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: 1. Costco Wholesale Corporation borrows $640,000 on September 1, 2021. Costco signs a nine- month,…

A: Formula: Interest amount = Notes payable amount x Time period x Interest rate.

Q: Entries for Installment Note Transactions On January 1, Year 1, Bryson Company obtained a $147,750,…

A: Given that: Instalment note value = $147750 Period = 4 years interest rate = 7%

Q: TORR, Inc. issues a $600,000, 9%, five-year note payable on January 1, 20X5. If the monthly payment…

A: Interest for first month = face value of the note payable x interest rate  x no. of months/12 =…

Q: On the first day of the fiscal year, a company issues a $968,000, 8%, 10-year bond that pays…

A: Working Note: Total premium on Bonds = Issue value - Face value of the bonds = $1,016,400 - 968,000…

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: Fox Co. purchases land on January 1 of Year 1 and issues a 3-year, $70,000 zero-interest-bearing…

A: The zero interest-bearing notes are the ones which does not carry an interest rate which means they…

Q: The December 31, Year 2 carrying amount in the amortization table for this installment note will be…

A: The person who promised to pay the specified amount by signing a note is treated as notes payable as…

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: On January 1, Year 1, Beatie Company borrowed $400,000 cash from Central Bank by issuing a…

A: Amortization schedule of interest and principal payment for 5 periods is as under:

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

A: Calculating the carrying amount as on January 1, 20X3:Total Amount= $12,000,000Installment Amount=No…

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 1st, year one, zero company obtained a 52,000, for year, 6.5% installment note from…

A: Note payable is a form of liability for the business on which it has to make regular interest…

Q: On the first day of the fiscal year, a company issues a $616,000, 8%, 10-year bond that pays…

A: Cash interest = $24,640 Face value = $616,000Issue Price = $646,800Premium on issue of bond =…

Q: (a) The company's proceeds from the note $_ Computations: (b) The company's interest earned (net of…

A: Notes payable accounts are essential because they provide management or finance teams in many…

Q: 1) On October 1, 20x1, Metro Bank loaned $8,000,000 and received a 5-month promissory note with 10%…

A: Note is kind of instrument which are commonly used by the lender and borrower at the time of giving…

Q: On the first day of the fiscal year, a company issues a $967,000, 8%, 10-year bond that pays…

A: A journal entry is used to record a business transaction in an organization's accounting records. A…

Q: Welton Corporation's installment note that has original principal of $26,000, interest of 5%…

A: Journal entries are used to record business transactions. It is the first step where a transaction…

Q: Justin Company signed a $90,000, three-month, 9% note payable, on December 1. If the accounting…

A: Interest accrued on December 31= Face value of bonds x rate of interest x no. of month/12 = $90000 x…

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: Required: 1. Compute the amount of each of the four equal payments. (Note: Use Table B.3 in Appendix…

A: Notes payable is an amount that is issued by a company in exchange of an amount borrowed. It is…

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: Lime Co. incurs a $4,000 note with equal principal installment payments due for the next eight…

A: Introduction: Non current liability: The liabilities which are to be paid more than 1 year period of…

Q: How do I find the carrying amout for each year?

A: Requirement a:   Prepare an amortization table.

Q: Entries for Installment Note Transactions On January 1, Year 1, Bryson Company obtained a $32,000,…

A: Journal entry is the process of recording the business transactions in the books of accounts for the…

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: 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 April 1, 20x1, an entity issues bonds with face amount of P5,000,000 for P5,415,183, including…

A: A per PFRS 9 Financial instruments an issue of bond is a financial liability which can be accounted…

Q: For an interest-bearing promissory notes, compute the sale proceeds, when the issue amount is…

A: Notes are secured investment and the a kind of deposits in which interest is paid on expiration but…

Q: On the first day of the fiscal year, a company issues $89,000, 6%, five-year installment notes that…

A: Long-term notes payable: Long-term notes payable represent a legal and written promise made by the…

Q: Bank CO approved a loan application of Client ME on January 1, 20A for P3,500,000. Client ME is…

A: A contra account is used in a general ledger to reduce the value of a connected account when the two…

Q: On July 8, Action Co. issued an $80,000, 6%, 90-day note payable to Scanlon Co. Assuming a 360-day…

A: The note is the liability on which a specific percentage of interest has to be paid over the…

Q: On the first day of the fiscal year, a company issues a $896,000, 7%, 10-year bond that pays…

A: A bond is a fixed pay instrument issued to represents to an advance made by a financial specialist…

Q: On August 1, a $30,000, 6%, 3-year installment note payable is issued by Tart Company. The note…

A: Notes payable are written agreements in which one party agrees to pay the other party a certain…

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.