Company is due in five years. On both notes, interest is calculated on the outstanding principal The note from Hart Company, made under customary trade balance at the annual rate of 3% and payable at maturity. At year-end, Jet Company received two P1,000,000 notes receivable from customers in exchange for services rendered. Problem 6-9 (AICPA Adapted) At year-end, Jet Company received two P1,000,000 notes On both notes, interest is calculated on the outstanding principal terms, is. due in nine months and the note from Maxx The market interest rate for similar notes at year-end was 8%. The compound interest factors to convert future value into present value at 8% are: Present value of 1 due in nine months Present value of 1 due in five years .944 .680 What total carrying amount of notes receivable should be reported at year-end? 1,624,000 b. 1,747,200 1,680,000 d. 1,782,000 a. с. Adapted) P hleinm 6 10 (AICPA

Company is due in five years. On both notes, interest is calculated on the outstanding principal The note from Hart Company, made under customary trade balance at the annual rate of 3% and payable at maturity. At year-end, Jet Company received two P1,000,000 notes receivable from customers in exchange for services rendered. Problem 6-9 (AICPA Adapted) At year-end, Jet Company received two P1,000,000 notes On both notes, interest is calculated on the outstanding principal terms, is. due in nine months and the note from Maxx The market interest rate for similar notes at year-end was 8%. The compound interest factors to convert future value into present value at 8% are: Present value of 1 due in nine months Present value of 1 due in five years .944 .680 What total carrying amount of notes receivable should be reported at year-end? 1,624,000 b. 1,747,200 1,680,000 d. 1,782,000 a. с. Adapted) P hleinm 6 10 (AICPA

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On December 1, 2020, Max Company assigned specific accounts receivable totaling P5,000,000 as collateral on a P4,000,000, 12% note from DBP bank. The entity will continue to collect the assigned accounts receivable. In addition to the interest of the note, the bank also charged a 5% finance fee deducted in advance of the assigned accounts. The December collection of assigned accounts receivable amounted to P2,000,000 less cash discount of P200,000. On December 31, 2020, the Company remitted the collections on the bank in payment for the interest earned on December 31, 2020 and the note payable. The entity accepted sales returns of 100,000 on the assigned notes and wrote off assigned accounts of 30,000. What is the carrying amount of note payable on December 31, 2020?
On January 1, YR01, Toyota Co. issued a two-year $1,000 note payable. The note bears interest of 7% paid yearly each December 31st. In addition, the principal amount will be paid back in two installments as follows: $400 will be paid back with the interest payment on December 31, YR01 and $600 will be paid back with the interest payment on December 31, YR02. At the date the note was issued, the market rate for similar notes payable was 6%. What is the present value of the note payable at the issue date of January 1, YR01 (assume an annual discounting period and round your final answer to the nearest penny)? a. $1,000.00 b. $1,014.77 c. $1,026.25 d. $ 1, 103.23 e. None of the answers provided are correct
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