On January 1, 2021, ABC Co. sold a transportation equipment with a historical cost of ₱1,000,000 and accumulated depreciation of ₱300,000 in exchange for cash of ₱100,000 and a noninterest-bearing note receivable of ₱800,000 due on January 1, 2025. The prevailing rate of interest for this type of note is 12%. How much is the gain / (loss) on sale? How much is the unamortized interest on December 31, 2023?

Q: On January 1, 2022. TGIG sold equipment with historical cost of P10,000,000 and accumulated…

A: Carrying amount of the Note = Present value of the annual instalments where, Present value of the…

Q: On January 01, 2021, CPA Company sold equipment costing P760,000 with accumulated depreciation of…

A: Solution: Fair value of note on Jan 1, 2021 = P800,000 * PV of 1 at 5% for 4th period = P800,000 *…

Q: On January 1, 2019, Kelly Company sold equipment with a carrying amount of P7, 000,000 in exchange…

A: Present value of the Note = Face value of the note x Present value factor Gain (loss) on the sale  =…

Q: On January 1, 2021, Ree Company sold a machine to Say Company. In lieu of cash payment, Say gave Ree…

A: PRESENT VALUE FACTOR TABLE @10% Year PVF @10% 1 0.9091 2 0.8264 3 0.7513 4 0.6830 5…

Q: On Jan 1, 2021, XYZ Co. sold a machine in exchange for a P1500,000, non-interest-bearing note…

A: Carrying amount of the Note = face value of the non-interest-bearing note x Present value factor…

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 January 1, 2020, ABC Company sold property to the DEF Company. There was no established exchange…

A: Total amount payable at December 31, 2021= annual installments x no. of annual installments =…

Q: On January 1, 2022. TGIG sold equipment with historical cost of P10,000,000 and accumulated…

A: Carrying amount of the Note = Present value of the annual instalments where, Present value of the…

Q: On January 01, 2022, TGIF Company sold equipment costing P10,000,000 with accumulated depreciation…

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

Q: On January 01, 2022, Legit Company sold equipment costing P10,000,000 with accumulated depreciation…

A: No. of installment to be received = Face value of notes / annual installments Carrying amount of the…

Q: On January 1, 2020, ABC Company sold a piece of land for P10,000,000. The company received a 10%,…

A: The asset is sold in exchange of a financial asset, which is a 10 year 10% note, whose carrying…

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: On January 1, 2020, ABC Company sold property to the DEF Company. There was no established exchange…

A: Total amount payable at December 31, 2021= annual installments x no. of annual installments =…

Q: n interest rate of 8% and is to be repaid in three annual installments of P200,000 plus interest on…

A: From the given values, the interest revenue as,

Q: On January 2, 2020, GRAPES Company sold equipment with a carrying amount of ₱480,000 in exchange for…

A: The gain or loss on sale of an asset depends on the selling price and carrying value of asset. The…

Q: On January 1,2021, Gale Co. sold delivery equipment costing ₱1,000,000 with accumulated depreciation…

A: 1)  The current portion of note receivable = 600000 Hence, the correct answer is option -(a).…

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

A: Carrying value of notes payable as of December 31, 2024 = Face value of Notes x Present value factor…

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

A:

Q: On January 2, 2020, Zyrus Company sold equipment with a carrying amount of P480,000 in exchange for…

A: Carrying value is considered as the cost of an asset minus accumulated depreciation. It is regarded…

Q: On January 1, 2020, Toot Company sold a piece of equipment costing P1,500,000 with accumulated…

A: Basic Accounting  Non Interest bearing note, Valuation and amortization

Q: On January 1, 2020, Adobo Incorporated sold its aggregate equipment.  The buyer issued a promissory…

A: Principal Outstanding   Principal amount received   Interest   Total amount received   PV…

Q: On January 1, 2020, VKS Incorporated sold its aggregate equipment.  The buyer issued a promissory…

A: Principal Outstanding   Principal amount received   Interest   Total amount received   PV factor…

