How much is the latest carrying amount of the note before the fire incident?
Q: Bramble Company owes $236,000 plus $21,500 of accrued interest to Sunland State Bank. The debt is a…
A: a. Prepare journal entries for Bramble Company and Sunland State Bank to record this debt…
Q: On December 31, 2021, the VKS Finance Company had a P3,000,000 note receivable from JP Company. The…
A: Computation of recoverable amount from note receivable on December 31, 2021: Year cashflow pv…
Q: On January 1, 2020, the office of Everlasting Company was burned to ashes due to a fire incident.…
A: As we do not know about the date of issue of promissory note, we will calculate the present value of…
Q: At December 31, 2019, one of TOCINO Company’s credit customers, HOTDOG Trading, is experiencing…
A: Introduction to Impairment loss Impairment loss generally occurs when a business asset suffers a…
Q: During 2020 Hingalo Company experienced financial difficulties and is likely to default on a…
A: This question deals with the calculation of gain of extinguishment of debt. Gain on extinguishment…
Q: Noel Bank loaned 9,000,000 to a borrower on January 1, 2017. The terms of the loan were payment in…
A: Impairment loss=Total carrying value-Present value of loan
Q: On January 1, Cooper Company accepted a one-year note for $5,000 at 4% from one of its customers.…
A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…
Q: What is the present value of the new liability? What is the gain on modification of debt for 2021?…
A:
Q: Ivanhoe Company owes $179,000 plus $15,800 of accrued interest to Shamrock State Bank. The debt is a…
A: Debt settlement: A way to settle the debt or resolve the debt by allowing the debtor to pay a lump…
Q: On May 1, 2020, People's Networks sold computer networking supplies to Florida Autos for $46,300.…
A: From May 1 to Oct 31 = 6 months. So interest will be accrued for 6 months on Oct 31. From Oct 31…
Q: sent Rover Ltd has a year-end of 30 June 2022. The accountant has prepared the following schedule…
A: The accounting should be accordings with the generally accepted Accounting principles and…
Q: Accounting On December 31, 2020, the Thomas Company is in default on its 10% bank loan, which is…
A: Carrying Value prior to restructuring = Loan Value + Interest Payable = 1,000,000 +50,000…
Q: On January 1,2021, Mickey Mouse Corporation sells a Furniture and Fixtures costing P1,500,000 and…
A: Note receivable is a type of promissory note that promises to pay the debt over a period of time.
Q: Superior Skateboard Company, located in Ontario, is preparing to adjust entries on December 31,…
A: An adjusting journal entry is a journal entry made in a company's general ledger at the end of an…
Q: interest income
A: Interest income on note receivable = Value of note receivable * Rate of interest
Q: Because of the inability to pay debts, Steven Company has been forced into bankruptcy as of April…
A: SOLUTION- BECAUSE TO INABILITY TO PAY DEBTS , STEVEN COMPANY HAS BEEN FORCED IN TO BANKRUPTCY AS OF…
Q: ABC Company is in financial difficulties and was not able to pay the 10% interest of P100,000 due on…
A: One of the source used by the business entities so as to raise the funds and meet the financial…
Q: At January 1, 2021, NCI Industries, Inc. was indebted to First Federal Bank under a $240,000, 10%…
A: 1 ) Calculation of Present value of debt = ( 240000 + ( 240000 x 10 % ) )…
Q: What amount should be reported as gain from extinguishment of debt in the 2020 income statement?
