On January 2, 2020, Magsaysay Company sold equipment with a carrying amount of P400,000 in exchange for a P600,000 4-year non-interest- bearing note due January 2, 2024. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type at January 2, 2020 was 10%. What is the carrying value of the note receivable as of December 31, 2022 Statement of Financial Position? *
Q: What should be recorded as the carrying value of the note receivable as of December 31, 2021 balance…
A: Notes receivables refers to a kind of promissory note that is issued by the company that gives the…
Q: On January 01, 2021, The Company sold equipment costing P760,000 with accumulated depreciation of…
A: Solution: Present value of notes on Jan 1, 2021 = P800,000 * PV of 1 at 5% for 4th period = P800,000…
Q: On December 31,2021, LBJ company finished consultation services and accepted in exchange a…
A: It is pertinent to note that the issue price of the note receivable is the present value of the cash…
Q: 10. On January 1, 2020, ABC Co. sold a transportation equipment with a historical cost of P1,000,000…
A: Since you have asked multiple questions, we will solve the first question for you . If you want any…
Q: Cambodia Company purchased a machinery on December 31, 2020, paying P80,000 and issuing a P240,000…
A: Present value of note = Annual installments x Present value factor (12%, 4 years)
Q: On January 1,2021, ABC Corporation purchased a land for P 15,000,000. In exchange of the land, ABC…
A: The carrying value of note issued on 01 January 2021 by ABC Corporation as of 31 December 2022 would…
Q: On January 1, 2021, Suga Company sold an equipment to Jin Company which had a carrying value on…
A: Present value of note on January 1, 2021 = Face value of note x PV of an ordinary annuity of P1…
Q: On January 01, 2022, TGIF Company sold equipment costing P10,000,000 with accumulated depreciation…
A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…
Q: On January 1, 2019, Lithium Company sold equipment with a carrying amount of P4,800,000 in exchange…
A: As note is non interest bearing it will be recorded at discounted value To determine the interest…
Q: On January 01, 2022, Legit Company sold equipment costing P10,000,000 with accumulated depreciation…
A: No. of installment to be received = Face value of notes / annual installments Carrying amount of the…
Q: On January 1, 2020, Akin Company sold equipment with a carrying amount of P4,800,000 in exchange for…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: On January 1, 2020, Mil Company sold a building and received as consideration P1,000,000 cash and a…
A: Given, Book Value = P 1,000,000 Face Value = P 4,000,000 Rate = 10% Present Value = 0.75
Q: On January 1, 2019, VINX Corporation sold equipment costing P380,000 with accumulated depreciation…
A: Present value of note on January 1, 2019 = Face value of note x present value factor (1 at 10% for…
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%
Q: On January 2, 2020, GRAPES Company sold equipment with a carrying amount of ₱480,000 in exchange for…
A: The gain or loss on sale of an asset depends on the selling price and carrying value of asset. The…
Q: On January 1, 2020, Uniform Co. sold its 2-year old equipment to XYZ Inc. for a cash down-payment of…
A: Impairment is the loss of reduction of net realizable value of assets below the carrying value of…
Q: On January 1, 2021, CPA Corporation sold goods to IntAcc1 Company. IntAcc1 signed a…
A: Solution: carrying amount of the note receivable on January 1, 2021 = Present value note discounted…
Q: On January 1, 2021, ABC Co. sold equipment with a carrying amount of P480,000 in exchange for a…
A: Note Receivable is a form of current asset for the business, which means promise to receive amount…
Q: On January 2, 2020, Magsaysay Company sold equipment with a carrying amount of P400,000 in exchange…
A:
Q: On January 1, 2020, Akin Company sold equipment with a carrying amount of P4,800,000 in exchange for…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: On January 2, 2020, Zyrus Company sold equipment with a carrying amount of P480,000 in exchange for…
A: Carrying value is considered as the cost of an asset minus accumulated depreciation. It is regarded…
Q: On January 1, 2021, Suga Company sold an equipment to Jin Company which had a carrying value on…
A: Present value of note on January 1, 2021 = Face value of note x PV of an ordinary annuity of P1…
Q: On January 1, 2020, Adobo Incorporated sold its aggregate equipment. The buyer issued a promissory…
A: Principal Outstanding Principal amount received Interest Total amount received PV…
Q: On January 1, 2020, VKS Incorporated sold its aggregate equipment. The buyer issued a promissory…
A: Principal Outstanding Principal amount received Interest Total amount received PV factor…
Q: On January 1, 2017, Persephone Company sold a piece of transportation equipment with a historical…
A: solution given The equipment is sold for cash and non interest-bearing note receivable The cash…
Q: On January 01, 2022, TGIF Company sold equipment costing 10,000,000 with accumulated depreciation of…
A: Carrying amount of the note = annual installments x Present value factor No. of installment to be…
Q: On January 1, 2020, CPA Incorporated sold its aggregate equipment. The buyer issued a promissory…
