On January 1, 2013, BNI Co. sold machinery costing P3,000,000 with accumulated depreciation of P1,200,000 in exchange for a 3-year, P900,000 noninterest-bearing note receivable due as follows: Date Amount of installment December 31, 2013 400,000 December 31, 2014 350,000 December 31, 2015 150,000 Total 900,000 The prevailing rate of interest for this type of note is 10%. How much is the carrying amount of the receivable on December 31, 2013?

On January 1, 2013, BNI Co. sold machinery costing P3,000,000 with accumulated depreciation of P1,200,000 in exchange for a 3-year, P900,000 noninterest-bearing note receivable due as follows: Date Amount of installment December 31, 2013 400,000 December 31, 2014 350,000 December 31, 2015 150,000 Total 900,000 The prevailing rate of interest for this type of note is 10%. How much is the carrying amount of the receivable on December 31, 2013?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, 2018, Sana Madali Lang Company sold machinery costing P5,000,000 with accumulated depreciation of P1,800,000. In consideration for the sale, Sana Madali Lang Company received cash of P100,000 and a P3,000,000 non-interest-bearing note due on December 31, 2021. The prevailing interest rate for a note of this type is 10%. (The PVF of 1 at 10% for 4 years is 0.6830 while the PVF of ordinary annuity at 10% for 4 years is 3.1699) 4. How much is the carrying amount of the note on December 31, 2019? a. P2,329,030 b. P2,401,831 c. P2,561,933 d. P2,253,900 e. P2,479,290
On January 1, 2018, Sana Madali Lang Company sold machinery costing P5,000,000 with accumulated depreciation of P1,800,000. In consideration for the sale, Sana Madali Lang Company received cash of P100,000 and a P3,000,000 non-interest-bearing note due on December 31, 2021. The prevailing interest rate for a note of this type is 10%. (The PVF of 1 at 10% for 4 years is 0.6830 while the PVF of ordinary annuity at 10% for 4 years is 3.1699) How much is the carrying amount of the note on initial recognition? а. Р3.000,000 b. P5,000,000 c. P2,049,000 1. d. P2,117,300 е. Р9,509,700 How much is the loss on sale of machinery? a. P1,051,000 b. P1,082,700 c. P1,151,000 2. d. P982,700 e. P2,851,000 3. How much is the interest income for 2019? а. Р225,390 b. P204,900 c. P211,730 d. P232,903 е. Р300,000 4. How much is the carrying amount of the note on December 31, 2019? а. Р2,329,030 b. P2,401,831 c. P2,561,933 d. P2,253,900 e. P2,479,290
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On January 1, 2010, WPK Co. sold a transportation equipment with a historical cost of P1,000,000 and accumulated depreciation of P300,000 in exchange for cash of P100,000 and a noninterest-bearing note receivable of P800,000 due on January 1, 2013. The prevailing rate of interest for this type of note is 12%. What is the net effect of the transaction in WPK's 2010 profit or loss?
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