Samos, Inc. purchased certain plant assets under a deferred payment contract. The agreement was to pay $75,000 at year-end for each of the next three years. The plant assets should be valued at present value of a $75,000 annuity for three years discounted at the market interest rate. present value of a $75,000 annuity for three years discounted at the bank prime interest rate. $225,000. $225,000 plus imputed interest.

Q: On January 1, 2019, Coco Company sold a building for P5,000,000 to Macao Company. Macao Company paid…

A: Face value of note = Sale value - down payment = 5000000-50000 = P4,500,000 Annual payment = Face…

Q: Bart Company offered a contest in which the winner would receive P1,000,000 payable over twenty…

A: Introduction: Note Payable is Sometimes a promissory note in which one party promises to pay some…

Q: Marshall Corporation purchased equipment and in exchange signed a three-year promissorynote. The…

A: Excel's =PV function shall be used to calculate the present value of the note.

Q: At the beginning of 2018, VHF Industries acquired a machine with a fair value of $6,074,700 by…

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

Q: Moranex Corporation borrowed $75,000.00 at 8% compounded annually for 15 years to buy a warehouse.…

A: When we take a loan we pay equal periodic payments. Here the payments are being made annually.   The…

Q: Peabody Corporation purchased equipment and in exchange signed a three-year promissory note.The note…

A:

Q: On January 1, 20x8, JINX Corp. purchased land by issuing P1 million non-interest bearing note…

A: The question is based on the concept of calculation of present value (carrying charges) for future…

Q: On December 31, 2019, Magnet company sold for P 3,000,000 an old equipment having an original cost…

A: The sale consideration is receivable as follows: On December 31, 2019 (Down Payment) = P 600,000…

Q: On January 1, 2018, Jasperse Corporation leased equipment under a finance lease designed to earn the…

A: Annual payments = $ 75000 Lease agreement period = 10 years Rate of return = 12 % Annual maintenance…

Q: Teari Company purchased a machine on September 1, 2021. The purchase agreement required Teari to pay…

A: Calculation of Fair value of machinery on September 1, 2021 is as follows: Resultant table:

Q: On January 1, 2020, South Company acquired a building for 5,000,000. The entity paid 500,000 down…

A: January 1st, 2020 Building     Dr.  5000000 Cash                    Cr. 500000 Note payable    Cr.…

Q: American Food Services, Inc., acquired a packaging machine from Barton and Barton Corporation.…

A: Answer 1:

Q: Sanchez corporation borrowed a working capital from Barroga Corporation for two consecutive years –…

A: Loan is a value which is borrowed from external sources like banks for a certain period and this…

Q: equal annual installments of $4,520 at the end of each of the next 10 years. Assuming that a…

A: To record the cost of the machine is to calculate the present value as base on the time value of…

Q: Southtown Corporation purchased equipment and in exchange signed a two-year promissory note.The note…

A: Present value of note = Value of note * Present value of $1 table factor (6%, 2 periods)

Q: Ayayai Corporation bought a new machine and agreed to pay for it in equal annual installments of…

A: Given, Installment (P) = $5,570 Number of periods (n) = 10 Interest rate (r) = 0.08

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: Tam's Pizza, Inc. charges an initial franchise fee of P50,000 for the right to operate as a…

A: From the perspective of the Franchisor to earn the amount of revenue from the franchise contract…

Q: A company purchases machinery for kshs 800,000 by making a down      payment of Shs 150,000 and the…

A: Calculate the amount of loan taken by deducting the amount of down payment which is kshs 150,000…

Q: Pearl Corporation bought a new machine and agreed to pay for it in equal annual installments of…

A: Given information, Annual installment= $4,150 Number of years(n)= 10 years Interest rate(i) = 8%

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: Marin Inc. has completed the purchase of new Surface computers. The fair value of the equipment is…

A: Given: Fair value of equipment = $454,625 Down payment = $100,000 Semi annual payment = $57,107…

Q: At the beginning of 2021 VHF Industries acquired a machine with a fair value of 7,985,420 by issuing…

A: Note payable is the liability which increases due to the purchases made on credit.

