On December 1, 2020, RB Company assigned on a non-notification basis accounts receivable of Php6,000,000 to a bank in consideration for a loan of 80% of the accounts less a 5% service fee on the accounts assigned. The entity signed a note for the bank loan. On December 31, 2020, the entity collected assigned accounts of Php2,000,000 less discount of Php200,000. The entity remitted the collections to the bank in partial paytment for the loan. The bank applied first the collection to the interest and the balance to the principal. The agreed interest is 1% per monih on the loan balance. The entity accepted sales returns of Php100,000 on the assigned accounts and wrote off assigned accounts totaling Php300,000.
Q: On December 1, 2017, Kreme Company assigned on a nonnotification basis accounts receivable of…
A: A loan taken by a company by assigning its accounts receivables to the bank. This means that the…
Q: On December 1, 2020, RB Company assigned on a non notification basis accounts receivable of…
A:
Q: On December 1, 2020, Lieza Mae assigned on a non notification basis accounts receivable of…
A: Current liability represents the obligation that has to be paid within a year.
Q: On April 1, 2020, Shalimar Company discounted with recourse a 9-month, 10% note dated January 1,…
A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…
Q: On December 1, 2020, Company assigned specific accounts receivable totalling P4,000,000 as…
A: given that, The company assigned specific accounts receivable totaling P4,000,000 as collateral on a…
Q: Sakuragi Corporation engaged in the following transactions with regards to financing of receivable…
A:
Q: On April 1, 2020, Aljean Company discounted with recourse a 9-month, 10% note dated January 1, 2020…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: On November 30, accounts receivable in the amount of P900,000 were assigned to Turon Finance Co. by…
A: Accounts Receivable (AR) are the profits or revenues that a business expects to receive from…
Q: 1, 2020, DEF Company assigned specific accounts receivable totaling P5,000,000 as collateral on a…
A: A note payable( short tern loan) is taken from a bank and accounts receivables are given as…
Q: On January 1, 2020, CPA Co. sold land with carrying amount of P1,800,000 in exchange for a 10-month,…
A: Notes receivable are the asset of the firm where a borrower gives a written promise to lender to pay…
Q: On January 31, 2019, YZ Company engaged in the following transactions: * Obtained a P500,000,…
A: Amount received from loan = Loan amount - discount = P500000 - (500000 * 12% * 6/12) = P470,000
Q: On December 1, 2020, Company assigned specific accounts receivable totalling P4,000,000 as…
A: Accounts receivable refers to the amount of goods and services rendered on credit but not payment…
Q: On November 30, accounts receivable in the amount of P900,000 were assigned to Hello Finance Co. by…
A: SOLUTION- ACCOUNTS RECEIVABLE IS A BALANCE OF MONEY DUE TO A FIRM FOR GOOD OR SERVICES DELIVERED…
Q: On December 1, 2020, RB Company assigned on a non-notification basis accounts receivable of…
A: Accounts receivables refers to the amount or money owed to a company by its debtors.
Q: On April 1, 2020 XYZ Company discounted with recourse a 9-month, 10% note dated January 1, 2020 with…
A: Interest amount=P6000000×0.10×912=P350,000
Q: On October 1, 2021, Home Company issued to Security Bank a P6,000,000, 8-month, noninterest-bearing…
A: Bonds- The note/bond issuer offers collateral as security in this type of transaction. Such…
Q: How much is Llido’s equity in the assigned accounts receivable as of December 31?
