What amount should Columbia recognize in profit or loss for the year 2012 as a result of this transaction?

Q: On December 31, 2010, EEEE Company was indebted to AFE Company on a P2,000,000, 10% note. Only…

A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…

Q: On December 31, 2021, LoL Co. was indebted to Garena Street Company on a P2M, 10% note. Only…

A: Debt Restructuring - It is kind of process which allows the public or private company facing cash…

Q: Pratt Industries owes First National Bank $5 million but, due to financial difficulties, is unable…

A:

Q: On January 1, 2020, Dumaguete Company purchased bonds with face amount of P4,000,000 for P4,206,000.…

A: ANSWER     The business model is to hold the asset until redemption, but sales may be made to invest…

Q: This Company informed That Company that it would be unable to repay its P1,000,000 bond payable due…

A: Answer: The settlement gain or loss is determined so that any amount received less than actual…

Q: The statement of affairs of Darrell Putix Co. indicates that unsecured creditors without priority…

A: SOLUTION- PARTIALLY SECURED CREDITORS - WHEN A CREDITOR ONLY HAS COLLATERAL FOR A PORTION OF DEBT…

Q: APA Company Owes the ABC Corporation P60,000 on account, which is secured by accounts receivable…

A: APA company owes the ABC company P60,000 Secured on Accounts receivable = P50,000 So, Unsecured…

Q: On January 1, 2020, Aguilar Corporation purchased bonds with a face value of P4,000,000 for…

A: Step 1 Journal is the Part of Book Keeping.

Q: Lolo Co. owes $150,000 in notes payable plus $12,000 of accrued interest to, the company is having…

A: The company can raise fund by borrowing the cash. If the cash is borrowed by issuing notes payable,…

Q: Aokiji Company is a car dealer. On January 1, 2020, the entity entered into a finance lease with a…

A: The finance lease helps the lessee to acquire the asset and pay on instalments every year.

Q: Bloom Corporation purchased $1,000,000 of Taylor Company 5% bonds, at their face amount, with the…

A: Definition:   Bonds: Bonds are a kind of interest bearing notes payable, usually issued by…

Q: (Based on Appendix 14B) Pratt Industries owes First National Bank $5 million but, due to financial…

A: The debt can be settled in one of the following two ways:   Full settlement Continuing the debt…

Q: Sienna Company developed a specialized banking application software program that it licenses to…

A: Asset - It refers to the resources held by the business enterprise, for generating economic benefits…

Q: Presented below are two independent situations. a.   On January 1, 2020, Wright Inc. purchased land…

A: a. Determine the amount of the land should be recorded at January 1, 2020. Calculate the amount of…

Q: In its first year of operations, Oriole Corporation purchased available-for-sale debt securities…

A: Fair value of the securities means actual replacement value of the securities in the market.…

Q: On January 1,2021, ABC Corporation purchased a land for P 15,000,000. In exchange of the land, ABC…

A: Face value of non-interest bearing note  P1,50,00,000 Interest Rate 15% Period  5 years…

Q: Firenze Company developed a specialized banking application software program that it licenses to…

A: a.

Q: The Statement of Affairs for Ivan Corporation shows that approximately P0.78 on the peso probably…

A: Total Payment to JICR Company=Payment of Unsecured Portion+Payment of Secured Portion

Q: Total gains on the settlement of debt to be recognized in profit or loss:

A: PV of the new note Year Amount PV factor PV of the note 1 300000*5%= 15000 1/(1.1)1=…

Q: Use the following information for questions 6 and 7: On December 31, 2018, Garnel Co. is in…

A: Net book value of the Equipment = Original cost - Accumulated depreciation Gain (loss) on the…

Q: On January 1,2021, XYZ Corporation purchased a land for P 15,000,000. In exchange of the land, ABC…

A: Face Value of non-interest bearing note P1,50,00,000 Interest Rate 15% Period 5 years Present…

Q: Use the following information for questions 6 and On December 31, 2018, Garnel Co. is in financial…

A: Net book value of the Equipment = Original cost - Accumulated depreciation Gain (loss) on the…

Q: At January 1, 2018, Transit Developments owed First City Bank Group $600,000, under an 11% note with…

