value will be the interest plus present value of note.

Q: On January 1, 2020, Smith Company signed a five-year Note for the acquisition of equipment. Annual…

A: As the payments are made at the end of the year i.e. December 31,2020, we will use present value of…

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: . 2022, Clark Co. received a P3,000,000, 10% note from a customer upon baid in six equal semi-annual…

A: The time value of money implies that a sum of money is worth more now than the same sum that it will…

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: McCormick Corporation issued a 4-year, $40,000, 5% note to Greenbush Company on January 1, 2020, and…

A: Given: Note payable - 40,000 Due period - 4 years Stated interest rate - 5% Market interest rate -…

Q: Cheyenne Corporation issued a 4-year, $31,000, 4% note to Greenbush Company on January 1, 2020, and…

A: Date Accounts title and explanation Debit Credit Calculations 1-Jan-20 Computer $24,268…

Q: Entei Bank granted a P5,000,000 loan to Raikou Company on January 1, 2020. The annual interest on…

A: Here in this question we are required to find out the total interest income to be presented on the…

Q: A debt of P20, 000 is due on December 1, 2020. What was the value of this debt on December 1, 2018…

A: The amount that is borrowed by the company from financial institutions, banks, or by issuing the…

Q: On January 1, 2020, Company A issued 18% bearing note payable in ten semi-annual instalments every…

A: Data given: Issue at 01/01/2020 Interest rate = 18% (semi-annually ) = 18%/2= 9% Face value =…

Q: on June 8th Alton Co issued an $70620 11% 120 Day note payable to seller Co. Assuming a 360 day year…

A: Interest on Note = Face value of Note x rate of interest x No. of days /360 days =…

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

A: Accrued Interest ( From July 1 to December 31 ) = ₱250,000 x 10% x 612 = ₱12,500

Q: On April 1, 2019, Char Company borrowed P5,000,000 and signed a 2-year note bearing interest at 12%…

A: Interest accrued for April 1, 2019 to March 31, 2020 = Amount borrowed x rate of interest x no. of…

Q: A debt of P20, 000 is due on December 1, 2020. What was the value of this debt on December 1, 2018…

A: Time value of money (TVM) refers to the concept which proves that the value of money today is higher…

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 March 1, 2020, LINGATONG Company has received a P10,000, two year note bearing interest at 12%…

A: Lingatong Company Receive P10,000 Accrued Interest Receivable at 31st Dec,2021 is Interest Expense…

Q: On December 31, 2021, Precious Company sold an equipment with carrying amount of P2,000,000 and…

A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

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: A debt of P20, 000 is due on December 1, 2020. What was the value of this debt on December 1, 2018…

A: The value of debt on Dec 1, 2018 is calculated as present value of debt.

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: /1/2018, Jambo Group makes a loa to Marie Co. and receives in exchange a five-year, $50,000 note…

A: Interest revenue that will be recognized can be computed as follows:

Q: A debt of P20, 000 is due on December 1, 2020. What was the value of this debt on December 1, 2018…

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

Q: Sammy Company, a calendar-year company, has a 6% note receivable dated November 1, 2020 in the…

A: Answer) In the given question, the company had note receivable of P 3,000,000 on November 1, 2020…

Q: On January 1, 2019 Leroy Inc. signed a 3 year loan for $80,000 with interest rate of 10%. The loan…

A: Annual instalment = Amount borrowed / Present value annuity factor (10%, 3 years) = $80,000 /…

Q: Company AAA borrowed P1,000,000 on July 1, 2021 and issued a 9% one-year note payable every after…

A: Note payable is one of the liability of the business, on which regular interest payments needs to be…

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: a seven-year note for $2800.00 issued on october 1,2015, with interest at 5.7% compounded annually…

A: Given that, Present Value of the note(PV)=$2800 Rate of interest(i)=5.7% or 0.057 Duration of the…

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, a company issued a $30,000 three-year, 4% note payable, repayable in 12…

A: Notes Payable The purpose of taking the Notes payable to the firm to generate adequate liquidity in…

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

A: Present Value Factor = 1(1+i)n where, i= market rate n= period

Q: A 5-year promissory note for $B200 issued on September 15, 2018, with interest at 6.5% compounded…

A: FORMULA FOR PROMISSORY NOTE: P=M1+RT M=MATURITY VALUE RRATE T=TIME

Q: FDN Trading received the following promissory notes from various customers during 2020 in the course…

A: Sales is the proceeds received from the sale of goods and services in the business. The sales amount…

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 June 8, Williams Company issued an $74,068, 8%, 120-day note payable to Brown Industries.…

A: Maturity value of note = issue price + interest accrued over term (for 120 days)

Q: . FDN Trading received the following promissory notes from various customers during 2020 in the…

A: Answer: As per Q/A guideline, first question has been answered. Please repost remaining questions.…

