Machinery and office equipment2. Nutty Company acquired the assets of another entity withAn appraisal disclosed the following fair value:bany made the following individual cashNuttypurchases:Land and building1.Delivery equipment6,000,0001,800,000500,000LandBuilding1,000,0003,000,000800,000400,000350,000MachineryOffice equipmentDelivery equipmentthe following fair value:LandBuildingMachinery1,000,0005,000,0002,000,000The entity issued 60,000 shares with P100 par value inexchange. The share had a quoted price of P150 on the dateof purchase of the property.3. Received a parcel of land located in Davao City from aphilanthropist as an inducement to locate a plant in thecity. The land has a fair value of P1,500,000.4. The entity paid cash for machinery, P900,000 subject to 2%cash discount, and freight on machinery, P35,000.D. The entity acquired furniture and fixtures by issuing aP400,000 two-year noninterest-bearing note. In similartransactions, the entity has paid 12% interest.The present value of 1 at 12% for 2 years is .797, and thepresent value of an annuity of 1 at 12% for 2 years is 1.69.Required:

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Answered: D. The entity acquired furniture and…

FINANCIAL ACCOUNTING

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Author:Libby

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Chapter1: Financial Statements And Business Decisions

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(Algo) Amortization schedule for an installment note LO 10-1 On January 1, Year 1, Beatie Company borrowed $220,000 cash from Central Bank by issuing a five-year, 7 percent note. The principal and interest are to be paid by making annual payments in the amount of $53,656. Payments are to be made December 31 of each year, beginning December 31, Year 1. Required Prepare an amortization schedule for the interest and principal payments for the five-year period. (Round your answers to the nearest dollar amount.)
On December 31, 2025, Blue Inc. rendered services to Beghun Corporation at an agreed price of $106,641, accepting $41,800 down and agreeing to accept the balance in four equal installments of $20,900 receivable each December 31. An assumed interest rate of 11% is imputed. (a1) Prepare an amortization schedule. Assume that the effective-interest method is used for amortization purposes. (Round answers to O decimal places, e.g. 5,275.)
Sheridan Company receives a three-year, $9,200, zero-interest-bearing note, and the related present value with a market interest rate of 8% is $7,303.24. The total discount of $1,896.76 under the straight-line method is amortized over the three-year period in equal amounts each year. Therefore, the annual amortization is $1,896.76 ÷ 3 or $632.25. Date of issue End of Year 1 End of Year 2 End of Year 3 Cash Received Click here to view factor tables $0 0 $0 Schedule of Note Discount Amortization Effective Interest Method 0% Note Discounted at 8% Interest Income Discount Amortized $584.26 631.00 681.50 $1,896.76 $584.26. 631.00. 681.50 $1,896.76 Carrying Amount of Note $7,303.24 7,887.50 8,518.50 9,200 Prepare the entry to record the annual interest for years 1 and 2 under the straight-line method and the effective interest method. (Credit account titles are automatically indented when the amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the…
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On October 1,2021 Steve Company borrowed $500,000 from its parent, Pam Company, at an annual interest rate of 5%, with interest payable semiannually on March 31 and September 30. The note’s principle is due in 5 years. Required; a. What balances appear in the December 31, 2021 trial balances of Pam Company and Steve Company with respect to this intercompany loan? b. What balances should appear on the consolidated financial statements of Pam Company and Steve Company with respect to this intercompany loan? c. Prepare the December 31, 2021 elimination entries needed for this intercompany loan.
On, January 25, 2025 Samantha corporation purchases investment bonds in Tyler corporation for $20,000 cash. The bonds paid 10% semiannually, and had accrued interest for $250 at the time of the purchase. Record the transaction.
Lime Co. incurs a $4,000 note with equal principal installment payments due for the next eightyears. What is the amount of the current portion of the noncurrent note payable due in the second year?A. $800B. $1,000C. $500D. nothing, since this is a noncurrent note payable
On December 31, 2025, Sheridan Inc. rendered services to BeghunCorporation at an agreed price of SIII, 233, accepting S43600 down andagreeing to accept the balance in four equal installments of S21800receivable each December 31 . An assumed interest rate of 11% is imputed.Prepare an amortization schedule. Assume that the effective - interestmethod is used for amortization purposes.

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D. The entity acquired furniture and fixtures by issuing a P400,000 two-year noninterest-bearing note. In similar transactions, the entity has paid 12% interest. The present value of 1 at 12% for 2 years is .797, and the present value of an annuity of 1 at 12% for 2 years is 1.69. Requinodu