On January 1, 20x1, an entity issues a 3-year, noninterest bearing, note payable amounting to P1,200,000 in change for land. The principal on the note is due in three equal annual installments of P400,000 payable every December 31. The effective interest rate on January 1, 20x1 is 17%. Requirements: a. Compute for current and noncurrent portions of the note payable on December 31, 20x1. b. Provide all the entries during the term of the note payable.

Q: On May 1, 2020, POPS Corporation issued a 5-year, 10%, P 1,000,000 note in exchange of a land with…

A: 1. Annual installment which is payable in the next 12 months from December 31, 2021, and interest…

Q: The following amortization schedule indicates the interest and principal to be repaid on an…

A: SOLUTION:-   1.                                                             Amortization Schedule…

Q: On 1/1/X1, Caldwell Corp. borrowed $450,000 by agreeing to a 9%, 9-year installment note with the…

A: Note means an instrument acknowledging as debt due from one party to another party. Interest bearing…

Q: An entity purchased 4-year debt instruments with a face value of P10,000,000 on January 1, 2019 to…

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

Q: How much is the impairment loss on the receivables?

A: The impairment loss on the receivables is the loss occurred whenever there is a greater value of…

Q: ACME Inc. issued a 10 year, 5%, $340,000 note payable to finance the construction of a new building…

A: The process of recording business transactions in the books of accounts for the first time is…

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: 2. On January 1, 20x1, J&J Co. issues a noninterest-bearing not of P3,000,000 in exchange for…

A: It involves calculating the current and noncurrent portions of a noninterest-bearing note payable…

Q: An entity had a note payable P5,000,000 due June 15, 2021. The entity signed an agreement on…

A: The note payable is issued to creditors for the payment due from them.

Q: ente the liability sec

A: Here Montano Inc. issued bonds at 9% when the market interest rate was 7%.  Due…

Q: Estonia Incorporated obtained a $75,000 zero interest-bearing note on August 1, 2021. The period was…

A: Notes receivable is a financial instrument that includes a written promise from the issuer to pay to…

Q: ote payable to the Bank of the Giniling Islands for P2,400,000 is outstanding on December 31, 2022.…

A: Note Payable : It is a written document where the borrower is promise to pay the amount of debt to…

Q: On January 1, 2022, Cat Corporation sold goods to Rat Company. Rat Company signed a non-…

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

Q: January 1, 2022, Abel Co. exchanged services for a $200,000 noninterest-bearing note due on January…

A: A note is a promise to pay a particular amount at some date in the future. It is also known as…

Q: 1 Assume that on July 1, 2021, General Mills bonowed $200,000 cash on a one-year note that required…

A: Notes payable: It implies to a written promise that is made by the maker of the note to other party…

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: 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 October 1, 2020, Lowe Co. issued a note payable to National Bank in the amount of $1,500,000,…

A: The interest amount which has accrued but has not yet been paid or shown as a cost in the financial…

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

A: Net Proceeds = Value of note receivable less discount  Discount = ( Value of note ) * Discount rate…

Q: Lang Warehouses borrowed $178,960 from a bank and signed a note requiring 8 annual payments of…

A: Amount borrowed = $178,960Annual payments = $28,819No. of annual payments = 8

Q: On January 1, 2021, Aloha Co. received the following note:   Face amount…

A: Initial measurement of notes receivable: It is the process of determining the monitory value at…

Q: 2. On January 1, 20x1, Sunset Co. issues a P5,000,000 noninterest- bearing note due on December 31,…

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

Q: Headland Corporation issued a 5-year, $65,000, zero-interest-bearing note to Brown Company on…

A: Note payable: It implies to a written promissory note issued by lender to the borrower against the…

Q: On January 1, 2021, Eagle Company borrows $22,000 cash by signing a four-year, 6% installment note.…

A: Amortization schedule: It implies a table that shows or presents the periodic payments related to a…

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

A: Present Value of Note Receivable = Present Value of Interest Payments + Present Value of Redemption…

Q: On January 1, 2021, Diggs Co. lends some money in exchange for a 10% $100,000 10-year note.  The…

A: a)Coupon Rate =10%Market rate=8%The coupon rate is more than the Market rate i.e. It is issued at a…

Q: 2. On July 1, 2019, XYZ Co. borrowed P2,000,000 and İssued a one-year promissory note. The lender…

A: The notes payable is an agreement where the borrower promises to pay interest and principal at…

Q: On January 1, 2018, the Merit Group issued to its bank a $41 million, five-year installment note to…

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

Q: Riverbed Corporation issued a 5-year, $82,000, zero-interest-bearing note to Brown Company on…

A: This transaction involves issuing a note at a discount. The discount represents the implicit…

Q: b. On March 1, Solana Berhad borrows RM135,000 from Affin Bank by signing a 6-month, 8%,…

A: The note payable is liability for the business. It has credit balance in the books. The interest…

Q: On June 2021, A Corporation loaned $1,000,000 from a bank, payable in 10 equal instalments. The…

A: A liabilities account in balance sheet is classified as current liabilities when such obligation is…

Q: On January 1,2021 Roland Company sold land with carrying amount of P1,500,000 in exchange for a…

A: Notes Receivables are written contracts for future payments that a company receives from clients or…

Q: On Jan 1, 20X1 ABC received a P1,200,000 3-year non interest note. Interest and principal is…

A: Maturity value is the obligation amount due or payable to the holder of the note on the due date of…

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: Headland Corporation issued a 5-year, $65,000, zero-interest-bearing note to Brown Company on…

A: Zero interest notes: The notes payable which are not issued with an interest rate are known as…

Q: 1. On March 1, 2019, Company B issued $1,000,000, 10 years, 12% bonds at 103 excluding accrued…

A: Net Cash receipt as a result of Bond issuance shall include all cashflows such as Accrued Interest…

Q: The following amortization schedule indicates the interest and principal to be repaid on an…

A: Note payable is a financial instrument which is used to make a certain amount of payment at the date…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.