3) Mann Company reported on June 20, 2015 a 10% note payable in the amount of Php 3,600,000. The note is dated October 1, 2014 and is payable in three equal annual payments of Php 1,200,000 plus interest The first interest and principal payment was made on October 1, 2015. a) On June 30, 2016, what amount should be reported as accrued interest payable? b) What amount should be reported as Notes Payable on June 30, 2016? c) How are you going to present the liabilities (current and non current) with corresponding amounts in the statement of financial position?

3) Mann Company reported on June 20, 2015 a 10% note payable in the amount of Php 3,600,000. The note is dated October 1, 2014 and is payable in three equal annual payments of Php 1,200,000 plus interest The first interest and principal payment was made on October 1, 2015. a) On June 30, 2016, what amount should be reported as accrued interest payable? b) What amount should be reported as Notes Payable on June 30, 2016? c) How are you going to present the liabilities (current and non current) with corresponding amounts in the statement of financial position?

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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Issued, On January 01, 2010, a four-year note to ABC Bank. Face value of note is $40,000. It is a 5% note discounted at 8%. 2A). A journal entry for the issuance of the note on January 01, 2010. 2B). A journal entry for interest accrued on December 31, 2010. 2C). A journal entry for interest accrued on December 31, 2011. 2D). A journal entry for interest accrued on December 31, 2012. 2E). A journal entry for interest accrued on December 31, 2013. 2F). A journal entry for payment of the interest on December 31, 2013. 2G). A journal entry for payment of the note to XYZ Bank on December 31, 2013. Don't give answer in image format
The following are the notes issued as of December 31,2020: a.) 10% , P 1,000,000 interest bearing note , issuance date: Jan.1,2019 ; due: December 31,2021 ( interest is payable annually) b.) 12%,P 2,500,000, interest bearing note , issuance date: Jan.1,2020 ; due: December 31,2024 (equal annual installments and interest are to be paid annually) c.) P 750,000 interest bearing note , issuance date: Jan.1,2020 ; due: December 31,2021 ( interest is payable annually) d.) 12%,P 1,500,000, interest bearing note , issuance date: Jan.1,2020 ; due: December 31,2024 (equal annual installments and interest are to be paid annually)From the above notes:- The note issued on a.) is extended for 2 more years. The company has the discretion to defer settlement of the obligation for more than 12 months.- The note issued on c.) is extended for 3 more years and this agreement was done on January 15,2021.How much should be presented as part of the current liabilities as of December 31,2020?
Compute the face value of a 90-day note dated October 8, 2016 bearing interest at 8½% whose maturity value is $2,273.19.
On September 1, 2019, Silang Trading issued a note payable to Far East Bank in the amount of P500,000. The note had an interest rate of 12%and had a term of 1 year. Interest is payable upon maturity of the note. At December 31, 2019, Silang Trading should record accrued interest on the note in the amount of P60,000 P10,000 P20,000 P15,000
On July 1, 2017, Agincourt Inc. rendered services in exchange for a 4%, 8-year promissory note having a face value of $500,000 (interest payable annually). Agincourt Inc. recently had to pay 8% Interest for money that it borrowed from British National Bank. The customer of the above fransaction has credit ratings that require them to borrow money at 12% interest. The present value of 1 at 12% for 8 perlods 0.40388 The present value of an ordinary annuity 4,9676 of 1 at 12% for 8 perlods Instructions By hew much amount Ihe service revue wil be credited? (Please wite your answer without commas or sign of the doliar. For example ifyour answer is SI0.000, Swrite it 10000)
Mission Corp. borrowed $25,000 cash on April 1, 2016, and signed a one-year 8%, interest-bearing note payable. The interest and principal are both due on March 31, 2017.What is the amount to be paid to the bank on March 31, 2017 for interest and principal (combined)?
On December 1, 2016, Bamboo Company assigned specific accounts receivable totaling P4,000,000 as collateral on a P3,000,000, 12% note from a certain bank. The entity will continue to collect the assigned accounts receivable. In addition to the interest on the note, the bank also charged a 5% finance fee deducted in advance on the P3,000,000 value of the note. The December collections of assigned accounts receivable amounted to P2,000,000 less cash discount of P100,000. On December 31, 2020, the entity remitted the collections to the bank in payment for the interest accrued on December 31, 2016, and the note payable. The entity accepted sales returns of P150,000 on the assigned accounts and wrote off assigned accounts of P200,000. 1. What amount should be disclosed as the equity of Bamboo Company in assigned accounts on December 31, 2016? a. 550,000 b. 870,000 c. 520,000 d. 970,000 2. What is the carrying amount of notes payable on December 31, 2016? a. 1,000,000 b. 1, 100,000 c.…
Use the information presented below in answering questions 11-15. On December 31, 2018, Tina Company, a financing institution lent P4,000,000 to Erika Corporation due three years after. The loan is supported by an 6% note receivable. Transaction costs incurred to originate the loan amounted to P100,000, P466,557 was chargeable to Erika as origination fees. Interest on the loan are collectible at the end of each year. The yield rate on the loan is 11%. Tina was able to collect interest as it became due at the end of 2019 and 2020. During 2021, however, due to Erika Corporation’s business deterioration and due to political instability and faltering global economy, the company was not able collect amounts due at the end of 2021. After reviewing all available evidence at December 31, 2021. Tina determined that it was probable that Erika would pay back only P2,500,000 is collectible as follows: December 31, 2023 0.5M December 31, 2024 1M December 31, 2025 0.6M December 31, 2026…
On October 1, 2017, Chung, Inc. assigns $1,000,000 of its accounts receivable to Seneca National Bank as collateral for a $750,000 note. The bank assesses a finance charge of 2% of the receivables assigned and interest on the note of 9%. Prepare the October 1 journal entries for both Chung and Seneca.
On December 1, 2020, RB Company issued accounts receivable of Php6,000,000 to a bank in exchange for a loan of 80% of the accounts minus a 5% service charge on the accounts assigned. The entity signed a bank loan note. On December 31, 2020, the company collected Php2,000,000 in assigned accounts minus a discount of Php200,000. The collections were submitted to the bank as partial payment for the loan. The bank applied the collection first to the interest and then to the principal. On the loan balance, the agreed-upon interest rate is 1% each month. On the allotted accounts, the organisation took sales refunds of Php 100,000 and wrote down assigned accounts totaling Php300,000.
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