oremost Company received from a customer a one-year, P500,000 note bearing annual interest of 8%. Alter holding the note for six months, the entity discounted the note at the bank at an effective interest rate of 10%. What is the loss on note receivable discounting?

Q: A 180-day, 12% interest bearing note receivable is sold to a bank without recourse after being held…

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

Q: On April 1, 2020, Shalimar Company discounted with recourse a 9-month, 10% note dated January 1,…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: BTS Company accepted a P400,000 face value, six-month, 9% note dated May 15 from a customer. After…

A: Interest accrued =  face value of note x rate of interest x no. of months/12 = P400,000 x 9% x 2/12…

Q: Brooke Company discounted its own P5, 000,000 one year note at a bank, at a discount rate of 12%,…

A: SOLUTION- Prime Rate is the interest rate charged by commercial banks to their most creditworthy…

Q: Shady Tree Company issued a note receivable to a customer. The face value of the note was $12,000 at…

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

Q: APA, Inc. signed a note payable to its bank for P10,000. Accrued interest on the note on February…

A: Given data, Note payable =P10,000 Accrued interest =P250 Inventory at selling price=P8,000 unsecured…

Q: lacobs Company borrowed $10,000 on a one-year, 8 percent note payable from the local bank on April…

A:

Q: DE LA CRUZ Company received a 10%,180 day note from its customer on April 1, 2021. The note has a…

A: Solution : Given Face value          =P500,000 interest rate      =10% discount rate     = 12 % date…

Q: CHuee Company borrows $40,000 from the local bank at 8% interest. The term of the note is 5 years,…

A: Interest means the extra amount paid over and above the principal amount of loan. Total amount…

Q: On January 1, Year 1, Bryson Company obtained a $12,000, four-year, 9% installment note from…

A: Amortization is the payment of liability with a fixed settlement schedule in steady installments…

Q: ABS-CBN COMPANY received from a customer a one-year, $500,000 note bearing annual interest of 8%.…

A: Discounting seems to be the act of transferring or surrendering a customer's notes receivable to a…

Q: On December 31, 2020, the Bato-bato Finance Company had P5,000,000 notes receivable from Burgundy…

A: An impairment loss is a loss that is incurred due to a decline in the value of an asset…

Q: On July 31, 20A, ABC company discounted at the bank, a customer's 1,200,000, 6-month 10% notes…

A: Notes payable are signed arrangements (promissory notes) between two parties whereby one offered to…

Q: Anderson Co. issued a $50,932, 60-day, discounted note to National Bank. The discount rate is 1196.…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: The Abra Company owes P200,000 on a note payable plus P8,000 in interest to its bank. The note is…

A: The total amount of 208,000 (200000 note payable plus P8,000 in interest) includes the secured…

Q: On January 1, Pina Colada Corp. lent $38,000 to Kingbird, Inc., accepting Kingbird's $50,578,…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS   Account title and explanation  Debit  Credit…

Q: Karen Company discounted its own Php 250,000 one year note at a bank at a discount rate of 12% when…

A: The prime rate is the lending rate specified by the central bank of a country which is used as a…

Q: Cornbip Company received from a customer a on-year, $500,000 note bearing annual interest of 8%.…

A: The interest amount to be received by the company shall be considered while calculating the amount…

Q: Bruno received a one-year, P 375,000 note bearing annual interest of 8% from a customer. After…

A:

Q: LISA Corp. received from MIK Corp. a one-year, $375,000 note bearing annual interest of 8%. After…

A: Maturity value of Note = Face value of note + interest = $375000 + 375000*8%*12/12 = $405,000

Q: Company received from a customer a one-year, P500,000 note bearing annual interest of 8%. After…

A: Notes Receivable is an instrument that is evidence of a debt and makes an obligation on the issuer…

Q: Butler, Inc. paid $90,000 to retire a note with a face value of $99,600 . The note was issued with…

A: Given: Face value = $99,600 Net book value = $81,840 Amount paid = $90,000

Q: Omega Chemicals Ltd. took a $440,000 two-year note receivable from a customer in connection with a…

A: Price of the bond = c × F × (1 − (1 + r)-t)/r+F(1 + r)t C=Interest Rate F= Face Value r=Market…

Q: X Corporation accepted a P400,000 face value, six-month, 10% note dated May 15 from a customer. On…