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 January 01, 2022, TGIF Company sold equipment costing 10,000,000 with accumulated depreciation of…

A: Carrying amount of the note = annual installments x Present value factor No. of installment to be…

Q: On January 1, 2020, CPA Incorporated sold its aggregate equipment. The buyer issued a promissory…

A: Principal Outstanding   Principal amount received   Interest   Total amount received   PV…

Q: On January 1, 2020, Pedro Company sold land that originally cost P400,000 to Buyer Company. As…

A: Answer -  Part 4 - Calculation of the correct carrying amount of the notes receivable at December…

Q: On January 1, 2021, Ree Company sold a machine to Say Company. In lieu of cash payment, Say gave Ree…

A: Liabilities are the amounts which are owed by the organization at the date of the preparation of the…

Q: On January 1, 2013, BNI Co. sold machinery costing P3,000,000 with accumulated depreciation of…

A: Lets understand the basics. When asset is purchase with exchange with non interest bearing notes…

Q: On January 1, 2021, J Company sold equipment at a cost of P700,000 and accumulated depreciation of…

A: A note or debt where there is no requirement to pay-off the interest on note is known as…

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

A: It is a general practice that a company sells its Fixed Asset in exchange of Non-Interest bearing…

Q: On January 2, 2020, Janice Company sold equipment with a carrying amount of 400,000 in exchange for…

A: Cost Accounting is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: On January 1, 2020, Laguna Company sold equipment costing P836,000 with accumulated depreciation of…

A: Answer-66000rs.

Q: quipment with a carrying amount of ₱480,000 in exchange for a ₱600,000 non-interest bearing note due…

A: Net present value is defined as the discounted cash flow technique which applies to weight the items…

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

A: Bearing note                                      - P600,000 Prevailing rate (10%) after two years -…

Q: On January 1, 2020, Pedro Company sold land that originally cost P400,000 to Buyer Company. As…

A: Answer -  Part 1  - PV of consideration receivable (see computation b            503,105Carrying…

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: On January 1, 2021, Kongguksu Co. acquired an equipment by issuing two-year, noninterest bearing…

A: Solution:- Calculation of the cost of equipment if the equipment has no cash price equivalent as…

Q: Based on the above data, answer the following: 1. How much is the gain or loss on sale of delivery…

A: Comment: The Question is Multipart, so SME will answer only three subparts as per Bartleby…

Q: On January 2, 2021, BB Corporation sold equipment with a cost of $700,000 and accumulated…

A: Present value of note=Value of note×PVIF@10%,3years=$600,000×0.751314800=$450,788.88054

Q: How much is the noncurrent portion of the note on December 31, 2018?

A: The determination of non current portion of the note receivable is shown hereunder : Apple company…

Q: On January 01, 2021, Scottie Boo sold equipment costing P10,000,000 with accumulated depreciation of…

A: Note means an instrument issued by company acknowledging the debt due from company to bond holder.…

Q: On January 1, 2019, DEXTER Company sold equipment with a carrying amount of P4,800,000 in exchange…

A: We know that the fair value of the note is the present value of all the cash inflows made on the…

Q: On January 1, 2021, Hornets Company sold land that originally cost P400,000 to Egi Company. As…

A: Stated rate of interest & market rate of interest rate are same. Therefore Interest revenue for…

Q: On January 1, 2020, Advanced Study Company sold a piece of land with a carrying amount of P8,000,000…

A: Amortization: When the market rate of interest is different from the coupon rate or carrying rate,…

Q: On January 1, 2022. TGIG sold equipment with historical cost of P10,000,000 and accumulated…

A: Carrying amount of the Note = Present value of the annual instalments where, Present value of the…

Q: On January 1, 2020, ABC Company sold property to the DEF Company. There was no established exchange…

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

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

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: On January 2, 2020, Zyrus Company sold equipment with a carrying amount of P480,000 in exchange for…

A: “Since you have posted a many questions, we will solve first question for you. To get the remaining…