Canton Cave Company provided the following schedule of liabilities on December 31, 2014:P6,500,000Accounts payableUnearned revenue5,000,000Notes payable - bank (a)8,000,000Bonds payable (b)4,000,000Additional Information:a. Bank notes payable include two separate notes payable to First Bank:• A P3 million, 10% note issued March 1, 2014, payable on demand. Interest is payable every 6months.• A one-year term note amounting to P5 million, with 11% interest issued on January 2, 2014.b. The bonds payable are 10-year, 8% bonds, issued June 30, 2013. Interest is payable semi-annuallyon June 30 and December 31.C.There is a pending litigation against Canton Cave Company because for copyright issues. The legalcounsel estimates that the company would have to pay P4,000,000 in damages expected to besettled within 12 months. He assesses that the chance the company would pay is probable.d. During the year, Canton Cave introduced a new product that carries a warranty against defects.Expected warranty claims amount to 8% of total sales. Total sales for 2014 is 2,000,000 and theactual warranty expenditures is 70,000. The company recorded actual warranty expenditures directlyas warranty expense.Present a partial statement of financial position, showing the current liabilities and noncurrent liabilitiesand the total liabilities. Follow the format below. (10 pts.)Format:Statement of Financial PositionAs of LiabilitiesCurrent liabilitiesXXXXNoncurrent liabilitiesXXXXTOTAL LIABILITIESTotal current liabilitiesTotal noncurrent liabilities

