2. If the collection of the note receivable is reasonably assured, what is the net income to be reported by the entity for the year ended December 31, 2020? a. 98,850 b. 94,850 c. 70,028 d. 92,037 8907
Q: In Orchard Company’s December 31, 2022 statement of financial position, a note receivable was…
A: Current assets means those assets which will be converted in to cash in near future generally one…
Q: Company A received a 5-year Non-interest bearing note payable to Company A on December 31, 2024, P…
A: Given, Note Payable on 31 Dec. 2024 = P 5,000,000 Market Interest Rate = 12%
Q: On December 31, 2022, the lender on a $5,400, 120-day, 12% note dated November 5, 2022, will…
A: The interest receivable is the amount of revenue which is earned but not received yet. It is…
Q: What is the total current liabilities to be presented in the statement of financial position as of…
A: solution: What is the total current liabilities to be presented in the statement of financial…
Q: On October 2, 2020, a company borrowed cash and signed a 3-year,interest-bearing note on which both…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: The unadjusted trial balance of the Manufacturing Equitable at December 31, 2021, the end of its…
A: Here discuss about the details of adjustment entry which are made for the current and non current…
Q: vable is reasonably assured, what is the net income to be recognized by the entity for the year…
A: Franchise Account The Purpose of providing the franchise business to allow to use the reputation of…
Q: In 2021, XYZ made the mistake of not amortizing the Note Payable Discount account. Indicate the…
A: Income statement forms a part of financial statements and is prepared with a view to ascertain the…
Q: Which of the following statements is true? a. If any portion of a non-current liability is to be…
A: current liability - liabilities that are to be paid within one year are current liabilities.…
Q: to record the receipt What should have been the E of note from Company B on October 1, 2020?
A: Note receivable: It is a written promise. The promise is for receiving specific amount of cash on…
Q: Kingbird Corporation factors $ 276,900 of accounts receivable with Kathleen Battle Financing, Inc.…
A: RECOURSE FACTORING IS THE MOST COMMON AND MEANS THAT FACTOR CAN DEMAND MONEY BACK FROM THE COMPANY…
Q: Can you explain why the notes payable amount $250,000 that is due at December 31st, 2021 is not…
A: Introduction: While preparing classified balance sheet, all accounts are presented under classified…
Q: total current liabilities
A: Current liabilities are liabilities to be settled within one accounting year.
Q: n Leni Company's December 31, 2021 statement of financial position, a note receivable was reported…
A: Solution: "Interest is due on July 31, 2022 and July 31, 2023 and principal is due on July 31, 2023"…
Q: . How much from the list od debt above? (items a to d, excluding accrued interests) should be…
A: There are two types of events occurring after the balance sheet date. Some events are adjusting…
Q: months after the given mat
A: Given as,
Q: 1. What is the interest income for 2021? 2. What is the carrying value of the loan receivables to be…
A: Impairment Loss arises when carrying value as at the beginning is greater than the recoverable…
Q: Which of the following is not considered as a cash equivalent? O A three-year treasury notes…
A: Cash equivalents generally includes Liquid Cash, bank accounts and marketable securities, with…
Q: All of the following are true of known liabilities except: rev: 10_02_2019_QC_CS-184070 Top of…
A: liabilities are considered as legal financial debt or obligation that arises during the course of…
Q: From the following particulars of Al Zahra LLC for the year 2019, a. Accounts receivable on 1st Jan…
A: Solution: As per given - From the following particulars of Al Zahra LLC for the year…
Q: What is the total current liabilities to be presented in the statement of financial position as of…
A:
Q: revenue has been recognized in 2021 in connection with the loan. What is the loan impairment loss on…
A: Impairment means a sudden reduction in the asset value that a company has which can be fixed or…
Q: From the following particulars of Al Zahra LLC for the year 2019, a. Accounts receivable on 1st Jan…
A: From the following particulars of Al Zahra LLC for the year 2019, a. Accounts receivable on 1st Jan…
Q: At year-end, Roth Compan note payable in exchange for services nto f296
A: Note payable is the amount that has been borrowed in exchange for the note issued by the company. It…
Q: hich of the following best describes the accounting for assurance-type warranty costs?
