Question 24. Torpedo plc took out a bank loan on 1 April 20X0 for $10,000. It is due to be paid back in equmonthly instalments of $250, starting on 1 May 20X0. How should Torpedo include the loan in its statement offinancial position at 30 June 20X0?A non-current liability of $9,500A current liability of $3,000 and a non-current liability of $7,000A non-current liability of $10,000A current liability of $3,000 and a non-current liability of $6,500

Lets understand the basics.Liabilities are divided into current and non current liabilities. Current…

Answered: Question 24. Torpedo plc took out a…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 21MC: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an...

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26. Subject : - Accountin
22. Subject :- Accounting On August 1, 2022, Colombo Company's treasurer signed a note promising to pay $120,300 onDecember 31, 2022. The proceeds of the note were $116,100.b. Calculate the effective interest rate (APR) on the loan.Note: Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1).Effective interest rate
a. What amount should be reported as interest expense for 2021? b. If no correction is made, by what amount would interest expense for 2021 be understated?
Horizons plc had the following bank loans outstanding during the whole of 20X8 which form the company's general borrowings for the year: 10% loan repayable 20X9 Select one: 8% loan repayable 20Y2 a. £892,500 b. £425,000 C. £541,875 d. £305,625 Em 25 Horizons plc began construction of a qualifying asset on 1 May 20X8 and withdrew funds of £4.5 million on that date to fund construction. On 1 September 20X8 an additional £6 million was withdrawn for the same purpose. 75 Calculate the borrowing costs which can be capitalised in respect of this project for the year ended 31 December 20X8.
Brothers Corporation borrows P70,000.00, annual interest rate of 19% is deducted in advance. What is the amount of proceeds the company will receive at the time of the loan and what is the effective interest rate choose the letter of the correct answera. P13,300.00 and 19%b. P26,700.00 and 19%c. P13,300 and 23.5%d. P23,300.00 and 19%e. P56,700.00 and 23.5%
"On 1 September 2014, Select Company borrowed P600,000 from a bank and signed a 12%, six-month note payable, with interest on the note due at maturity. The total amount of the current liability (including interest payable) for this loan that appears in Select Company's statement of financial position at 31 December 2014 is: " O A. P600,000. O B, P636,000. OC P672,000. O D. P624,000.
On January 1, 20x1, an entity obtains an 11%, P5,000,000 bank loan. The bank charges the entity an 8.74% nonrefundable loan origination fee. The principal on the loan matures on December 31, 20x4 but interest is due annually every December 31. Requirements: Compute for the initial carrying amount of the loan. Compute for the effective interest rate on the loan. Compute for the carrying amount of the loan on December 31 20x1.
65. Borrowed P100,000 by issuing a 1-year note with 7% annual interest to Century Savings Bank on October 1, 2021. What is the adjusting entry on December 31, 2021? A. Debit: Interest Expense and Credit: Interest Payable P1,750 B. Debit: Interest Expense and Credit. Interest Payable P7,000 C. Debit: Interest Expense and Credit: Interest Payable P3,500 D. Debit: Interest Expense and Credit: Interest Payable P5,250
Fifty Incorporated normally borrows from a bank to finance their daily operations. Information about the company’s borrowings are as follows: Date of the Loan Term of the Loan Interest Rate Amount June 1, 2019 25 months 12% 1 million January 31, 2020 20 months 15% 1.5 million May 1, 2021 30 months 18% 3 million Interest is paid upon maturity of the Loan. Under accrual basis, interest expense recognized in 2021 would be
29.On September 12, 2021, an entity received a 120-day, 9% note for P50,000 for an overdue account from a customer. The entity uses an accounting year that ends on December 31. Which of the following statements is true? Use 360-day year.A. The maturity date of the note is January 12, 2022.B. The maturity value of the note is P51,500.C. Accrued interest on the note at December 31, 2021 is P1,375. a. A, B, and C b. A and B only c. B and C only d. B only
17 Assume that on 15th January 2019 Mustafa and Sons LLC sold OMR 15000 goods to Ibri traders on credit. As the amount is too large, the company asked Ibri traders to give Promissory note and Ibri traders accepted to give 90 days’ promissory note by mentioning 10% annual interest. Compute maturity date and maturity value of the notes receivables. ( Assume 28 days for the month of February and 360 days in a year) a. maturity date April 17th and Cr maturity value OMR 15375 b. Maturity date April 17 and Maturity value OMR 15000 c. Maturity date May 15th and Maturity value OMR 15000 d. Maturity date April 15 and Maturity value OMR 15375
4. Answer what is required of the problem.

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