How much impairment loss should be recognized by zoren co

Assignment Help Accounting Basics
Reference no: EM132776466

Problem 1: Anna Co., one of Zoren Co.'s credit customers, is experiencing financial difficulties and a downward trend in its financial performance. The firm is unable to service its debts and as a result has missed the payment of its note and accrued interest with Zoren Co. The principal amount of the note is P500,000 (which is already due) with annual interest of 10% payable annually. Accrued interest balance at December 31, 2019 is P50,000. Anna Co. management has negotiated a modification of its debt terms with Zoren Co. and agreed to these new terms: A. Forgive the accrued interest at December 31, 2019 B. Extend the payment of the principal for two years C. Reduce the interest rate (payable annually) to 8%. How much impairment loss should be recognized by Zoren Co. on December 31, 2019?

Reference no: EM132776466

Questions Cloud

Find what is carrying amount of notes receivable on december : Ordinary annuity of 1 at 12% is 5.65 for 10 periods and 5.33 for 9 periods. What is the carrying amount of the notes receivable on December 31, 2019?
Area of the output piston that crushes the trash : A force of 350 N pushes down on 1.3 cm2 piston to crush trash in a trash compactor. The trash is crushed with a force of 22,076N.
Does the ice cube float or sink in the water : Johnnie drops a .033 kg ice cube into her glass of soda water. The ice cube has dimensions of 3.0 cm x 3.0 cm x 4.0 cm. Does the ice cube float or sink in the w
How roles incorporate concepts into practice : Advanced registered nurses work in highly collaborative environments and must collaborate with interdisciplinary teams in order to provide excellent patient.
How much impairment loss should be recognized by zoren co : How much impairment loss should be recognized by Zoren Co. on December 31, 2019? Anna Co., one of Zoren Co.'s credit customers, is experiencing financial
What can be done in the form of medical interventions : Mrs. J. is a 63-year-old married woman who has a history of hypertension, chronic heart failure, and chronic obstructive pulmonary disease (COPD).
How long does the car take to stop completely : The radius of a tire is 0.26 m and assume they do not slip on the pavement. How long does the car take to stop completely?
What would suggest jasper consider : What would you suggest Jasper consider as he attempts to maximize his current-year deductible loss? The end of the year is approaching, and Jasper Jax has begun
What happens to the water level in the tub : Think carefully and explain the answer. You have three choices for answers-the water level can go up, it can go down or it can stay the same.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

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