A: Since an assurance-type warranty guarantees the functionality of a product, the warranty is not…
Q: On December 31, 2021, what total amount should be reported as current liabilities? a.) 1,066,000…
A: Calculation of Current Liabilities Current liabilities = Accrued Liabilities expense + Unearned…
Q: How much is the impairment loss? 2. What is the AJE to record the loan impairment loss for 2020?…
A: Impairment loss occurs when carrying value is greater than the realisable value. realisable value is…
Q: bly assured, what
A: On 01.01.2020, Entity granted a franchise agreement to a franchisee Franchise agreement = Franchise…
Q: e financial statements of Millstone, Inc. include the following information: At December 31 2019…
A: Accounts receivable is the term, which is defined as the payment or proceeds that the company or…
Q: How much is the contract revenue to date in the year 2019? (In a good accounting form)
A: A company has to recognize revenue and expenses in the year they are earned and incurred,…
Q: A company’s accounts payable dated December 31, 2021, totaled P1,000,000 before any necessary…
A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…
Q: In 2021, TUC Inc. guaranteed a bank loan of ATT Corp. ATT Corp has made all the required loan…
A: TUC Inc. guaranteed a bank loan of ATT Corp. ATT Corp has made all the required loan payments. Since…
Q: An entity accepted from a customer in settlement of an account a P4,000, 000. 90-day 12% note dated…
A: Hey, Since there are multiple questions posted, we will answer first question. If you want any…
Q: Which of the following alternatives represent the amount of non current liabilities in the statement…
A: Non-current liabilities are those liabilities which are also known as the long term liabilities…
Q: On July 1 of the current year, an entity received a one-year note receivable bearing an interest…
A: Journla Entry : Notes Receivable A/c Dr. To Accounts Receivable A/c (Being Notes…
Q: How much is the balance of the note payable as of December 31, 2021 arising from the purchase of…
A: Down payment for machinery=100000 Notes payable 4 of 250000 each Total Notes payable of 10,00,000
Q: When is an encumbrance recorded? What happens to this balance? How are encumbrances reported in…
A: The GASB is the board that provides the guideline to the governmental units about proper accounting…
Q: On July 1 of the current year, an entity obtained a two-year 8% note receivable for services…
A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…
Q: How much is the balance of the “Allowance for Uncollectible Accounts” to be reported in the…
A: Calculation of amount of Uncollectible accounts expense Uncollectible accounts expense = Estimated…
Q: From the following particulars of Al Zahra LLC for the year 2019, a. Accounts receivable on 1st Jan…
A: The allowance for doubtful accounts is created to record estimated bad debt expense for the period.
Q: Required: 1. Does this situation represent a loss contingency? 2. Prepare journal entries that…
A: Solution-1 This is a loss contingency because it meets the definition of a loss contingency: It is…
Q: STU Company accepted from a customer P1,000,000 face amount, 6-month, 8% note dated April 15, 2019.…
A: In case a note receivable is discounted, net amount is received by the entity who gets its…
Q: Which of the following terms does not refer to the amount that is paid by the note issuer to the…
A:
Q: g. How much is the bad debts expense for 2019? h. How much is the adjusted balance of the allowance…
A:
Q: What amount should DanBam report as a liability for deposits on returnable containers at December…
A: Liability: Liability is presented in the balance sheet against assets, Liability means the amount of…
Q: The following Is a portion of the current assets section of the balance sheets of Avantl's, Inc., at…
A: a) Therefore, the bad debt expense recognized for the year is $2,708.
