On January 1, 2022. TGIG sold equipment with historical cost of P10,000,000 and accumulated depreciation of P5,500,000 in exchange for a P6,000,000 non-interest bearing note due in annual installments as follows: December 31, 2022 - P3,000,000 December 31, 2023 - P2,000,000 December 31, 2024 - P1,000,000 There was no exchange price for the equipment. The prevailing rate of interest for a note of this type on January 1, 2022 was 10%. (Round off present value factors to four decimal places.)

On January 1, 2022. TGIG sold equipment with historical cost of P10,000,000 and accumulated depreciation of P5,500,000 in exchange for a P6,000,000 non-interest bearing note due in annual installments as follows: December 31, 2022 - P3,000,000 December 31, 2023 - P2,000,000 December 31, 2024 - P1,000,000 There was no exchange price for the equipment. The prevailing rate of interest for a note of this type on January 1, 2022 was 10%. (Round off present value factors to four decimal places.)

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: What is the due date of a 220 day loan made on February 12?

A: Due Date: It represents the day when the accruals on the loan fall due. Another name for the due…

Q: Show how the preceding information would be reported on Furman’s year-end balance sheet (assume the…

A: Notes payable may be issued as interest bearing or non-interest bearing. The non-interest-bearing…

Q: . Journalize all entries for Symphony Bank related to the note for 2018 and 2019.

Q: vi.9

A: The objective of the question is to record the payment of interest on January 31, 2025, given the…

Q: Vauxall Holdings showed the following information regarding its notes receivable: Note Date of Note…

A: The objective of the question is to calculate the maturity date, days of accrued interest and the…

Q: On 14 December 2021, Catz Zone Enterprise received the monthly bank statement for the month of N…

A: Bank Reconciliation Statement as at 30 November 2021 Particulars Amount Closing…

Q: On December 31, 2022, the lender on a $5,400, 120-day, 12% note dated November 5, 2022, will…

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

Q: A partial payment is made on the date indicated. Use the United States rule to determine the balance…

Q: Use this table to answer the next two questions. The following table shows the number of euros…

Q: An invoice for $5313 is dated May 12 and offers terms of 2/20-40x. If the invoice is paid on July…

A: Discounts are offered by the seller to collect payment from the buyer in fewer days.

Q: Wildhorse Co. issued a five-year interest-bearing note payable for $324000 on January 1, 2019. Each…

A: Balance sheet is the financial statement which involves the total debt, liabilities, assets and…

Q: ayable ber 2, 2020, a company borrowed cash and sign on October 2, 2023. At December 31, 2022, the…

A: Current liabilites are finanical obligations that are short term in nature. They are due within one…

Q: 11. What is the maturity date of a loan taken out on May 7, for 74 days? May 31 June 19 July 17…

A: The maturity date of the loan can be calculated as current date plus the loan tenure. After May 7,…

Q: Suppose the face amount of the notevwas adjusted to include nonbearing interest note andc12% is yhr…

A: To DateParticularsDebit($)Credit($)Oct. 1, 2021Cash A/c Dr.26880000Discount on notes payable A/c…

Q: Compute the due date, amount of interest and total cash received on the maturity date for the…

A: Note receivable refers to a negotiable instrument. It represents the claim amount due on the…

Q: 34. The current portion of long-term notes receivable as at December 31, 2021 is

A: Notes receivable is a promissory note where one party promises to another party to pay a certain sum…

Q: Partial payments are made on the dates indicated. Use the United States rule to determine the…

A: An amount borrowed is partly compensated by two intermittent payments. The balance to be paid on the…

Q: what is the due date for a loan dated Nov 7 for 120 days?

A: Due date is the date on which the loan will mature. Loan is taken on November 7 for 120 days.

Q: A table of notes receivable for 2024 follows: E (Click the icon to view the table of notes…

A: Interest revenue for 2024 = Principal x rate of interest x No. of months / 12 months

Q: Write a brief report about the accruals and deferrals of Amazon’s 2018 annual report.

A: Accrual - The process of recording transactions w.r.t Income or Expenses to the accounting period to…

Question

What is the carrying amount of the note as of December 31, 2022?