A:

Q: 18. On December 31, 2012, Columbia Company shows the data presented in the image with respect to its…

A: Assets exchange for settlement of matured obligation first of all we have to record the assets at…

Q: At January 1, 2021, Transit Developments owed First City Bank Group $600,000, under an 11% note with…

A: Restructuring of debt refers to a process that is used by the companies that are facing problems…

Q: On December 31, 2021, ABC Co. was indebted to XYZ Street Company on a P2M, 10% note. Only interest…

A: Debt reconstruction When the company faces financial distress and liquidity problem, company will…

Q: Love International Corp. has renegotiated a restructuring of its 10%, P2 million unsecured note…

A: The notes are repaid in more than one year therefore these are treated as a long-term liability. The…

Q: Gonne Corporation is being liquidated under Chapter 7 of the Bankruptcy Act. The trustee has…

A: The secures receivable is equal to the fair value of the equipment.     Total receivable…

Q: At January 1, 2021, Transit Developments owed First City Bank Group $720,000, under an 9% note with…

A: Prepare the journal entries to record the restructuring of the debt by Transit Developments:…

Q: At January 1, 2016, Transit Developments owed First City Bank Group $600,000, under an 11% note with…

A: Prepare the journal entries to record the restructuring of the debt by Transit Developments

Q: Sienna Company developed a specialized banking application software program that it licenses to…

A: Deferred Tax asset on Carry forward Net Operating Loss will be recognized only to the extent it is…

Q: On January 1, 20x1, Diminished Co. paid cash down payment of P400,000 and issued a noninterest…

A: A borrower pays interest on a loan based on a proportion of the principle (the amount borrowed). The…

Q: Katrina & Co. has encountered financial difficulties and has become unable to retire its P1,500,000…

A: Conversion of debt into shares: It is  the reorganization of a distressed company's outstanding…

Q: APA Corp. was forced into bankruptcy and is in the process of liquidating assets and paying claims.…

A: In process of of liquidation all assets of business are sold to pay off debt liability.  Book value…

Q: On December 31, 2021, LoL Co. was indebted to Garena Street Company on a P2M, 10% note. Only…

A: The gain on settlement is the difference between the exiting notes and the settlement amount paid…

Q: On July 1, 2014, Mark Company acquired machinery worth P 2,500,000 from Julian Corporation. Terms of…

A: Note payable=Equipment value-Down payment=P 2,500,000-P 500,000=P 2,000,000

Q: Chico Company entered into a troubled debt restructuring agreement with Social Bank. The bank agreed…

A: Gain on extinguishment of debt = note payable carrying amount -  fair value of land

Q: On December 31, 2021, ABC Co. was indebted to XYZ Street Company on a P2M, 10% note. Only interest…

A: Debt Restructuring Debt structing which was used for the corporate sector to restructure their debts…

Q: On December 31, 2012, Nolte Co. is in financial difficulty and cannot pay a note due that day. It is…

A: Gain (loss) on the transfer of the equipment =  Fair value of equipment -  face amount of the note

Q: The unsecured creditors of Club Filipino Corporation filed a petition on July 1, 2021 to force the…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: On July 1, 2018, ABC Company borrowed P1,000,000 on a 10% five-year note payable. On December 31,…

A:

Q: On December 31, 2021, Empoy Company has overdue notes payable of P5,000,000 with accrued interest of…

A:

Q: On December 31, 2021, Empoy Company has overdue notes payable of P5,000,000 with accrued interest of…

A: Debt means total liabilities to be paid by the company. Debt restructuring means modifying the terms…

Q: APA, Inc. has forced into bankruptcy and has begun to liquidate. Unsecured claims will be paid at…

A: Bankruptcy law requires that the claims of secured creditors be satisfied before any unsecured…

Q: Diaz Company obtained a loan from Pacific Bank amounting to P720,000.00 secured by a mortgage over…

A: Far East Bank and Trust Co.'s (FEBTC) contention in not correct.

Q: , 2018, ABC Company borrowed P1,000,000 on a 10% five-year note payable. On December 31, 2018, the…

A: Basic Accounting Concepts, Note Payable