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Makapuno Bank has earned interest income of P200,000 from an instrument with remaining maturity of 5 years, rentals of P100,000 gross of expanded withholding tax of 5% and incurred net trading losses of P20,000 during the first quarter of 2020. Determine the correct amount of gross receipts tax for the first quarter.
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- Makapuno Bank has earned interest income of P200,000 from an instrument with remaining maturity of 5 years, rentals of P100,000 gross of expanded withholding tax of 5% and incurred net trading losses of P20,000 during the first quarter of 2020. Determine the correct amount of gross receipts tax for the first quarter. * P19,000 P17,000 P15,000 P7,000 Makapuno Bank has earned interest income of P200,000 from an instrument with remaining maturity of 5 years, rentals of P100,000 gross of expanded withholding tax of 5% and incurred net trading losses of P20,000 during the first quarter of 2020. Determine the correct amount of gross receipts tax for the first quarter. * P19,000 P17,000 P15,000 P7,000Entei Bank granted a P5,000,000 loan to Raikou Company on January 1, 2020. The annual interest on the loan is 8% payable semi-annually. The loan matures in three years on December 31, 2022. The effective interest rate on the loan is 10%. How much is the total interest income to be presented on the statement of comprehensive income for 2020?Notes: 1. The firm bears a 35% statutory tax rate. 2. Working cash is estimated to be $130 million and $120 million for 2020 and 2019 respectively. 3. Notes receivable bear interest of 10% per calendar year. Required： Prepare the Reformulated Income Statement for the years 2020 and 2019 in preparation for valuation.
- Isko Company, a calendar-year company, has a 6% note receivable dated November 1, 2020 in the original amount of P3,000,000. Payments of P1,000,000 in principal plus interest on the outstanding balance are due annually on October 31, 2021, 2022 and 2023. How much is the interest revenue from the note for the year ended December 31, 2021?On January 1, 2020 West Co. exchanged equipment for an $800,000 non-interest-bearing note due on January 1, 2023. The market rate of interest for this type of note at January 1, 2020 was 10%. The present value of $1 at 10% for three periods is 0.75. What amount of interest revenue should be included in West's 2021 income statement?On September 1, 2020, Pot Co. issued a note payable to National Bank in the amount of P1,800,000, bearing interest at12%, and payable in three equal annual principal payments of P600,000. On this date, the bank's prime rate was 11%. Thefirst payment for interest and principal was made on September 1, 2021. At December 31, 2021, Pot should record accruedinterest payable ofa. P72,000 c. P48,000b. P66,000 d. P44,000
- On September 1, 2020, a company borrowed on a P5,400,000 note payable from a bank. The note bears interest at 12% and is payable in 3 equal annual principal payments of P1,800,000. On this date, the bank's prime rate was 11%. The first annual payment for interest and principal was made on September 1, 2021. On December 31, 2021, what amount should be reported as accrued interest payable?On September 1, 2019, Tange company borrowed on a P5,400,000 note payable from a bank. The note bears interest at 12% and is payable in three equal annual principal payments of P1,800,000. On this date, the bank’s prime rate was 11%. The first annual payment for interest and principal was made on September 1, 2020. On December 31, 2020, what amount should be reported as accrued interest payable?FDN Trading received the following promissory notes from various customers during 2020 in the course of selling its merchandise: One-year 20% note for P103,000 Four-month 12% note for P85,000 180-day 18% note for P80,000 All these notes were collected at their maturity dates during the year. How much is total interest income to be recorded by FDN Trading during 2020?
- Mackenzie Corp, is preparing the December 31, 2020, year-end financial statements. Following are selected unadjusted account balances: Estimated warranty liability Income tax expense Mortgage payable, 6% $ 6,470 120-day note payable, 5% Unearned revenues Warranty expense 119,900 445,000 $ 81,000 297,000 6,500 Additional information: a. $10,900 of income tax was accrued monthly from January through to November inclusive and paid on the 15th day of the following month. The actual amount of tax expense for the year is determined to be $127,040. b. A customer is suing the company. Legal advisers believe it is probable that the company will have to pay damages, the amount of which will approximate $141,000 given similar cases in the industry. c. During December, Mackenzie had sales of $711,000. 4% of sales typically require warranty work equal to 25% of the sales amount. d. Mortgage payments are made on the first day of each month. e. $111,600 of the Unearned Revenues remain unearned at…X Corporation expects the following transaction in 2020. Their first year of operations.· Allowance for bad debts, end of year is 80,000· Sales (some receivables are collectible in 2021) 1,500,000· Bad debt written offs during the year 10,000· Disbursements of costs and expenses 1,200,000· Disbursements for income taxes 90,000· Accounts receivable, end of year, net- 70,000· Purchases of fixed assets for cash 400,000· Proceeds from issuance of ordinary shares 580,000· Proceed from short-term borrowings 100,000· Payments on short-term borrowings 60,000· Depreciation on fixed assets 80,000· Loss on sale of fixed assets (book value 100,000) 10,000What is the cash balance at December 31, 2020? • 470,000 • 300,000 • 390,000 • 370,000 • None of the aboveX Corporation expects the following transaction in 2020. Their first year of operations.· Allowance for bad debts, end of year is 80,000· Sales (some receivables are collectible in 2021) 1,500,000· Bad debt written offs during the year 10,000· Disbursements of costs and expenses 1,200,000· Disbursements for income taxes 90,000· Accounts receivable, end of year, net- 70,000· Purchases of fixed assets for cash 400,000· Proceeds from issuance of ordinary shares 580,000· Proceed from short-term borrowings 100,000· Payments on short-term borrowings 60,000· Depreciation on fixed assets 80,000· Loss on sale of fixed assets (book value 100,000) 10,000What is the cash balance at December 31, 2020? a. 470,000 b. 300,000 c. 390,000 d. 370,000 e. None of the above