A: This question belongs to the loan and notes payable. Due to the financial crisis faced by the…
Q: Strickland Company owes $200,000 plus $18,000 of accrued interest to Moran State Bank. The debt is a…
A: 1. Prepare journal entries for Strickland Company and Moran State Bank to record this debt…
Q: Superior Skateboard Company, located in Ontario, is preparing to adjust entries on December 31,…
A: Journal entry - It refers to the process where the business transactions are recorded in the books…
Q: Due to extreme financial difficulties, Armada Company has negotiated a restructuring of its 10%…
A: Calculation of total present value of new debt: = (Debt amount ×PVF @10%, 3 years) +(Debt…
Q: Due to extreme financial difficulties, ARMADA Company had negotiated a restructuring of a 10%…
A: Debt restructuring means restructuring the terms like maturity, interest rate etc. or to swap with…
Q: During 2021, PUMPKIN Company experienced financial difficulties and is likely to default on a…
A: Total payable amount = Principal + Interest payment for year 2021…
Q: Brady is hired in 2021 to be the accountant for Anderson Manufacturing, a private company. At the…
A: Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to…
Q: On May 25, Al Mujaaz Company made a credit sale of OMR 220,000 to Al Zahir Company and received a…
A: Accounts Receivable refers to payment which company would receive from customers who had purchased…
Q: On July 1, 2021, HAZELNUT Company acquired machinery worth ₱2,500,000 from PINE NUTS Corporation.…
A: SOLUTION- CURRENT LIABILITIES ARE AN ENTERPRISE'S OBLIGATIONS OR DEBT THAT ARE DUE WITH IN ONE YEAR…
Q: on january 1, cooper company accepted a one-year note for $5,000 at 4% from one of its customers.…
A: Journal entries are the transactions that are recorded in the primary book. They are chronological…
Q: On December 31 , 2018 Nicholas Co. is in financial difficulty and cannot pay a note due that day .…
A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Mar Company provides the following information on December 31, 2020: Income taxes withheld from…
A: Current liabilities are those types of obligations that must be fulfilled within a year. Creditors,…
Q: During 2021, PUMPKIN Company experienced financial difficulties and is likely to default on a…
A: Here in this question, we are required to calculate how much gain or loss should recorded on…
Q: Gatsby, Inc. owed $500,000 on account for inventory purchased on November 1, 2020. The company's…
A: Note payable is a financial instrument that creates a liability to a person signing it. It contains…
Q: Pina Colada Corp. has the following transactions related to notes receivable during the last 2…
A: Introduction: A journal entry is used in a company's accounting records to disclose a business…
Q: meet the scheduled December 31, 2017 payment of principal and interest because of financial…
A: Given as, Outstanding= 3, 000, 000.
Q: Black Corporation’s accounts payable at December 31, 2018, totaled P 900,000.00 before any necessary…
A: Accounts payable is a short-term debt and a liability on a balance sheet where a business owes money…
Q: On December 31, 2012, Nolte Co. is in financial difficulty and cannot pay a note due that day. It is…
A: Gain (loss) on the transfer of the equipment = Fair value of equipment - face amount of the note
Q: On February 15, 2022, CHAS received notice that a client is suing it for $10 million. The lawsuit is…
A: A contingent liability seems to be an obligation that may occur as a result of the occurrence of a…
Q: At December 31, 2019, one of MNO Company's credit customers, 123A, is experiencing financial…
A: The impairment loss is recognized if the market value of the investment is lower than the carrying…
Q: Whispering Supply Co. has the following transactions related to notes receivable during the last 2…
A: .Journal entries are recorded to record financial transactions in the books of accounts. These…
Q: Cool Corporation’s accounts payable at December 31, 2020 amounted to P5,400,000 before any necessary…
A: solution : balance of account payable on December 31,2020 before adjustments =P 5,400,000 let…
Q: ds to Ralph Kremer, Inc., receiving a $ 36,000, 90-day, 6% note. 16 Received a $ 21,600, 180…
A: A journal entry is a record of a commercial transaction in an organization's accounting system.When…
Q: Ali Coffee Bean assumes that due to Corona, at the end of September 2020 there will be bad debts of…
A: Bad debts is a part of account receivable which is no longer receivable due to insolvency of debtor…
Q: The following information about Manchester Company is available on December 31, 2021. Income taxes…
