What is the gain on extinguishment of the note payable?
Q: What is the purpose of an allowance for uncollectibles and why is it important?
A: Accounts receivable is the current asset and the amount that is not received yet from the customer…
Q: If the proceeds of a discounted note are less than the face amount, the difference is debited to…
A:
Q: What is the principal of a note?
A: A note is a promise to pay a specific amount of money to the payee on a future date. It is a…
Q: How will the lender of the promissory note record the note on its books? as an expense as revenue…
A: Revenue: This is the income of a firm during an accounting period. The income is recognized as and…
Q: What is their refund or balance due?
A: Tax return can be defined as the systematic form which is to be submitted to the taxation…
Q: what is the difference between annuity and annuity due?
A: An annuity is a series of cash flows wherein an equal amount is paid every period which can be…
Q: How much did A receive from the discounting of notes receivable?
A: Accounts receivables are the sales made on credit that are outstanding as a current asset on the…
Q: Dishonoring a note means the maker no longer has to pay. True or False?
A: Dishonoring a note means that note has not been paid on the date of maturity. This does not payor no…
Q: What is the difference between a bill and a payment
A: Answer: Bill and payment are two different terns that can be used for same document. The two terms…
Q: f a problem is silent to the terms of a note payable, is it considered as a long-term or a…
A:
Q: If a note receivable is discounted with recourse, which is false? a. a contingent liability exists…
A: b. note receivable discounted will be credited EXPLAINATION: Discounting means selling or pledging…
Q: What is a key difference between a short-term note payable and a current portion of a noncurrent…
A: Short term note payable is a debt which is required to be paid within a period of less than one…
Q: A note payable can be used to extend the payment due on an account payable. O True O False
A: Solution: A notes payable is used for financing, it indicates the money owed by issuer. By issuing…
Q: How much is the premium or discount of the new note payable
A: Premium or discount on the note payable arises due to the fact of that the amount which has been…
Q: The amortization of premium on notes receivable is a. deduction from accrued interest receivable b.…
A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds.
Q: Explain why a non-interest bearing note is effectively an interest-bearing note?
A: solution concept non interest bearing note A non interest bearing note is a note that…
Q: Define Allowance for Bad Debts
A: Financial Accounting: It refers to the process of recording the financial transactions of the…
Q: The discount allowed to a debtor for early payment is
A: Debtors :- Debtors are the person to whom goods and services are sold on credit.
Q: Distinguish between an interest-bearing note and a non-interest-bearing note. How are the proceeds…
A: A commercial paper that contains an express and absolute promise by the maker to…
Q: A discounted note receivable is an example of a loss contingency? Is it true or false
A: This is a False.
Q: how do deposit intistitutions differ from non-deposit institutions?
A: A financial institution is an intermediary business entity that helps to supply money from surplus…
Q: . How is the present value of a non-interest-bearing note computed?
A:
Q: Differentiate a “deposit" and a “deposit substitute"?
A: Deposit is the amount of customer money which is held by bank or other institution. Deposit…
Q: Does a Discounted Note Payable provide credit without interest?
A: Discounted Note Payable means that the purchase price(PV) is less than the maturity/face value(FV)…
Q: Does a discounted note payable provide credit without interest? Discuss.
A: Short-term notes payable: Short-term notes payable is a written promise made by the business to pay…
Q: e amount of warranty expense-
A: Warrant expense = Units of sales * Rate of repairs * Average cost of repairs per unit
Q: What types of short-term credit are classified as accrued liabilities?
A: An accrued liability means the expense of the business incurred during a specific period but has yet…
Q: What do short-term notes payable represent?
A: Short-term notes payable: short-term notes payable is a written promise made by the business to pay…
Q: Under what circumstances would an accrual
A: Interest on promissory notes: Interest on the promissory note is a return to the person lending the…
Q: What is a promissory note, and what terms are normally included in promissorynotes?
A: A document or agreement that promises the payment of a specific sum of money at a later date to the…
Q: How are refundable deposits and customer advances similar? How do they differ?
A: Refundable Deposits: Refundable deposits are that money in advance offered by the customer. It is a…
Q: Differences between Accrued Interest and Payments?
A: Answer: An accrued interest is nothing but interest on a loan or an interest on bond that has been…
Q: What is meant by a promissory note?
A: The amount due to be paid for loan can be promissed by customer by issuing promissory note.
Q: What are note payables? How they are recorded?
A: Solution:- Notes payable meaning as follows under:-
Q: How is certificate of deposit beneficial?
A: A certificates of deposit basically are a sort of the financial savings account that holds a sure…
Q: What is the difference between a note payable and an account payable?
A: Current liability: It can be defined as the financial commitments of a business that are due and to…
Q: What is a promissory note? What are its benefits?
A: Promissory note:A promissory note is a legal financial instrument that has a written promise between…
Q: Explain compounding of interest in relation to interest bearing notes receivable
A: The interest-bearing notes receivable is a bond or note other than discounted bonds, on which the…
Q: What is a non interest bearing notes?
A:
Q: What is the relationship of the promissory note between the maker and the payee?
