On January 1, 2020, MP's customer issued a 3 year 8% note, PHP 3,000,000 for services billed to be paid at maturity date. What is the carrying amount as at January 1, 2020. The prevailing interest rate is 10%

On January 1, 2020, MP's customer issued a 3 year 8% note, PHP 3,000,000 for services billed to be paid at maturity date. What is the carrying amount as at January 1, 2020. The prevailing interest rate is 10%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: On January 1, 2020, MP's customer issued a 3 year 8% note, PHP 3,000,000 for services billed to be…

A: Carrying amount is also known as carrying value or book value. The carrying amount of a note issued…

Q: At the end of 2020, the business has a notes payable with maturity value of TL60.000. The maturity…

A: Discount on notes payable = Maturity value x rate of discount x no of months/12 = TL 60000 X 20% X…

Q: DAM Corporation, a lending institution, provided a loan to LAP company for $5,000,000 on Januray…

A: Loan origination fees include but are not limited to fees charged to the borrow as prepaid…

Q: At the end of 2020, the business has a notes payable with maturity value of TL18.000. The maturity…

A: Notes payable can be defined as the promissory note that is issued in behalf of the payment with the…

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: Calculate the interest accrued for each of the following notes payable owed by Boundas Resorts as of…

A: Roof Point: From October 01, 2019 to December 31 , 2019 = 3 months Principal amount = $ 90000 Coupon…

Q: On September 1, 2021, Daylight Donuts signed a $254,000, 9%, six-month note payable with the amount…

A: Solution... Principal amount = $254,000 Rate of interest = 9% Time period = 6 months

Q: On January 1, 2021, Cullumber Corp. borrows $9,000 by signing a 3-year, 3% note payable. The note is…

A: Period Cash payment Interest expense at 3% Reduction of principal Principal balance Jan 1, 2021…

Q: On July 1, 2017, Sun Company issued a five-year note payable with a face amount of P7,000,000 and an…

A: Calculation of the amount to be included in current liabilities section::: With respect to the note,…

Q: At the end of 2019, the business has a notes payable with maturity value of TL12.000. The maturity…

A: The formula to calculate the present value of future cash inflow is C/(1+r)n, where C is the cash…

Q: 00,000 in principal plus accrued interest are due annually on July 1, 2021, 2022 and 2023. (Present…

A: An Interest is Accrued when it is incurred and not paid. In the above question, Interest on note…

Q: nando issued a promissory note on July 29, 2019 to Metrobank amounting to Php 160,000 with interest…

A: Promissory Notes is a written negotiable instrument wherein a person is promised to pay a fixed sum…

Q: On January 1, 2020, Company A issued 10% bearing note payable in ten semi-annual instalments every…

A: 1. Present value of the bonds = Present value of principal + Present value of interest payments =…

Q: On January 1, 2021, IYY Inc. issued a 5,000,000 non-interest bearing note with maturity date of…

A: Issuing the financial instruments will increase the capital as well as the capital of the company.…

Q: A 100-day note with a face amount of $54,000 and interest rate of 9% is issued on June 1. Required:…

A: 1.

Q: On January 1, 2021, Aloha Co. received the following note: Face amount…

A: Notes receivables are claims supported by formal promise to pay usually in the form of notes. Non…

Q: On January 1, 2022, ABC Company issued 9% Note with face amount of P2,000,000 which matures on…

A: A note is a legal document representing a loan made from an issuer to a creditor or an investor.

Q: On March 1, 2020, LINGATONG Company has received a P10,000, two year note bearing interest at 12%…

A: Lingatong Company Receive P10,000 Accrued Interest Receivable at 31st Dec,2021 is Interest Expense…

Q: On January 1, 2021, Aloha Co. received the following note: Face amount…

A: Initial measurement of notes receivable: It is the process of determining the monitory value at…

Q: RED Corporation

A: Current liabilities square measure a company's short-run money obligations that square measure due…

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: 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: 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: Aloha Co. received the following note: Face amount P 1,000,000…

A: when calculating the amount of interest income to recognise in the statement of financial…

Q: A 13.2% P600,000 note payable was issued by Robin Company on March 1, 2020. The principal and…

A: It is pertinent to note that liabilities that are not settled with in 12 months from the end of the…

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 January 1, 2020, MWB, Inc. borrowed cash by issuing a $600,000, 6-year note that specified 6%…

A: solution given Face value $600000 Life 6 year Coupon rate 6% If interest to…

Q: On the 02 July 2019 Maxi Trading transferred R30 000 and R50 000 respectively into a fixed deposit…