A: Principal Outstanding Principal amount received Interest Total amount received PV…
Q: On January 1, 2020, Pedro Company sold land that originally cost P400,000 to Buyer Company. As…
A: Answer - Part 4 - Calculation of the correct carrying amount of the notes receivable at December…
Q: On January 01, 2022, TGIF Company sold equipment costing P10,000,000 with accumulated depreciation…
A: No. of installment to be received = Face value of notes / annual installments Carrying amount of the…
Q: On January 2, 2020, Magsaysay Company sold equipment with a carrying amount of P400,000 in exchange…
A: It is a general practice that a company sells its Fixed Asset in exchange of Non-Interest bearing…
Q: On January 2, 2020, Janice Company sold equipment with a carrying amount of 400,000 in exchange for…
A: Cost Accounting is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: quipment with a carrying amount of ₱480,000 in exchange for a ₱600,000 non-interest bearing note due…
A: Net present value is defined as the discounted cash flow technique which applies to weight the items…
Q: • On January 1, 2018, San Vicente Company sold equipment with a carrying amount of P3,200,000 to…
A: The current portion of loan term debt represents the amount that will be received within 12 months…
Q: On January 1, 2019, Bestbuy Inc. purchased land that had an assessed value of P6,000,000 at the time…
A: Present value of non-interest-bearing note on January 1, 2019 = Face value of non-interest-bearing…
Q: On January 1, 2018, Apple Company sold delivery equipment costing P1,000,000 with accumulated…
A: solution concept non interest bearing note when an non interest bearing note is…
Q: Prepare an amortization table. Prepare all journal entries to record the transactions from January…
A: Year Opening balance Installment Interest Total Cash flow Closing balance 2020 60,00,000…
Q: On January 1, 2020, Pedro Company sold land that originally cost P400,000 to Buyer Company. As…
A: Answer - Part 1 - PV of consideration receivable (see computation b 503,105Carrying…
Q: How much is the noncurrent portion of the note on December 31, 2018?
A: The determination of non current portion of the note receivable is shown hereunder : Apple company…
Q: January 1, 2021, VKS Corporation sold goods to IntAcc2 Company. IntAcc2 signed a noninterest-bearing…
A: Solution: Present value is value of an amount which is computed for any future amount to be received…
Q: On January 1, 2021, ABC Company sold property to the DEF Company. There was no established exchange…
A: Non-current liabilities are amount payable after 12 months. Annual Payment P4,00,000 Present…
Q: On January 1, 2021, ABC Co. sold transportation equipment with a historical cost of P12,000,000 and…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: On January 01, 2021, Scottie Boo sold equipment costing P10,000,000 with accumulated depreciation of…
A: Note means an instrument issued by company acknowledging the debt due from company to bond holder.…
Q: On January 1, 2019, DEXTER Company sold equipment with a carrying amount of P4,800,000 in exchange…
A: We know that the fair value of the note is the present value of all the cash inflows made on the…
Q: On January 1, 2021, ABC Company sold property to the DEF Company. There was no established exchange…
A: Answer- Total amount payable at December 31, 2021= annual installments x no. of annual installments…
Q: On January 1, 2020, Advanced Study Company sold a piece of land with a carrying amount of P8,000,000…
A: Amortization: When the market rate of interest is different from the coupon rate or carrying rate,…
Q: On January 1, 2021, ABC Company sold property to the DEF Company. There was no established exchange…
A: Annual Payment P4,00,000 Present value of an ordinary annuity of $1 at 9% for 5 period 3.88965126…
Q: On January 1, 2020, Jonathan Company borrowed P500,000 8% note due in four years. The present value…
A: ●1.What is the carrying amount of the note payable on December 31, 2020? Answer: Option 3: 408,150…
Q: On January 2, 2020, Magsaysay Company sold equipment with a carrying amount of P400,000 in exchange…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: On January 1, 2017, Emme Company sold equipment with a carrying amount of P4,800,000 in exchange for…
A: The present value of the cash flow is the current worth of a cash flow at a certain rate of interest…
Q: On January 2, 2020, Zyrus Company sold equipment with a carrying amount of P480,000 in exchange for…
A: “Since you have posted a many questions, we will solve first question for you. To get the remaining…