A: Simple interest = Principal ×Interest rate × Time =P400,000 × 10% × 612=P20,000   Maturity value =…

Q: Tri State Bank was the payee of a $60,000 note dated August 16. The note was made for 120 days and…

A: Since, note is a discount note( not interest bearing), the value of loan = discounted present Value…

Q: Foremost Company received from a customer a one-year, P500,000 note bearing annual interest of 8%.…

A: A promissory note is a financial instrument that contains a written promise by one party (the note's…

Q: On April 1, 2020, Aljean Company discounted with recourse a 9-month, 10% note dated January 1, 2020…

A: The amount received from the note receivable discounting on April, 1 2020:   (P) Principal…

Q: . On November 1, 20x1, ABC discounted a P1,000,000, 90-day note, received from a customer on…

A: Discounted notes are a way for a business to reduce its receivable amount to meet its immediate…

Q: eceivable records were transferred to Buyer.            31 Buyer collected P234,000 during August…

A: Factoring is a type of finance technique, in which the company sells its receivables to another…

Q: The Abra Company owes P200,000 on a note payable plus P8,000 in interest to its bank. The note is…

A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…

Q: In reporting the note in Karen Company statement of financial position, prior to maturity what rate…

A: Prime Rate is the interest rate charged by commercial banks to their most creditworthy customers.

Q: Bulldogs Inc. loaned a certain amount from a reputable bank for a term of one year at 8% quoted rate…

A: Compensating loan is a provision that the bank asks the loan taker to maintain as a security when…

Q: On January 1, Year 1, Bryson Company obtained a $22,000, four-year, 12% installment note from…

A: Workings: Calculation of Interest: Year 1: 22000 x 12 % = 2640 Decrease in Notes payable = Notes…

Q: How much is the notes receivable as presented in the balance sheet at Dec 31, 20X1?

A: Given in the question: Land has been sold by ABC Co. on Jan 1, 20X1 The fair value of the land was =…

Q: BBY Company loaned $66,116 to Orwell, Inc, accepting Orwell's 2-year, $80,000, zero-interest-bearing…

A: Discount on Notes receivable = Face value - Issue price = $80,000 - $66,116 = $13,884

Q: Bruno received a one-year P375,000 note bearing annual interest of 8% from a customer. after holding…

A: Formula: Interest amount = Notes payable x Interest rate x Time period.

Q: Bibimbap Company received from a customer a on-year, P500,000 note bearing annua nterest of 8%.…

A: Solution: Formula Sheet:   Answer Sheet:

Q: PELADRA Company assigned P500,000 of accounts receivable to PANCHO Finance Company as a security for…

A: Accounts receivables:- Accounts receivables includes the money which is due to a firm on goods and…

Q: Holy Ground received from a customer a one-year, P375,000 note bearing annual interest of 8%. After…

A: Maturity value of note = Face value of note + interest = P375000 + (375000*8%*12/12) = P405,000…

Q: On June 1, 2008, Dara Corporation loaned Irvin P20,000,000 on a 12% note, payable in five annual…

A: Interest Receivables: When it comes to notes receivable, the interest rate is usually fixed, and the…

Q: Company received from a customer a one-year, P500,000 note bearing annual interest of 8%. After…

A: The company will sell the products at cash or at credit. If the company sells the product at credit,…

Q: CPA Co. received from a customer a one-year, P1,000,000 note bearing annual interest of 10%. After…

A: Factoring is the financial institution where firm can sell their account receivable at a discount…

Q: Calculate the amount of cash payments Jacobs was required to make in each of the two calendar years…

A: Compound Interest= P×1+rnnt-P

Q: On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank.…

A: Formula: Cash received = Maturity value - Discount

Q: Wenzy Company discounted its own ₱250,000 one-year note at a bank, at a discount rate of 12% when…

A: Journal entry is defined as recording of the transactions of business into the books of entity and…

Q: Foremost Company received from a customer a one-year, P500,000 note bearing annual interest of 8%.…

A: Foremost company's Received note bearing annual interest of 8% = P500000 Maturity = 1 year Maturity…

Q: ShadyTree Company issued a note receivable to a customer. The face value of the note was $12,000 at…

A: The question is based on the concept of Financial Accounting.