On January 1, 2020, X company acquired an equipment for P1,000,000 payable in 5 annual equal installments every December 31 of each year. Interest is 10% on the unpaid balance. Required: Prepare the all the relevant journal entries in 2020 and 2021
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On January 1, 2020, X company acquired an equipment for P1,000,000 payable in 5 annual equal installments every December 31 of each year. Interest is 10% on the unpaid balance.
Required:
Prepare the all the relevant
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- . Light Company manufactures product Alpha and the following information has been provided for the month of December: Standard costs: Direct material C 4 kg @ sh. 80 Direct material D 6 kg @ sh. 40 Actual data: Direct material C 30,000kg @sh. 82 Direct material D 16,000kg @sh. 36 Actual number of units were 8,000 units. Required: a) What is the Material mix variance? Select one: A. 464,000A B. 1,904,000F C. 1,440,000F D. None of the above1. On January 1, 2019, Christian company took out a loan of 12,000,000 with an annual interest of 10% in order to finance specifically the renovation of a building. The renovation work started on the same date. Work on the building was substantially complete on October 31, 2019. The loan was repaid on December 31, 2019, and P150,000 investment income was earned in the period to October 31, 2019, on the proceeds of the loan not yet used for renovation. What is the amount of capitalizable borrowing cost?Ehrlich Co. issues a $500,000, 8%, 10-year mortgage note on December 31, 2020, to help finance a plant expansion program. The terms of the note provide for annualinstallment payments of $89,418. Payments are due on each December 31.Instructions:(a) Prepare an installment payments schedule for the first 4 years.(b) Prepare the entries for (1) the loan and (2) the first and second installment payments.(c) Show how the total mortgage liability should be reported on the balance sheet atDecember 31, 2022
- LCD Industries purchased a supply of electronic components from Entel Corporation on November 1, 2024. In payment for the $24.4 million purchase, LCD issued a 1-year installment note to be paid in equal monthly payments at the end of each month. The payments include interest at the rate of 24%. Required: 1. & 2. Prepare the journal entries for LCD's purchase of the components on November 1, 2024 and the first installment payment on November 30, 2024. 3. What is the amount of interest expense that LCD will report in its income statement for the year ended December 31, 2024? Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Complete this question by entering your answers in the tabs below. Req 1 and 2 Prepare the journal entries for LCD's purchase of the components on November 1, 2024 and the first installment payment on November 30, 2024. Note: Enter your answers in whole dollars. If no entry is required for a…Please help me in accordance with IFRS 15 Modern Engineering (ME) entered into a contract for 3 - year maintenance services with a manufacturing concern. Same service will be rendered over 3 - year period. Contract required 100% upfront fees of 300,000 payable at the time of agreement on January 1, 2018. Prevailing market interest rate for ME is 12%. ME prepares its financial statements on 31st December every year. Required: All journal entries for above transaction.On December 31, 2020 you McCormick Ltd. Sells manufacturing equipment to a customer on the following terms. The purchase price of $650,000 will be payable as follows:12% immediately in cashThe remaining $572,000 in 6 years.Interest of 3% is payable each December 31 on the balance of $572,000.Write the journal entries for McCormick (the seller) for the years 2020 – 2022 assuming that the cash price of the equipment if purchased today would be $590,000.McCormick reports under IFRS
- LCD Industries purchased a supply of electronic components from Entel Corporation on November 1, 2024. In payment for the $25.1 million purchase, LCD issued a 1-year installment note to be paid in equal monthly payments at the end of each month. The payments include interest at the rate of 12%. Questions: 1. & 2. Prepare the journal entries for LCD’s purchase of the components on November 1, 2024 and the first installment payment on November 30, 2024. 3. What is the amount of interest expense that LCD will report in its income statement for the year ended December 31, 2024? Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)User In February 2024, Cullumber Corp, began the construction of a 10-storey building. The construction is expected to be completed by January 2025. during 2024, the following payments were made: Apr. 1: 1010000 Jun. 1: 1500000 Aug. 1: 840000 Oct. 1: 890000 No asset specific debt was incurred. During 2024, Cullumber's general debt consisted of the following: $1.8 million, 5%, 2-year note, $1.1 million, 4.5%, 2-year note, $0.50 million, 3%, 5-year note. Calculate the avoidable borrowing costs. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Use the following information for questions 7 to 8: Sarah Company started construction of its administration building at an estimated cost of P50,000,000 on January 1, 2020. The construction is expected to finish by December 31, 2022. Sarah has the following debt obligations outstanding during 2020: Construction loan - 12% interest payable semiannually, issued December 31, 2019 P 20,000,000 Short-term loan - 10% interest payable monthly, principal payable at maturity on January 1, 2021 14,000,000 Long-term loan - 11% interest payable on January 1 of each year. Principal payable on January 1, 2024 10,000,000 The weighted-average of the accumulated expenditures during 2020 was P36,000,000. How much interest expense should Sarah Company report in 2020? ans: 833,333 What amount of interest incurred in 2020 should be included in the cost of the building being constructed? ans: 4,066,667 Provide solutions.
- Construction loan-12% interest, payable semiannually, issued December 31, 2019 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 Ⓒ Whispering Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $3,000,000 on January 1, 2020. Whispering expected to complete the building by December 31, 2020. Whispering has the following debt obligations outstanding during the construction period. $1,200,000 840,000 600,000 Show Time Assume that Whispering completed the office and warehouse building on December 31, 2020, as planned at a total cost of $3.120,000, and the weighted average amount of accumulated expenditures was $2.160,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and round final…[The following information applies to the questions displayed below] On January 1, 2021, Gundy Enterprises purchases an office building for $162,000, paying $42,000 down and borrowing the remaining $120,000, signing a 8%, 10-year mortgage. Installment payments of $1,455.93 are due at the end of each month, with the first payment due on January 31, 2021. Required: 1. Record the purchase of the building on January 1, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the purchase of the building.Marin Cosmetics Co. purchased machinery on December 31, 2019, paying $47,300 down and agreeing to pay the balance in four equal installments of $46,400 payable each December 31. An assumed interest of 8% is implicit in the purchase price. Prepare the journal entries that would be recorded for the purchase and for (1) the payments and (2) interest on the following dates. (Round answers to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) December 31, 2019. (b) December 31, 2020. (c) December 31, 2021. (d) December 31, 2022. (e) December 31, 2023.