Q: On January 1, James Industries leased equipment to a customer for a four-year period, at which time…

A:

Q: Corporation borrowed $80,000.00 at 11​% compounded semi-annually for 14 years to buy a warehouse.…

A: Amortization table is a schedule which shows periodic lease or loan payments. The periodic payment…

Q: On 1 October 20X3, Fresco acquired an item of plant under a five-year finance lease agreement. The…

A: We have the following information: Cost of Plant: $25 million The agreement had an implicit finance…

Q: Kirk Company purchased equipment by making a down payment of P400, 000 and issuing a note payable…

A: Capitalized cost of the equipment = Down payment + Present value of Note + Shipping charges +…

Q: On January 1, 20x9, Fairness Company sold a tract of land that was acquired years ago for P…

A:

Q: On January 1, 2020, South Company acquired a building for P5,000,000. The entity paid P500,000 down…

A: It is pertinent to note that the fair value of note is the present value of all the cash outflows…

Q: Sanchez corporation borrowed a working capital from Barroga Corporation for two consecutive years –…

A: A loan is a sum of money obtained from outside sources such as banks for a specific length of time…

Q: Stellar Corporation purchased equipment and in exchange signed a two-year promissory note. Thenote…

A:

Q: At the beginning of current year, Jade Company purchased a new machine for P4,800,000 and leased it…

A: An operating lease is an agreement or arrangement for the use of an asset without any transfer of…

Q: GREENTREE COMPANY acquires a new manufacturing equipment on January 1, 20x6, on instalment basis.…

A: The calculation of Notes repayment table is as follows: Resultant table:

Q: Legendary Corporation purchased equipment and in exchange signed a three-year promissorynote. The…

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

Q: On January 1, 20x1, Otters Co. received a 3-year, noninterest bearing note of P1,200,000 in exchange…

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

Q: Kirk Company purchased equipment by making a down payment of P400,000 and issuing a note payable for…

A: Capitalized cost of the equipment = Down payment + Present value of Note + Shipping charges +…

Q: Hemingway Company purchases equipment by issuing a 7-year, $210,000 non-interest-bearing note, when…

A: Companies acquire assets either through cash or non-cash means. In the case of non-cash means,…

Q: To raise working capital, ABC Company sold its storage building to Best Bank on January 1, 2021, for…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: A company offered a contest in which the winner would receive P 1,000,000, payable over twenty…

A: Notes Payable: It is the liability of the company which generally has to pay within a year. This is…

Q: At the beginning of 2016, VHF Industries acquired a machine with a fair value of $6,074,700 by…

A: 1.

Q: Anxious Company acquired two items of machinery. On December 31, 2020, Anxious Company purchased a…

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

Q: Tricana Corporation borrowed $79,000.00 at 3% compounded quarterly for 8 years to buy a warehouse.…

A: The loan here is an amortized loan. An amortized loan is that loan in which interest is charged on…

Q: On January 1, 2021, My Universe Corporation issued a three-year, non-interest bearing note with face…

A: Solution: Interest expense for 2021 = P2,400,000 * 12.0444% = P289,066 Payments at the end of 2021 =…

Q: LLL company has an equipment with carrying value of P350,000 and with remaining estimated life of 5…

A: As per IFRS 16 Leases, the Initial cost of the right-to-use asset in the books of lessee shall…

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, 2021, My Universe Corporation issued a three-year, non-interest bearing note with face…

A: 12 months from the end of reporting period date. in this case reporting period date is 31 dec 2021

Q: On January 1, 20x9, Fairness Company sold a tract of land that was acquired years ago for P…

A: * As per Bartleby policy, answer first three subparts only in case question contains multiple…

Q: The note shall be paid in equal annual installments (this is the series of amounts that Krisha will…

A: Calculation of Present value of note receivable  Year Cash inflow Present Value factor @12%…

Q: On January 1, 2021, My Universe Corporation issued a three-year, non-interest bearing note with face…

A: Current Liabilities - It is amount of debt obligations which are to be paid within one year by the…