Answer this correctly. Thank you;) 14. On January 1, 2005, Kellog Company sold a machine to Milo company. Milo signed a non-interest bearing note requiring payment of P300,000 annually for seven years. The first paymentwas made on January 1, 2005. The prevailing rate of interest for this type of note at the date ofissuance was 10%.Information on present value factors is as follows:Present Value of OrdinaryAnnuity of P1 at 10%Present ValuePeriodsof P1 at 10%60.564.3670.514.87Kellog should record the sale on January 1, 2005 ata. P1,071,000b.P1,308,000C.P1,461,000d.P1,608,000

Annual payment are made for the machine they carry payment of principal amount and interest and…

interest bearing note requiring payment of P300,000 annually for seven years. The first p was made on January 1, 2005. The prevailing rate of interest for this type of note at the d issuance was 10%. Information on present value factors is as follows: Present Value of Ordinary Annuity of P1 at 10% Present Value Periods of P1 at 10% 0.56 4.36 7 0.51 4.87

interest bearing note requiring payment of P300,000 annually for seven years. The first p was made on January 1, 2005. The prevailing rate of interest for this type of note at the d issuance was 10%. Information on present value factors is as follows: Present Value of Ordinary Annuity of P1 at 10% Present Value Periods of P1 at 10% 0.56 4.36 7 0.51 4.87