Please show to me the proper solution in a good accounting form.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major customer in exchange for used equipment. The equipment had originally cost Park 200,000 and had a book value of 20,000 on the date of the sale. At the 12% imputed interest rate for this type of loan, the present value of the note is 25,500 on January 1, 2019. Park uses the effective interest rate. What is the carrying value of the note receivable on Parks December 31, 2019, balance sheet? a. 28,560 b. 29,000 c. 32,500 d. 36,000Notes Receivable and Income On January 1, 2019, Pitt Company sold a patent to Chatham Inc. which had a carrying value on Pitts books of 10,000. Chatham gave Pitt a 60,000, non-interest-bearing note payable in five equal annual installments of 12,000 with the first payment due and paid on January 1, 2020. There was no established price for the patent, and the note has no ready market value. The prevailing rate of interest for a note of this type at January 1, 2019, is 12%. Required: 1. Prepare a schedule showing the income or loss before income taxes that Pitt should record for the years ended December 31, 2019 and 2020. Show supporting computations in good form. 2. Next Level If Pitt inadvertently failed to discount the note and instead recorded it at its gross value, what would be the effect on income or loss before income taxes for the year ended December 31, 2019?On January 2, 2020, Magsaysay Company sold equipment with a carrying amount of P400,000 in exchange for a P600,000 4-year non-interest-bearing note due January 2, 2024. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type at January 2, 2020 was 10%. What is the carrying value of the note receivable as of December 31, 2022 Statement of Financial Position? Sandy Company owns 15,000 of the 100,000 ordinary shares of X Corporation. The investment is accounted as Financial Assets at Fair Value Through Profit or Loss (FA-FV-P/L) and has a carrying value of P3,300,000. X Corporation declared a 10% stock dividend but gave the investors the option to receive P210 per whole stock of dividend. How much cash will Sandy receive? In your solutions, show the journal entry to record the dividends if Sandy opted to receive cash.
- On January 2, 2020, Magsaysay Company sold equipment with a carrying amount of P400,000 in exchange for a P600,000 4-year non-interest-bearing note due January 2, 2024. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type at January 2, 2020 was 10%. What is the carrying value of the note receivable as of December 31, 2022 Statement of Financial Position? * The answer is 545454.55. Explain how you arrived at the answer.On January 2, 2020, Magsaysay Company sold equipment with a carrying amount of P400,000 in exchange for a P600,000 4-year non-interest-bearing note due January 2, 2024. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type at January 2, 2020 was 10%. What is the carrying value of the note receivable as of December 31, 2022 Statement of Financial Position? Solutions must be in good accounting form.On January 2, 2020, Janice Company sold equipment with a carrying amount of 400,000 in exchange for a 600,000 4-year non-interest-bearing note due January 2, 2024. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type at January 2, 2020 was 10%. What is the carrying value of the note receivable as of December 31, 2022 Statement of Financial Position?
- On January 2, 2019, Anne Inc. sold equipment which has a carrying amount of $400,000 in exchange for a $600,000 4-year non-interest-bearing note that will be due on January 2, 2023. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type on January 2, 2019 was 10%. What should be recorded as the carrying value of the note receivable as of December 31, 2021 balance sheet?On January 1, 2021, ABC Co. sold equipment with a carrying amount of P480,000 in exchange for a P600,000 non-interest-bearing note due January 1, 2024. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type at January 1, 2021 was 10%. The present value of 1 at 10% for three periods is 0.7513. How much is the carrying value of the note receivable as of December 31, 2021 statement of financial position? How much should Matnog Co. report as interest income in its 2021 profit or loss? How much should Matnog Co. report as loss on sale of equipment in its 2021 profit or loss?On January 1, 2020, Akin Company sold equipment with a carrying amount of P4,800,000 in exchange for a P6,000,000 noninterest-bearing note due January 1, 2023. There was no established exchange price for the equipment. The prevailing rate of interest for a similar note was 10%. The present value of 1 at 10% for three periods is 0.75. 1. What amount should be reported as interest income for 2020? a. 600,000 b. 500,000 c. 450,000 d. 400,000 2. What amount should be reported as gain or loss on sale of equipment for 2020? a. 1,200,000 gain b. 2,700,000 gain c. 300,000 gain d. 300,000 loss
- On January 1, 2019, Lithium Company sold equipment with a carrying amount of P4,800,000 in exchange for a P6,000,000 noninterest bearing note due January 1, 2022. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type on January 1, 2019 was 10%. The present value of 1 at 10% for three periods is 0.75. 1. What amount should be reported as interest income for 2019?On January 1, 2025, Vaughn Co. sold equipment in exchange for an $930000 zero-interest-bearing note due on January 1, 2028. The prevailing rate of interest for a note of this type at January 1, 2025 was 10%. The present value of $1 at 10% for three periods is 0.75131. What amount of interest revenue should be reported in Vaughn's 2026 income statement? O $93000 $69872 O $0 O $76859On January 1, 2019, DEXTER Company sold equipment with a carrying amount of P4,800,000 in exchange for a P6,000,000 non-interest bearing note due January 1, 2022. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type on January 1, 2019 was 10%. 1. What amount should be reported as gain or loss on sale of equipment? 2. What amount should be reported as interest income for 2019?