User Account

All Pages

Determine the amount of loss on sale to be reported

Assignment Help Financial Accounting
Reference no: EM133078626

Question - Use the following information for 14-16. On February 1, 2021, Blue Hour Company factored receivables with a a carrying amount of Php2,000,000 to Sweet Night Corporation. Blue Hour assess a finance charge of 3% of the receivables and retains 5% of the receivables.

1. Determine the amount of loss on sale to be reported in the income statement of Blue Hour relative to this transaction for February.

a. None

b. Php60,000

c. Php100,000

d. Php160,000

2. Assume that Blue Hour factors the receivables on a recourse basis. The recourse obligation has a fair value of Php30,000. The loss to be reported should be

a. Php60,000

b. Php90,000

c. Php120,000

d. Php150,000

3. Assume that Blue Hour Company retained significant amount of risks and rewards of ownership on the factored financial asset, what amount of loss from factoring should the company recognize?

a. None

b. Php60,000

c. Php100,000

d. Php160,000

Reference no: EM133078626

Questions Cloud

Examples of companies or business : Cite at least 3 examples of companies or business (local or international) experiencing the following cases.
Compute the capital alowances and balancing charge : Plant & machinery 14%, Office equipment, furniture and fittings 10% and computer 20%. Compute the capital alowances / balancing charge
Baby inherits genes from both parents at conception : A baby inherits genes from both parents at conception. During prenatal development, nutrition and stress can influence some genes to stop functioning while othe
Value of diversity in the workplace : What struck you as most significant about the value of diversity in the workplace?
Determine the amount of loss on sale to be reported : Determine the amount of loss on sale to be reported in the income statement of Blue Hour relative to this transaction for February
What cause movement along a demand curve : - What cause movement along a demand curve -What is a good called when a consumers income and quantity demanded for a good also increases but at the same time t
What are the basic elements of the sop process : What are the basic elements of the S&OP process? How do marketing, logistics, finance, and manufacturing contribute to each element
Determining the effective interest rate : What will be the present value of $164.53 received five years from today, using the effective interest rate 10.47% per year?
Identify each item by letter and list items in columnar form : Identify each item by letter and list the items in columnar form, using the headings shown below. All receipt amounts should be reported in parentheses

Reviews

Write a Review

Financial Accounting Questions & Answers

  Questionwaterways has two main public-park projects to

questionwaterways has two main public-park projects to provide with comprehensive irrigation in one of its service

  Prepare entry to record issuance of bonds and warrant

Assume the same facts as part (a), except that the warrants had a fair value of $20. Prepare the entry to record the issuance of the bonds and warrants. Prepare the entry to record the issuance of the bonds and warrants.

  Common stock transactions and stockholders equity

Prepare the stockholders' equity section of Blank Company's balance sheet at May 31, 2010. Net Income earned during the first three months was $15,000.

  What amount did pecan receive from the bond issuance

Mature on November 1, 2025, and bear interest at 12% payable semiannually on November 1 and May 1. What amount did PECAN receive from the bond issuance?

  Explain to the usefulness of financial statement analysis

Can you explain to the 'Usefulness of financial statement analysis' and how it serves the purpose of 'helping users make better decision'.

  Obtain the rate of interest per annum

Without calculating the present values of the annuities, explain how you can obtain the rate of interest per annum that would make you indifferent

  Discuss at least two unique situations that may encounter

Discuss at least two unique situations or transactions that you may encounter. Describe any circumstances the entity may engage in activities

  What is the current value of the stock of crane corp

management expects the dividend growth rate to be constant at 5 percent. If the required rate of return is 18.00 percent, what is the current value of the stock

  Prepare a multiple-step consolidated income statement

Aeropostale, Inc., is a mall-based specialty retailer of casual apparel and accessories. The company concept is to provide the customer with a focused selection of high-quality, active-oriented fashions at compelling values. Prepare a multiple-ste..

  Prepare journal entries to record the issue of debentures

Exactly the right amount of applications was received by 30 June 2021. Prepare journal entries to record the issue of debentures

  Journal entry to record the issuance of the bonds

Andrews corporation issued 300,000 of 12%, 3-year bonds on january 1. Interest is payable semiannually on June 30 and December 312.. Andrews uses the straight-line methid of amortization. Prepare the journal entry to record the issuance of the bonds ..

  What is your total loan amount

You currently have $35,000 and your bank told you that you would need 15% down payment plus an additional 4% in closing costs. What is your total loan amount

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd