SLEX Company purchased a machine with a cash price of P350,000. SLEX gave the following as payment: · Cash- P100,000 · Notes payable, non-interest bearing (payable in three equal annual payments, beginning 1/1/23)- P150,000 · SLEX 1,000 ordinary shares, P100 par (fair value P130)- P100,000 How much is the discount on notes payable to be recorded on the date of purchase?

SLEX Company purchased a machine with a cash price of P350,000. SLEX gave the following as payment: · Cash- P100,000 · Notes payable, non-interest bearing (payable in three equal annual payments, beginning 1/1/23)- P150,000 · SLEX 1,000 ordinary shares, P100 par (fair value P130)- P100,000 How much is the discount on notes payable to be recorded on the date of purchase?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter13: Corporations: Earning & Profits And Distributions

Section: Chapter Questions

Problem 6BCRQ

See similar textbooks

Similar questions

On January 1, Kilgore Inc. accepts a 20,000 non-interest-bearing, 5-year note from Dieland Company for equipment. Neither the fair value of the note nor the equipment is determinable. Kilgore had originally purchased the equipment for 18,000, and the equipment has a book value of 14,000 on January 1. Kilgore knows Dielands incremental borrowing rate of 9%. Prepare the journal entry for Kilgore to record the sale of the equipment on January 1.
Sharapovich Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the interest rate was 5% compounded annually. Sharapovich Inc. will make payments of $11,548.74 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.
21. Laguna Company purchased a machine with a cash price of P350,000. Laguna gave the following as payment: · Cash- P100,000· Notes payable, non-interest bearing (payable in three equal annual payments, beginning 1/1/23)- P150,000 · Laguna 1,000 ordinary shares, P100 par (fair value P130)- P100,000 How much is the discount on notes payable to be recorded on the date of purchase?
Tiger Company purchased a machine with a cash price of P350,000.Tiger gave the following as payment: · Cash- P100,000· Notes payable, non-interest bearing (payable in three equal annual payments, beginning 1/1/23)- P150,000 · Tiger 1,000 ordinary shares, P100 par (fair value P130)- P100,000 How much is the discount on notes payable to be recorded on the date of purchase?
Fifo Company purchased a machine with a cash price of P350,000. Fifo gave the following as payment: · Cash- P100,000· Notes payable, non-interest bearing (payable in three equal annual payments, beginning 1/1/23)- P150,000 · Laguna 1,000 ordinary shares, P100 par (fair value P130)- P100,000 How much is the discount on notes payable to be recorded on the date of purchase?
14. On January 1, 20x1, ABC sold a used vehicle with a historical cost of P2,000,0000 and accumulated depreciation of P700,000 in exchange for cash of P100,000 and a noninterest bearing note receivable of P1,000,000 due in 4 equal annual installments starting on December 31, 20x1 and every December 31, thereafter. The prevailing rate of interest for this type of note is 12%. On December 31, 20x2, the carrying amount of the note receivable is approximately (use 6-decimal present value factor) The correct answer is: 422,513 REQUIRED: Provide a step-by-step solution.
15. On January 1, 20x1, ABC sold a used vehicle with a historical cost of P2,000,0000 and accumulated depreciation of P700,000 in exchange for cash of P100,000 and a noninterest bearing note receivable of P1,000,000 due in 4 equal annual installments starting on December 31, 20x1 and every December 31, thereafter. The prevailing rate of interest for this type of note is 12%. On December 31, 20x3, the current portion of the note receivable is approximately (use 6-decimal present value factor)
15. On January 1, 20x1, ABC sold a used vehicle with a historical cost of P2,000,0000 and accumulated depreciation of P700,000 in exchange for cash of P100,000 and a noninterest bearing note receivable of P1,000,000 due in 4 equal annual installments starting on December 31, 20x1 and every December 31, thereafter. The prevailing rate of interest for this type of note is 12%. On December 31, 20x3, the current portion of the note receivable is approximately (use 6-decimal present value factor) The correct answer is: 223,214
On Jan, 1, 20X1 ABC Corp sold equipment with a cost of P20,000,000 and accumulated depreciation of P7,000,000 in exchange for cash of P500,000 and non-interest bearing note receivable of P8,000,000 due in 4 equal annual installments starting on Dec 31, 20X1. Effective rate was 12% for this type of note. PV of P1 at 12% for 4n = .63552 PV of ordinary annuity of P1 at 12% for 4n = 3.03735 How much is the current portion of the note at Dec 31, 20X1? 1,271,036 1,423,560 1,785,714 3,380,103
On January 1, 2021, Ree Company sold a machine to Say Company. In lieu of cash payment, Say gave Ree a 5-year, P500,000 note. The machinery has a cost of P500,000 and accumulated depreciation as of January 1, 2021 of P150,000. The note is a non-interest bearing note and the prevailing rate of interest for a note of this type is 10%. Required: Answer the following questions: (Round off PV factors to 4 decimal places before multiplying.) 1. Gain or loss on sale of machinery (place parenthesis if loss) 2. Interest income
On January 1, 2021, Ree Company sold a machine to Say Company. In lieu of cash payment, Say gave Ree a 5-year, P500,000 note. The machinery has a cost of P500,000 and accumulated depreciation as of January 1, 2021 of P150,000. The note is a non-interest bearing note and the prevailing rate of interest for a note of this type is 10%. Required: Answer the following questions: (Round off PV factors to 4 decimal places before multiplying.) 1. Current portion of the notes receivable 2. Non current portion of the notes receivable
Danica Corporation sold one of its buildings on January 1, 2007 for P20,000,000. Danica received a cash down payment of P5,000,000 and a 5-year, 10% note for the balance of P15,000,000. The note is payable in equal annual payments of principal and interest of P3,957,000 payable on December 31 of each year until the year 2011. What amount is to be reported as current notes receivable on December 31, 2008? A. 2,457,000 B. 2,702,700 C. 2,972,970 D. 3,000,000