On January 1, 20x9, Fairness Company sold a tract of land that was acquired years ago for P 3M. Fairness received a three-year non-interest-bearing note for P 6M in exchange for the land, but the current market rate of interest for comparable notes is 10%. The note is payable in equal annual installments of P 2M every December 31 starting December 31, 20x9. (Do not round your present factors but round off your final answers to 2 decimal places) Required: Compute for the carrying value of the note on January 1, 20x9 Compute for the gain or loss on sale Compute for the interest income recognized in 20x11.

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

A: Year Beginning Carrying value Installment paid Interest Expense Principal paid Ending carrying…

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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A: Excel's =PV function shall be used to calculate the present value of the note.

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A: Present value of Note =  Installments x present value of an ordinary annuity of 1 for three periods…

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A: Annuity: The fixed amount paid or received in equal time periods is referred to as annuity.

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A:

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…

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A: Zero coupon bonds are those which don't pay any interest during their lifetime. The bond value gets…

Q: n April 1, 2023 Blo Inc. receives a 6-year $60,000 note in exchange for a parcel of land. The cost…

A: Present value is the equivalent value today of the future money based on time value of money.Given:…

Q: Peabody Corporation purchased equipment and in exchange signed a three-year promissory note.The note…

A:

Q: On January 1, 2020, Billy Company sold equipment that originally cost $5,000,000 to Selecta Company.…

A: It is the amount of difference between the face value of the bond issued and the amount actually…

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

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Q: On April 19, 2018, Millipede Machinery sold a tractor to Thomas Hartwood, accepting a note promising…

A:

Q: On January 1, 20x1, SCRUPULOUS EXACT Co, acquired a piece of equipment by issuing a P12,000,000,…

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

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A: The carrying value is a monetary worth assigned to a company's assets. It is normally calculated as…

Q: On January 12019, Aquarius Co. sold a machine with a cost of P500,000 for P800,000The buyer paid a…

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

A:

Q: On January 1, 2021, Dreamlover Corporation purchased equipment from Daydream Company for P3,600,000.…

A: Present value refers to the current value of all the cash flows which is to be received in the…

Q: January 1, 2018, Cursor Company sold goods to Matrix Company. Matrix signed a non-interest bearing…

A: Amortized cost: It is the accumulated cost in which expenses have been adjusted.

Q: On October 1, 2025, Oriole Equipment Company sold a pecan-harvesting machine to Valco Brothers Farm,…

A: The Company's financial year ends on December 31st, and  interest is collected on 1st October, so…

Q: On April 1, 2028, A Company issued a P 9.000,000 non-interest-bearing note due March 31, 2031, for a…

A: Interest expense = P469,112

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Q: On January 1, 2020, Hamid Company sold goods to Khaled Company. Khaled signed a noninterest-bearing…

A: Present value of amount to be receved on January 1, 2020 = Intial payment + Annual payment x PV of…

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: Last year the company exchanged a piece of land for a non-interest - bearing note. The note is to be…

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A: Zero coupon bonds means those bonds which were issued for money or any assets but for which no…

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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…

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

Q: January 1, 2023, Hornets Company sold land that originally cost P400,000 to the Egi Company. As…

A: Here is note receivable for Hornets. Note receivable is an asset which is a promissory note written…

Q: On December 31, 2021, Bart Company purchased a machine from fell company in exchange for a…

A: Calculation of Initial Cost of Machine:- Annual Installment x PV of Annuity in Advance:- 200,000 x…

Q: On December 30, Year 1, ABC Corporation sold a machine to DEF Corporation in exchange for a…

A: Annual payment (A) = P 10000 n = 10 payments r = 8%

Q: On January 1, 200A, ABC rendered services to XYZ at a price of P450,000. ABC received P500,000…

A: ABC delivered services to XYZ at a cost of P450,000, as stated on January 1, 200A. XYZ issued ABC a…

Q: Gabriela has the following income for the quarter

A: As per the provisions of Burau of Internal Revenue , Phillipines , quarterly…

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: Hot issue company sold its machine with a carrying amount of P2,000,000 in exchange for P2,500,000…

A: solution : given : face value of non interest bearing note           =P 2,500,000 annual payment…