On December 31, 2021, Party Company received two P 50,000 notes receivable from customers in exchange for services rendered. On both notes, interest is computed on the outstanding principal balance at the annual rate of 3% and payable at maturity. The note from Pretty Corporation made under customary trade terms, is due in nine months, and the note from Charm, Inc. is due in five years. The market interest rate for similar notes on December 31, 2021 was 8%. The compound interest factors to convert future value into present values at 8% follow: Present value of P 1 due in nine months - 0.944 Present value of P 1 due in five years - 0.680 QUESTION: At what amounts should these two notes receivable be reported in Party's December 31, 2021 statement of financial position? Group of answer choices Pretty - P 48,260; Charm - P 39,100 Pretty - P 50,000; Charm - P 39,100 Pretty - P 50,000; Charm - P 34,000 Pretty - P 47,200; Charm - P 34,000
On December 31, 2021, Party Company received two P 50,000 notes receivable from customers in exchange for services rendered. On both notes, interest is computed on the outstanding principal balance at the annual rate of 3% and payable at maturity. The note from Pretty Corporation made under customary trade terms, is due in nine months, and the note from Charm, Inc. is due in five years. The market interest rate for similar notes on December 31, 2021 was 8%. The compound interest factors to convert future value into present values at 8% follow: Present value of P 1 due in nine months - 0.944 Present value of P 1 due in five years - 0.680 QUESTION: At what amounts should these two notes receivable be reported in Party's December 31, 2021 statement of financial position? Group of answer choices Pretty - P 48,260; Charm - P 39,100 Pretty - P 50,000; Charm - P 39,100 Pretty - P 50,000; Charm - P 34,000 Pretty - P 47,200; Charm - P 34,000
On December 31, 2021, Party Company received two P 50,000 notes receivable from customers in exchange for services rendered. On both notes, interest is computed on the outstanding principal balance at the annual rate of 3% and payable at maturity. The note from Pretty Corporation made under customary trade terms, is due in nine months, and the note from Charm, Inc. is due in five years. The market interest rate for similar notes on December 31, 2021 was 8%. The compound interest factors to convert future value into present values at 8% follow: Present value of P 1 due in nine months - 0.944 Present value of P 1 due in five years - 0.680 QUESTION: At what amounts should these two notes receivable be reported in Party's December 31, 2021 statement of financial position? Group of answer choices Pretty - P 48,260; Charm - P 39,100 Pretty - P 50,000; Charm - P 39,100 Pretty - P 50,000; Charm - P 34,000 Pretty - P 47,200; Charm - P 34,000
On December 31, 2021, Party Company received two P 50,000 notes receivable from customers in exchange for services rendered. On both notes, interest is computed on the outstanding principal balance at the annual rate of 3% and payable at maturity. The note from Pretty Corporation made under customary trade terms, is due in nine months, and the note from Charm, Inc. is due in five years. The market interest rate for similar notes on December 31, 2021 was 8%. The compound interest factors to convert future value into present values at 8% follow:
Present value of P 1 due in nine months - 0.944
Present value of P 1 due in five years - 0.680
QUESTION: At what amounts should these two notes receivable be reported in Party's December 31, 2021 statement of financial position?
Group of answer choices
Pretty - P 48,260; Charm - P 39,100
Pretty - P 50,000; Charm - P 39,100
Pretty - P 50,000; Charm - P 34,000
Pretty - P 47,200; Charm - P 34,000
Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.
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