On January 1, 2018, Apple Company sold delivery equipment costing P1,000,000 with accumulated depreciation of P150,000 in exchange for a 3-year, P1,800,000 noninterest bearing note receivable due on December 31, 2020. The prevailing market rate of interest for this type of note is 12%. How much is the current portion of the note on December 31, 2018?

Q: Determine the amount of cash Concord received from the loan on December 31, 2020. (Round present…

A: Answer:- 1195107 Amount of interest = signed amount*interst rate = 1290500*9% = 116,145 Present…

Q: 11. On January 1, 2020, Jones Services receives a zero-interest note with a matu $10,000 and a three…

A: Solution a: Face value of note = $10,000 Normal rate of similar note = 10%  Period of note = 3 years…

Q: LINDT Corporation manufactures and sells electrical generators. On May 31, 2020, it sold an…

A: Present value of Note =  Installments x present value of an ordinary annuity of 1 for three periods…

Q: On January 1, 2020, the India Inc. issued P3,000,000, 13% promissory note for an equipment…

A: The carry value will be the interest plus present value of note.

Q: On January 1, 2019, Love Co. sold merchandise to Kit Store in exchange for a non-interest bearing…

A: Formula: Interest amount = Bond face value x Interest rate Multiplying bond face value with interest…

Q: On Jan 1, 2021, XYZ Co. sold a machine in exchange for a P1500,000, non-interest-bearing note…

A: Carrying amount of the Note = face value of the non-interest-bearing note x Present value factor…

Q: On January 1, 2022. TGIG sold equipment with historical cost of P10,000,000 and accumulated…

A: Carrying amount of the Note = Present value of the annual instalments where, Present value of the…

Q: pany carrying exchange interest bearing note of P5,000,000 requiring ten annual payments of…

A: Present value means the actual amount is adjusted with the interest rate so as to get the present…

Q: On January 1, 2017, Persephone Company sold a piece of transportation equipment with a historical…

A: Cost of equipment : P1,000,000 Accumulated depreciation : P300,000 Note receivable : P800,000 , 12%

Q: What is the carrying amount of the note as of December 31, 2022? On January 1, 2022. TGIG sold…

A: Carrying amount of the Note = Present value of the annual instalments where, Present value of the…

Q: What price did the finance company pay for the promissory note?  What rate of interest did the…

A: Formula: For price, the finance company pay for the promissory note S= P(1+rt)P= S(1-dt) Rate of…

Q: On December 30, 2021, Jack company purchased an aircraft from Jill Co. in exchange for a noninterest…

A: Answer to Question: Cost of the Machine is the Present Value of Non Interest bearing Note…

Q: On December 31, 2021, AAA Company sold for P3,000,000 an old equipment having an original cost of…

A: This question deals with the calculation of interest income and carrying value of notes receivable.…

Q: On April 1, 2021, ABC CO. issued a 9% interest bearing note with a face amount of P 30,000,000 for…

A: It is pertinent to note that non-current liabilities are those obligations that need to be paid…

Q: On January 1, 2020, Adobo Incorporated sold its aggregate equipment.  The buyer issued a promissory…

A: Principal Outstanding   Principal amount received   Interest   Total amount received   PV…

Q: FDN Company received a 60-day 10% promissory note as settlement for goods sold on March 1, 2022 for…

A: The amount to be received at the time of the maturity of the promissory note include the principal…

Q: Harmony Corp. received the following promissory notes from various customers during 2020 in the…

A: Introduction:- Calculation of the total interest income to be recorded by Harmony Corp. during 2020…

Q: On December 31, 2020, Grouper Company signed a $1,049,400 note to Monty Bank. The market interest…

A: The maturity value of the note is the sum of face value of note and the interest payable on note…

Q: On January 1, 2020, MELON  Incorporated sold its aggregate equipment.  The buyer issued a…

A: Principal Outstanding   Principal amount received   Interest   Total amount received   PV factor…

Q: On January 1, 2017, Persephone Company sold a piece of transportation equipment with a historical…

A: solution given The equipment is sold for cash and non interest-bearing note receivable The cash…

Q: Company AAA borrowed P1,000,000 on July 1, 2021 and issued a 9% one-year note payable every after…

A: Notes payable refers to liability on a company's balance sheet that represents a formal written…

Q: On December 31, 2025, Nash Company signed a $1,035,300 note to Crane Bank. The market interest rate…

A: The notes payable are a current liability for an entity that issues the same. It may be a long-term…

Q: On December 31, 2018, Conchita Martinez Company signed a P1,000,000 noninterest bearing note to Sauk…

A: Carrying amount refers to the cost of an asset less the accumulated depreciation.

Q: On January 1, 2014, Huff Co. issued a $4,000,000, zero interest (0%), 10-year note payable for…

A: Notes payable: Notes payable is a liability for the organization which has to be paid after a…

Q: The corporate charter of Carla Vista Corporation allows the issuance of a maximum of 30,800,000…

A: Introduction:- The Following Basic Information as follows under:-  Carla Vista Corporation allows…

Q: On January 1, 2019, Love Co. sold merchandise to Kit Store in exchange for a non-interest bearing…

A: Value of notes receivable as of January 1, 2019 = Annual payment x PVIAF (8%, 10 years) = P100,000 x…

Q: On January 1, 2018, Apple Company sold delivery equipment costing P1,000,000 with accumulated…

A: solution concept non interest bearing note                 when an non interest bearing note is…

Q: Hot issue company sold its machine with a carrying amount of P2,000,000 in exchange for 2,500,000…

A: Solution: Let us assume that date of sale of machine is Jan 1, 2021. Sale value of machine = Present…

Q: . On April 1, 2021, XYZ CO. issued a 9% interest bearing note with a face amount of P 30,000,000 for…

A: Interest of a note = principal x rate x time Interest of note from 1.1.2022 - 31.3.2022 = 30,000,000…

Q: On January 1, 2021, Jin Company sold equipment at a cost of P400,000.          The consideration is…

A: The present value is the amount of the money received at time 0 or the current period.

Q: A 12-year promissory note for $650000 issued on August 15, 2012, with interest at 3.5% compounded…

A: Issued price of 12 year promissory note= $650000 Issued date= August 15, 2012 Interest rate= 3.5%…

Q: LINDT Corporation manufactures and sells electrical generators. On May 31, 2020, it sold an…

A: Present value of Note =  Installments x present value of an ordinary annuity of 1 for three periods…