Bahag-Hari company provided you the following sales transactions as of December 31,2021: · On January 1,2020, Bahag-Hari Company sold a Machinery for P5,000,000 to Orange Company. Orange Company paid P500,000 down and signed a noninterest-bearing note for the balance which is payable in 3 equal annual installments every December 31 of each year. The carrying value of the machinery is P5,700,00. · A notes receivable of P1,000,000 with a coupon rate of 12% from Pula Company was received from sale of goods in the normal course of business. The note is dated May 1,2021 and due on May 1,2024. Interests are collectible every May 1. · A three-year note of P200,000 with contract rate of 10% received from Dilaw Corporation dated January 1,2021 was accepted in exchange for consultation services rendered. The note is considered to have prevailing market rate 12%. Interest are collectible every December 31. The prevailing rate of interest for the above type of notes was 12%. Present value of P1 at 12% for three periods is 0.712. The present value of an ordinary annuity of 1 for three periods is 2.402. How much is the total amortized cost of notes receivable as of December 31,2021? 2,532,896 3,728,653 2,539,603 2,552,896
Bahag-Hari company provided you the following sales transactions as of December 31,2021: · On January 1,2020, Bahag-Hari Company sold a Machinery for P5,000,000 to Orange Company. Orange Company paid P500,000 down and signed a noninterest-bearing note for the balance which is payable in 3 equal annual installments every December 31 of each year. The carrying value of the machinery is P5,700,00. · A notes receivable of P1,000,000 with a coupon rate of 12% from Pula Company was received from sale of goods in the normal course of business. The note is dated May 1,2021 and due on May 1,2024. Interests are collectible every May 1. · A three-year note of P200,000 with contract rate of 10% received from Dilaw Corporation dated January 1,2021 was accepted in exchange for consultation services rendered. The note is considered to have prevailing market rate 12%. Interest are collectible every December 31. The prevailing rate of interest for the above type of notes was 12%. Present value of P1 at 12% for three periods is 0.712. The present value of an ordinary annuity of 1 for three periods is 2.402. How much is the total amortized cost of notes receivable as of December 31,2021? 2,532,896 3,728,653 2,539,603 2,552,896
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Bahag-Hari company provided you the following sales transactions as of December 31,2021:
· On January 1,2020, Bahag-Hari Company sold a Machinery for P5,000,000 to Orange Company. Orange Company paid P500,000 down and signed a noninterest-bearing note for the balance which is payable in 3 equal annual installments every December 31 of each year. The carrying value of the machinery is P5,700,00.
· A notes receivable of P1,000,000 with a coupon rate of 12% from Pula Company was received from sale of goods in the normal course of business. The note is dated May 1,2021 and due on May 1,2024. Interests are collectible every May 1.
· A three-year note of P200,000 with contract rate of 10% received from Dilaw Corporation dated January 1,2021 was accepted in exchange for consultation services rendered. The note is considered to have prevailing market rate 12%. Interest are collectible every December 31.
The prevailing rate of interest for the above type of notes was 12%. Present value of P1 at 12% for three periods is 0.712. The present value of an ordinary annuity of 1 for three periods is 2.402.
How much is the total amortized cost of notes receivable as of December 31,2021?
· On January 1,2020, Bahag-Hari Company sold a Machinery for P5,000,000 to Orange Company. Orange Company paid P500,000 down and signed a noninterest-bearing note for the balance which is payable in 3 equal annual installments every December 31 of each year. The carrying value of the machinery is P5,700,00.
· A notes receivable of P1,000,000 with a coupon rate of 12% from Pula Company was received from sale of goods in the normal course of business. The note is dated May 1,2021 and due on May 1,2024. Interests are collectible every May 1.
· A three-year note of P200,000 with contract rate of 10% received from Dilaw Corporation dated January 1,2021 was accepted in exchange for consultation services rendered. The note is considered to have prevailing market rate 12%. Interest are collectible every December 31.
The prevailing rate of interest for the above type of notes was 12%. Present value of P1 at 12% for three periods is 0.712. The present value of an ordinary annuity of 1 for three periods is 2.402.
How much is the total amortized cost of notes receivable as of December 31,2021?
2,532,896
3,728,653
2,539,603
2,552,896
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education