A: a Cash $723,000 Finance Charges ($900,000*3%) $27,000 To Notes Payable…
Q: On April 1, 2020, Neptune Company discounted with recourse a 9-month, 10% note dated January 1, 2020…
A: Face Value of note= P6,000,000 Duration and rate= 9-month, 10% note Bank discount rate= 12% Fee=…
Q: On December 1, 2020 LOVELY Company assigned on a non-notification basis accounts receivable of…
A: Here interest is charged on loan balance not on note payable
Q: On April 1, 2020, Aljean Company discounted with recourse a 9-month, 10% note dated January 1, 2020…
A: The amount received from the note receivable discounting on April, 1 2020: (P) Principal…
Q: On December 1, 2020, RB Company assigned on a non-notification basis accounts receivable of…
A:
Q: On December 1, 2020, RB Company assigned on a non-notification basis accounts receivable of…
A: Accounts Receivable :- Account Receivable are the balances of customers that have not paid their…
Q: On April 1,2020, Aljean Company discounted with recourse a 9-month, 10% note dated January 1, 2020…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: On December 1, 2020, RB Company assigned on a non notification basis accounts receivable of…
A:
Q: What is the carrying amount of the note payable on December 31, 2020?
A: The sales returns and accounts wrote off will have no effect on the loan because the amount of…
Q: borrowing. BB gave a 14% note for P450,000 representing 90% of the assigned accounts and received…
A: In our question, BB Corp. has borrowed the loan amount of P 500,000 from Finance Company. So in the…
Q: On April 1, 2020 JKL Company discounted with recourse a 9-month, 10% note dated January 1, 2020 with…
A: When an asset is exchanged at a fair price between two parties, the sum for which the asset is…
Q: On April 1, 2020 ZAB Company discounted with recourse a 9-month, 10% note dated January 1, 2020 with…
A: Interest expense is the expense on the cost of borrowing money. This price is charged by lender to…
Q: Show solutions On December 1, 2021, Autumn company assigned on a non- notification basis accounts…
A: Accounts assigned = accounts receivable X 80% = Php3,000,000 X 80% = Php2,400,000
Q: On May, 2020, Manara Company factored receivables of $200,000 to National Company. National Company…
A: Since Manara Company factors the receivables on a without recourse basis
Q: On 1 September 2021, ABC Bhd used its receivables totalling RM 350,000 as collateral on : 250,000,…
A: Journal entries refers to reporting of business transaction into the books of the entity as well as…
Q: On October 31, 2021 T Company engaged in the following transactions: [1] Obtained a P500,000,…
A: S. No Particulars Amount (P) 1 Loan from BDO Total Loan obtained from BDO…
Q: On April 1, 2020 JKL Company discounted with recourse a 9-month, 10% note dated January 1, 2020 with…
A: Note receivable can be defined as a written contract between two parties under which one party…
Q: On April 1, 2018, Audrey Company assigned accounts receivable totaling P400,000 as collateral on a…
A: Journal Entries
Q: On October 1, 2020, Ayayai, Inc. assigns $1,263,100 of its accounts receivable to Pina National Bank…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: On December 1, 2020, Company assigned specific accounts receivable totalling P4,000,000 as…
A: The balance due to the company for goods and services provided but not yet charged by customers is…
Q: total cash received
A: Cash Inflow on, 1. Pledge with Yupy bank = P500000 2. Factoring with Yalong finance = P1300000 -…
Q: On October 1, 2020, Shamrock, Inc. assigns $1,160,700 of its accounts receivable to Bridgeport…
A:
Q: On October 31, 2021, Butter Company engaged in the following transactions: 1. Obtained a Php500,000,…
A: Solution: On October 31, 2021, Butter Company engaged in the following transactions: 1. Obtained a…
Q: Sakuragi Corporation engaged in the following transactions with regards to financing of receivable…
A: Accounts Receivables :- It is the amount due from our customers from…
Q: On September 1, QUEROL COMPANY assigns specific receivables totaling P750,000 to Davao Bank as…
A: The interest expense may be a non-operating expense shown on the operating statement. It’s primarily…
Q: On April 1, 2020, ABC Company discounted with recourse a 9-month, 10% note dated January 1, 2020…
A: The calculation of note interest and maturity value of note has been made as follows: Note…
Q: On April 1, 2020 JKL Company discounted with recourse a 9-month, 10% note dated January 1, 2020 with…
A: Notes receivable refers to an item which is present at the balance sheet of the company which…
Q: On January 1 2020, Machete Company sold land with a carrying amount of P1 500 000 in exchange for a…
