★Problem 1-6 (IAA)Cavalier Company provided the following information onDecember 31, 2021:Accounts payableNotes payable-bankInterest payableMortgage note payable -10%Bonds payable✰6,600,0008,000,000Bank notes payable include two separate notes payable toFirst Bank150,0002,000,0004,000,000A P3,000,000, 10% note issued March 1, 2020, payable ondemand. Interest is payable every six months.A one-year, P5,000,000, 11% note issued January 2, 2021.On December 31, 2021, the entity negotiated a writtenagreement with First Bank to replace the note with a2-year, P5,000,000, 10% note to be issued January 2, 2022.The 10% mortgage note was issued October 1, 2020 with aterm of 10 years.Terms of the note give the holder the right to demandimmediate payment if the entity fails to make a monthlyinterest payment within 10 days of the date the payment isdue.On December 31, 2021, the entity is three months behind inpaying the required interest payment.Required:Compute total current liabilities on December 31, 2021.The bonds payable are 10-year, 8% bonds, issued June 30,2012. Interest is payable semiannually on June 30 andDecember 31.16

Current Liabilities :— Current liabilities are a company's short-term financial obligations that are…

1 Problem 1-6 (IAA) Cavalier Company provided the following information o on December 31, 2021: Accounts payable Notes payable-bank Interest payable Mortgage note payable -10% Bonds payable ✰ 6,600,000 8,000,000 Bank notes payable include two separate notes payable to First Bank: 150,000 2,000,000 4,000,000 A P3,000,000, 10% note issued March 1, 2020, payable on demand. Interest is payable every six months. A one-year, P5,000,000, 11% note issued January 2, 2021 On December 31, 2021, the entity negotiated a written agreement with First Bank to replace the note with 2-year, P5,000,000, 10% note to be issued January 2, 2022. a The 10% mortgage note was issued October 1, 2020 with a term of 10 years. Terms of the note give the holder the right to demand immediate payment if the entity fails to make a monthly interest payment within 10 days of the date the payment is due. On December 31, 2021, the entity is three months behind in paying the required interest payment. Required: Compute total current liabilities on December 31, 2021. The bonds payable are 10-year, 8% bonds, issued June 30, 2012. Interest is payable semiannually on June 30 and December 31. 16

1 Problem 1-6 (IAA) Cavalier Company provided the following information o on December 31, 2021: Accounts payable Notes payable-bank Interest payable Mortgage note payable -10% Bonds payable ✰ 6,600,000 8,000,000 Bank notes payable include two separate notes payable to First Bank: 150,000 2,000,000 4,000,000 A P3,000,000, 10% note issued March 1, 2020, payable on demand. Interest is payable every six months. A one-year, P5,000,000, 11% note issued January 2, 2021 On December 31, 2021, the entity negotiated a written agreement with First Bank to replace the note with 2-year, P5,000,000, 10% note to be issued January 2, 2022. a The 10% mortgage note was issued October 1, 2020 with a term of 10 years. Terms of the note give the holder the right to demand immediate payment if the entity fails to make a monthly interest payment within 10 days of the date the payment is due. On December 31, 2021, the entity is three months behind in paying the required interest payment. Required: Compute total current liabilities on December 31, 2021. The bonds payable are 10-year, 8% bonds, issued June 30, 2012. Interest is payable semiannually on June 30 and December 31. 16

