On January 1, 2018, Sana Madali Lang Company sold machinery costing P5,000,000 with accumulateddepreciation of P1,800,000. In consideration for the sale, Sana Madali Lang Company received cash ofP100,000 and a P3,000,000 non-interest-bearing note due on December 31, 2021. The prevailing interestrate for a note of this type is 10%. (The PVF of 1 at 10% for 4 years is 0.6830 while the PVF of ordinaryannuity at 10% for 4 years is 3.1699)How much is the carrying amount of the note on initial recognition?а. Р3.000,000b. P5,000,000c. P2,049,0001.d. P2,117,300е. Р9,509,700How much is the loss on sale of machinery?a. P1,051,000b. P1,082,700c. P1,151,0002.d. P982,700e. P2,851,0003. How much is the interest income for 2019?а. Р225,390b. P204,900c. P211,730d. P232,903е. Р300,0004. How much is the carrying amount of the note on December 31, 2019?а. Р2,329,030b. P2,401,831c. P2,561,933d. P2,253,900e. P2,479,290

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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? a. P3,000,000 b. P5,000,000 c. P2,049,000 d. P2,117,300 e. P9,509,700 2. How much is the loss on sale of machinery? a. P1,051,000 b. P1,082,700 c. P1,151,000 d. P982,700 e. P2,851,000 3. How much is the interest income for 2019? a. P225,390 b. P204,900 c. P211,730 d. P232,903 e. P300,000 4. How much is the carrying amount of the note on December 31, 2019? a. P2,329,030 b. P2,401,831 c. P2,561,933 d. P2,253,900 e. P2,479,290

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? a. P3,000,000 b. P5,000,000 c. P2,049,000 d. P2,117,300 e. P9,509,700 2. How much is the loss on sale of machinery? a. P1,051,000 b. P1,082,700 c. P1,151,000 d. P982,700 e. P2,851,000 3. How much is the interest income for 2019? a. P225,390 b. P204,900 c. P211,730 d. P232,903 e. P300,000 4. How much is the carrying amount of the note on December 31, 2019? a. P2,329,030 b. P2,401,831 c. P2,561,933 d. P2,253,900 e. P2,479,290

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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