On January 1, 2020, ABC Company sold a piece of land for P10,000,000. The company received a 10%, P10,000,000 note payable on December 31, 2029. The interest is payable every December 31. The land was purchased for P1,750,000. The prevailing market interest rate for similar notes is 12%. How much is the carrying value as of December 31, 2027?

Q: On January 1, 2019, the Philippines Inc. issued P3,000,000, 12% promissory note for an equipment…

A: Carrying amount of the note payable on December 31, 2019 = Present value of principal + Present…

Q: On May 1, 2020, POPS Corporation issued a 5-year, 10%, P 1,000,000 note in exchange of a land with…

A: 1. Annual installment which is payable in the next 12 months from December 31, 2021, and interest…

Q: At January 1, 2021, Brant Cargo acquired equipment by issuing a five-year, $150,000 (payable at…

A: As per the IAS 16, when the asset is acquired, and payment is deferred for such acquisition, then…

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, 2018, Apple Company sold delivery equipment costing P1,000,000 with accumulated…

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

Q: On January 1, 2021, Hodge Beanery received $8,000 from the Kennedy Company in exchange for a coffee…

A: Since requirement is not given in the question, I am calculating deferred revenue to be recognized…

Q: On January 1,2021, ABC Corporation purchased a land for P 15,000,000. In exchange of the land, ABC…

A: The carrying value of note issued on 01 January 2021 by ABC Corporation as of 31 December 2022 would…

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

A:

Q: On December 31, 2022, at what amount should the company report as the liability for this land?  On…

A: The original question provides a scenario where ABC Company buys three hectares of land for P800,000…

Q: On January 1, 2021, Hosana Co. sold equipment in exchange for a P 850,000, 4 year, 11% note,…

A: Lets understand the basics. Compounded interest means interest on interest. In other words, it is a…

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

A: Equated principal payments over 5 year period = P30, 000,000/5 =P6000, 000

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

A: Notes Payable: In the financial world, notes payable are short-term obligations that represent the…

Q: On January 1,2021, ABC Corporation purchased a land for P 15,000,000. In exchange of the land, ABC…

A: Face value of non-interest bearing note  P1,50,00,000 Interest Rate 15% Period  5 years…

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: ce value of P1,500,000.  The note is payable in four equal annual installments of P375,000 plus…

A: Notes Payable are the debt instrument which has been used by the organization to arrange a short…

Q: On May 1, 2022, Cuba Company purchased factory machinery having an installment price of P4,000,000.…

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Q: Bahag-Hari company provided you the following sales transactions as of December 31,2021: ·…

A: >Long Term assets are recorded in the books of account at their acquisition cost. >If these…

Q: Bahag-Hari company provided you the following sales transactions as of December 31,2021: ·…

A: Promissory notes, commonly referred to as notes receivable or simply "notes," are monetary…

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

A: A note payable is indeed a promissory note that has been drafted. A borrower borrows a particular…

Q: On September 1, 2017, Fantastic Company sold a piece of land in exchange for a 5-year note with face…

A: As interest received on 31st Aug each year but the company have to make an entry for accrued income…

Q: January 1, 2023, Hornets Company sold land that originally cost P400,000 to the Egi Company. As…

A: Here is note receivable for Hornets. Note receivable is an asset which is a promissory note written…

Q: How much is the total amount credited to Installment Sales? 2. How much is the total realized gross…

A: Installment sales :— one of the regular payments that you make for something until you have paid the…

Q: On January 1, 2021, Diggs Co. lends some money in exchange for a 10% $100,000 10-year note.  The…

A: a)Coupon Rate =10%Market rate=8%The coupon rate is more than the Market rate i.e. It is issued at a…

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 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, 2019, ABC Company sold an equipment with carrying amount of P1,500,000. The customer…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: On July 1, 2021, ABC Co. issued a 9% interest bearing note with a face amount of P 10,000,000 for…

A: carrying value of the notes as of December 31,2022  is P 8,227,384.90  accrued interest P 354,289.30…

Q: On January 1, 2020, Heavy Corporation that manufactures heavy equipment sold an equipment for…

A: In the instalments type of sale, the income is not recognized until full instalments are received…

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: On jan 1 2022, rodney inc provided services to smith's company in exchange for smith's $300000, 2…

A: Financial Management: Financial management can be explained as a technique used by business…

Q: Please give a detailed solution   On January 1, 2020, TPM Inc. acquires a piece of equipment for a…

A: 1) Journal Entries for the Year 2020 and 2021

Q: Hot Issue Company sold its machine with a carrying amount of P2,000,000 in exchange for P2,500,000…

A: Present Value of Annuity Due (PVAD): It is the value calculated at the end of the number of periods…

Q: Suicune Bank granted a P5,000,000 loan to Raikou Company on January 1, 2020. The annual interest on…

A: Effective Interest Rate- The effective rate of interest is the interest rate that can be paid or…

Q: On January 1, 2019, Bestbuy Inc. purchased land that had an assessed value of P6,000,000 at the time…

A: Present value of non-interest-bearing note on January 1, 2019 = Face value of non-interest-bearing…

Q: On January 2, 2020, Magsaysay Company sold equipment with a carrying amount of P400,000 in exchange…

A: The non-interest bearing note is a note on which the interest is not charged. The note is matured at…

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

A: Interest bearing note:   When a company purchases a fixed asset, it is very difficult to pay the…

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…