What is the unearned interest income on January 1, 2021?

Q: On December 31, 2017, Park Company sold used equipment with carrying amount of P2,000,000 in…

A: The note requires ten equal payments of P500,000 for the next 10 year. The first annual payment is…

Q: On January 1, 2020, Aggie Company purchased a building for $65,000, making a cash down payment of…

A: Interest Expenses:- It is an amount which one pays over the principal amount of loan or mortgage…

Q: Persevere Company is a dealer in equipment. On December 31, 2020, the entity sold an equipment in…

A: Present Value of Notes Receivable = P500,000 x 3.99…

Q: On December 31, 2021, Party Company received two P 50,000 notes receivable from customers in…

A: Receivables are collected from the persons who owe to the business. A note is carrying on an…

Q: On January 1, 2020, Smith Company signed a five-year Note for the acquisition of equipment. Annual…

A: As the payments are made at the end of the year i.e. December 31,2020, we will use present value of…

Q: On January 1, Whispering Corporation issues a $140,000, 10-year non-interest-bearing note to Camden…

A: Journal entry - It refers to the process where the business transactions are recorded in the books…

Q: Persever Company is a dealer in equipment. On December 21, 2021, the enitity sold an equipment in…

A: Annual payment of note = P500,000 Period = 5 years Total annual payments = P500,000*5 = P2,500,000…

Q: At the beginning of 2021, VHE Industries acquired a machine with a fair value of $3,169,870 by…

A: Formulas:

Q: On Jan. 1, 2021, Muta Co. received a P1,200,000, noninterest bearing note in exchange for land with…

A: On 01.01.2021, Muta company received non interest bearing note in exchange of land = P1200000…

Q: On december 31, 2020, Precious Company sold an equipment with carrying amount of 2,000,000 and…

A: The present value of the annuity factor is used when there is an equal series of cash flows and the…

Q: On January 1, 2021, Hosana Co. sold equipment in exchange for a P 850,000, 4 year, 11% note,…

A: Lets understand the basics. Compounded interest means interest on interest. In other words, it is a…

Q: On December 31, 2019, Bart Company purchased a machine in exchange for a noninterest bearing note…

A: Note: Since you have posted a question with multiple sub-parts, we will solve first three subparts…

Q: On April 1, 2021, ABC CO. issued a 9% interest bearing note with a face amount of P 30,000,000 for…

A: Notes Payable: In the financial world, notes payable are short-term obligations that represent the…

Q: How much was Bae’s proceeds from the discounted note?

A: Bae inc. Sold equipment to Beau Inc. On july 1, 2020 for P250000.  Bae accepted a note receivable…

Q: On January 1, 2021, Pindang Co. received a P1,000,000, noninterest bearing note in exchange land…

A: The note receivable can be referred to as a contractual note which specifies an amount to be…

Q: On January 1, 2021, Dreamlover Corporation purchased equipment from Daydream Company for P3,600,000.…

A: Present value refers to the current value of all the cash flows which is to be received in the…

Q: On December 31, 2020,  Company sold a machine in the ordinary course of business to Space-X  Company…

A: Annuity refers to series of equalized payments that are either made start or end of specific…

Q: On July 1, 2020, KOLA Corporation issued a five-year note payable with a face value of ₱250,000 and…

A: Accrued Interest ( From July 1 to December 31 ) = ₱250,000 x 10% x 612 = ₱12,500

Q: On January 1, 2020, Hamid Company sold goods to Khaled Company. Khaled signed a noninterest-bearing…

A: Present value of amount to be receved on January 1, 2020 = Intial payment + Annual payment x PV of…

Q: On April 1, 2021, ABC CO. issued a 9% interest bearing note with a face amount of P 30,000,000 for…

A: Fair Value of Bonds = Present Value of Future Cash flows relating to bond @ market rate

Q: On December 31, 2021, Boston Company purchased a machine from Helix Company in exchange for a…

A: Non bearing interest notes are capitalized at present value of future installments. Hence the…

Q: On April 1, 2021, ABC CO. issued a 9% interest bearing note with a face amount of P 30,000,000 for…

A: A note payable is indeed a promissory note that has been drafted. A borrower borrows a particular…

Q: On December 31, 2021, Bart Company purchased a machine from fell company in exchange for a…

A: Calculation of Initial Cost of Machine:- Annual Installment x PV of Annuity in Advance:- 200,000 x…

