1. Danika Manufacturing purchased a patent from Clayton Industries on January 1, 2015, by paying$10,500 in cash and issuing a $35,000 noninterest-bearing note payable. The note called for sixannual payments of $5,000 starting on December 31, 2015. The patent had a remaining legallife of 14 years. Danika expected that the patent would have a useful life of 15 years. Danika'borrowing rate was 6%. Danika uses the straight-line method to amortize intangibles.In 2019, Danika unsuccessfully sued a competitor for patent infringement. The company paid legalfees of $5,000 on June 30, 2019.What was the carrying value of the Patent at December 31, 2019? Assume no impairmentadjustment is required.O A) $22,556B) $29,250O C) $28,987O D) $22,293

Carrying Amount = Cost - Accumulated Depreciation Intangible Assets are initially measured at Cost…

Answered: .. Danika Manufacturing purchased a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Moon Ltd. sells custom made furniture on 24 months' interest free terms to qualifying customers. On 30 June 2023, Moon Ltd. sells $71,600 of furniture to Jessie Ltd., which cost $40,300, payable by 30 June 2025. By 30 June 2024, only 40% of the ordered furniture was delivered. The appropriate interest rate for this transaction is determined to be 11.20% per annum. Moon Ltd. uses perpetual system. By 30 June 2025, all payment was made, and the remaining furniture was delivered. Required: Question 4 Calculate the present value of the $71,600 to be received on 30 June 2025.
On January 1, 2020, Apple, gave a loan to Samsung Nokia Inc. amounting to P1,000,000 and received a two-year 12%, 1,000,000 note. The note calls for annual interest to be paid each January 2. Apple collected the interest payment in 2021 as scheduled. The company incurred origination cost amounting to P57,851, 40% of which had been charged to Samsung Nokia Inc. The yield rate on the loan is arranged at 10%. On December 31, 2021, however, based on the changing market conditions and Samsung Nokia Inc.'s financial struggles, only P900,000 is expected to be collected by Apple. The P900,000 principal amount is expected to be collected on December 31, 2020, 2021, and 2022. By December 2021, Apple assessed that the market's time value for money is computed at 8%. How much loss should be recognized in relation to the loan on December 31, 2021? Use 9 decimal places for the present value factors. Kindly show your solution.
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On January 1, 2020, Apple, gave a loan to Samsung Nokia Inc. amounting to P1,000,000 and received a two-year 12%, 1, 000 note. The note calls for annual interest to be paid each January 2. Apple collected the interest payment in 2021 as scheduled. The company incurred origination cost amounting to P57,851, 40% of which had been charged to Samsung Nokia Inc. The yield rate on the loan is arranged at 10%. On December 31, 2021, however, based on the changing market conditions and Samsung Nokia Inc.'s financial struggles, only P900,000 is expected to be collected by Apple. The P900,000 principal amount is expected to be collected on December 31, 2020, 2021, and 2022. By December 2021, Apple assessed that the market's time value for money is computed at 8%. How much loss should be recognized in relation to the loan on December 31, 2021? Use 9 decimal places for the present value factors. Kindly show your solution.
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Gen sells cellular phones. Each phone sells for P10,000 and carries a warranty against defects of period of 1 year counting from the date of purchase. The firm sold 60,000 phones in 2019. Past experience indicates that 10% of the phones will need some type of repair during the warranty period. In the past, the firm has incurred expenditures at P400 on each telephone needing repair due to manufacturing defects. At the beginning of the year, the Estimate Liability for Warranties account had a credit of P59,400. Actual expenditures during the year amounted to P1.5M. The balance of the Estimated Liability for Warranties at year-end is: O 500,000 O 2,400,000 O 1,500,000 0 950,000
16. On January 1, 2012, the Dolce Corporation issued a three-year, non-interest bearing note with face value of P3,000,000 for a piece of land purchased from Jardine Corporation. The note is payable in annual installments of P1,000,000 every December 31, starting on December 31, 2012. The land has an equivalent cash price of P2,400,000, a price that provides the note an effective interest rate of 12%. What is the interest expense for the year ending December 31, 2012? * a. P360,000 b. P288,000 c. P240,000 d. P168,000
EZ Wheels Corporation manufactures kick scooters. The company offers a one-year warranty on all scooters. During 2017, the company recorded net sales of $1,900 million. Historically, about 4% of all sales are returned under warranty and the cost of repairing and or replacing goods under warranty is about 30% of retail value. Assume that at the start of the year EZ Wheels’ balance sheet included an accrued warranty liability of $16.3 million and at the end of the year, the accrued warranty liability balance was $12.4 million. How much did EZ Wheels pay during the year to repair and/or replace scooters under warranty? this seems like the same question is it not 22.8?
1. General Motors guarantees automobiles against defects for five years or 160,000 km, whichever comes first. Suppose GM can expect warranty costs during the five-year period to add up to 4% of sales. Assume that Forbes Motors made sales of $2,500,000 on their Buick line during 2020. Forbes received cash for 13% of the sales and took notes receivable for the remainder. Payments to satisfy customer warranty claims totalled $75,000 during 2020. Post to the Estimated Warranty Payable T-account. The beginning balance was $43,000. At the end of 2020, how much in estimated warranty payable does Forbes owe its customers?
Catskills guarantees its snowmobiles for three years. Company experience indicates that warranty costs will be approximately 7% of sales. Assume that the Catskills dealer in Colorado Springs made sales totaling $450,000 during 2018. The company received cash for 10% of the sales and notes receivable for the remainder. Warranty payments totaled$12,000 during 2018. Requirements: 1. Record the sales, warranty expense, and warranty payments for the company. Ignore cost of goods sold. 2. Assume the Estimated Warranty Payable is $0 on January 1, 20182018. Post the 2018transactions to the Estimated Warranty Payable T-account. At the end of 2018,how much in Estimated Warranty Payable does the company owe?
71. Sbject :- Accounting
LCD Industries purchased a supply of electronic components from Entel Corporation on November 1, 2021. In payment for the $25.2 million purchase, LCD issued a 1-year installment note to be paid in equal monthly payments at the end of each month. The payments include interest at the rate of 18%.(FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)Required:1. & 2. Prepare the journal entries for LCD’s purchase of the components on November 1, 2021 and the first installment payment on November 30, 2021.3. What is the amount of interest expense that LCD will report in its income statement for the year ended December 31, 2021?

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