A: Current Liabilities - It is the company's obligations or debts that are payable to creditors within…
Q: gain or loss from extinguishment of debt i
A: Gain or loss from extinguishment of debt = (Amount of note payable + Accrued interest) - Cash…
Q: Ayayai Supply Co. has the following transactions related to notes receivable during the last 2…
A: A journal entry is a record of a company's financial activities kept in its accounting books. The…
Q: On January 1, 2019, an entity was indebted to a bank under a P4,800,000, 10% loan. The loan was…
A: Impairment loss is when the carrying amount is more than the recoverable amount. Every entity should…
Q: At January 1, 2018, NCI Industries, Inc., was indebted to First Federal Bank under a $240,000, 10%…
A: 1 ) Calculation of Present value of debt = ( $240,000 + ( $240,000 x 10 % ) )…
Q: Bramble Supply Co. has the following transactions related to notes receivable during the last 2…
A: Calculation of Interest Revenue on December 31: Notes Receivable - Manny Lopez ($13,200 * 10% *…
Step by step
Solved in 3 steps
- Weldon Corporation’s fiscal year ends December 31. The following is a list of transactions involving receivables that occurred during 2021: Mar. 17 Accounts receivable of $3,000 were written off as uncollectible. The company uses the allowance method. 30 Loaned an officer of the company $33,000 and received a note requiring principal and interest at 8% to be paid on March 30, 2022. May 30 Discounted the $33,000 note at a local bank. The bank’s discount rate is 9%. The note was discounted without recourse and the sale criteria are met. June 30 Sold merchandise to the Blankenship Company for $25,000. Terms of the sale are 2/10, n/30. Weldon uses the gross method to account for cash discounts. July 8 The Blankenship Company paid its account in full. Aug. 31 Sold stock in a nonpublic company with a book value of $6,300 and accepted a $8,000 noninterest-bearing note with a discount rate of 9%. The $8,000 payment is due on February 28, 2022. The stock…During 2021, tesa Company experienced financial difficulties and is likely to default on a P5,000,000, 15% three year note dated January 1, 2019 payable to Bank of the Pasa Island. On December 31, 2021, the bank agreed to settle the note and unpaid interest of P750,000 for P4,100,000 cash payable on January 31, 2022. . What amount should be reported as gain from extinguishment of debt in 2021 balance sheet?Weldon Corporation's fiscal year ends December 31. The following is a list of transactions involving receivables that occurred during 2021: Mar. 17 Accounts receivable of $3,600 were written off as uncollectible. The company uses the allowance method. 38 Loaned an officer of the company $42,009 and received a note requiring principal and interest at 5% to be paid on March 30, 2022. Hay 30 Discounted the $42,eee note at a local bank. The bank's discount rate is 6%. The note was discounted without recourse and the sale criteria are met. June 30 Sold merchandise to the Blankenship Company for $31,8ea. Terms of the sale are 2/10, n/30. Weldon uses the gross method to account for cash discounts. July 8 The Blankenship Company paid its account in full. Aug. 31 Sold stock in a nonpublic company with a book value of $6,900 and accepted a $7,900 noninterest-bearing note with a discount rate of 6%. The $7,980 payment is due on February 28, 2022. The stock has no ready market value. Dec. 31…
- Weldon Corporation’s fiscal year ends December 31. The following is a list of transactions involving receivables that occurred during 2024: March 17 Accounts receivable of $2,300 were written off as uncollectible. The company uses the allowance method. March 30 Loaned an officer of the company $30,000 and received a note requiring principal and interest at 5% to be paid on March 30, 2025. May 30 Discounted the $30,000 note at a local bank. The bank’s discount rate is 6%. The note was discounted without recourse and the sale criteria are met. June 30 Sold merchandise to the Blankenship Company for $18,000. Terms of the sale are 2/10, n/30. Weldon uses the gross method to account for cash discounts. July 8 The Blankenship Company paid its account in full. August 31 Sold stock in a nonpublic company with a book value of $5,600 and accepted a $6,600 noninterest-bearing note with a discount rate of 6%. The $6,600 payment is due on February 28, 2025. The stock has no ready market value.…Bramble Supply Co. has the following transactions related to notes receivable during the last 2 months of 2020. The company does not make entries to accrue interest except at December 31. How would I enter these into a journal? Nov. 1 Loaned $ 13,200 cash to Manny Lopez on a 12-month, 10% note. Dec. 11 Sold goods to Ralph Kremer, Inc., receiving a $ 24,750, 90-day, 8% note. 16 Received a $ 29,100, 180 day, 8% note in exchange for Joe Fernetti’s outstanding accounts receivable. 