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- Assume the following data pertaining to Franchise agreement between Franchisor Mayangand Franchisee Mark at the start of 2017:Useful life of franchise 12 yearsInitial franchise fee 1,200,000Downpayment 300,000Balance payable in 6 equal installment ` 150,000Implicit rate of borrowing 12%Present value of ordinary annuity of 1 for 6 periods 4.11The note is a non-interest bearing noteOn December 31, 2017, the initial services required of the franchise agreement aresubstantially performed. The total cost of such services amounted to P229,125.Required; Compute the following;b. On the books of the frnachisor1. Total cash received by franchisor is 2017 ________________2. Interest income 2017 ________________3. Franchise fee revenue on 12/31/17 ________________4. Gross profit rate ________________5. Using installment method, realizedGross revenue on 12/31/17 ________________6. Balance of notes receivable on 12/31/18 ________________7. Rules in answering these problem_______Assume the following data pertaining to Franchise agreement between Franchisor Mayangand Franchisee Mark at the start of 2017:Useful life of franchise 12 yearsInitial franchise fee 1,200,000Downpayment 300,000Balance payable in 6 equal installment ` 150,000Implicit rate of borrowing 12%Present value of ordinary annuity of 1 for 6 periods 4.11The note is a non-interest bearing noteOn December 31, 2017, the initial services required of the franchise agreement aresubstantially performed. The total cost of such services amounted to P229,125.Required; Compute the following;a. On the books of franchisee:1. Cost of franchise _____________________2. Cash paid on 12/31/17 _____________________3. Amortization of franchise, 2017 _____________________4. Carrying amount of franchise, 12/31/18 _______________b. On the books of the frnachisor1. Total cash received by franchisor is 2017 ________________2. Interest income 2017 ________________3. Franchise fee revenue on 12/31/17 ________________4.…On September 30, 2022 World Company borrowed P1, 000, 000 on a 9% note payable. The entity paid the first of four quarterly payments of P264, 200 when due on December 31, 2022. 1. What amount should be reported as interest expense for 2022? A. 90, 000 В. 22,500 C. 67,500 D. 30,000 2. On December 31, 2022, what is the carrying amount of the note payable? A. 758, 300 В. 750, 000 С. 825, 800 D. 735, 800
- Name: Course & Year: 1. Assume the following data pertaining to Franchise agreement between Franchisor Mayang and Franchisee Mark at the start of 2017: 12 years 1,200,000 300,000 150,000 Useful life of franchise Initial franchise fee Downpayment Balance payable in 6 equal installment Implicit rate of borrowing Present value of ordinary annuity of 1 for 6 periods 4.11 12% The note is a non-interest bearing note On December 31, 2017, the initial services required of the franchise agreement are substantially performed. The total cost of such services amounted to P229,125. Required; Compute the following, a. On the books of franchisee: 1. Cost of franchise 2. Cash paid on 12/31/17 3. Amortization of franchise, 2017 4. Carrying amount of franchise. 12/31/18On January 1, Year 1, Zero Company obtained a $52,000, four-year, 6.5% installment note from Regional Bank. The note requires annual payments of $15,179, beginning on December 31, Year 1. The December 31, Year 2 carrying amount in the amortization table for this installment note will be equal to )a. $26,000 b. $21,642 Oc. $28,402 Od. $27,635Related data of John-j Company: Face amount P2,550,000 Nominal rate 12% Effective rate 14% Date of issue January 1, 2021 Annual payment every December 31 P850,000 (Principal and interest) Interest is payable annually December 31 The entity used 3 decimal places for the PVF. Bonds mature on January 1, 2023 Required: What is the present value of the bonds payable on January 1, 2021?
- Everglades Consultants takes out a loan in the amount of $375,000 on April 1. The terms of the loan include a repayment of principal in eight, equal installments, paid annually from the April 1 date. The annual interest rate on the loan is 5%, recognized on December 31. (Round answers to the nearest cent, if needed.) A. Compute the interest recognized as of December 31 in year 1. B. Compute the principal due in year 1.PAR lends $10,000 to SUB (80% owned by PAR) on 7/1/2015. SUB signs a one-year, 8% Note, interest payable on the due date. What is the interest receivable that is reported in the 2015 consolidated balance sheet?i need help for homework PAR lends $10,000 to SUB (80% owned by PAR) on 7/1/2015. SUB signs a one-year, 8% Note, interest payable on the due date. The interest receivable that is reported in the 2015 consolidated balance sheet is: a. 10,000 b. 800 c. 400 d. 0
- On January 1, 20x1, PRISM Co. acquired machinery by issuing a 3-year, P1,200,000 noninterest-bearing note payable due as follows: Date Amount of installment December 31, 20x1 600,000 December 31, 20x2 400,000 December 31, 20x3 200,000 TOTAL 1,200,000 The prevailing rate of interest for this type of note is 10%. How much is the carrying amount of the note on December 31, 20x1? Select the correct response: 867,312 1,026,296 528,926 489,7621. Bank CO approved a loan application of Client ME on January 1, 20A for P3,500,000. Client ME is required to pay 15% interest annually every December 31, from 20A until the principal is extinguished. Client ME has to make an equal annual principal payment of its obligation to commence December 31, 20A. An amount of P61,192 was paid by Client ME as its share from the origination fee totaling P161,192, and the rest was shouldered by the bank resulting to a 14.50% new effective interest rate. On December 31, 20A, the non-current portion of the loan receivable isOn 1 January 2022, Rodney Inc. provided services to Smith Co. in exchange for Smith’s $300,000, 2-year 8% note with interest compounded semi-annually on July 1 and January 1. The current market rate of similar notes is 12%. Rodney Inc. financial year ends December 31. ANSWER: Complete the following amortization schedule: Cash Interest Amortized Carrying Dates Received Income Amount Amount Jan 1, 2022 0 0 0 $ Jul 1, 2022 $ $ $ $ Jan 1, 2023 " " $ $ $ Jul 1, 2023 " " $ $ $ Jan 1, 2024 " " $ $ $ 2. Prepare the necessary journal entries for the following dates for Rodney Inc. Jan 1, 2022: Dr. Answer $ Cr. Answer $ Dec 31, 2022: Dr. Answer $ Dr. Notes receivable $ Cr. Answer $ Jan 1, 2023: Dr. Answer $ Cr. Answer $ $