Q: On December 31, 2021, Precious Company sold an equipment with carrying amount of P2,000,000 and…

A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: On January 1, 2020, Lily Co. sold machinery with historical cost of P6,000,000 and accumulated…

A: Working note: Computation of fair value of note receivable on January 1, 2020:

Q: On January 1, 2021, Jin Company sold equipment at a cost of P400,000           The consideration is…

A: Unearned interest income on January 1, 2021 = Total annual payments - Present value of notes

Q: On April 1, 2021, ABC CO. issued a 9% interest bearing note with a face amount of P 30,000,000 for…

A: It is pertinent to note that non-current liabilities are those obligations that need to be paid…

Q: inx Company acquired two items of machinery:  On December 31, 2021, Jinx Company purchased a…

A: Non-interest bearing note It is a note in which  there is a deduction of interest  from the face…

Q: On January 1, 2020, Aggie Company purchased a building for $65,000, making a cash down payment of…

A: Given, Cost of building = $65000 Cash down payment = $5000 Notes Payable = $65000-$5000=$60000…

Q: Stussy Company manufactures and sells electrical generators. On January 1,2019 the entity sold an…

A: Given Information:  Electric Generator =P1000,000 Note Payable =$900,000 Ordinary Annuity of 1 for…

Q: Company AAA borrowed P1,000,000 on July 1, 2021 and issued a 9% one-year note payable every after…

A: Note payable is one of the liability of the business, on which regular interest payments needs to be…

Q: On January 1, 2022, State Co. sold an equipment to Nation Co. The latter issued a five-year…

A: Present value of the Note = Present value of principal + Present value of interest payments where,…

Q: On December 31, 2020, Bart Company purchased a machine in exchange for a noninterest bearing note…

A: Here in this case we need to first determine carrying value of notes at the beginning and then…

Q: Persever Company is a dealer in equipment. On December 21, 2021, the enitity sold an equipment in…

A: The present value of total payment  = P500000 x 3.99 = 1995000

Q: XYZ Company is a dealer of equipment. On January 1 2020, the entity sold an equipment in exchange…

A: Given: Sold the equipment in exchange for non-interest bearing note requiring three annual payments…

Q: On January 1, 2021, Jin Company sold equipment at a cost of P400,000.          The consideration is…

A: The present value is the amount of the money received at time 0 or the current period.

Q: n December 31, 2020, Company sold a machine in the ordinary course of business to Space-X Company in…

A: Amount of sales revenue can be computed by calculating Present vale of annuity with the help of…

Q: XYZ Company is a dealer of equipment. On January 1 2020, the entity sold an equipment in exchange…

A: Note: Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: On April 1, 2021, ABC CO. issued a 9% interest bearing note with a face amount of P 30,000,000 for…

A: Notes Parables: Notice the image for Notes Payable: Notes payable are long-term obligations that…

Q: On December 31, 2020, Sun Company sold a machine in the ordinary course of business to Space-X…

A: The annuity is a series of equal payments or receipts that lasting for a specific period of time at…

Q: On January 1, 2021, ABC Co. sold transportation equipment with a historical cost of P12,000,000 and…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: On December 31, 2021, Bart Company purchased a machine in exchange for a noninterest bearing note…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Anxious Company acquired two items of machinery as follows: On December 31, 2019, Anxious company…

A: All amounts are in (P).

Q: On December 30, 2005, Bart, Inc. purchased a machine from Fell Corp. in exchange for a non-interest…

A: Present Value of Note = Annual Payment * The present value of the annuity in advance of 1 at 11% (…

Q: LINDT Corporation manufactures and sells electrical generators. On May 31, 2020, it sold an…

A: Equal annual installment on note = 900,000/3 = 300,000 Present value of note = 300,000 * Cumulative…

Q: On Dec. 31, 2020, Boss Company purchased a machine from Len Company in exchange for a noninterest…

A: Note means an instrument issued by company acknowledging the debt due from company to bond holder.…

Q: On January 1, 2022, State Co. sold an equipment to Nation Co. The latter issued a five-year…

A: Present value of the Note  = Present value of principal + Present value of interest payments where,…

Q: On December 30, 2021, JALINON Company sold a machine to GONZALES Company in exchange for a…

A: The notes receivable is an account in the balance sheet generally under the current assets if the…

Q: On December 31, 2021, Chang Company sold a machine in the ordinary course of business to Door…

A: Answer to Question: The carrying amount of the note receivable on December 31, 2022 is d)57,50,000…