Q3 please Question 3Prepare the journal entries required to record each of the following cases. (Eachsituation is independent.)1. To obtain additional cash, Misumi factors without recourse of $20,000 ofaccounts receivable with Stills Finance. The finance charge is 10% of the amountfactored.2. To obtain a one-year notes payable $ 55,000, Misumi pledged the $65,000 ofspecific receivable accounts to Obihiro Financial. The finance charge is 8% of theloan.3. Based on an aging analysis, an allowance of impairment of receivable $5,800should be reported. Assume the allowance currently has a credit balance of$1,100.Question 4Bohannon SA factors $ 250,000 of accounts receivable with Winkler Financing,without recourse basis. Winkler Financing will collect the receivables. The receivables0010 Winklor Financing

Journal entries recording is the first step of accounting process, in which atleast one account is…

Answered: Question 3 Prepare the journal entries…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 11E

See similar textbooks

Similar questions

Proceeds from notes payable On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a 45-day note with a face amount of 150,000. A. Determine the proceeds of the note, assuming the note carries an interest rate of 10%. B. Determine the proceeds of the note, assuming the note is discounted at 10%.
EFFECTIVE VERSUS NOMINAL INTEREST RATES Bank A pays 4% interest compounded annually on deposits, while Bank B pays 35% compounded daily. a. Based on the EAR (or EFF%), which hank should you use? b. Could your choice of banks be influenced by the fact that you might want to withdraw your funds during the year as opposed to at the end of the year? Assume that your funds must be left on deposit during an entire compounding period in order to receive any interest.
IA - Receivable Financing 10. Problem Solving. A company pledged its entire accounts receivable amounting to P2,500,000 to a financing institution to a loan approved for P2,000,000. The term of the loan requires the company to pay the principal when it becomes mature 4 years from now and also to pay 12% annual interest every end of the year. Should the company has made no collateral for the loan, interest rate could have been 18%. Assuming the transaction occurred on January 1, 20A, compute the total amount of expense that should be deducted from the current year’s income of the company. Round off final answer to the nearest peso.
Q3 Canliss Mining Company borrowed money from a local bank. The note the company signed requires five annual installment payments of $16,000 not due for three years. The interest rate on the note is 6%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What amount did Canliss borrow? (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) Step 1: Calculate the PV of the Ordinary Annuity Component: Payment: ? n = ? i = ? Present Value: ? Step 2: Convert the Annuity to a Single Sum: Payment: ? n = ? i = ? Present Value: ?
Problem 1 On September 1, 2020, Rayhak Company assigned specific receivables totaling to P750,000 to Pak Bank as a collateral on a P625,000, 12% loan. Rayhak will continue to collect the assigned accounts receivable. The bank also assessed a 2% service charge on the total accounts receivable assigned. Rayhak is to make monthly payments to the bank with the cash collected on the assigned accounts receivable. Collections of assigned account during September 2020totaled P260,000 gross of cash discounts amounting to P3,500. Prepare all the e journal entries relating to the problem for the month of September 2020. (Books of Rayhak)
#4 White Co. received cash from the following transactions issued on January 1 Year 1. Transaction 1: White received $1,500,000 from a 5-year, zero-interest-bearing promissory note in the face amount of $2,596,122. Transaction 2: White issued a 4% 8-year promissory note having a maturity value of $400,000 with annual interest payments on December 31 of each year. The effective interest rate (market rate at date of issue) of the notes is 8%. PV factor for lump sum in 8 years at 8%: 0.540 PV factor for lump sum in 8 years at 4%: 0.731 PV factor for an annuity in 8 years at 8%: 5.747 PV factor for an annuity in 8 years at 4%: 6.733 What amount of discount should White report on the balance sheet at the end of Year 1 related to Transaction 2 (rounded to the nearest $1,000)? Answer is $83,000
