Foremost Company received from a customer a one-year, P500,000 note bearing annual interest of 8%. After holding the note for six months, the entity discounted the note at the bank at an effective interest rate of 10%. 1. What amount of cash was received from the bank?  a. 540,000  b. 523,810  c. 513,000  d. 459,238 2. What is the loss on note receivable discounting?  a. 20,000  b. 13,000  c. 7,000  d. 0

Q: EXO Company accepted a P400,000 face value, six-month, 9% note dated May 15 from a customer. After…

A: Interest accrued =  face value of note x rate of interest x no. of months/12 = P400,000 x 9% x 2/12…

Q: Dynatech Supply Corp. has the following selected transactions for notes receivable. Nov. 1 Lent…

A: Notes receivable: It is a written document by which the other person promises to pay a certain…

Q: A 180-day, 12% interest bearing note receivable is sold to a bank without recourse after being held…

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

Q: BTS Company accepted a P400,000 face value, six-month, 9% note dated May 15 from a customer. After…

A: Interest accrued =  face value of note x rate of interest x no. of months/12 = P400,000 x 9% x 2/12…

Q: Brooke Company discounted its own P5, 000,000 one year note at a bank, at a discount rate of 12%,…

A: SOLUTION- Prime Rate is the interest rate charged by commercial banks to their most creditworthy…

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: Morton Company had the following select transactions. 1, 2021 Accepted Remington Company's 1-year,…

A: Journal entries by far are one of the most crucial skills to develop in an accounting profession.…

Q: On January 1, Gabriel Company sold land with a carrying value of P1,000,000 in exchange for a…

A: PARTICULAR DEBIT CREDIT       sales 1,500,000      to land   1,000,000    to profit on sale…

Q: Chang Co. issued a $54,691, 120-day, discounted note to Guarantee Bank. The discount rate is 10%.…

A: Cash Proceeds from issuing a discounted note = Face Value of the note - Discount

Q: DE LA CRUZ Company received a 10%,180 day note from its customer on April 1, 2021. The note has a…

A: Solution : Given Face value          =P500,000 interest rate      =10% discount rate     = 12 % date…

Q: For the current period, ABC Co. had the following transactions with DEF Co.: Jul 01 Sales on account…

A: When an amount is due from a debtor of the business, the company can opt for receipt of other…

Q: ABS-CBN COMPANY received from a customer a one-year, $500,000 note bearing annual interest of 8%.…

A: Discounting seems to be the act of transferring or surrendering a customer's notes receivable to a…

Q: On April 1, Year 1, Halo Co. issued a $5,000 face value discount note to the Capri Bank. The note…

A: Amount of cash received = Face value of the Note - Discount amount where, Discount amount = Face…

Q: FDN Company signed a 90-day, 8% P150,000 note with the bank for cash borrowed. On maturity date, the…

A: The balance sheet represents the financial position of the business  The note payable is recorded as…

Q: On July 31, 20A, ABC company discounted at the bank, a customer's 1,200,000, 6-month 10% notes…

A: Notes payable are signed arrangements (promissory notes) between two parties whereby one offered to…

Q: Company factored P6,000,000 of accounts receivable to a certain bank at the end of current year.…

A: Factoring is a kind of financial transaction in which a business organization sells its accounts…

Q: On December 1, 2009, LOAN Company assigned on a non-notification basis accounts receivable of…

A:

Q: Cornbip Company received from a customer a on-year, $500,000 note bearing annual interest of 8%.…

A: The interest amount to be received by the company shall be considered while calculating the amount…

Q: LISA Corp. received from MIK Corp. a one-year, $375,000 note bearing annual interest of 8%. After…

A: Maturity value of Note = Face value of note + interest = $375000 + 375000*8%*12/12 = $405,000

Q: On May 15, FDN Trading signed a P150,000, 12 percent, 150-day note payable with the bank. The note…

A: Notes payable is defined as the liabilities that are usually issued for the long term. It indicates…

Q: Company received from a customer a one-year, P500,000 note bearing annual interest of 8%. After…

A: Notes Receivable is an instrument that is evidence of a debt and makes an obligation on the issuer…

Q: X Corporation accepted a P400,000 face value, six-month, 10% note dated May 15 from a customer. On…

A: Simple interest = Principal ×Interest rate × Time =P400,000 × 10% × 612=P20,000   Maturity value =…

Q: Foremost Company received from a customer a one-year, P500,000 note bearing annual interest of 8%.…

A: A promissory note is a financial instrument that contains a written promise by one party (the note's…

Q: . On November 1, 20x1, ABC discounted a P1,000,000, 90-day note, received from a customer on…

A: Discounted notes are a way for a business to reduce its receivable amount to meet its immediate…

Q: In reporting the note in Karen Company statement of financial position, prior to maturity what rate…

A: Prime Rate is the interest rate charged by commercial banks to their most creditworthy customers.

