Q: On December 31, 2017, Pharoah Co. sold equipment to Shamrock, Inc. Pharoah Co. agreed to accept a…
A: market rate in this case=12%
Q: uddy Mountain Corp. currently has an issued debenture outstanding with ING Bank. The note has a…
A: In the books of Buddy Mountain Corp.: S. No. Account Titles Debit Credit 1 Accumulated…
Q: Find the amount to be repaid. How much will the interest be at the repayment date if the following…
A: Information Provided: Amount borrowed = P5,000.00 Simple interest = 6.2% Amount borrowed on = Nov 2,…
Q: what is the entry to record the receipt of the funds from the loan? what is the entry to accrue…
A:
Q: On September 1, 2022, Darren Co. borrowed P150,000 from BPI by issuing 8% note due August 31, 2023,…
A: Note: Interest amount should be recognized on the amount borrowed. Accounts receivables pledged as…
Q: A private enterprise sold some merchandise for $160,000 on January 1, 2020. The customer paid…
A: It is the current value of future sum of money to be received at specified interest rate
Q: During the year 2020, Ali AI Shaibani group of companies made the total credit purchases worth RO…
A: Please refer to the image below.
Q: APA, Inc. signed a note payable to its bank for P10,000. Accrued interest on the note on February…
A: Given data, Note payable =P10,000 Accrued interest =P250 Inventory at selling price=P8,000 unsecured…
Q: On December 31, 2011 , Bunny Co. received a 10% note with face amount of P1,500,000. Both principal…
A: Interest receivable on December 31, 2012 = Face value of notes x rate of interest x no. of months in…
Q: On December 31, 2017, Pharoah Co. sold equipment to Shamrock, Inc. Pharoah Co. agreed to accept a…
A: But in this case cash price is not given. Future value of consideration is given ,consideration…
Q: On January 1, 2017, Persephone Company sold a piece of transportation equipment with a historical…
A: Cost of equipment : P1,000,000 Accumulated depreciation : P300,000 Note receivable : P800,000 , 12%
Q: The Abra Company owes P200,000 on a note payable plus P8,000 in interest to its bank. The note is…
A: The total amount of 208,000 (200000 note payable plus P8,000 in interest) includes the secured…
Q: Abardeen Corporation borrowed $136,000 from the bank on October 1, 2018. The note had an 7 percent…
A: Abardeen Corporation borrowed $136,000 from the bank on October 1, 2018. The note had an 7 percent…
Q: On 1 January 2008, Spencer purchased equipment for his business valued $10 000 by cheque. He also…
A: given that, cost of the equipment = $10000 depreciation on the equipment = 2.5% depreciation expense…
Q: On November 1, 2021, Calexico Trading accepted a 90-day, 8% P2,000,000 note from ABC Co. Calexico…
A: Notes Payable / Receivable The purpose issuing the Notes receivable / Notes payable to collect the…
Q: Naughty Co. has a 12% note receivable dated June 30, 2009 in the original amount of P3,000,000.…
A: Interest accrued on June 30, 2011 = Net Note receivable amount x rate of interest x no. of months in…
Q: Butler, Inc. paid $90,000 to retire a note with a face value of $99,600 . The note was issued with…
A: Given: Face value = $99,600 Net book value = $81,840 Amount paid = $90,000
Q: What price did the finance company pay for the promissory note? What rate of interest did the…
A: Formula: For price, the finance company pay for the promissory note S= P(1+rt)P= S(1-dt) Rate of…
Q: Milo Corporation has a line of credit with BDO for Ҏ5,000,000 in June 30, 2018 payable on December…
A: Here, Compensating Balance is 5% Charges are 15% Line of Credit issued on June 30,2018 Payable Date…
Q: 1.Explain what deductions are available to PWP for2020/21 in relation to the establishment fee…
A: While calculating the deduction as tax expense, it is to be determined that the expense is tax…
Q: The Abra Company owes P200,000 on a note payable plus P8,000 in interest to its bank. The note is…
A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…
Q: "On 1 September 2014, Select Company borrowed P600,000 from a bank and signed a 12%, six-month note…
A: Borrowed amount = P 600,000 Interest rate = 12% Period from 1 September 2014 to 31 December 2014 = 4…
Q: A company sold goods to a customer in exchange for a 5-year, zero-interest-bearing note on January…
A: Given: Face value of the note=$244000Present value factor for 10% and 5 years =0.62 Zero -interest…
Q: allace Inc. had a net realizable value of receivables of $700,000 when they prepared an aging of the…
A: In this question, we have to find out the uncollectible account expenses for 2020.
