On January 1, 2021, ABC Company acquired an equipment from DEF Company in lieu of cash payment, ABC Company gave DEF Company a 3-year, 3%, P2,000,000 interest-bearing note payable. The interest is payable every December 31 while the principal shall be payable as follows: December 31, 2021, P1,200,000; December 31, 2022, P400,000; and December 31, 2023, P400,000. The prevailing rate of interest for this type of note is 12%. How much is the non-current portion of the note due on December 31, 2021?

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Q: ANSWER: Complete the following amortization schedule:   Cash Interest Amortized Carrying Dates…

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

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A: Notes Payable, net of discount, reported as current liability as of December 31, 2021= annual…

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A: Liabilities in the Balance Sheet is classified into two categories: Current  Non current  Those…

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

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A: solution given Date of issue September 30 2019 Amount of note 1000000 Rate of…

Q: On January 1, 2021, Chantal Company purchased equipment from Heidi Company amounted to P2,400,000.…

A: The question is based on the concept of business accounting.

Q: On September 1, 2021, Sheffield Corp. issued a note payable to National Bank in the amount of…

A: A promissory note seems to be a signed promissory note. The borrower borrows a particular amount of…

Q: On January 1, 2019, a company acquired transportation equipment by paying cash of P400,000 and…

A: Carrying value of note payable is the present value of all the payments to be made on the note…

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A: Carrying amount of the note receivable on January 1, 2021 = Amount payable on January 1, 2021 +…

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A: Ans. P 48,000

Q: On January 1, 2021, ABC Company acquired an equipment from DEF Company in lieu of cash payment, ABC…

A: Introduction

Q: On July 1, 2018, ABC Company borrowed P1,000,000 on a 10% five-year note payable. On December 31,…

A:

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A: An interest bearing note represents funds loaned by a lender to a borrower, on which interest is…

Q: The following amortization schedule indicates the interest and principal that Chip's Cookie…

A: Solution: Annual payment of note  = Interest expense+ reduction in principal of notes payable Total…

Q: On January 1, 2021. This Company acquired a machine by issuing a 3-year, 3%, P4,000,000 note…

A: As per IFRS 9, a Financial instrument, the financial liability is initially recognized at amortized…

Q: On October 1, 2021, Chrysanthemum Co. purchased equipment by issuing a 9% promissory note with face…

A: Interest payable on Decemeber 31,2022  = 9% x (1500000-400000) x3/12= 24750

Q: On January 1, 2021, ABC Company acquired an equipment from DEF Company in lieu of cash payment, ABC…

A: Interest expense is the amount which is paid along with the principal amount of a debt security like…

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A: It is pertinent to note that the current value of note is the present value of all cash outflows…

Q: On January 1, 2019, James Co. received a 10%, five year note from a customer. Interest is paid every…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…