A: Journal Entry: A Journal entry records a business transaction within the accounting system for a…
Q: On January 31, 2019, YZ Company engaged in the following transactions: • Obtained a P500,000,…
A: Amount received from loan = Loan amount - discount = P500000 - (500000 * 12% * 6/12) = P470,000…
Q: note from certain bank. The company will continue to collect the assigned receivable. In addition to…
A: Factoring is a transfer of funds where a firm passes its debts to a financing company.This factor…
Q: On December 31, 2020, the entity collected the dishonored note receivable in full plus 12% annual…
A:
Q: On December 1, 2022, Grenade Company assigned specific accounts receivable totaling P2,000,000 as…
A: When a borrower keeps the accounts receivable as collateral while borrowing money from a lending…
Q: On December 1, 2020, RB Company issued accounts receivable of Php6,000,000 to a bank in exchange for…
A: Account receivables are client balances that have not been paid for services rendered or items…
Step by step
Solved in 2 steps
- On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First National Bank, on which 16,651 of interest has accrued. On January 2, 2019, the bank agrees to restructure the note. It forgives the accrued interest, extends the repayment date to December 31, 2021, and reduces the interest rate to 10%. Required: Prepare a schedule for Northfield to compute the annual interest expense in regard to the preceding note for each year of the restructuring agreement.On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.On December 1, 2020, RB Company assigned on a non notification basis accounts receivable of Php.6,000,000 to a bank in consideration for a loan of 80% of the accounts less a 5% service fee on the accounts assigned. The entity signed a note for a bank loan. On December 31, 2020, the entity collected assigned accounts of Php.2,000,000 less discount of Php.200,000. The entity remittted the collections to the bank in partial payment for the loan. The bank applied first the collection to the to the interests and the balance to the principal. The agreed interest is 1% per month on the loan balance. The entity accepted sales returns of Php100,00 on the assigned accounts and wrote off assigned accounts totaling Php.300,000. What is the equity of the assignor in assigned accounts on December 31, 2020?
- On December 1, 2020, RB Company assigned on a non notification basis accounts receivable of Php.6,000,000 to a bank in consideration for a loan of 80% of the accounts less a 5% service fee on the accounts assigned. The entity signed a note for a bank loan. On December 31, 2020, the entity collected assigned accounts of Php.2,000,000 less discount of Php.200,000. The entity remittted the collections to the bank in partial payment for the loan. The bank applied first the collection to the to the interests and the balance to the principal. The agreed interest is 1% per month on the loan balance. The entity accepted sales returns of Php100,00 on the assigned accounts and wrote off assigned accounts totaling Php.300,000. What is the carrying amount of the note payable on December 31, 2020?On December 1, 2020, RB Company assigned on a non notification basis accounts receivable of Php.6,000,000 to a bank in consideration for a loan of 80% of the accounts less a 5% service fee on the accounts assigned. The entity signed a note for a bank loan. On December 31, 2020, the entity collected assigned accounts of Php.2,000,000 less discount of Php.200,000. The entity remittted the collections to the bank in partial payment for the loan. The bank applied first the collection to the to the interests and the balance to the principal. The agreed interest is 1% per month on the loan balance. The entity accepted sales returns of Php100,00 on the assigned accounts and wrote off assigned accounts totaling Php.300,000. What is the balance of the accounts receivable assigned on December 31, 2020?On December 1, 2020, RB Company assigned on a non-notification basis accounts receivable of Php6,000,000 to a bank in consideration for a loan of 80% of the accounts less a 5% service fee on the accounts assigned. The entity signed a note for the bank loan. On December 31, 2020, the entity collected assigned accounts of Php2,000,000 less discount of Php200,000. The entity remitted the collections to the bank in partial payment for the loan. 'The bank applied first the collection to the interest and the balance to the principal. The agreed interest is 1% per month on the loan balance. The entity accepted sales returns of Php100,000 on the assigned accounts and wrote off assigned accounts totaling Php300,000. what is the carrying amount of the note payable on December 31, 2020?