31 Accrued interest revenue on all notes receivable.Weldon Corporation's fiscal year ends December 31. The following is a list of transactions involving receivables that occurred during 2024: March 17 Accounts receivable of $2,600 were written off as uncollectible. The company uses the allowance method. March 30 Loaned an officer of the company $33,000 and received a note requiring principal and interest at 7% to be paid on March 30, 2025. May 30 Discounted the $33,000 note at a local bank. The bank's discount rate is 8 %. The note was discounted without recourse and the sale criteria are met. June 30 Sold merchandise to the Blankenship Company for $21,000. Terms of the sale are 4/10/30 Weldon uses the gross method to account for cash discounts. July 8 The Blankenship Company paid its account in full. August 31 Sold stock in a nonpublic company with a book value of $5,900 and accepted a $6,900 noninterest-bearing note with a discount rate of 8%. The $6,900 payment is due on February 28, 2025. The stock has no ready market value.…
- Ali Coffee Bean assumes that due to Corona, at the end of September 2020 there will be bad debts of $5,000,000 from accounts receivable belonging to Budi's Coffee Shop amounting to $20,000,000. It turned out that on October 21, 2020, Budi's Coffee Shop stated that they were unable to pay their receivables amounting to $1,000,000, so the CEO of Ali Coffee Bean allowed to write-off the receivables. As Ali Coffee Bean's financial staff, make:a. Journal Entry for write-off of Budi's Coffee Shop.b. What was the cash realizable value of Ali Coffee Shop's receivables prior to the write-off of Budi's Coffee Shop receivables in September?c. What is the cash realized value of Ali Coffee Shop's receivables after the write-off of Budi's Coffee Shop receivables?Orange Corp.’s accounts payable at December 31, 2021, totaled P800,000 before any necessary year-end adjustments relating to the following transactions:· On December 27, 2021, Orange wrote and recorded checks to creditors totaling P350,000 causing an overdraft of P100,000 in Orange’s bank account at December 31, 2021. The checks were mailed out on January 10, 2022.· On December 28, 2021, Orange purchased and received goods for P150,000, terms 2/10, n/30. Orange records purchases and accounts payable at net amounts. The invoice was recorded and paid January 3, 2022.· Goods purchased on December 20, 2021, shipped f.o.b. destination, were received January 2, 2022. The invoice cost was P65,000. Terms 2/10, 2/30 What was the correct balance of accounts payable at December 31, 2021?Orange Corp.’s accounts payable at December 31, 2021, totaled P800,000 before any necessary year-end adjustments relating to the following transactions:· On December 27, 2021, Orange wrote and recorded checks to creditors totaling P350,000 causing an overdraft of P100,000 in Orange’s bank account at December 31, 2021. The checks were mailed out on January 10, 2022.· On December 28, 2021, Orange purchased and received goods for P150,000, terms 2/10, n/30. Orange records purchases and accounts payable at net amounts. The invoice was recorded and paid January 3, 2022.· Goods purchased on December 20, 2021, shipped f.o.b. destination, were received January 2, 2022. The invoice cost was P65,000. Terms 2/10, 2/30 What was the correct balance of accounts payable at December 31, 2021? Choices: P950,000 P1,050,000 P1,297,000 P1,362,000
- Sanders Inc. is a small brick manufacturer that uses the direct write-off method to account for uncollectible accounts. At the end of 2021, its balance for Accounts Receivable is $35,000. The company estimates that of this amount, $4,000 is not likely to be collected in 2022. In 2022, the actual amount of bad debts is $3,000. Record, if necessary, an adjustment for estimated uncollectible accounts at the end of 2021 and the actual bad debts in 2022.On December 1, 2022, Old Car Co. borrowed money at the bank by signing a 90-day non-interest-bearing note for $30,000 that was discounted at 10%. Which of the following entries is correct?Cheyenne Corp. has the following transactions related to notes receivable during the last 2 months of 2020. The company does not make entries to accrue interest except at December 31. Loaned $13,800 cash to Manny Lopez on a 12 month, 10% note. Nov. 1 Sold goods to Ralph Kremer, Inc., receiving a $27,000, 90-day, 8% note. Dec. 11 Received a $21,000, 180 day, 12% note in exchange for Joe Fernetti's outstanding accounts receivable. 16 31 Accrued interest revenue on all notes receivable.