On the 02 July 2019 Maxi Trading transferred R30 000 and R50 000 respectively into a fixed deposit account with Strand Bank. The R50 000 invested will mature on 10 July 2020. The interest earned on both fixed deposits is 8% per annum. The year end is 30 June. Required: Discuss, using the accounting standards, how the above will be treated in the financial statements as at 30 June 2020
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- At the end of 2020, the business has a notes payable with maturity value of TL60.000. The maturity date of the note is April 30, 2021. If the discount rate is 20%, which adjusting entry is made on December 31, 2020 by using maturity value method? a.TL4.000 debit to 647-Discount Interest Revenue and credit to 322-Discount on N/P b.TL56.000 debit to 647-Discount Interest Revenue and credit to 322-Discount on N/ c.TL56.000 debit to 322-Discount on N/P and credit to 647-Discount Interest Revenue d.TL4.000 debit to 322-Discount on N/P and credit to 647-Discount Interest RevenueAn investor invests the following amounts of money in banks account R18850 on 1 September 2019,R15575on 31 May 2021 and R19465 ON 1 FEBRUARY 2023.From 1 October 2021 up to 30 April 2023 an amount of R980 invested at the start of every month. From 1 July 2020 up to 31 March 2022 an amount of RX is invested at the end of each quarter. On 1 January 2019 the total present value of all the investments is R75998,34.If the interest rate is 8,75% per year, Calculate the value of X?On January 1, 2019, Bank Dhofar issued CD in Muscat Securities Market which will mature in October 30, 2020. The CD pays 8 % interest rate. Calculate the interest earned on this CD with face value of 100000. Assume all month to be of 30 days. Select one: a. None of these b. 4835.50 OMR C. 5325.40 OMR d. 5260.27 OMR
- At the end of 2019, the business has a notes payable with maturity value of TL12.000. The maturity date of the note is March 31, 2020. If the discount rate is 15%, what is the present value of the note on December 31, 2019 by using maturity value method? a.TL11.400 b.TL10.200 c.TL11.566 d.TL11.5501. Agogo Trading has the following account balances as at 30 June 2019.RMAccount Receivable 200,000Provision for doubtful debt 6,000On 30 June 2019, the following adjustment have to be made:i. Debts of RM500 are to be written off as badii. One of the entities with accounts receivable whose debts had previously been written off as bad sent a cheque for RM1,000 in full settlement of the amount owed iii. Provision for doubtful debts is 2% of the outstanding accounts receivables Required:For the year ending 30 June 2019 show the:a) Provision for doubtful debts accountb) Statement of Profit or Loss (extract)c) Statement of Financial Position (extract) 2. The following is a summary of account receivable and related accounts for threeyears for Tommy Enterprise the financial year ends 30 April each year.Year ended 30 AprilAccount receivable as at 30 April (before writing off bad debts)RMBad debts written offRMProvision for doubtful debt2017 70,000 Nil 2%2018 61,000 1,000 2%2019 83,000…Agogo Trading has the following account balances as at 30 June 2019. RM Account Receivable 200,000 Provision for doubtful debt 6,000 On 30 June 2019, the following adjustment have to be made: Debts of RM500 are to be written off as bad One of the entities with accounts receivable whose debts had previously been written off as bad sent a cheque for RM1,000 in full settlement of the amount owed Provision for doubtful debts is 2% of the outstanding accounts receivables Required: For the year ending 30 June 2019 show the: a) Provision for doubtful debts account Statement of Profit or Loss (extract) Statement of Financial Position (extract) The following is a summary of account receivable and related accounts for three years for Tommy Enterprise the financial year ends 30 April each year. Year ended 30 April Account receivable as at 30 April (before writing off bad debts) RM Bad debts written off RM Provision for doubtful…
- Equity bank grants you a loan of 49,800 on 1 january 2022 that is repayable in 5 annual payments of 13815 at an Interest rate of 12% per annum. Construct arnortization schedule using excel and calculate total interest?On 1st July 2020 Suntek LLC has accepted a note receivable for RO 4000 from one of the accounts receivables. The maturity period is 6 months. The interest rate is 10%. The amount of interest to be recorded in account on 31 December will be a. RO 500 b. RO 400 c. RO 300 d. RO 200On January 1, 2019, Bank Nizwa issued CD in Muscat Securities Market which will mature in October 30, 2020. The CD pays 6% interest rate. Calculate the interest earned on this CD with face value(FV) of 50000. Assume all month to be of 30 days. Select one: O a. 1856.57 OMR O b. 1972.60 OMR O c. None of these O d. 1965.90 OMR Next page Windows bu 直 G a 4) ^
- On September 1, 2019, Silang Trading issued a note payable to Far East Bank in the amount of P500,000. The note had an interest rate of 12%and had a term of 1 year. Interest is payable upon maturity of the note. At December 31, 2019, Silang Trading should record accrued interest on the note in the amount of P60,000 P10,000 P20,000 P15,00029.On September 12, 2021, an entity received a 120-day, 9% note for P50,000 for an overdue account from a customer. The entity uses an accounting year that ends on December 31. Which of the following statements is true? Use 360-day year.A. The maturity date of the note is January 12, 2022.B. The maturity value of the note is P51,500.C. Accrued interest on the note at December 31, 2021 is P1,375. a. A, B, and C b. A and B only c. B and C only d. B onlyProblem: ABC Company issued a promissory note to RCBC Bank. Details from the promissory note are as follows: Date of note: November 1, 2020 Term of note: 180 days Principal: P120,000 Interest rate: 12% Determine the following: 1. What is the account to be credited on the adjusting entry on December 31, 2020? 2. How much is the amount to be credited on December 31, 2020? 3. How much is the total interest expense for the full term of the note.