On January 1, 2022. TGIG sold equipment with historical cost of P10,000,000 and accumulated
depreciation of P5,500,000 in exchange for a P6,000,000 non-interest bearing note due in annual
installments as follows:
December 31, 2022 – P3,000,000
December 31, 2023 – P2,000,000
December 31, 2024 – P1,000,000
There was no exchange price for the equipment. The prevailing rate of interest for a note of this type on
January 1, 2022 was 10%. (Round off present value factors to four decimal places.)

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 by step

Solved in 2 steps

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

How do I classify a $100,000 notes payable that was setup in 2018 on my december 2019 ending balance sheet if I'm going to pay it off in March 2020?
A 180-day promissory note was issued by FDNACCT Co. on November 1, 2021 in exchange of goods bought from ACCT Company in the amount of P600,000. The note has an interest rate of 8%. How much Interest Income should be recorded for this particular note in the books of ACCT Company for the year ended December 31, 2021?
Fisher minus Wallace Corporation signed a six-month note payable on October 23, 2021. What accounts relating to the note payable will be reported on its financial statements for the fiscal year ending December 31, 2021?
Walmart Inc (WMT) has the following excerpts from their financial statements January 31, 2022 January 31, 2021 Net Receivables * (in $ Millions) 8,280 6,516 *Net Receivable = Gross receivable minus Allowance Walmart’s fiscal year “FY22” is defined as the period between February 1, 2021 – January 31, 2022 Gross (Accounts) Receivables, January 31, 2022: $9,265 Million Gross Receivables, January 31, 2021: $7,421 Million Accounts Written-off in FY 22 $221 Million 2% of credit sales is assumed to be uncollectable CALCULATE The ending balance of Allowance for uncollectable accounts as of January 31, 2022 Bad Debt Expense for the fiscal year ending on January 31, 2022. Collections during FY22
Required information [The following information applies to the questions displayed below.] On August 1, 2019, Colombo Co.'s treasurer signed a note promising to pay $121,200 on December 31, 2019. The proceeds of the note were $115,800. Required: a. Calculate the discount rate used by the lender. (Enter your answer as a percentage rounded to 1 decimal place (l.e., 32.1).) Discount rate %
Philip Company has a P200,000, 9%, 120-day note receivable outstanding on December 31. The note is dated November 1, 2021. What is the adjusting entry on December 31, 2021?
Required information [The following information applies to the questions displayed below.] On August 1, 2022, Colombo Company's treasurer signed a note promising to pay $122,400 on December 31, 2022. The proceeds of the note were $116,400. c. 1. Record the journal entry to show the effects of signing the note and the receipt of the cash proceeds on August 1, 2022. 2. Record the journal entry to show the effects of recording interest expense for the month of September. 3. Record the journal entry to show the effects of repaying the note on December 31, 2022. Complete this question by entering your answers in the tabs below. Required C1 Required C2 Required C3 Record the journal entry to show the effects of signing the note and the receipt of the cash proceeds on August 1, 2022. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1
On August 1, 2022, Colombo Company's treasurer signed a note promising to pay $121,500 on December 31, 2022. The proceeds of the note were $116,100. Use the horizontal model to show the effects of signing the note and the receipt of the cash proceeds on August 1, 2022. Indicate the financial statement effect. Use the horizontal model to show the effects of recording interest expense for the month of September. Indicate the financial statement effect. Use the horizontal model to show the effects of repaying the note on December 31, 2022. Indicate the financial statement effect.
7) On December 1, 2022, Olympia Hot Yoga issued a note payable to Columbia Bank for $45,000 with an annual interest rate of 6% and a term of six months (due May 31, 2023). What is the amount of interest expense recognized by Olympia Hot Yoga in 2022? What is the amount of interest expense recognized by Olympia Hot Yoga in 2023? What is the total amount Olympia Hot Yoga will pay to Columbia Bank on the maturity date?
Please answer both. This is part A and B
How do I find the maturity value and maturity date of an interest-bearing promissory note that has a face value of $1,270? Interest rate percent of 7.1 and term of note 130 days?
On August 1, 2022, Colombo Company's treasurer signed a note promising to pay $122,100 on December 31, 2022. The proceeds of the note were $115,800. Use the horizontal model to show the effects of signing the note and the receipt of the cash proceeds on August 1, 2022. Indicate the financial statement effect. Use the horizontal model to show the effects of recording interest expense for the month of September. Indicate the financial statement effect. Use the horizontal model to show the effects of repaying the note on December 31, 2022. Indicate the financial statement effect.