Question: The interest income to be recognized in 2022 is? Please include solutions. Thank you! On January 1, 2021, Divino Company sold equipment with carrying amount of P800,000 toJocelle Company. As payment, Jocelle gave Divino Company a P1,200,000 note. The note bearsan interest rate of 5% and is to be repaid in three annual installments of P400,000 plus intereston outstanding balance. The first payment was received on December 31, 2021. The marketprice of the equipment is not readily determinable. The prevailing rate of interest for notes ofthis type is 10%.33. The interest income to be recognized in 2022 is:

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The interest income to be recognized in 2022 is?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 14RE: On January 1, 2019, Boater Company issues a 20,000 non-interest-bearing, 5-year note for equipment....

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Element Surfboards issued a $210,800 note on January 1, 2018 to a customer, Leona Marland, in exchange for merchandise. Terms of the note are 9-month maturity date on October 1, 2018 at a 10.2% annual interest rate. Leona Marland does not pay on her account and dishonors the note. On December 2, 2018, Element Surfboards decides to sell the dishonored note to a collection agency for 30% of its value. Record the journal entries for Element Surfboards for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on October 1, 2018 C. Receivable sale on December 2, 2018