Remix Company included the following in its notes receivable as of December 31, 2021: Notes receivable from sale of land 880,000 Notes receivable from consultation 1,200,000 Notes receivable from sale of equipment 1,600,000 The following transaction during 2021 and other information relate to the company’s note receivable: On January 1, 2021, Remix Company sold a tract of land to Future Company. The land, purchased 10 years ago, was carried on Remix’s books at P500,000. Remix received a noninterest-bearing note for P880,000 from Future. The note is due on December 31, 2023. There was no established exchange price for the land. The prevailing interest rate for this note on January 1, 2021 was 10%. On January 1, 2021, Remix Company received a 5%, P1,200,000 promissory note in exchange for the consultation services rendered. The note will mature on December 31, 2024, with interest receivable every December The fair value of the services rendered is not readily determinable. The prevailing rate of interest for a note of this type was 10% on January 1, 2021. On January 1, 2021, Remix sold an old equipment with a carrying amount of P1,600,000, receiving P2,400,000 note. The note bears an interest rate of 4% and is to be repaid in three annual installments of P800,000 (plus interest on the outstanding balance). Remix received the first payment on December 31, 2021. There is no established market value for the The market interest rate for similar note was 14% on January 1, 2022. Questions: Round off present value factors to four decimal places and final answers to the nearest hundred: What is the consultation free revenue should be recognized in 2021? Group of answer choices 1,050,800 1,050,800 901,600 901,600 What should be reported as gain on sale of equipment? Group of answer choices 331,600 257,280 412,400 800,000 The amount to be reported as noncurrent notes receivable on December 31 2021 is Group of answer choices 2,605,706 1,825,800 2,494,000 2,625,700

Remix Company included the following in its notes receivable as of December 31, 2021: Notes receivable from sale of land 880,000 Notes receivable from consultation 1,200,000 Notes receivable from sale of equipment 1,600,000 The following transaction during 2021 and other information relate to the company’s note receivable: On January 1, 2021, Remix Company sold a tract of land to Future Company. The land, purchased 10 years ago, was carried on Remix’s books at P500,000. Remix received a noninterest-bearing note for P880,000 from Future. The note is due on December 31, 2023. There was no established exchange price for the land. The prevailing interest rate for this note on January 1, 2021 was 10%. On January 1, 2021, Remix Company received a 5%, P1,200,000 promissory note in exchange for the consultation services rendered. The note will mature on December 31, 2024, with interest receivable every December The fair value of the services rendered is not readily determinable. The prevailing rate of interest for a note of this type was 10% on January 1, 2021. On January 1, 2021, Remix sold an old equipment with a carrying amount of P1,600,000, receiving P2,400,000 note. The note bears an interest rate of 4% and is to be repaid in three annual installments of P800,000 (plus interest on the outstanding balance). Remix received the first payment on December 31, 2021. There is no established market value for the The market interest rate for similar note was 14% on January 1, 2022. Questions: Round off present value factors to four decimal places and final answers to the nearest hundred: What is the consultation free revenue should be recognized in 2021? Group of answer choices 1,050,800 1,050,800 901,600 901,600 What should be reported as gain on sale of equipment? Group of answer choices 331,600 257,280 412,400 800,000 The amount to be reported as noncurrent notes receivable on December 31 2021 is Group of answer choices 2,605,706 1,825,800 2,494,000 2,625,700

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Remix Company included the following in its notes receivable as of December 31, 2021:

Notes receivable from sale of land 880,000

Notes receivable from consultation 1,200,000 Notes receivable from sale of equipment 1,600,000

The following transaction during 2021 and other information relate to the company’s note receivable:

On January 1, 2021, Remix Company sold a tract of land to Future Company. The land, purchased 10 years ago, was carried on Remix’s books at P500,000. Remix received a noninterest-bearing note for P880,000 from Future. The note is due on December 31, 2023. There was no established exchange price for the land. The prevailing interest rate for this note on January 1, 2021 was 10%.

On January 1, 2021, Remix Company received a 5%, P1,200,000 promissory note in exchange for the consultation services rendered. The note will mature on December 31, 2024, with interest receivable every December The fair value of the services rendered is not readily determinable. The prevailing rate of interest for a note of this type was 10% on January 1, 2021.

On January 1, 2021, Remix sold an old equipment with a carrying amount of P1,600,000, receiving P2,400,000 note. The note bears an interest rate of 4% and is to be repaid in three annual installments of P800,000 (plus interest on the outstanding balance). Remix received the first payment on December 31, 2021. There is no established market value for the The market interest rate for similar note was 14% on January 1, 2022.

Questions: Round off present value factors to four decimal places and final answers to the nearest hundred:

What is the consultation free revenue should be recognized in 2021?

Group of answer choices

1,050,800

901,600

What should be reported as gain on sale of equipment?

Group of answer choices

331,600

257,280

412,400

800,000

The amount to be reported as noncurrent notes receivable on December 31 2021 is

Group of answer choices

2,605,706

1,825,800

2,494,000

2,625,700

The amount to be reported as current notes receivable on December 31 2021 is

Group of answer choices

1,600,000

1,680,000

1,468,200

800,000

How much interest income should be recognized in 2021?

Group of answer choices

464,000

435,800

459,500

156,000

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