Answered: le include tv 1, 10% note term note a…

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter7: Financial Activities

Section: Chapter Questions

Problem 5QE

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Canton Cave Company provided the following schedule of liabilities on December 31, 2014: P6,500,000 Accounts payable Unearned revenue 5,000,000 8,000,000 Notes payable - bank (a) Bonds payable (b) 4,000,000 Additional Information: a. Bank notes payable include two separate notes payable to First Bank: • A P3 million, 10% note issued March 1, 2014, payable on demand. Interest is payable every 6 months. • A one-year term note amounting to P5 million, with 11% interest issued on January 2, 2014. b. The bonds payable are 10-year, 8% bonds, issued June 30, 2013. Interest is payable semi-annually on June 30 and December 31. c. There is a pending litigation against Canton Cave Company because for copyright issues. The legal counsel estimates that the company would have to pay P4,000,000 in damages expected to be settled within 12 months. He assesses that the chance the company would pay is probable. d. During the year, Canton Cave introduced a new product that carries a warranty against…
KKK Inc. provided the following schedule of liabilities on December 31,2021: Accounts payable P6,500,000 Bank note payable – 10% 3,000,000 Bank note payable – 11% 5,000,000 Interest payable 150,000 Mortgage note payable – 10% 2,000,000 Bonds payable 4,000,000 --- The P3,000,000, 10% was issued March 1,2021, payable on demand. Interest is payable every six months. ---The one-year P5,000,000,11% note was issued January 15,2021. On December 31,2021, KKK negotiated written agreement with the bank to replace the note with a 2-year. P5,000,000 note to be issued January 15,2022. ---The 10% mortgage note was issued October 1,2018, with a term of 10 years. Terms of the note give the holder the right to demand immediate payment if the entity fails to make a monthly…
On 31 December 2017, BC assigned specific accounts receivable amounting to P4,000,000 as collateral on P3,000,000, 12% note from certain bank. The company will continue to collect the assigned receivable. In addition to the interest of the note, the bank also charged a 5% finance fee deducted in advance on the P3,000,000 value of the note. The December collections of assigned accounts receivable amounted to P2,000,000 less cash discount of P100,000. On 31 December 2017, the entity remitted the collections to the bank in payment for the interest accrued on 31 December 2017 and the note payable. The entity accepted the sales returns of P150,000 on the assigned accounts and wrote off assigned accounts of P200,000. What is the loss on factoring?
Problem 4:Canton Cave Company provided the following schedule of liabilities on December 31, 2019:Accounts payable 6,500,000Notes payable-bank 8,000,000Interest payable 150,000Mortgage payable-10% 2,000,000Bonds payable 4,000,000*Bank notes payable include two separate notes payable to First Bank A ₱ 3, 000,000, 10% note issued March 1, 2018, payable on demand. Interest is payable every six months. A one-year, ₱5,000,000, 11% note issued January 2, 2019. On December 31, 2019, Canton Cave negotiated a written agreement with First Bank to replace the note with a 2-year, ₱5,000,000, 10% note issued January 2, 2020.*The 10% mortgage note was issued October 1, 2016 with a term of 10 years. Terms of the note give the holder the right to demand immediate payment if the entity fails to make a monthly interest within 10 days of the date the payment is due.On December 31, 2019, Canton Cave is three months behind in paying its required initial payment.The bonds payable are 10-year, 8% bonds,…
Cicamore Company had the following information related to its current liabilities for the year ended December 31, 2022. Notes payable arising from 5-year bank loans, on which a security valued at P600,000 have been pledge as security, due on December 31, 2023. P500,000 Accounts payable, net of debit balances of P50,000 770,000 Trade notes payable due in 15 months 280,000 Salaries payable 90,000 Employee income tax withheld 11,000 Bonus and profit sharing payable 70,000 Liability for income taxes 250,000 Cash dividends payable 100,000 Share dividend payable 150,000 Dividend in arrears on preference shares 200,000 How much should Cicamore report as current liabilities in its December 31, 2022 statement of financial position?
Val Company disclosed the following information on December 31, 2021: Accounts Payable P20,000 Notes Payable P40,000 Notes payable due to bank, 12% interest bearing note payable yearly,issued on August 31, 2021, maturing on August 31, 2022 P1,000,000 Note: In the case of the notes payable due to bank, supposing the entity has the discretion to refinance the obligation for at least 12 months after the given maturity date (not reporting period), as seen in its loan agreement, Compute for the non-current liabilities as of December 31, 2021 *Be reminded of the 12% interest whether you include it or not.
Lappy Company disclosed the following information on December 31, 2021: Accounts Payable P20,000 Notes Payable P40,000 Notes payable due to bank, 12% interest bearing note payable yearly,issued on August 31, 2021, maturing on August 31, 2022 P1,000,000 Compute for the CURRENT LIABILITIES as of December 31, 2021 *take note of the interest-bearing note
On December 1, 2016, Bamboo Company assigned specific accounts receivable totaling P4,000,000 as collateral on a P3,000,000, 12% note from a certain bank. The entity will continue to collect the assigned accounts receivable. In addition to the interest on the note, the bank also charged a 5% finance fee deducted in advance on the P3,000,000 value of the note. The December collections of assigned accounts receivable amounted to P2,000,000 less cash discount of P100,000. On December 31, 2020, the entity remitted the collections to the bank in payment for the interest accrued on December 31, 2016, and the note payable. The entity accepted sales returns of P150,000 on the assigned accounts and wrote off assigned accounts of P200,000. 1. What amount should be disclosed as the equity of Bamboo Company in assigned accounts on December 31, 2016? a. 550,000 b. 870,000 c. 520,000 d. 970,000 2. What is the carrying amount of notes payable on December 31, 2016? a. 1,000,000 b. 1, 100,000 c.…
On December 1, 2016, Bamboo Company assigned specific accounts receivable totaling P4,000,000 as collateral on a P3,000,000, 12% note from a certain bank. The entity will continue to collect the assigned accounts receivable. In addition to the interest on the note, the bank also charged a 5% finance fee deducted in advance on the P3,000,000 value of the note. The December collections of assigned accounts receivable amounted to P2,000,000 less cash discount of P100,000. On December 31, 2020, the entity remitted the collections to the bank in payment for the interest accrued on December 31, 2016, and the note payable. The entity accepted sales returns of P150,000 on the assigned accounts and wrote off assigned accounts of P200,000. 1. What amount of cash was received from the assignment of accounts receivable on December 1, 2016? a. 4,000,000 b. 3,000,000 c. 3,800,000 d. 2, 850,000 2. What is the carrying amount of note payable on December 31, 2016? a. 1,000,000 b. 1, 100,000 c.…
On December 1, 2016, Bamboo Company assigned specific accounts receivable totaling P4,000,000 as 4. What amount should be disclosed as the equity of Bamboo Company in assigned accounts on collateral on a P3,000,000, 12% note from a certain bank. The entity will continue to collect the assigned December 31, 2016? accounts receivable. In addition to the interest on the note, the bank also charged 5% finance fee deducted in a. 550,000 advance on the P3,000,000 value of the note. The December collections of assigned accounts receivable amounted to P2,000,000 less cash discount of P100,000. On December 31, 2020, the entity remitted the b. 870,000 collections to the bank in payment for the interest accrued on December 31, 2016 and the note payable. The c. 520,000 entity accepted sales returns of P150,000 on the assigned accounts and wrote off assigned accounts of d. 970,000 P200,000. 1. What amount of cash was received from the assignment of accounts receivable on December 1, 2016? a.…
On October 1, 2017 Chung, Inc. assigns S1,000,000 of its accounts receivable to Seneca National bank as collateral for a $750.000 note. The bank assesses a finance charge of 2% of the receivables assigned and intereest on the note of 9% Prepare the Journal entry for Chung Inc. Notes Payable 750,000 Interest Expense 20,000 Cash 730,000 Notes Payable O Interest Expense Cash 730,000 20,000 750,000 Cash 730,000 O Interest Expense 20,000 Notes Payable 750,000 Cash 750,000 Interest Expense 20,000 Notes Payable 730,000

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le include tv 1, 10% note term note a le are 10-yea