On September 1, 2022, Darren Co. borrowed P150,000 from BPI by issuing 8% note due August 31, 2023, for the same amount. Darren Co. pledged all of its P200,000 accounts receivable as security. How much interest should be recognized on December 31, 2022?
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- Kinsella Seed borrowed $207,000 on October 1, 2023, at 10% interest. The interest and principal are due on October 1, 2024. In addition to a debit to Note Payable for $207,000, what should the journal entry for repayment on October 1, 2024 include? Oa, Debit Interest Expense $5,175; debit Interest Payable $15,525; credit Cash $227,700 Ob. Debit Interest Expense $15,525; credit Cash $222.525. Oc. Debit Interest Expense $20,700, credit Cash $227,700. Od. Debit Interest Expense $15,525, debit Interest Payable $5,175, credit Cash $20,700On November 1, 2018, an entity borrowed P1,000,000 from Universe Global Bank and issued a promissory note for the same. The term of the loan is one year and discounted at 12%. The entity pledged accounts receivable of P2,000,000 to secure the loan. On November 1, 2018, what is the entry to record the pledge of accounts receivable? a. No entry needed b. Credit to accounts receivable, P880,000 c. Credit to accounts receivable, P1,000,000 d. Credit to accounts receivable, P2,000,000On November 1, 2021, Calexico Trading accepted a 90-day, 8% P2,000,000 note from ABC Co. Calexico immediately discounted with recourse the note to a bank that offers a 10% discount rate. Calexico assumes the interest expense associated with this transaction. How much interest expense should Calexico Trading debit on its records? Calculate the total interest expense and NOT the net interest expense. Show ur solution
- On August 31, 2023, an entity discounted with recourse a note at the bank at discount rate of 15%. The note was received from the customer on August 1, 2023 for 90 days with face amount of P9,000,000 and an interest rate of 12%. The discounting transaction is accounted for as secured borrowing. The customer paid the note to the bank on October 30, 2023, the date of maturity. 4. What is the interest expense to be recognize on August 31, 2023? Group of answer choices 90,000 51,750 231,750 270,000 The entry on October 30, 2023 will include Group of answer choices Debit to notes receivable discounted P9,000,000 Debit to loans payable P9,038,250 Credit cash P9,000,000 Debit to loans payable P9,000,000Example 4 (Notes Receivable): On November 30, 2020, James Co. lent money to Scott Co. and issued a 5-month, $120,000, 8% note receivable. Scott paid James the full amount of interest and principal on April 30, 2021. What is the journal entry for James Co. to record the issuance of the note receivable? What is the end-of-year adjusting journal entry for James Co. to record interest revenue earned as of December 31?Starr Corporation loaned P90,000 to another corporation on December 1, 2021 and received a 3-month, 6% interest-bearing note with a face value of P90,000. What adjusting entry should Starr make on December 31, 2021? a. Debit Interest Receivable and credit Interest Revenue, P1,350. b. Debit Cash and credit Interest Revenue, P450. c. Debit Interest Receivable and credit Interest Revenue, P450. d. Debit Cash and credit Interest Receivable, P1,350.
- 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, 800On August 1, 2022, Colombo Company's treasurer signed a note promising to pay $120,900 on December 31, 2022. The proceeds of the note were $116,400. Required: a. Calculate the discount rate used by the lender.On November 1, 2021, FDN Trading accepted a 90-day, 8% P45,000,000 note from ABC Co. FN immediately discounted with recourse the note to a bank that offers a 12% discount rate. FDN assumes the interest expense associated with this transaction. How much interest expense should FN Trading debit on its records? Calculate the total interest expense and NOT the net interest expense.
- On October 31 2022. BB Company discounted at the bank a customer's P600,000 interest-bearing note, 6 month, 12% note, dated July 1, 2020 with recourse. The bank discounted the note at 10%. How much is the gain or loss should the company recognize as a result of discounting the notes receivable?January 1, 2022, Abel Co. exchanged services for a $200,000 noninterest-bearing note due on January 1, 2027. The prevailing rate of interest for a note of this type at January 1, 2022 was 10%. The present value of $1 at 10% for five periods is 0.621. What amount of interest revenue should be included in Abel's 2023 income statement? a. $0 b. $12,420 c. $13,662 d. $20,000On December 1, 2022, Telon Corp. engaged the following transactions: •The company pledge P600,000 of its accounts receivable as a security for a P500,000 loan with Yupy Bank. •Factored P1,300,000 of accounts receivable without recourse on a notification basis with Yalong Finance Company. Yalong Finance charged a factoring fee of 10% of the amount of receivable factored and withheld 15% of the receivable factored. •A customer's P700,000, 7-month, 5% note receivable dated August 1, 2022 was discounted with Yummy Bank at 8% discount rate on a with recourse basis. How much is the total cash received from the financing of receivables?