31. Vigan Corporation included the following in its notes receivable as at December 31, 2021:Note receivable from sale of landP880,0001,200,000Note receivable from consultationNote receivable from sale ofequipment1,600,000In connection with your audit, you were able to gather the following transactions during 2021 and other informationpertaining to the company's notes receivable:a. On January 1, 2021, Vigan Corporation sold a tract of land. The land was purchased 10 years ago was carried onVigan's Corporation's books at a value of P 500,000. Vigan received a noninterest bearing note for P 880,000. The noteis due on December 31, 2022. There is no readily available market value for the land but the current market rate ofinterest for comparable notes is 10%.b. On January 1, 2021, Vigan Corporation finished consultation services and accepted in exchange of a promissory notewith a face value of P 1,200,000, a due date of December 31, 2023 and a stated rate of 5% with interest receivable at theend of each year. The fair value of the services is not readily determinable and the note is not readily marketable. Underthis circumstances, the note is considered to have an appropriate imputed rate of interest of 10%.c. On January 1, 2021, Vigan Corporation sold equipment with a carrying amount of P 1,600,000 to Y Company. Aspayment, Y gave Vigan Corporation a P 2,400,000 note. The note bears an interest rate of 4% and is to be repaid in threeannual installments of P 800,000 (plus interest on the outstanding balance) The first payment was received on DecemberShow Transcribed TextC34. The current portion of long-term notes receivable as at December 31, 2021 isA. P 1,468,200B. P 800,000C. P 1,600,000D. P 1,680,00035. The interest income to be recognized in 2021 isA. P 156,000B. P 435,800C. P 464,000D. P 459,500

Notes receivable is a promissory note where one party promises to another party to pay a certain sum…

Answered: 34. The current portion of long-term…

Business

Accounting

34. The current portion of long-term notes receivable as at December 31, 2021 is

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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Vigan Corporation included the following in its notes receivable as at December 31, 2021: Note receivable from sale of land P            880,000 Note receivable from consultation             1,200,000 Note receivable from sale of equipment             1,600,000 In connection with your audit, you were able to gather the following transactions during 2021 and other information pertaining to the company’s notes receivable: On January 1, 2021, Vigan Corporation sold a tract of land. The land was purchased 10 years ago was carried on Vigan’s Corporation’s books at a value of P 500,000. Vigan received a noninterest bearing note for P 880,000 . The note is due on December 31, 2022. There is no readily available market value for the land but the current market rate of interest for comparable notes is 10%. On January 1, 2021, Vigan Corporation finished consultation services and accepted in exchange of a promissory note with a face value of P 1,200,000 , a due date of…
The Umaasa Company included the following in its notes receivable as of December 31, 2022: Note receivable from sale of land.                           P1,320,000 Note receivable from consultation                          1,800,000 Note receivable from sale of equipment              2,400,000 In connection with your audit, you were able to gather the following transactions during 2022 and other information pertaining to the company's notes receivable: On January 1, 2022, Umaasa Company sold a tract of land. The land, purchased 10 years ago, was carried on Umaasa Company's books at a value of P750,000. Umaasa received a noninterest-bearing note for P1,320,000. The note is due on December 31, 2024. There is no readily available market value for the land, but the current market rate of interest for comparable notes is 11%. On January 1, 2022, Umaasa Company finished consultation services and accepted in exchange a promissory note with a face value of P1,800,000, a due date of…
Vigan Corporation included the following in its notes receivable as at December 31, 2021: Note receivable from sale of land P            880,000 Note receivable from consultation             1,200,000 Note receivable from sale of equipment             1,600,000 In connection with your audit, you were able to gather the following transactions during 2021 and other information pertaining to the company’s notes receivable: On January 1, 2021, Vigan Corporation sold a tract of land. The land was purchased 10 years ago was carried on Vigan’s Corporation’s books at a value of P 500,000. Vigan received a noninterest bearing note for P 880,000 . The note is due on December 31, 2022. There is no readily available market value for the land but the current market rate of interest for comparable notes is 10%. On January 1, 2021, Vigan Corporation finished consultation services and accepted in exchange of a promissory note with a face value of P 1,200,000 , a due date of…
A. Based on the above and the result of your audit, answer the following(Round off present value factors to four decimal places and final answers to nearest hundred) 4. The current-portion of long-term notes receivable as of December31, 2022 is 5. The interest income to be recognized in 2022 is
1. In connection with the audit of NMD Inc. financial statements, the following data was gathered in connection to its accounts receivable for the year ended December 31, 2019. Accounts Receivable, Jan. 1, 2019 720,000 Allowance for Doubtful Accounts, Jan. 1, 2019 28,800 Sales during the year, all on account, terms 2/10, 1/15, n/60 3,600,000 Cash received from customers 3,840,000 Accounts written off 33,600 An analysis of the cash received from customers during the year revealed that P2,116,800 was received from customers availing the 10-day discount period, P1,188,000 from customers availing the 15-day discount period, P6,840 represented recovery of accounts written off, and the balance was received from customers paying beyond the discount period. NMD's year-end balance of allowance for doubful accounts was estimated to be 5% of the outstanding accounts receivable as of December 2019. How much is the accounts receivable as of December 31, 2019? a.460,800…
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You obtained the following information on the current account of Par Company during your examination of its financial statements for the year ended December 31, 2021. The bank statement on November 30, 2021 showed a balance of P 306,000 . Among the bank credits in November was customer’s noted for P 100,000 collected for the account of the company which the company recognized in December among its receipts. Included in the bank debits were costs of checkbooks amounting to P 1,200 and a P 40,000 check which was charged by the bank in error against Par Company account. Also in November, you ascertained that there were deposits in transit amounting to P 80,000 and outstanding checks totaling P 170,000. The bank statement for the month of December showed total credits of P 416,000 and total charges of P 204,000. The company’s books for December showed total debits of P 735,600 , total credits of P 407,200 and a balance of P485,600. Bank debit memos for December were: No. 121 for service…
Below are the transactions related to notes receivable activity for Barton Corporation. Record each transaction in the journal provided. Enter the date of the last transaction. 2020 13-Nov Accepted a $40,000, 90-day, 6% note from a customer in exchange for their past due accounts receivable balance 31-Dec Made an entry to accrue the accrued interest earned on the Nov 13 note 2021 11-Feb Received payment for the principal and interest on the note dated November 13 22-Apr Accepted a $20,000, 45-day, 5% note from a customer in exchange for consulting fees provided ??? Received payment for the principal and interest on the note dated April 22…
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