- On December 1, 2020, RB Company assigned on a non-notification basis accounts receivable of Php6,000,000 to a bank in consideration for a loan of 80% of the accounts less a 5% service fee on the accounts assigned. The entity signed a note for the bank loan. On December 31, 2020, the entity collected assigned accounts of Php2,000,000 less discount of Php200,000. The entity remitted the collections to the bank in partial payment for the loan. The bank applied first the collection to the interest and the balance to the principal. The agreed interest is 1% per month on the loan balance. The entity accepted sales returns of Php100,000 on the assigned accounts and wrote off assigned accounts totaling Php300,000. What is the equity of the assignor in assigned accounts on December 31, 2020?On December 1, 2020, RB Company assigned on a non-notification basis accounts receivable of Php6,000,000 to a bank in consideration of a loan 80% of the accounts less a 5% service fee on the accounts assigned. The entity signed a note for the bank loan. On December 31, 2020, the entity collected assigned accounts of Php2,000,000 less discount of Php200,000. The entity remitted the collections to the bank in partial payment for the loan. The bank applied first the collection to the interest and the balance to the principal. The agreed interest is 1% per month on the loan balance. The entity accepted sales returns of Php100,000 on the assigned accounts and wrote off assigned accounts totaling Php300,000. What is the balance of accounts receivable assigned on December 31, 2020? What is the carrying amount of the note payable on December 31, 2020? what is the equity of the assignor in assigned accounts on December 31, 2020?On December 1, 2020, RB Company assigned on a non-notification basis accounts receivable of Php6,000,000 to accounts less a 5% service fee on the accounts assigned. The entity signed a note for the bank loan. On December 31, 2020, the entity collected assigned accounts of Php2,000,000 less discount of Php200,000. The entity remitted the collections to the bank in partial payment for the loan. The bank applied first the collection to the interest and the balance to the principal. The agreed interest is 1% per month on the loan balance. The entity accepted sales returns of Php100,000 on the assigned accounts and wrote off assigned accounts totaling Php300,000. a bank in consideration for a loan of 80% of the What is the balance of accounts receivable assigned on December 31, 2020?
- On December 1, 2020, RB Company assigned on a non-notification basis accounts receivable of Php6,000,000 to accounts less a 5% service fee on the accounts assigned. The entity signed a note for the bank loan. On December 31, 2020, the entity collected assigned accounts of Php2,000,000 less discount of Php200,000. The entity remitted the collections to the bank in partial payment for the loan. The bank applied first the collection to the interest and the balance to the principal. The agreed interest is 1% per month on the loan balance. The entity accepted sales returns of Php100,000 on the assigned accounts and wrote off assigned accounts totaling Php300,000. a bank in consideration for a loan of 80% of the What is the balance of accounts receivable assigned on December 31, 2020? Your answer In the preceding problem, what is the carrying amount of the note payable on December 31, 2020? * Your answer In the preceding problem, what is the equity of the assignor in assigned accounts on…On December 1, 2020, RB Company issued accounts receivable of Php6,000,000 to a bank in exchange for a loan of 80% of the accounts minus a 5% service charge on the accounts assigned. The entity signed a bank loan note. On December 31, 2020, the company collected Php2,000,000 in assigned accounts minus a discount of Php200,000. The collections were submitted to the bank as partial payment for the loan. The bank applied the collection first to the interest and then to the principal. On the loan balance, the agreed-upon interest rate is 1% each month. On the allotted accounts, the organisation took sales refunds of Php 100,000 and wrote down assigned accounts totaling Php300,000.On December 1, 2020, Lieza Mae assigned on a non notification basis accounts receivable of P3,000,000 to a bank in consideration for a loan of 80% of the receivable less a 5% service fee on the accounts assigned. The interest rate of the loan is 12 pct . The company collected assigned accounts of P2,000,000 and remitted the collection to the bank in partial payment for the loan. The bank applied first the collection to the interest and the balance t the principal. The interest rate is 1% per month on the outstanding balance of the loan. In its Dec 15, 2020 statement of financial position what amount of notes payable should Lieza Mae report as current liability? a. 424,000 b. 1,024,000 c. None d. 400,000