A company had the following unadjusted balances on specific accounts for the year ended December 31, 2020: ACCOUNT AMOUNT Accounts Payable, net of debit balances of P 50,000 P 150,000 Accounts Receivable, net of credit balances of P 25,000 P 250,000 Bonds Payable P 453,000 Cash Dividends Payable P 125,000 Stocks Dividend Payable P 156,000 Unearned Subscription Revenue P 654,000 Other details are as follows: Of the Unearned Subscription Revenue balance, 25% were earned during 2020. Bonds Payable is due on July 31, 2025. However, a breach of contract related to the bonds occurred on December 18, 2020 and the payable becomes due on demand. On January 8, 2021, the company and the lender reached a compromise and agreed that the payable will be due on July 31, 2023 instead of the original maturity date. Determine the current liability to be reported on December 31, 2020.
56. A company had the following unadjusted balances on specific accounts for the year ended December 31, 2020:
|
ACCOUNT |
AMOUNT |
|
Accounts Payable, net of debit balances of P 50,000 |
P 150,000 |
|
|
P 250,000 |
|
Bonds Payable |
P 453,000 |
|
Cash Dividends Payable |
P 125,000 |
|
Stocks Dividend Payable |
P 156,000 |
|
Unearned Subscription Revenue |
P 654,000 |
Other details are as follows:
- Of the Unearned Subscription Revenue balance, 25% were earned during 2020.
- Bonds Payable is due on July 31, 2025. However, a breach of contract related to the bonds occurred on December 18, 2020 and the payable becomes due on demand. On January 8, 2021, the company and the lender reached a compromise and agreed that the payable will be due on July 31, 2023 instead of the original maturity date.
Determine the current liability to be reported on December 31, 2020.
57. A company issued a P3 million three-year non-interest-bearing note on January 1, 2021, for a piece of land. The note was payable in three equal annual installments every December 31 starting December 31, 2021. The cash price equivalent of the land on January 1, 2021, was P2,401,800. What is the balance of the discount on notes payable on December 31, 2021?
(Round off PV factor to 4 decimal places. Round off final answer to the nearest peso.)
58. A Company acquired a packaging machine from Taylor Corporation. Taylor completed the construction of the machine on January 1, 2029. In payment for the P3 million machine, A Company issued a 4–year interest–bearing note to be paid in four equal payments at the end of each year. Interest is 10% of the unpaid balance to be paid at the end of each year. Assume prevailing interest rate is 14%. At what amount should the note be recorded on January 1, 2029?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
