On January 1, 20x1, ABC Co. sold transportation equipment with a historical cost of ₱12,000,000 and accumulated depreciation of ₱7,000,000 in exchange for cash of ₱100,000 and a noninterest-bearing note receivable of ₱4,000,000 due in 4 equal annual installments starting on January 1, 20x1 and every January 1 thereafter. The prevailing rate of interest for this type of note is 12%. 8. How much is the interest income in 20x1? a. 408,230 b. 278,334 c. 328,964 d. 288,220 9. How much is the carrying amount of the receivable on December 31, 20x1? a. 1,690,510

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: How much of the Notes payable, net of discount, should be reported as part of current liabilities on…

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Q: On January 1, 2021, Roy Company sold a machine with a cost of P500,000 and carrying value of…

A: Cumulative present value of 14% for 3 years = 2.322

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Q: On December 31, 2018, Cavite Company sold equipment to Bulacan Company for P380,000. Cavite…

A:

Q: returns. Relative to this transaction, you are to determine the amount of loss on sale or factoring…

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

Q: 1. How much is the interest income in 20x1? 2. How much is the current portion of the receivable on…

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Q: On January 1, 20x1, SCRUPULOUS EXACT Co., acquired a piece of equipment by issuing a P 12,000,000,…

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A: Notes Receivables: Notes receivables can be defined as the asset of the organization and they should…

Q: How much was Bae’s proceeds from the discounted note?

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Q: Unleaded Inc. issued a ₱300,000 face value bonds. It carries 10% annual interest rate to be repaid…

A: Formulas: Premium on Bonds Payable = Issue value of the bonds - face value of the bonds Interest…

Q: On January 1, 2021, Pindang Co. received a P1,000,000, noninterest bearing note in exchange land…

A: The note receivable can be referred to as a contractual note which specifies an amount to be…

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%

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A: A note is a promissory document in which one party promises to pay a specific sum at some specific…

Q: On July 1, 2019, GAH Company sold equipment to Babe Company for P2,000,000. GAH accepted a 10% note…

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Q: On Jan, 1, 20X1 ABC Corp sold equipment with a cost of P20,000,000 and accumulated depreciation of…

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A: Accounts receivable :— Account receivable are shown in the Asset side of the balance sheet. Account…

Q: On Jan, 1, 20X1 ABC Corp sold equipment with a cost of P20,000,000 and accumulated depreciation of…

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A: solution given The equipment is sold for cash and non interest-bearing note receivable The cash…

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A: Discounting notes is the process of selling a promissory note to a third party—typically a financial…

Q: On Jan 1, 20X1, ABC Corp received a P450,000 3-year note from a customer. The principal and interest…

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A:

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…

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A: The question is based on the concept of Financial Management.

Q: How much is the notes receivable as presented in the balance sheet at Dec 31, 20X1?

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A: The question is based on the concept of Financial Accounting.