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.

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

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

Q: LINDT Corporation manufactures and sells electrical generators. On May 31, 2020, it sold an…

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

Q: On April 19, 2021, Millipede Machinery sold a tractor to Thomas Hartwood, accepting a note promising…

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

Q: Boy should record the sale in January 2019 at

A: Sale value is the value which is received at the time of the sale of the asset or the inventory by…

Q: On April 1, 2021, ABC CO. issued a 9% interest bearing note with a face amount of P 30,000,000 for…

A:

Q: Persever Company is a dealer in equipment. On December 21, 2021, the enitity sold an equipment in…

A: Annual payment of note = P500,000 Period = 5 years Total annual payments = P500,000*5 = P2,500,000…

Q: On January 1, 2021, Hosana Co. sold equipment in exchange for a P 850,000, 4 year, 11% note,…

A: Lets understand the basics. Compounded interest means interest on interest. In other words, it is a…

Q: April 1, 2021, ABC CO. issued a 9% interest bearing note with a face amount of P 30,000,000 for the…

A: Equated principal payments over 5 year period = P30, 000,000/5 =P6000, 000

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

A: Gain on the sale of the machine is calculated by deducting the cost of the machine from the present…

Q: pany carrying exchange interest bearing note of P5,000,000 requiring ten annual payments of…

A: Present value means the actual amount is adjusted with the interest rate so as to get the present…

Q: On April 1, 2021, ABC CO. issued a 9% interest bearing note with a face amount of P 30,000,000 for…

A: Notes Payable: In the financial world, notes payable are short-term obligations that represent the…

Q: How much was Bae’s proceeds from the discounted note?

A: Bae inc. Sold equipment to Beau Inc. On july 1, 2020 for P250000.  Bae accepted a note receivable…

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: On January 1, 2021, Pindang Co. received a P1,000,000, noninterest bearing note in exchange land…

A: The note receivable can be referred to as a contractual note which specifies an amount to be…

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 January 1, 2021, Nima Inc., a publicly traded company that follows IFRS, purchased a piece of…

A: Depreciation is used to decrease in value of fixed assets. depreciation is a permanent and…

Q: To finance the purchase of the machine by issuing $6 million, six-year, zero interest-bearing note…

A: First of all in this question, We have to calculate the Present Value as on 01-07-2019 of the…

Q: On April 1, 2021, ABC CO. issued a 9% interest bearing note with a face amount of P 30,000,000 for…

A: A note payable is indeed a promissory note that has been drafted. A borrower borrows a particular…

Q: On December 31, 2020, Vaughn Manufacturing has $6030000 of short-term notes payable due on February…

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

Q: On January 1,2021, Mickey Mouse Corporation sells a Furniture and Fixtures costing P2,500,000 and…

A: Present value of the note = Annual installment x Present value factor (10% x 3 years) = P300,000 x…

Q: On December 30, 2021, Jack company purchased an aircraft from Jill Co. in exchange for a noninterest…

A: Answer to Question: Cost of the Machine is the Present Value of Non Interest bearing Note…

Q: revenue has been recognized in 2021 in connection with the loan. What is the loan impairment loss on…

A: Impairment means a sudden reduction in the asset value that a company has which can be fixed or…

Q: On April 1, 2021, ABC CO. issued a 9% interest bearing note with a face amount of P 30,000,000 for…

A: It is pertinent to note that non-current liabilities are those obligations that need to be paid…

Q: On July 1, 2021, ABC Co. issued a 9% interest bearing note with a face amount of P 10,000,000 for…

A: carrying value of the notes as of December 31,2022  is P 8,227,384.90  accrued interest P 354,289.30…

Q: Harmony Corp. received the following promissory notes from various customers during 2020 in the…

A: Introduction:- Calculation of the total interest income to be recorded by Harmony Corp. during 2020…

Q: On January 1, 2020, Heavy Corporation that manufactures heavy equipment sold an equipment for…

A: In the instalments type of sale, the income is not recognized until full instalments are received…

Q: Company AAA borrowed P1,000,000 on July 1, 2021 and issued a 9% one-year note payable every after…

A: Notes payable refers to liability on a company's balance sheet that represents a formal written…

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…

Q: Solar Co. sold a machine in exchange for a P00.000, 4-year, 5% note, interest is payable annually.…

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

Q: On September 30, 2019, Lakatan Inc. borrowed P1,000,000 on a 9% note payable. The entity paid the…

A: solution given Date of issue September 30 2019 Amount of note 1000000 Rate of…