Q: On December 31, 2017, Pharoah Co. sold equipment to Shamrock, Inc. Pharoah Co. agreed to accept a…
A: Present value of zero interest-bearing note = Face value of note x Present value factor (4%, 2…
Q: On July 1, 2017, KYU Co. discounted a 90-day, P850,000, 12% note, received from a customer on June…
A: Bills of exchange: Bills of exchange or notes are prepared for the smooth functioning of trade.…
Q: On December 31, 2017, Pharoah Co. sold equipment to Shamrock, Inc. Pharoah Co. agreed to accept a…
A: Zero-interest-bearing note is the note in which the interest is not paid to the bond holders. The…
Q: On January 1, 2010, $12,000 was deposited into an account that earns 6.00% interest compounded…
A:
Q: On March 1, 2020 Giant Jumbo Clown Costumes borrowed money from Second Friendly National Bank by…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: On September 1, 2012, Lowe Co. issued a note payable to National Bank in the amount of $900,000,…
A: GIVEN: On 1 Sep 2012 Lowe co. issued note payable to national bank for $900000 Interest rate = 12%…
Q: our year end is December 31. You lent $120,000 to another company on Oct 1. If the interest rate is…
A: Solution Concept The amount of the interest receivable is mathematically equal to =principal *…
Q: A man borrowed Php 8000 from RCBC and agreed to pay the loan at the end of 9 months. The bank…
A: AMount borrowed is Php 8000 Time period is 9 months Amount received after discount is Php 5000 To…
Q: On December 31, 2018, Conchita Martinez Company signed a P1,000,000 noninterest bearing note to Sauk…
A: The computation of amortization schedule is shown below,
Q: On January 1, 2013, your brother's business obtained a 30-year amortized mortgage loan for $350,000…
A: Present value of all the monthly installments is equal to the loan amount. Equated monthly…
Q: On december 31, 2017, Precious Company sold an equipment with carrying amount of 2,000,000 and…
A: Solution Given Annual payment 500000 Number of years 10 years Note issue date…
Q: Apricot, Inc purchased a new machine on November 1, 2017 for $1,000,000 on credit. The supplier has…
A: given data november 1, 2017 for $1,000,000 on credit supplier terms 2/10 net 45 interest rate = 16%…
Q: 1. On December 31, 2018, Conchita Martinez Company signed a P1,000,000 noninterest bearing note to…
A: Amortization:-Amortization means when the value of any asset gets distributed among its useful life.…
Q: Pangasinan Company is a dealer in equipment. On December 31, 2017, the entity sold an equipment in…
A: The note requires an annual payment of P500,000 for five years. The first payment is coming after 1…
Q: Included in Allen Corp.'s balance sheet at June 30, 2015 is a 10%, $3,000,000 note payable. The note…
A: Accrued interest payable represents the interest that has been accrued to be paid but not yet paid…
Q: Max Corp. sold goods for $36,000 on July 17, 2020, and accepted a 12%, 90-day note. On August 1, the…
A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…
Q: A man borrowed a sum of money from a lending Institution at a simple interest rate of 12%. Determine…
A: Here, Simple Interest Rate is 12% Time Period is January 10, 2006 to October 15, 2006 Accrued…
Q: Mission Corp. borrowed $25,000 cash on April 1, 2016, and signed a one-year 8%, interest-bearing…
A: Amount paid to bank = Principal + Interest expense Interest expense = Note Payable x rate x number…
Q: On January 1, 2017, Oldham Company sold goods to Windall Company in exchange for a 3-year,…
A: Journal entry:Journal entry is a set of economic events which can be measured in monetary terms.…
Q: On December 31, 2018, Conchita Martinez Company signed a P1,000,000 noninterest bearing note to Sauk…
A: Calculate Interest received in 2019. Calculate Interest revenue for 2019.
Q: On July 1, 2020, Marin Inc. made two sales: 1. It sold excess land in exchange for a four-year,…
A: Notes Receivables:-It is a written legal document where one party promise to another party to pay…
Q: On December 31, 2010, Chelsea Co. provides a service for its customer Villas Boas Co. inexchange for…
A: First step is to compute the amount of liability of Note payable to be recorded o Dec31, 2010.This…
Liana Ltd bought a bank bill on 7 January 2012 for $976 751 and sold it on 3 March 2012 for $987 618.
a. What simple interest rate (annual rate) did Liana Ltd earn?
b. What annual effective interest rate did Liana Ltd earn?
Please help to solve the following question with detailed steps and explanation. thank you
Step by step
Solved in 2 steps
- Marmol Corporation uses the allowance method for bad debts. During 2019, Marmol charged 50,000 to bad debt expense and wrote off 45,200 of uncollectible accounts receivable. These transactions resulted in a decrease in working capital of: a. 0 b. 4,800 c. 45,200 d. 50,000On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.On January 1, 2003, $12,500 was deposited into a savings account that earns 2.25% interest compounded monthly. On January 1, 2010, $2600 was deposited into the account and the bank changed the interest rate to 2.70% compounded monthly. On January 1, 2015, $5,800 was withdrawn from the account and the interest rate was lowered to 1.65% compounded monthly. A. If no other deposits, withdrawals , or rate changes occurs, how much money did the account have on January 1, 2019? B. Determine the total interest that was earned from January 1, 2019?