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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January 1, 2018, Cursor Company sold goods to Matrix Company. Matrix signed a non-interest bearing note requiring payment of P60,000 annually every December 31 for seven years. The prevailing rate of interest for this type of note at the date of issuance was 10%. Information on present value factors is as follows: Periods Present Value of 1 at 10% PV of ordinary Annuity of 1 at 10% 6 0.56447 4.35526 7 0.51315 4.86842 What should be the amortized cost of the receivable on December 31, 2018?
On December 31, 2020, Sun Company sold a machine in the ordinary course of business to Space-X Company in exchange for a non-interest bearing note requiring ten annual payments of P1,000,000. Space-X made the first payment on December 31, 2020 (advance payment). The market interest rate for similar notes at date of issuance was 8%. The present value of an ordinary annuity of 1 at 8% for 9 periods is 6.25, while the present value of an ordinary annuity of 1 at 8% for 10 periods is 6.71. What is the carrying amount of the note receivable on December 31, 2020?
On Dec. 31, 2020, Boss Company purchased a machine from Len Company in exchange for a noninterest bearing note requiring three payments of P 800,000. The first payment was made on Dec. 31, 2020 and the others are due annually on Dec. 31. At the date of issuance, the prevailing interest rate for this note was 10%The PV of an ordinary annuity of 1 at 10% for 3 periods is 2.487 while the PV of an annuity in advance of 1 at 10% for 3 periods is 2.736. On Dec. 31, 2021, what is the carrying amount of the note payable? *a. P 1,388,800b. P 727,680c. P 1,388,560d. P 1,189,600
On December 30, 2021, JALINON Company sold a machine to GONZALES Company in exchange for a non-interest bearing note requiring ten annual payments of P10,000. GONZALES made the first payment on December 30, 2021. The market interest rate for similar notes at date of issuance was 8%. Information on present value factors is as follows: Period Present value of 1 at 8% Present value of ordinary annuity of 1 at 8% 9 0.50 6.25 10 0.46 6.71 38. In its December 31, 2021 statement of financial position, what amount should JALINON report as non-current portion of the note receivable?
On December 30, Year 1, ABC Corporation sold a machine to DEF Corporation in exchange for a non-interest bearing note requiring ten annual payments of P10,000. DEF made the first payment on December 30, Year 1. The market interest rate for similar notes at date of issuance was 8%. Information on present value factors is as follows: For 9 periods, the present value of P1 at 8% is 0.50 while the present value of ordinary annuity of P1 at 8% is 6.71. In its December 31, year 1 Balance sheet, what amount should ABC Corporation report as notes receivable?
On December 30, Year 1, ABC Corporation sold a machine to DEF Corporation in exchange for a non-interest bearing note requiring ten annual payments of P10,000. DEF made the first payment on December 30, Year 1. The market interest rate for similar notes at date of issuance was 8%. Information on present value factors is as follows: For 9 periods, the present value of P1 at 8% is 0.50 while the present value of ordinary annuity of P1 at 8% is 6.25. Meanwhile, for 10 periods, the present value of P1 at 8% is 0.46 and the present value of ordinary annuity of P1 at 8% is 6.71. In its December 31, Year 1 balance sheet, what amount should ABC Corporation report as note receivable? *
On December 31, 2020, Company sold a machine in the ordinary course of business to Space-X Company in exchange for a non-interest bearing note requiring ten annual payments of P1,000,000. Space-X made the first payment on December 31, 2020 (advance payment). The market interest rate for similar notes at date of issuance was 8%. The present value of an ordinary annuity of 1 at 8% for 9 periods is 6.25, while the present value of an ordinary annuity of 1 at 8% for 10 periods is 6.71. What amount should be reported as interest income for 2021?
On December 31, 2021, Bart Company purchased a machine from fell company in exchange for a noninterest bearing note requiring eight payments of P200,000. The first payments was made on December 31, 2021 and the other are due annually on December 31. At date of issuance, the prevailing rate of interest for this type of note was 11%. Present value factors are as follows: PV of an ordinary annuity of 1 at 11% for 8 periods 5.146 PV of an annuity of 1in advance at 11% at 8 periods 5.712 In the December 30, 2021 statement of financial position, what is the carrying amount of the note payable?
On January 1, 2022, Cat Corporation sold goods to Rat Company. Rat Company signed a non-interest-bearing note requiring payment of P600,000 annually for seven years. The first paymentwas made on January 1, 2022. The prevailing rate of interest for this type of note at date ofissuance was 10%. PV of an ordinary annuity of 1 at 10% for 6 periods 4.36PV of an ordinary annuity of 1 at 10% for 7 periods 4.871. What is the amount of Sales Revenue credited on January 1, 2022?2. What is the carrying amount of note receivable on December 31, 2022?
On December 31, 2020, Bart Company purchased a machine in exchange for a noninterest bearing note requiring eight payments of P200,000. The first payment was made on December 31, 2020 and the others are due annually on December 31. At date of issuance, the prevailing rate of interest for this type of note was 11%. PV of an ordinary annuity of 1 at 11% for 8 periods 5.146 PV of an annuity of 1 in advamce at 11% for 8 periods at 5.712 1. What amount should be recorded at initial cost of the machine? 2. What is the discount on note payable on December 31, 2020? 3. What i sthe interest expense for 2021? 4. What is the carrying amount of note payable on December 31, 2021? i need answers for all 4 questions.
On December 31, 2021, Boston Company purchased a machine from Helix Company in exchange for a noninterest bearing note requiring eight payments of P200,000. The first payment was made on December 31, 2021 and the others are due annually on December 31. At date of issuance, the prevailing rate of interest for this type of note was 11%. The PV of an ordinary annuity of 1 at 11% for 8 periods is 5.146, and the PV of an annuity of 1 in advance at 11% for 8 periods is 5.712. What is the interest expense for 2022?
On december 31, 2020, Precious Company sold an equipment with carrying amount of 2,000,000 and received a noninterest-bearing note requiring payment of 500,000 annually for ten years. The first payment is due december 31, 2021. The prevailing rate of interest for this type of note at date of issuance is 12%. Present value of 1 at 12% for 10 periods = 0.322 Present value of ordinary annuity of 1 at 12% for 10 periods = 5.650 1. What Amount of interest income should be recognized for 2021? a. 600,000 b. 339,000 c. 319,800 d. 300,000 4. What is the carrying amount of the note receivable on December 31, 2021? a. 2,325,000 b. 4,500,000 c. 2,825,000 d. 2,664,000