Q: On January 16, K Corp, accepted a P600,000, 9%, 90 day note from a customer. On February 10, the…

A: Step 1 Discount of trade bills is short-term financing granted by the Bank. The Bank purchases trade…

Q: abardeen corporation borrowed 58,000 from the bank on october 1, year 1. the note had a 4 percent…

A: d. Compute the total amount of cash (principal and interest) that was paid to bank on March 31, Year…

Q: EXO Company accepted a P400,000 face value, six-month, 9% note dated May 15 from a customer. After…

A: Interest accrued =  face value of note x rate of interest x no. of months/12 = P400,000 x 9% x 2/12…

Q: Chang Co. issued a $59,741, 120-day, discounted note to Guarantee Bank. The discount rate is 8%.…

A: Discounting of note means receiving payments from a note from the bank after deduction of bank…

Q: Assuming loan made by M Enterprises to Banco De Oro amounting to P350,000.00 payable in three years…

A: A drawer is a person who borrows money on credit and author of the check. A payee is a person on…

Q: On June 30, 2002, Simon Company discounted a customer's $180,000, 6 month, 10 percent note…

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

Q: BBY Company loaned $66,116 to Orwell, Inc, accepting Orwell's 2-year, $80,000, zero-interest-bearing…

A: Discount on Notes receivable = Face value - Issue price = $80,000 - $66,116 = $13,884

Q: Bruno received a one-year P375,000 note bearing annual interest of 8% from a customer. after holding…

A: Formula: Interest amount = Notes payable x Interest rate x Time period.

Q: Bibimbap Company received from a customer a on-year, P500,000 note bearing annua nterest of 8%.…

A: Solution: Formula Sheet:   Answer Sheet:

Q: 17. Walnut company received from a customer an 1-year, P200,000 note bearing annual interest of 8%.…

A: The maturity value of note is calculated as sum of principal value of note and interest earned.

Q: Assuming loan made by M Enterprises to Banco De Oro amounting to P350,000.00 payable in three years…

A: A personal loan is the borrowed amount of money used to cover number of personal expenses. Personal…

Q: On December 15, FDN Trading signed a P120,000, 4 percent, 120-day note payable with the bank. The…

A: Financial markets are venues where individuals and businesses may purchase and sell assets such as…

Q: Holy Ground received from a customer a one-year, P375,000 note bearing annual interest of 8%. After…

A: Maturity value of note = Face value of note + interest = P375000 + (375000*8%*12/12) = P405,000…

Q: Accounts receivable in the amount of $658,000 were assigned to the Fast Finance Company by Sunland,…

A: Account Receivable - Amount which is due from the customer for merchandise or service purchased on…

Q: Chang Co. issued a $42,940, 120-day, discounted note to Guarantee Bank. The discount rate is 9%.…

A: Discount on note = 42,940 x 9% x 120/360 = 1,288

Q: VKS Corp. assigned P500,000 of accounts receivable to RK Finance Co. as security for a loan of…

A: Commission on the loan = Loan amount  x commission rate = P420000 X 2% = P8400

Q: Company received from a customer a one-year, P500,000 note bearing annual interest of 8%. After…

A: The company will sell the products at cash or at credit. If the company sells the product at credit,…

Q: CPA Co. received from a customer a one-year, P1,000,000 note bearing annual interest of 10%. After…

A: Factoring is the financial institution where firm can sell their account receivable at a discount…

Q: On April 1, Year 1, Halo Co. issued a $5,000 face value discount note to the Capri Bank. The note…

A: Formula: Discount amount = face value amount x Discount rate

Q: On November 15, FDN Trading signed a P360,000, 12 percent, 180-day note payable with the bank. The…

A: Solution: Discount amount = P360,000 * 12%*180/360 = P21,600

Q: Misk, Inc. received from a customer a one-year, $750,000 note bearing annual interest of 9%. After…

A: Note Receivable is an asset for the firm that the account receivable would settle their account on…

Q: CPA Co. assigned P500,000 of accounts receivable to IntAcc1 Finance Co. as security for a loan of…

A: Commission on the loan = Loan amount  x commission rate = P420000 X 2% = P8400

Q: Wenzy Company discounted its own ₱250,000 one-year note at a bank, at a discount rate of 12% when…

A: Journal entry is defined as recording of the transactions of business into the books of entity and…

Q: C company discounted its own 250,000 one year note at a bank, at a discount rate of 12% when the…

A: Company discounting its notes means, the company is presenting its notes receivable from the…