January 1, 2021, Dreamlover Corporation purchased equipment from Daydream Company for P3,600,000. Term of payments includes issuing a 5-year noninterest-bearing note payable equally every end of the year. The effective interest rate is 15%. The entity used 2 decimal places for the PVF.

Q: On January 1, 2021, More Co. received a 3-year, noninterest bearing note of P900,000 in exchange for…

A: Noninterest-bearing notes receivable refers to the notes receivable that do not carry periodic…

Q: On January 1, 2019, Coco Company sold a building for P5,000,000 to Macao Company. Macao Company paid…

A: Face value of note = Sale value - down payment = 5000000-50000 = P4,500,000 Annual payment = Face…

Q: Korean Short Ribs Company sold a tract of land with carrying amount of P3,000,000 to Instant Pot…

A: Formula: Notes receivable amount = Principal amount - Interest with installment amount.

Q: On January 1, 2021, Romania Company acquired 3-year bonds with a face amount of P2,000,000 for…

A: Gain on retirement of bond is calculated by subtracting the fair value of bond from the retirement…

Q: On January 1, 2019, Peter Corporation purchased a debt instrument at its face value of P3,000,000.…

A: Reclassification of Debt Instrument As a result debt securities may be reclassified from the…

Q: An entity purchased 4-year debt instruments with a face value of P10,000,000 on January 1, 2019 to…

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

Q: At the beginning of 2021, VHF Industries acquired a machine with a fair value of $7,581,580 by…

A: Capital budgeting: When a firm makes a large investment on an asset for a long period of time, it is…

Q: On January 1, 2021, Stoops Entertainment purchases a building for $580,000, paying $110,000 down and…

A: Solution 2: Date Cash Paid Interest Expense Decrease in Carrying value Carrying value 1-Jan-21…

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, Billips Corporation purchased equipment having a fair value of $72,054.94 by…

A: Notes payable are promissory notes accepted by the debtor having specified interest rate and the…

Q: January 1, 2022, AA Company sold an equipment costing P5,000,000 and accumulated depreciation of…

A: account receivable or notes receivable represent the amount that has to be received from the debtor…

Q: On December 31, 2019, Magnet company sold for P 3,000,000 an old equipment having an original cost…

A: The sale consideration is receivable as follows: On December 31, 2019 (Down Payment) = P 600,000…

Q: On January 1, 2020, South Company acquired a building for 5,000,000. The entity paid 500,000 down…

A: January 1st, 2020 Building     Dr.  5000000 Cash                    Cr. 500000 Note payable    Cr.…

Q: American Food Services, Inc., acquired a packaging machine from Barton and Barton Corporation.…

A: Answer 1:

Q: Lathrop Inc. purchased equipment on January 1, 2020, for $30,000 cash plus a note payable. The fair…

A: Mortgage Note Payable - A mortgage note payable is a written promise to repay a specific amount of…

Q: On January 1, 2021, Tina Bank extended a 5-year, 12%, P5,000,000 loan to Mr. Prospecio. Principal is…

A: Business loans- A business loan, also known as a commercial loan, is a type of financing used to…

Q: On January 1, 2022. AA Company sold an equipment costing P5,000,000 and accumulated depreciation of…

A: Interest Income is the income which is generated by the investing assets. In general the interest…

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: Korean Short Ribs Company sold a tract of land with carrying amount of P3,000,000 to Instant Pot…

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

Q: Journal entry to record the second period of interest, June 30,  Matrix would record a credit to…

A: Given information is: On January 1, 2019, Matrix, Inc. purchased as an investment OMR 22,000, of 9%,…

Q: inx Company acquired two items of machinery:  On December 31, 2021, Jinx Company purchased a…

A: Non-interest bearing note It is a note in which  there is a deduction of interest  from the face…

Q: At the beginning of 2021 VHF Industries acquired a machine with a fair value of 7,985,420 by issuing…

A: Note payable is the liability which increases due to the purchases made on credit.

