Chapter 2, Problem 2.6E

In 2021, TUC Inc. guaranteed a bank loan of ATT Corp. ATT Corp has made all the required loan payments and the bank loan has a balance of 4,000,000 as of December 31, 2021. What provision should TUC Inc. recognize on December 31, 2021?

1. What is the interest income for 2021?2. What is the carrying value of the loan receivables to be presented in the statement of financial position as of December 31, 2022?

Cute Company disclosed the following information on December 31, 2021:   Mortgage payable, issued on March 1, 2012, maturing after 10 years P1,500,000 Notes Payable P40,000 Deferred tax liability P10,000 Notes payable due to bank, 12% interest bearing note payable yearly,issued on August 31, 2021, maturing on August 31, 2022 P1,000,000       Compute for the current liabilities as of December 31, 2021

The following information is also available: 1. Current assets include cash P3,800, accounts receivables P18,500, note receivables (maturity date is on July 1,2023) P10,000 and land P12,000. 2. Long term investments include a P4,600 investment in fair value though other comprehensive income securitiesthat is expected to be sold in 2022 and a P9,000 investment in AllDay company bonds that are expected to be helduntil their December 31, 2029 maturity date. 3. Property and equipment include buildings costing P63,400, inventories costing P30,500 and equipment costingP29,600. 4. Intangible assets include patents that cost P8,200 and on which P2,300 amortization have accumulated, andtreasury shares that costs P1,800. 5. Other assets include prepaid insurance (which expires on November 30, 2022) P2,900, sinking fund for bondretirement P7,000 and trademarks that cost P5,200 and on which P1,500 amortization has accumulated. 6. Current liabilities include accounts payable P19,400, bonds payable…

The following information is also available: 1. Current assets include cash P3,800, accounts receivables P18,500, note receivables (maturity date is on July 1,2023) P10,000 and land P12,000. 2. Long term investments include a P4,600 investment in fair value though other comprehensive income securitiesthat is expected to be sold in 2022 and a P9,000 investment in AllDay company bonds that are expected to be helduntil their December 31, 2029 maturity date. 3. Property and equipment include buildings costing P63,400, inventories costing P30,500 and equipment costingP29,600. 4. Intangible assets include patents that cost P8,200 and on which P2,300 amortization have accumulated, andtreasury shares that costs P1,800. 5. Other assets include prepaid insurance (which expires on November 30, 2022) P2,900, sinking fund for bondretirement P7,000 and trademarks that cost P5,200 and on which P1,500 amortization has accumulated. 6. Current liabilities include accounts payable P19,400, bonds payable…

On December 31, 2020, Glare Company provided the following information: Accounts payable, including deposits and advances from customer of P250,000 Notes payable, including note payable to bank due on December 31, 2022 of P500,000 Shared dividend payable Credit balances in customer's accounts Serial bonds payable in semiannual installment of P500,000 Accrued interest on bonds payable Contested BIR Assessment - possible obligation Unearned rent income P1,250,000 P1.500.000 P400,000 P200.000 P5.000.000 P150,000 P300.000 P100,000 Notes: 1. Total liabilities of the Company amounted to P10,000,000 2. There are no other noncurrent liabilities of the Company aside from those listed above

1. On June 30, 2019, Franz Inc. borrowed P1,800,000 for one year from the bank with an interest of 12%. As security for the loan, Franz pledged its accounts receivable amounting to P2,500,000 to the bank. The bank charged the company 8.46% of the accounts receivable pledged as service charge deducted from the amount borrowed. How much was the cash received by the company and the interest expense recognized for the year ended December 31, 2019? A. P 1,800,000; 211,500 B. P 1,548,000; 306,000 C. P 1,588,500; P 319,500 D. P 1,584,000; P 306,000 E. P 1,588,500; P 324,000 F. P 1,584,000; P 216,000 G. None of the choices

At December 31, 2021 the following balances existed on the books of Bulaga Corporation: Bonds Payable, P1,840,000 Interest Payable, P50,000 Discount on bonds payable.P31,468   If the bonds are retired on January 1, 2022, for P2,040,000, what will Bulaga report as a loss on extinguishment?

The following events and transactions related to David Company ocurred after the balance sheet date of December 31, 2017, and before the financial statements were issued in 2018. None of the items is reflected in the financial statements as of December 31, 2017.  1. In order to secure a bank loan of $200,00, David pleged as collateral certain fixed assets wth a net book value of $300,000. David applied for the loan December 18, 2017, and the bank approved the loan on January 8, 2018. 2. On Nover 21, 2017, David initiated a lawsuit seeking $500,000 in damages from a firm that David claims infringed on its trademake. David's attorneys have stated that the chances of wining and of getting the $500,000 are excellent. 3. On February 22, 2018, David issued bonds at an interest rate 2 percentage points above the LIBOR (London Interbank Offered Rate). This is the average interest rate estimated by leading banks in London that they would be charged if borrowing from other banks.  4. A warehouse…