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

See similar textbooks

Similar questions

Problem 1-7 (IAA) Cavalier Company provided the following information on December 31, 2020: Accounts payable Notes payable -bank Interest payable Mortgage note payable – 10% Bonds payable 6,500,000 8,000,000 150,000 2,000,000 4,000,000 Bank notes payable include two separate notes payable to First Bank. A P3,000,000, 10% note issued March 1, 2019, payable on demand. Interest is payable every six months. A one-year, P5,000,000, 11% note issued January 2, 2020. On December 31, 2020, the entity negotiated a written agreement with First Bank to replace the note with a 2-year, P5,000,000, 10% note to be issued January 2, 2021. The 10% mortgage note was issued October 1, 2019 with a term of 10 years. Terms of the note give the holder the right to demand immediate payment if the entity fails to make a monthly interest payment within 10 days of the date the payment is due. On December 31, 2020, the entity is three months behind in paying the required interest payment. The bonds payable are…
K. Company B on October 1, 2020? What is the carrying value of the note received from 2-2 Notes Receivables The trial balance for BLUE Corporation prepared at December 31, 2020 showed a balance of P4,000,000 for Notes Receivables broken as follows: Notes receivable from Company A Notes receivable from Company B 3,000,000 1,000,000 Total 4,000,000 Additional information: The notes receivable from Company A is a three-year non- interest bearing note, with face value of P3,000,000. The note was received in exchange for a piece of land sold by BLUE on May 1, 2020. The land was carried in the books at the date of sale at P2,600,000. The difference between the face amount of the note and the carrying value of the land was credited to gain on sale of land. The market interest rate for a note of this type is 10%. The notes receivable from Company B bears interest at 10%. The note was received from sale of goods in the normal course of business. The note is dated October 1, 2020 and matures on…
I. On December 31, 2020, what is the carrying value of the note received from Company A? 2-2 Notes Receivables The trial balance for BLUE Corporation prepared at December 31, 2020 showed a balance of P4,000,000 for Notes Receivable broken as follows: Notes receivable from Company A Notes receivable from Company B 3,000,000 1,000,000 4,000,000 Total Additional information: The notes receivable from Company A is a three-year non- interest bearing note, with face value of P3,000,000. The note was received in exchange for a piece of land sold by BLUE on May 1, 2020. The land was carried in the books at the date of sale at P2,600,000. The difference between the face amount of the note and the carrying value of the land was credited to gain on sale of land. The market interest rate for a note of this type is 10%. The notes receivable from Company B bears interest at 10%. The note was received from sale of goods in the normal course of business. The note is dated October 1, 2020 and matures…
Problem 4:Canton Cave Company provided the following schedule of liabilities on December 31, 2019:Accounts payable 6,500,000Notes payable-bank 8,000,000Interest payable 150,000Mortgage payable-10% 2,000,000Bonds payable 4,000,000*Bank notes payable include two separate notes payable to First Bank A ₱ 3, 000,000, 10% note issued March 1, 2018, payable on demand. Interest is payable every six months. A one-year, ₱5,000,000, 11% note issued January 2, 2019. On December 31, 2019, Canton Cave negotiated a written agreement with First Bank to replace the note with a 2-year, ₱5,000,000, 10% note issued January 2, 2020.*The 10% mortgage note was issued October 1, 2016 with a term of 10 years. Terms of the note give the holder the right to demand immediate payment if the entity fails to make a monthly interest within 10 days of the date the payment is due.On December 31, 2019, Canton Cave is three months behind in paying its required initial payment.The bonds payable are 10-year, 8% bonds,…
Please solve in (IFRS) principles method not (FASB) Question one: Dab Company provides 1,200,000 of its account receivables to investment bank for notes 600,000 on 1/10/2020. The investment bank collected 2.5 as bank financing charges and 8% interest on notes. Payment will be monthly according to collection of account receivables. On 31/10/2020 collected and paid 180,000, 30/11/2020 collected and paid its 250,000 and 31/12/2019 collected 250000. Required: Journalize all entries for the notes and its settlement during the period?