Mf3. : An entity took UAH 100,000 loan for 5 at 26% of annual interest rate. Interests are paid annually. A bank is using annuity due scheme. Interest revenue for a bank in period 1 is: An entity took UAH 100,000 loan for 5 at 26% of annual interest rate. Interests are paid annually. A bank is using annuity due scheme. Principal, paid in the fourth period, is: Outstanding loan amount is USD 17,000.00. Annuity is USD 4,315.27, interest rate is 18%. The amount of principal, paid in the given period is: Outstanding loan amount is USD 22,000.00. Annual interest rate is 11%. Interest is paid at the end of each year. In the given period bank received USD 4,300.00 of principal payment. The annuity amount is:
PROBLEM 5On January 1, 2021, Joy Company sold used equipment and received a non-interest bearing note requiring payment of P2,000,000 principal on December 31, 2022. The prevailing rate of interest for this type of note at the date of issuance is 10%.On January 1, 2022, to augment the company's cash requirement, Joy Company discounted the note to a financial institution at 14%. On December 31, 2022, the factor collected in full the notes receivable. The discounting is accounted for as a secured borrowing. Requirement:1. Prepare the necessary journal entry to record the above transactions.2. How much is the carrying value of the notes receivable at December 31, 2021?3. Assuming the customer failed to pay the notes on December 31, 2022, prepare the journal entry to record the dishonored note.
2. Canliss Mining Company borrowed money from a local bank. The note the company signed requires five annual installment payments of $13,500 beginning immediately. The interest rate on the note is 6%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What amount did Canliss borrow? (Round your final answers to nearest whole dollar amount.) Table or calculator function: ? Payment: $13,500 n = 5 i = 6% Present Value: ?
PROBLEM 1: Myra company purchased from Axis Company a P4,000,000, 8% 5-year note that required five annual year-end payments of P1,001,800. The note was discounted to yield a 9% rate to Myra. At the date of purchase, Myra recorded the note at its present value of P3,897,000; What should be the total revenue earned by Myra over the life of this note? a. 1,009,000 b. 1,112,000 c. 1,600,000 d. 1,800,000PROBLEM 2: On January 1, 2020, Baymax Company purchased Mad Max Corporation, P1,000,000 12% bonds for P1,065,000, a price that yields 10%. The bonds pay interest semi-annually every January 1 and July 1 and they mature on January 1, 2024. At December 31, 2020, each P1,000,000 bond is selling at P1,055.42. A) Assuming that the securities are classified as debt investments at amortized cost, what is the carrying amount of the debt investment reported on December 31, 2020 statement of financial position? a) 1,000,000 b) 1,051,163 c) 1,055,000 d) 1,065,000 B) Assuming that the securities…
QUESTION 3 On 1 January 2022, Rodney Inc. provided services to Smith Co. in exchange for Smith’s $300,000, 2-year 8% note with interest compounded semi-annually on July 1 and January 1. The current market rate of similar notes is 12%. Rodney Inc. financial year ends December 31. REQUIRED: 1. Provide the following input values from your financial calculator: N = Answer 2 I/Y = Answer 12 % PMT = $Answer 12000 FV = $Answer 300000 2. The note was issued at Answer A Discount 3. The present value of the note is $Answer 279 209.37 4. Complete the following amortization schedule: Cash Interest Amortized Carrying Dates Received Income Amount Amount Jan 1, 2022 0 0 0 $Answer 279209.37 Jul 1, 2022 $Answer 12000 $Answer 16752.56 $Answer 4752.56 $Answer 283961.93 Jan 1, 2023 " " $Answer 17037.72 $Answer 5037.72 $Answer 288999.65 Jul 1, 2023 " " $Answer 17339.98…
3. On January 1, 20x1, Drive Co. paid cash of P200,000 and issued a noninterest-bearing note P2,000,000 in exchange for vehicle. The note is due in four equal annual installments. The first installment is due on January 1, 20x1 and the succeeding installments are due every 1st of January. The prevailing rate of interest for this type of not is 12%. Requirements: a. Prepare the journal entries. b. How much is the interest expense in 20x2? c. How much is the carrying amount of the note on December 31, 20x1? Please answer optionAand B and c

SEE MORE QUESTIONS

Recommended textbooks for you

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Fundamentals Of Financial Management, Concise Edi…

Finance

ISBN:

9781337902571

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Fundamentals Of Financial Management, Concise Edi…

Finance

ISBN:

9781337902571

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Fundamentals of Financial Management, Concise Edi…

Finance

ISBN:

9781305635937

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781285867977

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Fundamentals of Financial Management, Concise Edi…

Finance

ISBN:

9781285065137

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS