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- 1. Miguel provided the following data on the sale of her personal property sold in 2019 held by her for 15 months. COST P225,000 Mortgage assumed by buyer 270,000 Installment Collection: 2019 67,500 2020 67,500 2021 45,000 REQUIREMENT: Compute for the below: a. Selling Price b. Contract Price c. Initial Payments d. Income subject to income tax in 2019, 2020, 2021Mr. X provided the following data on sale of his personal property sold in 2020 held by him for 15 months: Cost P225,000 Mortgage assumed by the seller 270,000 Installment Collection Schedule: 2020 67,500 2021 67,500 2022 45,000 How much is the contract price? Group of answer choices P180,000 P450,000 P225,000 P270,000Hybrid Dealers bought computer equipment for R54 000 on 1 July 2018. Theequipment is depreciated at 20% according to the diminishing balance method.Required:Prepare the depreciation and closing transfer entries in the general journal ofHybrid Dealers on 31 March 2019 and 31 March 2020 respectively.
- On October 1, 2019, Ball Company issued 9% bonds dated October 1, 2019, with a face amount of 200,000. The bonds mature in 10 years. Interest is paid semiannually on March 31 and September 30. The proceeds from the bond issuance were 205,294.53 to yield 8.6%. Ball Company has a December 31 fiscal year-end and does not use reversing entries. Required: 1. Prepare journal entries to record the issuance of the bonds and the interest payments for 2019 and 2020 using the effective interest method. 2. Prepare journal entries to record the issuance of the bonds and the interest payments for 2019 and 2020 using the straight-line method.In 2019, Bright Inc. sold its parking lot for P2,400,000 payable on installment. The lot was previously acquired for P1,500,00. The buyer has an outstanding unpaid balance of P1,800,000 as of December 31, 2019, Bright’s year end. Compute Bright’s Gross income on 2019 using the installment method. a. P900,000 b. P675,000 c. P225,000 d. P112,500On January 1, 2022, ABC Company buys three hectares of land for exactly P800,000 with the amount to be paid on December 31, 2024. Interest of 3% will be paid each December 31 although a 10 percent annual rate is viewed as reasonable. Use PV factors rounded to TWO decimal places.On December 31, 2022, at what amount should the company report as the liability for this land? On December 31, 2022, what amount of Discount on Notes Payable should be reported by ABC Company on its Statement of Financial Position? Prepare the journal entry on the payment of interest expense on December 31, 2022.
- On December 31, 2020 you McCormick Ltd. Sells manufacturing equipment to a customer on the following terms. The purchase price of $650,000 will be payable as follows:12% immediately in cashThe remaining $572,000 in 6 years.Interest of 3% is payable each December 31 on the balance of $572,000.Write the journal entries for McCormick (the seller) for the years 2020 – 2022 assuming that the cash price of the equipment if purchased today would be $590,000.McCormick reports under IFRSHybrid Dealers bought computer equipment for R54 000 on 1 July 2018. The equipment is depreciated at 20% according to the diminishing balance method. Required: Prepare the depreciation and closing transfer entries in the general journal of Hybrid Dealers on 31 March 2019 and 31 March 2020. Please see attached for answer formatUnder the accrual basis, rental income of HAWK CORP. for the calendar year 2014 is P600,000. Additional information regarding rental income are presented below: Unearned rental income, January 1, 2020 P50,000 Unearned rental income, December 31, 2020 75,000 Accrued rental income, January 1, 2020 30,000 Accrued rental income, December 31, 2020 40,000 Under the cash basis, how much rental income should be reported by HAWK CORP. in year 2020? A. P720,000 B. P615,000 C. P820,000 D. P620,000
- Lincoln Company purchased merchandise from Grandville Corp, on September 30, 2021. Payment was made in the form of a noninterest-bearing note requiring Lincoln to make six annual payments of $5,200 on each September 30, beginning on September 30, 2024 (EV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answer to nearest whole dollar amount.) Required: Calculate the amount at which Lincoln should record the note payable and corresponding purchases on September 30, 2021, assuming that an interest rate of 11% properly reflects the time value of money in this situation Amount recordedOn June 1, 2019, Zimmerman, Inc. purchased $85,000 of equipment from Hampton. Zimmerman signed a note that required $10,000 down with the remainder due in 6 quarterly installments (due on Sept 1, Dec 1, Mar 1, June 1, etc.). The interest rate on the note is 11%. With regards to these notes, please make the following journal entries for Hampton: A. The journal entries to record the initial sale of equipment, receipt of cash, and note receivable for both notes. B. Any payments made by Zimmerman or Mueller during the course of 2019. C. Interest revenue accrued as of 12/31/19.Miaka sold her personal property in 2018, with details as follows: Cost ₱ 425,000 Mortgage assumed by the buyer 510,000 Installment collection schedule: 2018 140,000 2019 140,000 2020 60,000 How much is the selling price? SOLUTION: 140,000 + 140,000 + 60,000=340,000 How much is the contract price? How much is the initial payments? How much is the realized gross profit for 2018? How much is the realized gross profit for 2019? How much is the realized gross profit for 2020?