On January 1, 2021, My Universe Corporation issued a three-year, non-interest bearing note with face value of P3,000,000 for a piece of land purchased from Permission to Dance Corporation. The note is payable in annual installments of P1,000,000 every December 31, starting December 31, 2021. The land has an equivalent cash price of P2,400,000, a price that provides the note an effective interest of 12.0444%.  How much is the Notes Payable, net of discount, should be reported as current liability as of December 31, 2021? A. P892,503.32 B. P796,562.18 C. P710,934.40 D. P1,000,000

Q: On September 1, 2021, Speedy Lube signed a 30-year, $1,080,000 mortgage note payable to Jonstown…

A: The loan amortization table refers to the table used to calculate the principal portion and interest…

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: , 2021, XYZ. issued a 9% interest bearing note with a face amount of P 30,000,000 for the purchase…

A: Notes are to paid by the annual installments carrying the principal and interest amount.

Q: On January 1, 2021, Roy Company sold a machine with a cost of P500,000 and carrying value of…

A: Cumulative present value of 14% for 3 years = 2.322

Q: On May 1, 2020, POPS Corporation issued a 5-year, 10%, P 1,000,000 note in exchange of a land with…

A: 1. Annual installment which is payable in the next 12 months from December 31, 2021, and interest…

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 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, Northern Manufacturing Company bought a piece of equipment by signing a…

A: Fair value of equipment = Present value of installments       Quarterly installments $20,000.00…

Q: On October 1, 2020, Kingbird Equipment Company sold a pecan-harvesting machine to Valco Brothers…

A: Interest is paid on October, so From Oct 1 to Dec 31 = 3 months. Annual Interest = 169,200*8% =…

Q: On January 1, 2022, De Vera Company loaned Dagpin Company amounting to P2,000,000 and received a…

A: The usage rate is known as the effective interest rate that is actually paid by the borrower of the…

Q: On Jan. 1, 2021, Muta Co. received a P1,200,000, noninterest bearing note in exchange for land with…

A: On 01.01.2021, Muta company received non interest bearing note in exchange of land = P1200000…

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: On January 1, 2021, Hosana Co. sold equipment in exchange for a P 850,000, 4 year, 11% note,…

A: Lets understand the basics. Compounded interest means interest on interest. In other words, it is a…

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: Assuming Valco Brothers Farm fulfills all the terms of the note, prepare the necessary journal…

A: Under Accrual Basis of accounting business transations are recorded as and when they occur. Here…

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: ABC Company has a P10,000,000, two-year note payable to SHE Bank that matures October 31, 2021.…

A: solution : the correct answer is complete the refinancing agreement before october 31 2021…

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 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 January 1, 2012, the Dolce Corporation issued a three-year, non-interest bearing note with face…

A: Zero coupon bonds means those bonds which were issued for money or any assets but for which no…

Q: On January 1,2021, Mickey Mouse Corporation sells a Furniture and Fixtures costing P2,500,000 and…

A: Present value of the note = Annual installment x Present value factor (10% x 3 years) = P300,000 x…

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 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: Pampanga Company is a dealer in equipment. On December 31, 2021, the entity sold an equipment in…

A: The Present Value of Note Receivables will be = Annual Payment X Sum of PV annuity factors

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

A: The notes receivable is an asset account in the balance sheet of an organization. It is recorded…

Q: Prepare the journal entry at the end of the first year to record the payment and interest, assuming…

A: When asset is purchased against the non interest bearing note then purchase needs to record at the…

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 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, 2019, Northern Manufacturing Company bought a piece of equipment by signing a…

A: Notes payable are long-term commitments that indicate the amount of money owing by a company to its…

Q: On January 01, 2021, Black Corporation issued a three-year, non-interest bearing note with face…

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Q: On June 1, 2020, Taby Company loaned ₱500,000 on a 12% note, payable in five annual installments of…

A: Accrued interest receivable refers to the amount of loan interest which has been arise but not yet…

Q: On January 1, 2020, Gibson Co. purchases equipment having a fair value of $200,000 by issuing a…

A: Zero coupon bonds means those bonds which were issued for money or any assets but for which no…

Q: On December 31, 2020, Bart Company purchased a machine in exchange for a noninterest bearing note…

A: Here in this case we need to first determine carrying value of notes at the beginning and then…

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: 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: On April 1, 2028, Dugong Company issued a P 9,000,000 non-interest-bearing note due March 31, 2031,…

A: The carrying amount of the note on initial recognition is equivalent to the cash price of land. The…

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: n January 1, 2021, Cee Company sold a machine with a cost of P500,000 and carrying value of P150,000…

A: Gain or loss on sale of machinery:   =  Consideration received -  Carrying amount

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: On January 1, 2020, the Dolce Corporation issued a three-year, non-interest bearing note with face…

A: Given, effective interest rate = 12%, annual installments = P1,000,000, The land has an equivalent…

Q: On May 1, 2018, the DCM issued a 9% promissory note with a face value of ₱8,339,760 for a piece of…

A: Formula: Maturity value of note = Principal amount + Interest amount.

Q: On January 1, 2020, Physanto Corp. received in exchange for equipment sold to Viva Inc., an 8%…

A: The following calculations are done in the records of Physanto Corporation to evaluate the equipment…

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, My Universe Corporation issued a three-year, non-interest bearing note with face…

A: Solution: Interest expense for 2021 = P2,400,000 * 12.0444% = P289,066 Payments at the end of 2021 =…

Q: Dilraba Co. sold equipment in exchange for a P750,000, non-interest bearing note receivable in 5…

A: Unearned revenue is the revenue that has not been earned by the company but the payment for the same…

Q: On January 1, 2021, My Universe Corporation issued a three-year, non-interest bearing note with face…

A: 12 months from the end of reporting period date. in this case reporting period date is 31 dec 2021