Accrued interest payable 200,000 The entity is in financial distress and negotiates with the creditor for the settlement of the note payable. Consequently, the entity transferred a patent to the creditor in full satisfaction of the note payable. The patent has a carrying amount of P 600,000 and a fair value of P1.1M.

Accrued interest payable 200,000 The entity is in financial distress and negotiates with the creditor for the settlement of the note payable. Consequently, the entity transferred a patent to the creditor in full satisfaction of the note payable. The patent has a carrying amount of P 600,000 and a fair value of P1.1M.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On January 1, 20x20, an entity granted a franchise to a franchisee. The franchise agreement required the franchisee to pay a nonrefundable upfront fee in the amount of P400,000 and on-going payment of royalties equivalent to 5% of the sales of the franchisee. The franchisee paid the nonrefundable upfront fee on January 1, 20x20. In relation to the nonrefundable upfront fee, the franchise agreement required the entity to render the following performance obligations: To construct the franchisee’s stall with stand-alone selling price of P200,000. To deliver 10,000 units of raw materials to the franchisee with stand-alone selling price of P250,000. To allow the franchisee to use the entity tradename for a period of 10 years starting January 1, 20x20 with stand-alone selling price of P50,000. On June 30, 20x20, the entity completed the construction of the franchisee’s stall. On December 31, 20x20, the entity was able to deliver 3,000 units of raw materials to the franchisee. For…
Alpesh
Subject :- Accounting
king bird inc factors receivables wiht a carrying amount of 247900 to joffrey comapny fro 172700 on a with recourse basis. the recourse provision has a fair value of 1640. this transaction should be recorded as sale. Prepare the appropirate journal entry to reocrd this transaction on the books of kingbird inc
(a) On January 1, 2025, Sunland Corporation sold a building that cost $261,490 and that had accumulated depreciation of $102,790 on the date of sale. Sunland received as consideration a $251,490 non-interest-bearing note due on January 1, 2028. There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a note of this type on January 1, 2025, was 9%. At what amount should the gain from the sale of the building be reported? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) The amount of gain should be reported eTextbook and Media Sun fr tA $
10. Ebasan Company factored P5,000,000 of accounts receivable. Control was surrendered by the entity. The transaction met the criteria to be accounted for as sale but subject to recourse for nonpayment. The fair value of the recourse obligation is P250,000. The finance company assessed a fee of 6% and retained a holdback equal to 10% of the accounts receivable. In addition, the finance company charged 12% Interest computed on a weighted average time to maturity of the accounts receivable for 60 days. What total amount should be recognized initially as loss on factoring? A. 398,630 B. 898,630 C. 800,000 D. 648,630 11. What amount should be reported as loss on factoring assuming the accounts are fully collected by the factor? A. 398,630 B. 300,000 C. 550,000 D. 400,000
3. What should be reported as noncurrent liability from this transaction at December 31, 2021 after adjusting entries are made assuming that the effective interest method is used? * On January 1, 2021, Better Company sold property to Best Company. There was no established exchange price for the property, and Best gave Better a P,000,000 non-interest bearing note payable in 5 equal annual installments of P400,000, with the first payment due December 31, 2021. The prevailing rate of interest for a note of this type is 10%. The present value of the note at 10% was P758,160 at January 1, 2021. What should be the balance of the Discount on Notes Payable account on the books of Better Company at December 31, 2021 after adjusting entries are made assuming that the effective interest method is used? 2758,160 2633,976 497,374 2136,602 none of them
Qarabag Ltd enters into a contract to pay $20 million to acquire fittings. Under which of the following situations would Qarabag Ltd recognise a liability? Qarabag Ltd has not received the fittings but has paid for it. O Until Qarabag pays for the fittings, regardless of whether it has received the fittings. Qarabag Ltd has received the fittings and has paid for it. O Qarabag Ltd has not received the fittings and has not paid for it. O Qarabag Ltd has received the fittings but has not paid for it. Question 5 Coloma Ltd owns 80% of the shares in Shirak Ltd. In the context of preparing a General Purpose Financial Report, Shirak Ltd's relationship to Coloma Ltd is best described as that of a: O Shareholder O Parent Investment O Non-controlling interest O Subsidiary
Nassau Co. owes Dominion Ltd. $115,000 on a note payable, plus $7,500 interest. Dominion agrees to accept land in full settlement. The land is recorded on the books of Nassau at $55,600 and is currently worth $85,000. Required: Prepare the journal entry to record the debt settlement on the books of Nassau.
65 On January 1, 20x20, an entity granted a franchise to a franchisee. The franchise agreement required the franchisee to pay a nonrefundable upfront fee in the amount of P400,000 and on-going payment of royalties equivalent to 5% of the sales of the franchisee. The franchisee paid the nonrefundable upfront fee on January 1, 20x20. In relation to the nonrefundable upfront fee, the franchise agreement required the entity to render the following performance obligations: To construct the franchisee’s stall with stand-alone selling price of P200,000. To deliver 10,000 units of raw materials to the franchisee with stand-alone selling price of P250,000. To allow the franchisee to use the entity tradename for a period of 10 years starting January 1, 20x20 with stand-alone selling price of P50,000. On June 30, 20x20, the entity completed the construction of the franchisee’s stall. On December 31, 20x20, the entity was able to deliver 3,000 units of raw materials to the…
Subject: accounting
Subject: accounting