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 June 8, Williams Company issued an $80,400, 7%, 120-day note payable to Brown Industries.…

A: Given: Face value = $80,400 Interest rate = 7% Days = 120

Q: On March 31, 2020, Company A issued 18% bearing note payable in ten semi-annual instalments every…

A: It is pertinent to note that the carrying value of the note is the present value of all the cash…

Q: On June 8, Williams Company issued an $91,200, 11%, 120-day note payable to Brown Industries.…

A: Notes are instrument issued by company acknowledging the debt raised by company . It is a liability…

Q: 31,2021 ( interest is payable annually) b.) 12%,P 2,500,000, interest bearing note , issuance…

A: Current liabilities is short term financial obligation which is required to be paid or due in one…

Q: On June 8, Williams Company issued an $80,000, 5%, 120-day note payable to Brown Industries.…

A: maturity value of the note = issue price + Interest accrued

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: Pam Company borrowed $75,000 on June 1, 2020, by issuing an 11-month, 8% interest-bearing note. The…

A: The note was issued for 11 month on June 1,2020.

Q: On June 1, 2023, Lugaw Corp. issued a three-year interest-bearing note payable in installment in…

A: Installment note are long term liabilities. And carry interest to be paid with specific point of…

Q: On January 1, 2021, Glanville Company sold goods to Otter Corporation. Otter signed an installment…

A: Sales revenue: The amount earned by selling goods or services is known as sales revenue. This is the…

Q: On January 1, 2021, Glanville Company sold goods to Otter Corporation. Otter signed an installment…

A: The sales revenue for which the payment will be made in installments is calculated by discounting…

Q: 5. On July 1, 2020, KOLA Corporation issued a five-year note payable with a face value of ₱250,000…

A: Notes payable is a form of loan or debt that is being issued by the business for the particular…

Question

Get:

Present Value/ Carrying Value Beg.
Carrying Value December 31, 2022

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?
Short-Term Debt Expected to Be Refinanced On December 31, 2019, Atwood Table Company has 8 million of short-term notes payable owed to City National Bank. On February 1, 2020, Atwood negotiates a revolving credit agreement providing for unrestricted borrowings up to 6 million. Borrowings will bear interest at 1% over the prevailing prime rate, will have stated maturities of 120 days, and will be continuously renewable for 120-day periods for 4 years. Atwood plans to refinance as much as possible of the notes outstanding with the proceeds available from this agreement. Assume that Atwoods December 31, 2019, year-end financial statements are issued on March 30, 2020. Required: Prepare a partial December 31, 2019, balance sheet for Atwood showing how the 8 million short-term debt should be reported. Next Level What is the justification for allowing short-term debt that is expected to be refinanced to be classified as a long-term liability.
On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9% U.S. Treasury notes for 194,000. The notes mature July 1, 2020, and pay interest semiannually on January 1 and July 1. The notes were sold on December 1, 2019, for 199,000. Aldrich normally uses straight-line amortization on all of its notes. In its income statement for the year ended December 31, 2019, what amount should Aldrich report as a gain on the sale of the available-for-sale security? a. 2,500 b. 3,500 c. 5,000 d. 6,000
Short-Term Debt Expected to Be Refinanced On December 31, 2019, Excello Electric Company had 1 million of short-term notes payable due February 7, 2020. Excello expected to refinance these notes on a long-term basis. On January 15, 2020, the company issued bonds with a face value of 900,000 for 882,000. On January 22, 2020, the proceeds from the bond issue plus additional cash held by Excello on December 31, 2019, were used to liquidate the 1 million of short-term notes. The December 31, 2019, balance sheet is issued on February 12, 2020. Required: Prepare a partial balance sheet as of December 31, 2019, showing how the 1 million of short-term notes payable should be disclosed. Include an appropriate footnote for proper disclosure.
On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest payments are paid annually, each interest payment will be ________. A. $120,000 B. $60,000 C. $7,500 D. $15,000
On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
Cash Flow Amounts On January 1, 2019, Philip Holding invests 40,000 in an annuity to provide 8 equal semi-annual payments. Interest is 10%, compounded semiannually. Required: Compute the equal semiannual amounts that Philip will receive assuming that the first withdrawal is to be received on: July 1, 2019 January 1, 2019 July 1, 2022 January 1, 2024
A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383
Non-Interest-Bearing Note Payable: Present Value On January 1, 2019, Northern Manufacturing Company bought a piece of equipment by signing a non-interest-bearing 80,000, 1-year note. The face value of the note includes the price of the equipment and the interest. The effective interest rate is an annual rate of 16%, and the note is to be paid in four 20,000 quarterly installments on March 31, June 30, September 30, and December 31. The price of the equipment is the present value of the four payments discounted at the effective interest rate. Required: Prepare all journal entries to record the preceding information. Present value techniques should be used. If Northerns financial statements were issued on June 30, 2019, what amount would the company report as notes payable?