Q: Based on the following data of KONTINALANG Co., how much is the adjusted bank balance as of December…
A: Bank reconciliation statement is the statement that reconciles balance as per bank account with…
Q: 3. What is the total carrying amount of the notes receivable to be presented at the 2021 statement…
A: Interest rate = 3% Notes receivables = P 1000000 Interest = receivable at maturity Terms = 9 months…
Step by step
Solved in 2 steps
- On October 1, 2019, Grahams WeedFeed Inc. signs a contract to maintain the grounds for BigData Corp. The contract ends on March 31, 2020, and has a monthly payment of 3,200. The contract does not include any stipulations for additional periods. On June 1, Grahams WeedFeed and BigData sign a new 12-month contract that is retroactive to April 1, 2020. The monthly fee for the new contract is 4,000 per month and is also retroactive to April 1, 2020. During April and May of 2020, while the new contract was being negotiated, Grahams Weed Feed continued to maintain the grounds, and BigData continued to pay 3,200 per month. BigData was satisfied with Grahams WeedFeeds performance, and the only issue during negotiations was the monthly fee. Required: Determine if a valid contract exists between Grahams WeedFeed and BigData during April and May 2020.Spath Company borrows 75,000 by issuing a 4-year, noninterest-bearing note to a customer on January 1, 2019. In addition, Spath agrees to sell inventory to the customer at reduced prices over a 5-year period. Spaths incremental borrowing rate is 12%. The customer agrees to purchase an equal amount of inventory each year over the 5-year period so that a straight-line method of revenue recognition is appropriate. Required: Prepare the journal entries on Spaths books for 2019 and 2020. (Round answers to 2 decimal places.)On January 1, 2020, an entity granted a franchise agreement to a franchisee. The contract provided that the franchisee shall pay an initial franchise fee of P500,000 and on-going payment of royalties equivalent to 8% of the sales of the franchisee, On January 1, 2020, the franchisee paid down payment of P200,000 and issued a 3-year noninterest bearing note for the balance payable in three equal annual installments starting December 31, 2020. The note has a present value of P240,183 with an effective interest rate of 12%.On June 30, 2020, the entity completed the performance obligation of the franchise at a cost of P352,146. Aside from that, the entity incurred an indirect cost of P22,009.The franchisee started operation on July 1, 2020 and reported sales revenue amounting to P50,000 for the year ended December 31, 2020. The franchisee paid the first installment on its due date.If the collection of the note receivable is reasonably assured, what is the gross profit to be recognized by…
- On January 1, 2020, an entity granted a franchise agreement to a franchisee. The contract provides that the franchisee shall pay an initial franchise fee of P500,000 and on-going payment of royalties’ equivalent to 8% of the sales of the franchisee. On January 1, 2020, the franchisee paid down payment of P200,000 and issued a 3-year non-interest-bearing note for the balance payable in three equal annual installments starting December 31, 2020. The note has a present value of P240,183 with an effective interest rate of 12%. As of June 30, 2020, the entity completed the performance obligation of the franchise at a cost of P352,146. Aside from that, the entity incurred an indirect cost of P22,009. The franchisee started operation on July 1, 2020 and reported sales revenue amounting to P50,000 for the year ended December 31, 2020. The franchisee paid the first installment on its due date. If the collection of the note receivable is reasonably assured, what is the net income to be reported…On January 1, 2020, an entity granted a franchise agreement to a franchisee. The contract provides that the franchisee shall pay an initial franchise fee of P500,000 and on-going payment of royalties equivalent to 8% of the sales of the franchisee. On January 1, 2020, the franchisee paid downpayment of P200,000 and issued a 3-year non-interest bearing note for the balance payable in three equal annual installments starting December 31, 2020. The note has present value of P240,183 with effective interest rate of 12%. As of June 30, 2020, the entity completed the performance obligation of the franchise at a cost of P352,146. Aside from that, the entity incurred indirect costs of P22,009. The franchisee started operation on July 1, 2020 and reported sales revenue amounting to P50,000 for the year ended December 31, 2020. The franchisee paid the first installment on its due date. Question: If the collection of the note is reasonably assured, what is the gross profit to be recognized by the…On January 1, 2020, an entity granted a franchise agreement to a franchisee. The contract provides that the franchisee shall pay an initial franchise fee of P500,000 and on-going payment of royalties equivalent to 8% of the sales of the franchisee. On January 1, 2020, the franchisee paid downpayment of P200,000 and issued a 3-year non-interest bearing note for the balance payable in three equal annual installments starting December 31, 2020. The note has present value of P240,183 with effective interest rate of 12%. As of June 30, 2020, the entity completed the performance obligation of the franchise at a cost of P352,146. Aside from that, the entity incurred indirect costs of P22,009. The franchisee started operation on July 1, 2020 and reported sales revenue amounting to P50,000 for the year ended December 31, 2020. The franchisee paid the first installment on its due date. Question: If the collection of the note receivable is NOT reasonably assured, what is the gross profit to be…