- Mission Corp. borrowed $25,000 cash on April 1, 2016, and signed a one-year 8%, interest-bearing note payable. The interest and principal are both due on March 31, 2017.What is the amount to be paid to the bank on March 31, 2017 for interest and principal (combined)?On December 31, 2017, Pharoah Co. sold equipment to Shamrock, Inc. Pharoah Co. agreed to accept a $380,000 zero-interest-bearing note due December 31, 2019, as payment in full. Shamrock, Inc. incorporated in 2017 and had very little credit history at the time of the transaction with Pharoah. Therefore, at that time, Shamrock typically borrowed funds at a rate of 11%. Pharoah has a long and positive credit history. Therefore, Pharoah has various lines of credit at 6%. Prepare the journal entry to record the transaction of December 31, 2017, for Pharoah CoA private enterprise sold some merchandise for $160,000 on January 1, 2020. The customer paid $20,000 in cash and issued a note for the remainder. The principal will be due in 2 years, and a 5% interest is due every December 31st. The customer’s borrowing rate is unknown. Assume that the customer’s borrowing rate is unknown and that the merchandise cash price is $150,000 (everything else holds true). Calculate the imputed interest rate and the interest revenue to be recorded on December 31, 2020 under IFRS.
- KMC Inc. provided a loan to Jim Ltd on January 1st, 2016 and received in exchange a 4-year, $120,000 note bearing interest at 8% to be paid annually on December 31. The market rate of interest for financial instruments of similar risk is 2%. KMC Inc. financial year ends December 31 and the company uses the effective interest method to amortize discount and recognize interest revenue. Required: Round to the nearest whole number a) what is the face value of the note? b) Calculate the present value of the note. c) Is this note issued at par, discount or premium? d) Prepare the journal entry in KMC’s books to record the issuance of the note on January 1, 2016. e) Prepare KMC’s 4-year Note Amortization schedule. f) Prepare the journal entry KMC records on December 31, 2017.A bank loan of $800,000 was obtained byPWP Ltd on 1 August 2020 to purchase itsbusiness office, warehouse and factory andan upfront establishment fee of $8,000 waspaid on that date. The period of the loan waseight years and the bank charged interest atthe rate of 10 percent. 1.Explain what deductions are available to PWP for2020/21 in relation to the establishment fee andinterest paid on the bank loan. 2.What deductions would be available if PWP repaidthe $500,000 loan in full-on 30 June 2022?On January 1, 2017, Oldham Company sold goods to Windall Company in exchange for a 3-year, non-interest-bearing note with a face value of $10,000. If Oldham entered into a separate financing transaction with Windall, an appropriate interest rate would be 8%. Which of the following statements is true about the journal entry that records the transaction when Oldham delivers the goods to Windall on January 1, 2017?Credit Sales Revenue $7,600 Credit Interest Revenue $2,400 Debit Note Receivable for $10,000 Credit Discount on Note Receivable $2,400
- Starr Corporation loaned P90,000 to another corporation on December 1, 2021 and received a 3-month, 6% interest-bearing note with a face value of P90,000. What adjusting entry should Starr make on December 31, 2021? a. Debit Interest Receivable and credit Interest Revenue, P1,350. b. Debit Cash and credit Interest Revenue, P450. c. Debit Interest Receivable and credit Interest Revenue, P450. d. Debit Cash and credit Interest Receivable, P1,350.At December 31, 2016, Frost Company had outstanding P3,000,000, 12% note payable to Freeze Bank dated January 1, 2012. The note was due on December 31, 2017 which interest every December 31. During 2017, Frost notified Freeze Bank that it might be unable to meet the scheduled December 31, 2017 payment of principal and interest because of financial difficulties. On September 30, 2017, Freeze Bank sold the note for P2,800,000 to Frozen Company, one of Frost Company's oldest and largest customers, On December 31, 2017, Frozen Company agreed to accept inventory costing P2,600,000 worth P3,150,000 from Frost Company in full settlement of the note. The gain/loss reported in Frost Company's profit or loss as a result of the liability derecognition isOn May 1, Year 1, Benz’s Sandwich Shop loaned $14,000 to Mark Henry for one year at 8 percent interest. Requireda. What is Benz’s interest income for Year 1?b. What is Benz’s total amount of receivables at December 31, Year 1?c. How will the loan and interest be reported on Benz’s Year 1 statement of cash flows?d. What is Benz’s interest income for Year 2?e. What is the total amount of cash that Benz’s will collect in Year 2 from Mark Henry?f. How will the loan and interest be reported on Benz’s Year 2 statement of cash flows?g. What is the total amount of interest that Benz’s earned on the loan to Mark Henry?