Q: On December 31, 2020, an entity sold a piece of land costing P800, 000 and received a 3-year, 3%,…

A: Working note: Computation of present value of the note receivable:

Q: An entity purchased 4 year debt instruments with a face value of P15,000,000 on January 1, 2019 to…

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

Q: On May 1, 2019, Orlan Company purchased a short-term $2,000,000 face value, 9% debt instruments for…

A: Income statement refers to those financial statements which depicts the revenues and expenses of a…

Q: On January 1, 2022, State Co. sold an equipment to Nation Co. The latter issued a five-year…

A: Present value of the Note = Present value of principal + Present value of interest payments where,…

Q: Please give a detailed solution   On January 1, 2020, TPM Inc. acquires a piece of equipment for a…

A: 1) Journal Entries for the Year 2020 and 2021

Q: On January 1, 2020, South Company acquired a building for P5,000,000. The entity paid P500,000 down…

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

Q: At the beginning of 2021, VHF Industries acquired a machine with a fair value of $6,074,700 by…

A: 1.

Q: On January 1, 2021, Primair Corporation loaned Vista Company $300,000 and agreed to guarantee all of…

A:

Q: On January 1, 20x1, Otters Co. received a 3-year, noninterest bearing note of P1,200,000 in exchange…

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

Q: On January 1, 2021, Chua Company purchased a piece of equipment with a list price of P6.000.000. The…

A: The amount to be debited to equipment account will be equal to present value of all payments to be…

Q: On January 1, 2022, AA Company sold an equipment costing P5,000,000 and accumulated depreciation of…

A: INITIAL RECOGNITION AS ON 1 JANUARY,2022 (PART OF WORKING) CASH FLOWS (I) PVF @8% (II) I * II…

Q: Korean Short Ribs Company sold a tract of land with carrying amount of P3,000,000 to Instant Pot…

A: Formula: Notes receivable amount = Principal amount - Interest amount with installment

Q: Hemingway Company purchases equipment by issuing a 7-year, $210,000 non-interest-bearing note, when…

A: Companies acquire assets either through cash or non-cash means. In the case of non-cash means,…

Q: Megabank granted an 8% 3-year loan to Global Company on January 1, 2018. The interest on the loan is…

A: Step 1 An amortized loan is a loan accounting over the tenure of loan subject to the cash flows over…

Q: On January 1, 2020, HIBISCUS Company purchased 4,000 of ₱1,000 face value, 10% bonds of IXORA…

A: Bond Bond is a source of finance issued by the firm to raise money. It has a fixed Interest rate…

Q: What is the carrying amount of the bond investment on December 31, 2021? ( round off final answer)

A: Present Value of Bond = Present Value of Coupon Payments + Present Value of Redemption Value Present…

Q: On July 1, 2018, ABC Company borrowed P1,000,000 on a 10% five-year note payable. On December 31,…

A:

Q: On July 1, 2021, Kiko Company (a calendar-year company) sold a tract of land that originally cost…

A: First we should calculate carrying value of note on June 30, 2022 = Fair value on date of issue +…

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

A: Non-current liabilities are amount payable after 12 months.   Annual Payment P4,00,000 Present…

Q: Korean Short Ribs Company sold a tract of land with carrying amount of P3,000,000 to Instant Pot…

A: Current assets are the assets that are usable for a short period of time generally for a year or…

Q: Anxious Company acquired two items of machinery as follows: On December 31, 2019, Anxious company…

A: All amounts are in (P).

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

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

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

A: Annual Payment P4,00,000 Present value of an ordinary annuity of $1 at 9% for 5 period 3.88965126…

Q: LLL company has an equipment with carrying value of P350,000 and with remaining estimated life of 5…

A: As per IFRS 16 Leases, the Initial cost of the right-to-use asset in the books of lessee shall…

Q: On January 1, 2022, State Co. sold an equipment to Nation Co. The latter issued a five-year…

A: Present value of the Note  = Present value of principal + Present value of interest payments where,…

Q: CD Industries purchased a supply of electronic components from Entel Corporation on November 1,…

A: A journal entry is used to document a business deal in a company's accounting records. A journal…

Q: On April 1, 2021, Leni Company (a calendar-year company) sold a tract of land that originally cost…

A: Interest revenue for the year ended December 31, 2021 = fair value of the note x prevailing rate of…

Q: The note shall be paid in equal annual installments (this is the series of amounts that Krisha will…

A: Calculation of Present value of note receivable  Year Cash inflow Present Value factor @12%…