The current liabilities section of the statement of financial position of HOPE CORP. as of December 31, 2018, shows the following balances: Accrued utilities expense P15,000 Advances from customers 40,000 Accrued fines and penalties 5,000 Taxation follows cash basis of accounting for revenues and expenses while the company, in accordance with PFRS, uses accrual accounting. The above fines and penalties are those by which it is treated by taxation as non-deductible. The total se of the liabilities above is 20,000 60,000 5,000 Nil

The current liabilities section of the statement of financial position of HOPE CORP. as of December 31, 2018, shows the following balances: Accrued utilities expense P15,000 Advances from customers 40,000 Accrued fines and penalties 5,000 Taxation follows cash basis of accounting for revenues and expenses while the company, in accordance with PFRS, uses accrual accounting. The above fines and penalties are those by which it is treated by taxation as non-deductible. The total se of the liabilities above is 20,000 60,000 5,000 Nil

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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On Jan. 1, 2021, Yumi Co. settled a P 1,000,000 loan payable with an unamortized discount of P 20,000 and accrued interest of P 90,000 by transferring to the lender old equipment with cost of P 3,000,000, accumulated depreciation of P 2,200,000 and fair value of P 900,000. How much gain on extinguishment of debt is to be recognized? a. P 270,000b. P 290,000c. P 250,000d. P 150,000
1. On December 31, 2021, Sampaguita Company provided the following information: Accounts Payable, including advances from customers of P50,000 Deferred advertising income Mortgage payable Estimated damages payable by reason of breach of contract Claim for increase in wages by employees covered in pending lawsuit Share dividend payable Percentage Taxes Payable 450,000 30,000 2,000,000 220,000 1,600,000 300,000 16,000 Bonds Payable, due May 2022 3,000,000 Discount on Bonds Payable 60,000 Compute total current liabilities on December 31, 2021.
was surrendered by Zeus Company. Problem 8-17 (AICPA Adapted) Zeus Company factored P6,000,000 of accounts receivable to a finance entity at the beginning of current year. Control The factor accepted the accounts receivable subject to recourse for nonpayment. The fair value of the recourse obligation is P100,000. The factor assessed a fee of 3% and retained a holdback equal to 5% of the accounts receivable. In addition, the factor charged 15% interest computed on á weighted average time to maturity of the accounts receivable of 54 days. 2. If all accounts are collected, what is the loss on factoring the accounts receivable? a. 313,150 b. 180,000 C. 433.150 d. 613,150
On July 31, 2021, ABC Company borrowed from a bank via issuing a 13.2% note. Transaction costs of P45,000 related to the borrowing was paid. The note was irrevocably designated at fair value for measuring purposes. Analyzing the changes in the fair value at yearend, P50,000 was not attributable to credit risk.The net effects of the note are the following: P264,500 loss for the 2021 Income Statement and P234,500 loss on the 2021 Statement of Comprehensive Income.Questions:1. How much is the interest expense for 2020?2. How much is the face value of the note?3. How much is the fair value of the note at yearend 2021?
JKL Company factored P6,000,000 of accounts receivable to a finance entity at the beginning of current year. Control was surrendered by DEF Company. The factor accepted the accounts receivable subject to recourse for nonpayment. The fair value of the recourse obligation is P100,000. The factor assessed a fee of 3% and retained a holdback equal to 5% of the accounts receivable. In addition, the factor charged 15% interest computed on a weighted average time to maturity of the accounts receivable of 54 days. Assuming that all accounts are collected, what is the gain or (loss) on factoring the accounts receivable? *
1. What amount of receivable would be shown by Cabana Company relating to the factoring transaction on January 31, 2021? Please include solutions. Thank you.
53. CPA Company used the allowance method of accounting for uncollectible accounts. During 2021, the entity had charged 750,000 to bad debt expense and wrote off accounts receivable of 780,000 as uncollectible. What was the decrease in working capital?
Waterway Corporation factors $260,800 of accounts receivable with Kathleen Battle Financing, Inc. on a with recourse basis. Kathleen Battle Financing will collect the receivables. The receivables records are transferred to Kathleen Battle Financing on August 15, 2025. Kathleen Battle Financing assesses a finance charge of 2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts receivable to cover probable adjustments. (b) Assume that the conditions are met for a transfer of receivables with recourse to be accounted for as a sale. Prepare the journal entry on August 15, 2025, for Waterway to record the sale of receivables, assuming the recourse obligation has a fair value of $5,000. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)
On February 1, 2020, Norton Company factored receivables with a carrying amount of $300,000 to Koch Company. Koch Company assesses a finance charge of 3% of the receivables and retains 5% of the receivables to cover possible uncollectible accounts. 6.Assume that Norton factored the receivables without recourse. What amount of loss should Norton report on this transaction?a.$0. b.$9,000. c.$15,000. d.$24,000. 7.Assume that Norton factored the receivables with recourse, and the recourse obligation has an estimated fair value of $1,500. What amount of loss should Norton report on this transaction? a.The same amount as the answer to the previous question. b.$1,500 more than the answer to the previous question. c.$1,500 less than the answer to the previous question. d.Some other amount.
Cone Corporation is in the process of preparing its December 31, 2021, balance sheet. There are some questions as to the proper classification of the following items: a. $66,000 in cash restricted in a savings account to pay bonds payable. The bonds mature in 2025. b. Prepaid rent of $40,000, covering the period January 1, 2022, through December 31, 2023. c. Notes payable of $232,0o00. The notes are payable in annual installments of $36,000 each, with the first installment payable on March 1, 2022. d. Accrued interest payable of $28,000 related to the notes payable. e. Investment in equity securities of other corporations, $112,000. Cone intends to sell one-half of the securities in 2022. Required: Prepare the asset and liability sections of a classified balance sheet to show how each of the above items should be reported. CONE CORPORATION Balance Sheet (Partial) At December 31, 2021 Assets
3. Fast Trak Company, a domestic common carrier engaged in the transport of goods and cargoes provided the following data for 2018 taxable year: P 2,400,000 Gross receipts, 2018 Receivables, Dec. 31, 2017 Receivables, Dec. 31, 2018 500,000 600,000 Operating expenses 1,250,000 Required: Determine the following: 1. The business tax due of Fast Track Company assuming the company is a non-vat registered entity. 2. The business tax due of Fast Track assuming the company is a vat registered entity.
Japee, Inc. assigned P240,000 of its receivables to PJTC Finance company. A note payable was executed. The contract provided that PJTC would advance 85% of the gross amount of the receivables. The contract specified recourse and non-notification; therefore, Japee’s debtors continue to remit directly to it; the cash from customers is then remitted to the finance company. The cash remitted is first applied to the finance charges, with the remainder applied to the principal. During the first month, customers owing P164,000 paid cash, less sales returns and allowances of P6,400. The finance charge at the end of the first month was P1,400.How much is the disclosed equity in assigned accounts as of the end of the first month? *

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