During your review of the records of X Factor Corporation for the year 20A, you noted that X Factor sold a machine with carrying amount of P640,000 (cost is P1.6M) on June 30, 20A. X Factor received an P800,000 non-interest bearing note due in 3 years. There is no established market value for the machine. The yield rate for this type of note is 12%. X Factor recorded the transaction by debiting Note receivable for P800,000 and crediting Machinery for P640,000 and Gain on sale for the difference. Interest income for the year ended December 31, 20B is
During your review of the records of X Factor Corporation for the year 20A, you noted that X Factor sold a machine with carrying amount of P640,000 (cost is P1.6M) on June 30, 20A. X Factor received an P800,000 non-interest bearing note due in 3 years. There is no established market value for the machine. The yield rate for this type of note is 12%. X Factor recorded the transaction by debiting Note receivable for P800,000 and crediting Machinery for P640,000 and Gain on sale for the difference. Interest income for the year ended December 31, 20B is
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 14RE: On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank....
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During your review of the records of X Factor Corporation for the year 20A, you noted that X Factor sold a machine with carrying amount of P640,000 (cost is P1.6M) on June 30, 20A. X Factor received an P800,000 non-interest bearing note due in 3 years. There is no established market value for the machine. The yield rate for this type of note is 12%. X Factor recorded the transaction by debiting Note receivable for P800,000 and crediting Machinery for P640,000 and Gain on sale for the difference. Interest income for the year ended December 31, 20B is
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