On January 1, 20x8, JINX Corp. purchased land by issuing P1 million non-interest bearing note payable after 3 years. The company also purchased an equipment by issuing a non-interest promissory note that requires three annual installment payments of P100,000 every December 31. The interest rate charged on the notes is 10%. The present value of P1 at 10% for 3 periods is 0.75131 while the present value of an ordinary annuity of P1 at 10% for 3 periods is 2.4868. 1. What is the carrying value of the P300,000 face value note at December 31, 20x8? 2. What is the carrying value of the P1 million face value note at December 31, 20x9?

Q: Roseland Design borrowed $700,000 on a 90-day note from CorpOne Funding Company. CorpOne discounts…

A: A note payable is a written arrangement between the two individuals in which one promises to pay the…

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

Q: At the beginning of the year, Lambert Motors issued the three notes described below. Interest is…

A: 1. Record journal entries for exchange of land with note payable as shown below:

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: Currie Company borrowed $24,000 from Sierra Bank by issuing a 9% three-year note. Currie agreed to…

A: A expense associated with borrowing money is interest. It comes from lending arrangements like…

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: Dold Acrobats lent $16,529 to Donaldson, Inc., accepting Donaldson’s 2-year, $20,000,…

A: Note receivable: Note receivable refers to a written promise for the amounts to be received within a…

Q: Butler, Inc. paid $90,000 to retire a note with a face value of $99,600 . The note was issued with…

A:

Q: Canliss Mining Company borrowed money from a local bank. The note the company signed requires five…

A: Data given: pmt=$12500 n=5 year i=9%

Q: Butler, Inc. paid $90,000 to retire a note with a face value of $99,600 . The note was issued with…

A: Given: Face value = $99,600 Net book value = $81,840 Amount paid = $90,000

Q: Omega Chemicals Ltd. took a $440,000 two-year note receivable from a customer in connection with a…

A: Price of the bond = c × F × (1 − (1 + r)-t)/r+F(1 + r)t C=Interest Rate F= Face Value r=Market…

Q: Chicken Wings Inc. purchased a new camper’s bubble pool machine on an installment basis because…

A: Here discuss about the details of the calculation of initial cost of the assets which are purchased…

Q: Canliss Mining Company borrowed money from a local bank. The note the company signed requires five…

A: To calculate present value, we will use the present value and ordinary annuity table.

Q: On 1/1/19, Lantana Loan Co., a calendar-year company, accepts a 5%, $500,000 three-year loan that…

A: Bonds/Notes are the instruments/ securities issued by the companies to raise funds for the company…

Q: Roberts Corporation purchased some equipment by issuing a $20,000 non-interest-bearing, four-year…

A: Formula: Present value of Asset = Bond value x PV factor Multiplying Bond value with PV factor…

Q: Railing Co. obtained a 4-year, P600,000, Non-interest bearing note that requires payment in lump sum…

A: Non-interest bearing note The non-interest-bearing note refers to a debt instrument in which the…

Q: Canliss Mining Company borrowed money from a local bank. The note the company signed requires five…

A: Solution: Step 1: Calculate the PV of the Ordinary Annuity Component:   Payment: $16,000 n =…

Q: On January 1, 2024, the Ward Company purchased land from the Fisher Company in exchange for a…

A: Notes are also known as promissory notes which are a sort of debt instrument stating a promise to…

Q: 7-year, $5,000 promissory note bearing interest at j12-7.20% was sold to a buyer after 2 years. The…

A: Maturity value: It is the amount paid to the investor when the time period of debt ends.

Q: On February 1, 20x1, TSR Co. sold machinery with historical cost of P3,000,000 and accumulated…

A: A debt with no stated interest rate is known as a noninterest-bearing note. However, a…