A company purchased machinery on December 31, 2026, paying P80,000 down and agreeing to pay the balance in 4 equal installments of P60,000 payable each December 31. Implicit in the purchase price is an assume interest of 12%. What is the carrying amount of the note at December 31, 2027? (PVF 5 decimal)
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A company purchased machinery on December 31, 2026, paying P80,000 down and agreeing to pay the balance in 4 equal installments of P60,000 payable each December 31. Implicit in the purchase price is an assume interest of 12%. What is the carrying amount of the note at December 31, 2027?
(PVF 5 decimal)
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- On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)What is the carrying amount of the note as of December 31, 2022? On January 1, 2022. TGIG sold equipment with historical cost of P10,000,000 and accumulated depreciation of P5,500,000 in exchange for a P6,000,000 non-interest bearing note due in annual installments as follows: December 31, 2022 - P3,000,000 December 31, 2023 - P2,000,000 December 31, 2024 - P1,000,000 There was no exchange price for the equipment. The prevailing rate of interest for a note of this type on January 1, 2022 was 10%. (Round off present value factors to four decimal places.)On September 30, 2022 World Company borrowed P1, 000, 000 on a 9% note payable. The entity paid the first of four quarterly payments of P264, 200 when due on December 31, 2022. 1. What amount should be reported as interest expense for 2022? A. 90, 000 В. 22,500 C. 67,500 D. 30,000 2. On December 31, 2022, what is the carrying amount of the note payable? A. 758, 300 В. 750, 000 С. 825, 800 D. 735, 800
- What is the carrying amount of the note as of December 31, 2022? On January 1, 2022. TGIG sold equipment with a historical cost of P10,000,000 and accumulated depreciation of P5,500,000 in exchange for a P6,000,000 non-interest-bearing note due in annual installments as follows: December 31. 2022 - 3, 000, 000 December 31, 2023 - 2, 000, 000 December 31 2024 - 1, 000, 000 There was no exchange price for the equipment. The prevailing rate of interest for a note of this type on January 1, 2022, was 10%. (Round off present value factors to four decimal places.On January 1, 2019, a company acquired transportation equipment by paying cash ofP400,000 and issuing a noninterest-bearing note payable of P4,000,000 due in 4equal annual installments starting December 31, 2019. The prevailing rate of interestof this type of note is 12%.(PVF 6 decimal) 1. How much is the interest expense in 2019? 2. How much is the carrying amount of the note on December 31, 2019? 3. How much is the noncurrent portion of the note on December 31, 2019? 4. How much is the current portion of the note on December 31, 2019?On April 1, 2028, A Company issued a P 9.000,000 non-interest-bearing note due March 31, 2031, for a piece of land with a cash price of P 6,949,800. Effective interest rate is 9%. Determine the interest expense for the year ended December 31, 2028 Round off final answer to the nearest peso.
- On Janaury 1, 2021, ABC Company acquired equipment by issuing a 3-year, P4,800,000 non-interest bearing note due in semi-annual payment starting July 1, 2021. The prevailing rate of interest of this type of note is 10%. (PVF 5 decimal) How much is the carrying amount of the note on INITIAL recognition?a. 4,060,552b. 4,000,000c. 3,980,342d. 3,786,309 How much is the CARRYING amount of the note on December 31, 2021?a. 3,463,580b. 3,343,341c. 2,836,760d. 2,279,830ML Company purchased merchandise for resale on January 1, 2021, for P5,000 cash plus a P20,000, two-year note payable. The principal is due on December 31, 2022; the note specified 8% interest payable each December 31. ML's going rate of interest for this type of debt was 15%. How much is the carrying amount of the note payable on December 31, 2021 (round off to four decimal places)? A.P20,000B.P19,142C.P17,724D.P18,783A 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? Note: Round off PV factor to 4 decimals. round off final answer to the nearest peso
- On January 1, 2021, Chantal Company purchased equipment from Heidi Company amounted to P2,400,000. Chantal issued a noninterest-bearing note with an effective interest rate of 9% as payment. It is payable in 8 equal payments beginning January 1, 2021, and afterward, every end of the year. (Use 2 decimal places for PVF). How much is the present value of the note payable on December 31, 2021?Dilraba Co. sold equipment in exchange for a P750,000, non-interest bearing note receivable in 5 equal annual installments starting December 31, 2021. The cash selling price for this equipment is P675,000. (use fraction method) How much in the unearned income on December 31, 2023? What is the denominator of the fraction used to distribute the unearned interest? ( Previous Continue >On January 1, 2020, South Company purchased five delivery trucks for P 10,000,000 from West Company.South Company gave West Company 1 year non-interest bearing note (stated interest/nominal interest rate is 0) payable on January 1, 2021. At the date of purchase, the interest rate for this type of purchase is 13%. Round present value factors to four decimal places. Prepare an amortization table. Required: 1. What is the amount of Notes Payable that shall be reflected in the statement of financial position on December 31, 2020?______________ 2. What is the interest expense that shall be reported in the statement of financial performance on December 31, 2020?____________________
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