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: On January 1, 20x1, RELISH TASTE Co. acquired a machine by issuing a 3%, P4,000,000 note due on…

A: Semi annual interest payment= P 4000000*3%*1/2= P 60000

Q: The following transactions are from Ohlm Company. Note: Use 360 days a year. Year 1 December 16…

A: Notes Receivable are the written documents issued by the borrower to the payee. This is a promissory…

Q: Inc. issued ar а Cerest revenu

A: Answer : Interest revenue recognized in the following year = $89,300 * 8% * 91/360 Interest revenue…

Q: On June 8, Alton Co. issued an $77,100, 7%, 120-day note payable to Seller Co. Assume that the…

A: Interest:   An interest is the cost of the funds loaned to the business by any lender.

Q: On June 1, Davis Inc. issued an $85,500, 10%, 120-day note payable to Garcia Company Assume that the…

A: Calculate the total interest as follows: Interest = Bonds amount * interest rate Interest = $85,500…

Q: On January 1, MM Company borrows $290,000 cash from a bank and in return signs an 4% installment…

A: Journal entry is the primary step to record the transaction in the books of accounts. Notes payable…

Q: On January 1, Year 1, Bryson Company obtained a $36,000, four-year, 8% installment note from…

A: There is error in question, 7% interest expense is written which is incorrect. Correct word is 8% of…

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: Apex Company accepted from a customer P1,000,000 face amount, 6 month, 8% note dated April 1, 2021…

A: Maturity value of note = Face value of note + interest = P1000000 + 1000000*8%*6/12 = P1040000

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 June 1, Davis Inc. issued an $76,100, 12%, 120-day note payable to Garcia Company Assume that the…

A: No. of days for which interest to be recognized in the following year = Total days of notes - total…

Q: The following journal entry was made by your predecessor to record the annual payment on a 5%,…

A: Note payable refers to a composed promissory note. Under this understanding, a borrower gets a…

Q: On January 1, Year 1, Bryson Company obtained a $12,000, four-year, 9% installment note from…

A: Amortization is the payment of liability with a fixed settlement schedule in steady installments…

Q: Watson Company issued a 60-day, 8% note for $18,000, dated April 5, to Laker Company on account.…

A: Notes receivable indicates the asset raised by the company by issuing a note which contains a…

Q: horizontal model to record collection of the note and interes

A: Interest income on note receivable = Value of note * Annual interest rate * Number of months until…

Q: on June 8th Alton Co issued in 62700 8% 120 Day note payable to seller Co. Assume that the fiscal…

A: Notes payable is a negotiable instrument issued by a promisor that includes a promise to pay a…

Q: On January 1, Luther Co. issued a $1,000,000, 8%, 5-year installment note payable. The first note…

A: Notes Payable:- It is a Current liability where one person is liable to pay and another one is…

Q: On May 15, 201X, Reed Co. gave Fuligin Co. a 180-day, $9,000, 8% note. On July 14, Fuligin Co.…

A: Notes receivable is a category of debt instrument issued by corporations or big entities to raise…

Q: on March 1, 20x1 Nick Co. issued a P6000, 12%note dated January 1, 20x1 in exchange an outstanding…

A: In exchange for accounts payable, if notes payable are issued then accounts payable should be…

Q: On November 1, Alan Company signed a 120-day, 10% note payable, with a face value of $20,700. What…

A: The adjustment entries are prepared to adjust the revenue and expenses of the current period.

Q: On January 1, Amil Corp. lent $37,000 to Windsor Ltd., accepting Windsor's $49,247, three-year,…

A: Zero interest-bearing note refers to a note that does not pay interest like a normal note. The…

Q: On June 1, Davis Inc. issued an $68,700, 8%, 120-day note payable to Garcia Company Assume that the…

A: Solution We are provided with the following information Interest rate = 8% Amount of note payable =…

Q: Lone Star Company received a 90-day, 6% note for $80,000, dated March 12 from a customer on account.…

A: Journal Entry is the primary entry of business transactions. Every transaction has a dual effect…

Q: On January 1 of Year 1, Bryson Company obtained a $147,750, 4-year, 7% installment note from…

A: The question is based on the concept of Financial Accounting.

Q: On August 15, 2022, Pharoah Company signs a $248000, 7%, twelve-month note payable. Which of the…

A: Accrued Interest: The unpaid interest amount that has incurred on the financial obligation till a…

Q: On the first day of the fiscal year, a company issues $69,000, 9%, seven-year installment notes that…

A: Note​ : Note is an instrument through which borrower obtains money from a person called lender and…

Q: On October 1, Ramos Co. signed a $90,000, 60-day note at the bank to be paid on November 30. (Assume…

A: given that, 1) on October 1st ram and co-signed a bill of $90000 2) term of bill = 60days 3)…

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…

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

A:

Q: On July 1, Alton Co. issued an $74,700, 10%, 120-day note payable to Seller Co. Assume that the…

A: Interest will be recognized on $74700 and the interest rate charged is 10%.  Amount of interest…

Q: 3. On January 1, Esly Company obtained a $125,000, 7-year 5% installment note from Farmers Bank. The…

A: Step 1:Notes Payable are reported under the non current liablities section of the Liabilities.Long…

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.