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On Jan. 1, 20x1, Bernie Bird Co., received a 10% note with face amount of P1,200,000. Both principal and compounded interests are due on Jan. 1, 20x4. How much interest receivable is reported on the December 31, 20x2
a. 120,000
b. 132,000
c. 252,000
d. 168,000
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- on March 1, 20x1 Nick Co. issued a P6000, 12%note dated January 1, 20x1 in exchange an outstanding account payable of P6,000. The principal and the 6-month interest on the nore due on July 1, 20x1. On initial recognition, which of the following acounts increased? a. Prepaid Interest b. interest payable c. discount on nte payable d. interest expense5. On July 8, Alton Co. issued an $80,000, 6%, 120-day note payable to Seller Co. Assame tht t Current Labilities snAvp year of Alton Co. ends July 31. Using the 360-day year in your calculations, what is the amount of interest expense recognized by Alton in the current fiscal year? fiscal $1,200.00 b. $106.67 $306.67 а. с. DIF: Moderate KEY: Bloom's: Application d. $400.00 OBJ: LO: 11-01 PTS: ANS: C NAT: BUSPROG: Analytic 120. c20 000 6%A. 1. Entity A received a 12%, ₱200,000, one-year, note receivable on October 1, 20x1. Entity A uses a calendar year period. The principal and interest on the note are due on October 1, 20x2. What is the adjusting entry to take up accrued interest income on December 31, 20x1? Dec. 31, 20x1 Interest receivable (200,000 x 12% x 3/12) Interest income to accrue interest income earned but not yet collected 6,000 6,000 2. Entity A is renting out its building to a tenant for a monthly rent of ₱30,000. As of December 31, 20x1, the tenant has not yet paid the rent for the months of November and December. What is the adjusting entry to take up accrued rent income on December 31, 20x1? 3. Entity A issued a 12%, ₱500,000, one-year, note payable on July 1, 20x1. The principal and interest are due on July 1, 20x2. What is the adjusting entry to take up accrued interest expense on December 31, 20x1? 4. Entity A has equipment with a historical cost of ₱1,000,000. The equipment was estimated to have a…
- On Jan 1, 20X4, ABC Corp sold goods and receive a P400,000 non-interest bearing note due on Jan 1, 20X7. Effective interest was 10%. What was the amount of interest income should be included in the 20X4 financial statements? 35,053 40,109 0 30,053On April 1, 20X1, Nelsen Inc. accepts a $100,000, 8% note. The note receivable and interest are due on March 31, 20X2 (one year later). On March 31, 20X2, Nelson Inc. will record interest revenue of: $2,000. $8,000. $6,000. $0.On August 1, Year 1, Hernandez Company loaned $58,800 cash to Acosta Company. The one-year note carried a 5% rate of Interest. Which of the following shows how the December 31, Year 1, recognition of accrued Interest will affect Hernandez's financial statements? Assets A. $ 1,715 = B. $ 1,715 = C. $ 1,225 D. $ 1,225 = Multiple Choice O Balance Sheet = Liabilities + ΝΑ + ΝΑ + ΝΑ O O Option A Option B Option C Option D ΝΑ Income Statement Expenses = ΝΑ NA Equity Revenues $1,715 $ 1,715 - $1,715 $ 1,715 - $ 1,225 $1,225 - $1,225 + + $1,225 ΝΑ NA = = = = Net Income $ 1,715 $ 1,715 $ 1,225 $ 1,225 Statement of Cash Flows $ 1,715 OA ΝΑ $ 1,225 OA NA
- On Jan 1, 20X1, ABC Co sold land with a fair value of P110,000 and received a non interest bearing note of P150,000 due in 3 years. Effective rate is 10%. Interest is collectible every Jan 1 of the following year. How much is the notes receivable as presented in the balance sheet at Dec 31, 20X1? 82,645 110,000 112,697 150,000On July 8, Action Co. issued an $80,000, 6%, 90-day note payable to Scanlon Co. Assuming a 360-day year, what is the maturity value of the note? a.$84,800 b.$78,800 c.$80,000 d.$81,200Madison Company issued an interest-bearing note payable with a face amount of $25,800 and a stated interest rate of 8s to the Metropolitan Bark on August 1, Year 1. The note carried a one year term. Based on this information alone, the amount of total liablities appearing on Madisoris Year 1 balance sheet would be Select one O A $25,800 OB $27864 OC $26,660 OD $27,004 Denver Co. issued bonds with a face value of $79,000 and a stated interest rate of 7% The bonds have a life of five years and were sold at 103.50. If Denver amortizes discounts and premiums using the straight ine method, the amount of interest expense each full year would be Select one O A S6083. OB. $5530. OC S4977. OD $5724. Victor Company issued bonds with a $400,000 face value and a 3% stated rate of interest on January 1, Year 1. The bonds carried a Syear term and sold for 93. Victor uses the straight-line method of amortization. Interest is payable on December 31 of each year. The carrying value of the bond…
- On June 8, Williams Company issued an $75,972, 6%, 120-day note payable to Brown Industries. Assuming a 360-day year, what is the maturity value of the note? When required, round your answer to the nearest dollar. Oa. $75,972 Ob. $77,491 Oc. $80,530 Od. $4,558 > Other fav tNYJ, Inc. borrowed $500,000 on November 1, 20X1, and signed a nine-month note bearing interest at 8%. Principal and interest are payable in full at maturity. In connection with this note, NYJ, Inc. should record interest expense in 20X2 in the amount of: Select one: a. $15,000 b. $20,000 c. $17,500 d. $30,000 e. $23,333On July 1, 20X4, ABC Corp sold goods and receive a 12% P400,000 note due on July 1, 20X7. What was the amount of interest income should be included in the 20X4 financial statement? 20,000 24,000 48,000 0