F. What should be the carrying value of the note received from Company A on May 1, 2020 2-2 Notes Receivables The trial balance for BLUE Corporation prepared at December 31, 2020 showed a balance of P4,000,000 for Notes Receivables broken as follows: Notes receivable from Company A Notes receivable from Company B 3,000,000 1,000,000 Total 4,000,000 Additional information: The notes receivable from Company A is a three-year non- interest bearing note, with face value of P3,000,000. The note was received in exchange for a piece of land sold by BLUE on May 1, 2020. The land was carried in the books at the date of sale at P2,600,000. The difference between the face amount of the note and the carrying value of the land was credited to gain on sale of land. The market interest rate for a note of this type is 10%. The notes receivable from Company B bears interest at 10%. The note was received from sale of goods in the normal course of business. The note is dated October 1, 2020 and matures…
Fill in the entries in the following T-accounts when central bank sells TL 100.000 of government bonds to Halkbank Assets Halkbank Liabilities Central Bank Assets Liabilities
Prepare entries for interest-bearing notes. E10.1 (LO 1), AP C.S. Lewis Company had the following transactions involving notes payable. July 1, 2022 Nov. 1, 2022 Dec. 31, 2022 Feb. 1, 2023 Apr. 1, 2023 Instructions Borrows $50,000 from First National Bank by signing a 9-month, 8% note. Borrows $60,000 from Lyon County State Bank by signing a 3-month, 6% note. Prepares annual adjusting entries. Pays principal and interest to Lyon County State Bank. Pays principal and interest to First National Bank. Prepare journal entries for each of the transactions. Prepare entries for interest-bearing notes.
On 14 December 2021, Catz Zone Enterprise received the monthly bank statement for the month of November 2021. The bank statement showed the following information: Union Bank Berhad DateDescription Payments (RM) Receipts (RM) Balance (RM) 1 NovBalance b/d 21,000 3 314566 500 20,500 4 Cheque Deposit- 203201 22,150 21,500 1,650 6. 314567 650 8. 314568 710 20,790 Cheque Deposit - 432512 314569 9. 1,080 19,710 15 800 18,910 19,710 20,210 16 Cheque Deposit - 113998 800 20 Credit Transfer 500 23 Direct Debit 300 19,910 19,610 19,951 24 314570 300 Cheque Deposit - 145321 Bank Charges 26 341 100 19,851 28 The cash records prepared by Catz Zone Enterprise for the month of November 2021 were as follows: Cásh Receipts Journal (Bank column only) Cheque no. Amount (RM) Date Particulars 203201 1,650 3 Nov Sales 432512 1,800 8. Mariam 754654 1,000 13 Andy 113998 800 15 Svera
Cavalier Company provided the following information December 31, 2019: Accounts payable Notes payable - bank Interest payable Mortgage note payable - 10% Bonds payable 6,500,000 8,000,000 150,000 2,000,000 4,000,000 Bank notes payable include two separate notes payable to First Bank. A P3,000,000, 10% note issued March 1, 2018, payable on demand. Interest is payable every six months. A one-year, P5,000,000, 11% note issued January 2, 2019. On December 31, 2019, the entity negotiated a written agreement with First Bank to replace the note with a 2-year, P5,000,000, 10% note to be issued January 2, 2020. The 10% mortgage note was issued October 1, 2018 with a term of 10 years. Terms of the note give the holder the right to demand immediate payment if the entity fails to make a monthly interest payment within 10 days of the date the payment is due. On December 31, 2019, the entity is three months behind in paying the required interest payment. The bonds payable are 10-year, 8% bonds,…
Lappy Company disclosed the following information on December 31, 2021: Accounts Payable P20,000 Notes Payable P40,000 Notes payable due to bank, 12% interest bearing note payable yearly,issued on August 31, 2021, maturing on August 31, 2022 P1,000,000 Compute for the CURRENT LIABILITIES as of December 31, 2021 *take note of the interest-bearing note
L. How much interest income should be reported on December 31, 2020 with regards to the note from Company B? 2-2 Notes Receivables The trial balance for BLUE Corporation prepared at December 31, 2020 showed a balance of P4,000,000 for Notes Receivables broken as follows: Notes receivable from Company A Notes receivable from Company B 3,000,000 1,000,000 Total 4,000,000 Additional information: The notes receivable from Company A is a three-year non- interest bearing note, with face value of P3,000,000. The note was received in exchange for a piece of land sold by BLUE on May 1, 2020. The land was carried in the books at the date of sale at P2,600,000. The difference between the face amount of the note and the carrying value of the land was credited to gain on sale of land. The market interest rate for a note of this type is 10%. The notes receivable from Company B bears interest at 10%. The note was received from sale of goods in the normal course of business. The note is dated October…