- On January 1, 2021, an entity granted franchise to a franchisee. The franchise agreement requires the franchisee to pay a non-refundable initial franchise fee of P1,500,000 and sales-based royalty of 8% of the sales of the franchisee. The franchisee paid P500,000 upon signing of the agreement and the balance payable in four equal annual installments starting December 31, 2021. The franchisee’s credit rating indicates that he can borrow money at 7% for a loan of this type. In relation to the non-refundable initial franchise fee, the franchise agreement required the entity to render the following distinct performance obligations: · To construct the franchisee’s stall with stand-alone selling price of P600,000. · To deliver 20,000 units of raw materials to the franchisee with stand-alone selling price of P750,000. · To allow the franchisee the access to the entity’s tradename for a period of ten years starting January 1, 2021 with stand-alone selling price of…1. On December 31, 2020, Rice, Inc. authorized Graft to operate as a franchisee for an initial franchise fee of P150,000. Of this amount, P60,000 was received upon signing of the agreement and the balance, represented by a note, is due in three annual payments of P30,000 each beginning December 31, 2021. The present value on December 31,2020 of the three annual payments appropriately discounted is P72,000. According to the agreement, the non- refundable down payment represents a fair measure of the services already performed by Rice; however, substantial future services are required of Rice. Collectability of the note is reasonably certain. a. in Rice’s December 31, 2020 balance sheet, unearned franchise fees from Graft’s franchise should be reported as?1. On December 31, 2020, Rice, Inc. authorized Graft to operate as a franchisee for an initial franchise fee of P150,000. Of this amount, P60,000 was received upon signing of the agreement and the balance, represented by a note, is due in three annual payments of P30,000 each beginning December 31, 2021. The present value on December 31,2020 of the three annual payments appropriately discounted is P72,000. According to the agreement, the non-refundable down payment represents a fair measure of the services already performed by Rice; however, substantial future services are required of Rice. Collectability of the note is reasonably certain. a. in Rice’s December 31, 2020 balance sheet, unearned franchise fees from Graft’s franchise should be reported as? 2. Levi and Zeke agreed on a joint venture to purchase and sell car accessories. Their contract stipulates that the participants shall contribute P25,000 each to be used in purchasing the merchandise, share equally in any gain or…
- On January 1, 2020, an entity granted a franchise to a franchisee. The franchise agreement requires the franchisee to pay a non refundable upfront fee in the amount of P400,000 and on-going payment of royalties equivalent to 5% of the sales of the franchisee. The franchisee paid the non refundable upfront fee on January 1, 2020. In relation to the non refundable upfront fee, the franchise agreement requires the entity to render the following performance obligations: a) To construct the franchisee's stall with stand-alone selling price of P200,000 b) To deliver 10,000 units of raw materials to the franchisee with stand-alone selling price of P250,000 c) To allow the franchisee to use the entity tradename for a period of 10 years starting January 1, 2020 with stand-alone selling price of P50,000. On June 30, 2020, the entity completed the construction of the franchisee's stall. As of December 31, 2020, the entity was able to deliver 3,000 units of raw materials to the franchisee. For the…On November 30, 2019, Garry Company authorized BSCO Corp. to operate as a franchisee for aninitial franchise fee of P1,950,000. Of his amount, P750,000 was received upon signing the agreementand the balance, represented by a note, is due in four annual payments starting November 30, 2020.Present value of P1 at 12% for 4 periods is 0.6355. Present value of an ordinary annuity of P1 at 12%for 4 periods is 3.0374. The period of refund will elapse on January 31, 2020. The franchisor hasperformed substantially all the initial services, but the operations of the store have yet to start.Collectability of the note is reasonably certain.a. How much is the unearned franchise fee on the year ended December 31, 2019?b. How much is the earned franchise fee for the year ended December 31, 2019?On December 31, 2019, Pepe Company signed an agreement to operate as franchise of Annie’s for afranchise fee of P80,000. Of this amount, P30,000 was paid upon signing of the agreement and thebalance is payable in five annual payments of P10,000 each beginning December 31, 2019. Thepresent value of the five payments, at an appropriate rate of interest, is P36,000 on December 31,2019. The agreement provides that the down payment is not refundable, and no future services arerequired of the franchisor. The collection of the note receivable is reasonably certain. Annie’sCompany should report unearned revenue from franchise fee in its December 31, 2019, balance sheetat: