Stussy Company manufactures and sells electrical generators. On January 1,2019 the entity sold an electrical generator costing P700,000 and P1,000,000. The buyer paid P100,000 down and signed a P900,000 noninterest bearing notes payable in three equal installments every December 31. The prevailing interest rate for a note of this type is 12%. The present value of an ordinary annuity of 1 for three periods is 2.4018.

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A: Step 1:Step 2:Step 3:Step 4:

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: GAMAY Corporation sold a machine on July 1, 2021. The cash price of the machine is P79,000. The…

A: The answer is as fallows

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A: Note receivable: Note receivable refers to a written promise received by the creditor from the…

Q: Cucina Corporation signed a new installment note on January 1, 2021, and deposited the proceeds of…

A: Beginning Notes Payable Interest Expense Repaid Principal on Notes Payable Ending Notes Payable…

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.

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A: Short term liabilities or current liabilities are those liabilities which needs to be settled or…

Q: Cucina Corporation signed a new installment note on January 1, 2021, and deposited the proceeds of…

A: The process of recording business transactions in the books of accounts for the first time is…