Assuming the customer’s borrowing rate is 5%, prepare all journal entries for 2019 and 2020 under IFRS
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| On January 1, 2019, a company sells a piece of equipment for a list price of $260,000. It receives $30,000 and accepts a note receivable for the remainder. | ||||||||||||
| The balance due is on December 31, 2021, and the note pays an annual interest of 3% every December 31st. | ||||||||||||
| Required: | ||||||||||||
| Assuming the customer’s borrowing rate is 5%, prepare all |
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- Cardinal Company, a dealer in lawn equipment, accepted a 6 month note receivable from a customer on September 1, 2020 that will come due on March 1, 2021. If Cardinal Company's fiscal year ends on December 31, 2020, the interest revenue earned would be recognized from the note receivable on: (Remember The Revenue Recognition Principle) A. on December 31, 2020 only B. on September 1, 2020 C. on March 1, 2021 only D. on December 31, 2020 and March 1, 2021the pita pit borrowed 197000 on november 1 2021 and signed a six month note bearing interest at 12%. principal and interest are payable in full at maturity on may 1 2022 in connection with this note. the pita pit should report interest expense at december 31 2021 in the amount of.Cucina Corporation signed a new installment note on January 1, 2021, and deposited the proceeds of $54,800 in its bank account. The note has a 3-year term, compounds 4 percent interest annually, and requires an annual installment payment on December 31. Cucina Corporation has a December 31 year-end and adjusts its accounts only at year-end. Required: 1. Use an online application, such as the loan calculator with annual payments at mycalculators.com, to complete the amortization schedule. 2. Prepare the journal entries on (a) January 1, 2021, and December 31 of (b) 2021, (c) 2022, and (d) 2023. 3. If Cucina Corporation's year-end were March 31, rather than December 31, prepare the adjusting journal entry it would make for this note on March 31, 2021. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Use an online application, such as the loan calculator with annual payments at mycalculators.com, to complete the amortization schedule. (Do…
- Selkirk Company obtained a $16,000 note receivable from a customer on January 1, 2024. The note, along with interest at 12%, is due on July 1, 2024. On February 28, 2024, Selkirk discounted the note at Unionville Bank. The bank’s discount rate is 15%. Required: Prepare the journal entries required on February 28, 2024, to accrue interest and to record the discounting for Selkirk. Assume that the discounting is accounted for as a sale.On December 1, 2021, abc Ltd. borrowed $180,000 from a local bank by signing a four-month, 5% interest-bearing note. All payments will be made at the note's maturity date. Assuming Parfait has a December 31 year-end, the adjusting journal entry on December 31 will include a: debit to Interest payable of $750. credit to Notes Payable of $750 credit to Interest payable of $750 credit to Interest expense of $750On January 1, 2018, The Barrett Company purchased merchandise from a supplier. Payment was a noninterestbearing note requiring five annual payments of $20,000 on each December 31 beginning on December 31, 2018,and a lump-sum payment of $100,000 on December 31, 2022. A 10% interest rate properly reflects the timevalue of money in this situation.Required:Calculate the amount at which Barrett should record the note payable and corresponding merchandise purchasedon January 1, 2018.
- On January 1, 2019, Love Co. sold merchandise to Kit Store in exchange for a non-interest bearing note requiring 10 annual payments of P100,000. Kit Store made the first payment on December 31, 2019. The prevailing market interest rate for similar notes is 8%. a. How much is the value of notes receivable as of December 31, 2020? b. How much is the Interest income recognized during 2020?hello, I need help pleaseprepare a three-year (monthly) amortization schedule to classify the notes payable into its current and long-term amounts. See October 1, 2020 transaction for details of loan. October 1 - Bought office equipment for $15,000 and signed a three-year promissory note with a local bank. The annual interest rate is 5%, with monthly payments of $449.56 beginning on November 1.
- STFU Company accepted from a customer P1,000,000 face amount, 6-month, 8% note dated April 15, 2019. On the same date, the entity discounted the note without recourse at a 10% discount rate. What amount of cash was received from the discounting?On September 30, 2019, Lakatan Inc. 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, 2019. How much was deducted from the note payable on December 31, 2019?DBC Company has received a confirmation letter from the First National Bank of Miami (FNBM) about a line of credit for $12,000,000 on January 2, 2020. According to the terms of this short-term loan, DBC Company will be charged the following: A. ABC will be charged for 50 basis points interest (on an annual basis) for any unused amount of credit from the commencement of this agreement. B. Upon usage of any funds, the interest charge will be Prime rate plus 75 basis points. Prime rate at the commencement of this loan on January 2, 2020, was 5.25%. C. The following events took place in 2020: 1) On February 1, 2020; DBC Co., used $4,000,000 against its line of credit for its working capital purposes. 2) On May 1, 2020; DBC Co., used an additional $2,400,000 to purchase fixed assets. 3) On June 1, 2020, upon the meeting of F.O.M.C., the Fed announced its "Quantitative Easiness" policy and reduced the discount rate by 0.50 basis points. Immediately FNBM bank reflected the same reduction to…