A: As per the IAS 1 (presentation of financial statement) which describes the layout of presentation of…

Q: On January 1, 2020, a company issued a $30,000 three-year, 4% note payable, repayable in 12…

A: Notes Payable The purpose of taking the Notes payable to the firm to generate adequate liquidity in…

Q: In January 1, 2020, Mega Corporation issued a $55,000, three-year, 6% installment note from Biggest…

A: In January 1, 2020, Mega Corporation issued a $55,000, three-year, 6% installment note from Biggest…

Q: On March 15, 2021, a six-month promissory note for $1,175 with interest at 4% was issued. Compute…

A: Present value of the note = Present value of principal + Present value of interest payments

Q: Desrosiers Ltd. received a $400,000 note receivable on December 31, 2019 from a customer to settle…

A: A note receivable is a written promise by a borrower to pay a specific amount of money to the lender…

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: Tolino Company signed a 5-year note payable on January 1, 2020, of $200,000. The note requires…

A: Notes Payable is an instrument issued by the borrower to the payee. A promissory note that carries a…

Q: On September 1, 2021, Daylight Donuts signed a $112,000, 9%, six-month note payable with the amount…

A: Notes payable is considered a negotiable instrument. It is classified under the head of current…

Q: Anote payable of $60,000, 90 -day, 8% was issued on November 1, 2020. What in the amount of the…

A: The accrued interest is the amount of interest revenue earned but not received yet. It is recorded…

Q: On September 1, 2021, Daylight Donuts signed a $110,000, 10%, six-month note payable with the amount…

A: Interest Payable on notes Payable: Interest must be paid on nearly all payable notes. Interest must…

Q: An $9,000 note dated 06/22/2020, matures on 12/22/2020 at 8.15%. (Banker’s Rule) In how many days…

A: As per the banker rules the Interest is paid from the date of notes issued to the date of…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

On January 1, 2018, Company B borrowed 50,000 signing a 3-year installment note payable with yearly cash payments of $19,402 due each December Assuming the interest rate is 8%, what is the net note payable reported on the December 31 balance sheet after the annual payment?
a 6 month non-interest-bearing note was issued on March 31, 2019 for $3300 was discounted at 8.25% on july 31,2019. what were the proceeds of the note?
On June 8, Williams Company issued an $92,400, 11%, 120-day note payable to Brown Industries. Assuming a 360-day year, what is the maturity value of the note? Round your answer to the nearest whole dollar.
On September 1, 2019, Silang Trading issued a note payable to Far East Bank in the amount of P500,000. The note had an interest rate of 12%and had a term of 1 year. Interest is payable upon maturity of the note. At December 31, 2019, Silang Trading should record accrued interest on the note in the amount of P60,000 P10,000 P20,000 P15,000
Problem: ABC Company issued a promissory note to RCBC Bank. Details from the promissory note are as follows: Date of note: November 1, 2020 Term of note: 180 days Principal: P120,000 Interest rate: 12% Determine the following: 1. What is the account to be credited on the adjusting entry on December 31, 2020? 2. How much is the amount to be credited on December 31, 2020? 3. How much is the total interest expense for the full term of the note.
On July 1, 2020, ABC Company issued a five-year note payable with a face amount of P5,000,000 and an interest rate of 10%. The terms of the note require ABC Company to make five annual payments of P1,000,000 plus accrued interest with first payment due on June 30, 2021. With respect to the note, the current liabilities section of ABC Company December 31, 2021, balance sheet should include:
A 60-day, 9% note for $10,000, dated May 1, is received from a customer on account. Use 30 day months and 360 day years in calculations of interest. The maturity value of the note is:
What is he initial carrying value of the loans receivable as of Dec 31, 2019?
On January 1, 2021, Glanville Company sold goods to Otter Corporation. Otter signed an installment note requiring payment of $21,500 annually for five years. The first payment was made on January 1, 2021. The prevailing rate of interest for this type of note at date of issuance was 10%. Glanville should record sales revenue in January 2021 of: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $107,500 $81,502 $89,652 None of these answer choices are correct.
A 13.2% P600,000 note payable was issued by Robin Company on March 1, 2020. The principal and interest, compounded annually, are due in three years. How much is the interest expense for 2021?
6) A company receives a 5%, 90-day note for $5,400. The total interest due on the maturity date is: (Use 360 days a year.) A) $67.50. B) $270.00. C) $157.50. D) $135.00. E) $90.00.