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On January 1, 2018, Sana Madali Lang Company sold machinery costing P5,000,000 with accumulate depreciation of P1,800,000. In consideration for the sale, Sana Madali Lang Company received cash P100,000 and a P3,000,000 non-interest-bearing note due on December 31, 2021. The prevailing intere rate for a note of this type is 10%. (The PVF of 1 at 10% for 4 years is 0.6830 while the PVF of ordinal annuity at 10% for 4 years is 3.1699) 1. How much is the carrying amount of the note on initial recognition? а. Р3.000,000 b. P5,000,000 c. P2,049,000 d. P2,117,300 P9,509,700 е. How much is the loss on sale of machinery? а. Р1,051,000 b. P1,082,700 с. Р1,151,000 2. P982,700 P2,851,000 d. е. 3. How much is the interest income for 2019? а. Р225,390 b. P204,900 P232,903 Р300,000 d. е. С. Р211,730

On January 1, 2018, Sana Madali Lang Company sold machinery costing P5,000,000 with accumulate depreciation of P1,800,000. In consideration for the sale, Sana Madali Lang Company received cash P100,000 and a P3,000,000 non-interest-bearing note due on December 31, 2021. The prevailing intere rate for a note of this type is 10%. (The PVF of 1 at 10% for 4 years is 0.6830 while the PVF of ordinal annuity at 10% for 4 years is 3.1699) 1. How much is the carrying amount of the note on initial recognition? а. Р3.000,000 b. P5,000,000 c. P2,049,000 d. P2,117,300 P9,509,700 е. How much is the loss on sale of machinery? а. Р1,051,000 b. P1,082,700 с. Р1,151,000 2. P982,700 P2,851,000 d. е. 3. How much is the interest income for 2019? а. Р225,390 b. P204,900 P232,903 Р300,000 d. е. С. Р211,730

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On January 1, 2018, Sana Madali Lang Company sold machinery costing P5,000,000 with accumulated depreciation of P1,800,000. In consideration for the sale, Sana Madali Lang Company received cash of P100,000 and a P3,000,000 non-interest-bearing note due on December 31, 2021. The prevailing interest rate for a note of this type is 10%. (The PVF of 1 at 10% for 4 years is 0.6830 while the PVF of ordinary annuity at 10% for 4 years is 3.1699) 1. How much is the carrying amount of the note on initial recognition? а. Р3,000,000 b. P5,000,000 c. P2,049,000 d. P2,117,300 P9,509,700 е. How much is the loss on sale of machinery? а. Р1,051,000 b. P1,082,700 с. Р1,151,000 2. d. P982,700 P2,851,000 е. 3. How much is the interest income for 2019? а. Р225,390 b. P204,900 С. Р211,730 d. P232,903 P300,000 е. 4. How much is the carrying amount of the note on December 31, 2019? а. Р2,329,030 b. P2,401,831 c. P2,561,933 d. P2,253,900 e. P2,479,290
Transcribed Image Text:On January 1, 2018, Sana Madali Lang Company sold machinery costing P5,000,000 with accumulated depreciation of P1,800,000. In consideration for the sale, Sana Madali Lang Company received cash of P100,000 and a P3,000,000 non-interest-bearing note due on December 31, 2021. The prevailing interest rate for a note of this type is 10%. (The PVF of 1 at 10% for 4 years is 0.6830 while the PVF of ordinary annuity at 10% for 4 years is 3.1699) 1. How much is the carrying amount of the note on initial recognition? а. Р3,000,000 b. P5,000,000 c. P2,049,000 d. P2,117,300 P9,509,700 е. How much is the loss on sale of machinery? а. Р1,051,000 b. P1,082,700 с. Р1,151,000 2. d. P982,700 P2,851,000 е. 3. How much is the interest income for 2019? а. Р225,390 b. P204,900 С. Р211,730 d. P232,903 P300,000 е. 4. How much is the carrying amount of the note on December 31, 2019? а. Р2,329,030 b. P2,401,831 c. P2,561,933 d. P2,253,900 e. P2,479,290
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