On Aug 31, 20X1, ABC Corp received a P2,000,000 12% 4-year note from a customer. Note is collectible in 4 equal annual  installments every Sept 1 , including the interest. On Dec 31, 20X1 ABC recorded an accrued interest of P80,000. If NO reversing entries are made at Jan 1, 20X2, the adjusting entry to record the accrued interest at Dec 31, 20X2 will include:     Cr Interest Income 60,000 Dr Interest Income 20,000 Dr Interest Receivable 20,000 Cr Interest Receivable 60,000

Q: 1. Costco Wholesale Corporation borrows $640,000 on September 1, 2021. Costco signs a nine- month,…

A: Formula: Interest amount = Notes payable amount x Time period x Interest rate.

Q: 2, 69 st dol

A: Answer : Interest = Notes value * Interest rate * Days Interest = $75,972 * 6%*120/360 Interest =…

Q: NOTE 17: EMPLOYEE BENEFIT PLANS (in part) ($ in millions) Changes in projected benefit obligation:…

A: This subject matter refers to the accounting and reporting of worker pension blessings via groups in…

Q: The December 31, Year 2 carrying amount in the amortization table for this installment note will be…

A: The person who promised to pay the specified amount by signing a note is treated as notes payable as…

Q: On October 12, 2020, Golf Co. received from one of its customers, Ping Co., a $30,500, 8% 90 day…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: On April 1, 20X1, Nelsen Inc. accepts a $100,000, 8% note. The note receivable and interest are due…

A: Note Receivable: It implies a promissory note which is written by the borrower in the favor of…

Q: On October 12, 2020, Golf Co. received from one of its customers, Ping Co., a $30,500, 8% 90 day…

A: Interest accrued on December 31, 2020 = Face value of note x interest rate x no. of days/360 =…

Q: On January 1st, year one, zero company obtained a 52,000, for year, 6.5% installment note from…

A: Note payable is a form of liability for the business on which it has to make regular interest…

Q: On November 1, 2021, Ayayai Corp, which uses a calendar year as its fiscal year, signs a $28200, 8%,…

A: Journal entry is the act of keeping records of transactions in an accounting journal. An accounting…

Q: On November 1, 2018, A-1 Products borrowed $64,000 on a 5%, 5-year note with annual installment…

A: Loan Installment is that amount which is paid by the borrower to lender. It includes the interest…

Q: On Dec. 8, Sheffield Company discounted at Sunshine Bank a $7,200 (maturity value), 122-day note…

A: Discount rate9%Maturity value $ 7,200.00Noted Period122days

Q: c. How will the annual note payment be reported in the Year 1 income statement? of $ would be…

A: Interest expenses of $5720 will be in Income Statement in Year 1.

Q: Justin Company signed a $90,000, three-month, 9% note payable, on December 1. If the accounting…

A: Interest accrued on December 31= Face value of bonds x rate of interest x no. of month/12 = $90000 x…

Q: Amenadiel Co. has an 8% note receivable dated June 30, year 1, in the original amount of 150,000.…

A: A written promise to receive a sum of money at the pre determined future date is referred to as note…

Q: On January 1, 2021, Aloha Co. received the following note:   Face amount…

A: Initial measurement of notes receivable: It is the process of determining the monitory value at…

Q: Headland Corporation issued a 5-year, $65,000, zero-interest-bearing note to Brown Company on…

A: Note payable: It implies to a written promissory note issued by lender to the borrower against the…

Q: How do I find the carrying amout for each year?

A: Requirement a:   Prepare an amortization table.

Q: Riverbed Corporation issued a 5-year, $82,000, zero-interest-bearing note to Brown Company on…

A: This transaction involves issuing a note at a discount. The discount represents the implicit…

Q: Headland Corporation issued a 5-year, $65,000, zero-interest-bearing note to Brown Company on…

A: Zero interest notes: The notes payable which are not issued with an interest rate are known as…

Q: On February 20th, a 5 month note for $3,700 was received by Lucky Company to settle an amount owing…

A: Interest is a amount which is paid by a borrower to the person from the money has been taken by him…

Q: On February 20th, a 5 month note for $2,900 was received by Lucky Company to settle an amount owing…

A: A you have asked multiple sub-parts we can solve only first three part for you please repost the…

Q: Carla Corporation issued a 5-year, $82,000, zero-interest-bearing note to Brown Company on January…

A: This transaction involves issuing a note at a discount. The discount represents the implicit…

Q: . Potts issued a 90-day, 7% note for $200,000, dated February 3 to Valley Co. on account.…

A: The person who promised to pay the specified amount by signing a note is treated as notes payable as…

Q: Leon Acrobats lent $12,174 to Donaldson, Inc., accepting Donaldson's 2-year, $15,000,…

A: The difference between Notes receivable and cash paid is called as discount on notes receivable.…

Q: On August 1, a $30,000, 6%, 3-year installment note payable is issued by Tart Company. The note…

A: Notes payable are written agreements in which one party agrees to pay the other party a certain…

Q: On June 8, Williams Company issued an $75,972, 6%, 120-day no required, round your answer to the…

A: Maturity amount is the amount that has to be paid at the end of the life of bond or notes payable.…

Q: note was issued, the market rate for similar notes payable was 6%. What is the present value of the…

A: Notes payable is an amount that is issued by a company in exchange of an amount borrowed. It is…

Q: 00 note from one of its customers on May 15, 2019; interest is payable with the principal at…

A: Assets =Liabilities+Stockholders equity+/-Net income =Revenue-ExpensesCash$9,960Interest…

Q: On January 1, 2Ox1, Bouncy House, Inc. obtains a $50,000, 6 year, 8% installment note for the latest…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Lion Company accepted a $15,000, 30-day, 6% note on December 16 from Diaz Co, granting a time…

A: Step 1 Calculate the daily interestAnnual interest = $15,000 x 6% = $900Daily interest = $900 / 360…

Q: The following transactions are from Ohlm Company. (Use 360 days a year.)   Year 1 Dec.   16…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: On July 1, 20X1, ABC Corp received a P450,000 10% 3-year note from a customer. The principal and…

A: Interest Receivable at Dec 31, 20X1 = Face value of the note x Rate of Interest x No. of months…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.