A: A note of hand can be a financial instrument that contains a written promise by one party (the…
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- Shanghai Company is unable to meet interest payments and fund requirements to retire its P1,500,000 bonds payable. Accrued interest on the bonds amounted to P150,000. The bonds are held by Spaghetti Investments, Inc. To prevent bankruptcy, Shanghai Company entered into an agreement with Spaghetti Financing, Inc. to exchange equity securities for the debt. Shanghai Company is issuing 20,000 shares of its P50 par value ordinary shares. The ordinary share is currently selling at P65. The gain on debt restructuring is A. 250,000 B. 350,000 C. 650,000 D. 0Katrina & Co. has encountered financial difficulties and has become unable to retire its P1,500,000 bonds payable, as well as its accrued interest of P150,000. To renegotiate the liability, Katrina agreed with the creditor to settle the debt through exchange of equity securities. Katrina’s ordinary shares have a par value of P50 and are currently selling at P65. How much will Katrina record as gain on debt restructuring upon settlement of the bonds?Bianca Company is currently under financial difficulty and is unable to meet interest payments and fund requirements to retire its P 10,000,000 bonds payable held by DEF Corporation. Accrued interest on the bonds amounted to 10% of face value of the bonds. In order to prevent bankruptcy, Bianca Company entered into an agreement with DEF Corporation to exchange equity securities for the bonds. Bianca Company is issuing 100,000 shares of its P 50 par value ordinary shares. The ordinary share is currently selling at P 80. How much is the gain on debt restructuring?
- ABC Company is in financial difficulties and agreed to issue 20,000 of its P20 par value shares in settlement of its loan from a bank of P1,000,000. On this date, the accrued interest not yet paid by ABC Company amounted to P120,000. The fair market value of the shares on this date is P40 per share while the fair market value of the liability is P1,200,000. According to our standards, what amount of gain or loss from extinguishment of debt shall be recognized from this equity swap?The Abra Company owes P200,000 on a note payable plus P8,000 in interest to its bank. The note is scoured by inventory with a book value of P160,000 and a fair value of P120,000. What amount will the bank received if unsecured creditors receive 75% of their claims? At the time of corporate liquidation, the redeemable preferred stockholders received only the partial amount of the redemption value of their shares of stocks. Which of the creditors of this dissolved and liquidated corporation received the full amount of their claims? Fully secured creditors only Fully secured creditors and unsecured creditors with priority only Partially secured creditors and unsecured creditors without priority only All the creditors of the corporationSeal Company is experiencing financial difficulty and is negotiating debt restructuring with its creditor to relieve its financial stress. Seal has a P2,500,000 note payable to United Bank. The bank accepted an equity interest in Seal Company in the form of 200,000 ordinary shares quoted at P12 per share. The par value is P10 per share. The fair value of the note payable on the date of restructuring is P2,200,000. What amount should be recognized as share premium from the issuance of the shares? a. 500,000 b. 100,000 c. 400,000 d. 200,000
- Seal Company is experiencing financial difficulty and is negotiating debt restructuring with its creditor to relieve its financial stress. Seal has a P2,500,000 note payable to United Bank. The bank accepted an equity interest in Seal Company in the form of 200,000 ordinary shares quoted at P12 per share. The par value is P10 per share. The fair value of the note payable on the date of restructuring is P2,200,000. What amount should be recognized as gain from debt extinguishment as a result of the "equity swap”? a. 400,000 b. 100,000 c. 500,000 d. 200,000TJH Company is currently under financial difficulty and is unable to meet interest payments and fund requirements to retire its P 10,000,000 bonds payable held by DEF Corporation. Accrued interest on the bonds amounted to 10% of face value of the bonds.In order to prevent bankruptcy, TJH Company entered into an agreement with DEF Corporation to exchange equity securities for the bonds. TJH Company is issuing 100,000 shares of its P 50 par value ordinary shares. The ordinary share is currently selling at P 80.How much is the gain on debt restructuring?If CARDO Co purchases the net assets of SYANO Co by issuing 4,000 shares of their P10 par value shares with a fair value of P35 per share, a P40,000 direct cost and a P50,000 stock issue cost however remain unpaid. The companies also agreed on the following: CARDO guarantees the prices of there stocks and promises to pay the peso decline in their shares within one year. CARDO Co promises to pay the stockholders of SYANO Co an additional P100,00 if the net income of the company in the next year will be more than P500,000. CARDO estimates that there is an 80% probability of achieving the target income. Compute for the Consolidated Equity at the date of acquisition.
- If CARDO Co purchases the net assets of SYANO Co by issuing 4,000 shares of their P10 par value shares with a fair value of P35 per share, a P40,000 direct cost and a P50,000 stock issue cost however remain unpaid. The companies also agreed on the following: CARDO guarantees the prices of there stocks and promises to pay the peso decline in their shares within one year. CARDO Co promises to pay the stockholders of SYANO Co an additional P100,00 if the net income of the company in the next year will be more than P500,000. CARDO estimates that there is an 80% probability of achieving the target income. Compute for the Consolidated Total Assets at the date of acquisition.If CARDO Co purchases the net assets of SYANO Co by issuing 4,000 shares of their P10 par value shares with a fair value of P35 per share, a P40,000 direct cost and a P50,000 stock issue cost however remain unpaid. The companies also agreed on the following: CARDO guarantees the prices of there stocks and promises to pay the peso decline in their shares within one year. CARDO Co promises to pay the stockholders of SYANO Co an additional P100,00 if the net income of the company in the next year will be more than P500,000. CARDO estimates that there is an 80% probability of achieving the target income. Compute for thetotal assets at the date of acquisitionIf CARDO Co purchases the net assets of SYANO Co by issuing 4,000 shares of their P10 par value shares with a fair value of P35 per share, a P40,000 direct cost and a P50,000 stock issue cost however remain unpaid. The companies also agreed on the following: CARDO guarantees the prices of there stocks and promises to pay the peso decline in their shares within one year. CARDO Co promises to pay the stockholders of SYANO Co an additional P100,00 if the net income of the company in the next year will be more than P500,000. CARDO estimates that there is an 80% probability of achieving the target income. compute for the consolidated total equity at the date of acquisition