Reference no: EM132966277

Questions -

Q1) On December 31, 2019, Pajero Corporation sold equipment to Safari Company for P100,000. Pajero accepted a 10% note receivable for the entire sales price. This note is payable in two equal installments of P50,000 plus accrued interest on December 31, 2020 and December 31, 2021. On July 1, 2021, Pajero discounted the note at a bank at a discount rate of 12%. Pajero Corporation's proceeds from the discounted note were?

Q2) Wonder Girls Company accepted a P400,000 face value, six-month, 10% note dated May 15 from a customer. After holding the note for two months, Wonder Girls discounted the note without recourse at West Bank at a 12% discount rate and appropriately accounted the discounting as a sale. Accrued interest was appropriately recorded prior to discounting. What was the gain or loss recognized by Wonder Girls on the sale of notes receivable?

Q3) On January 1, 2019, Super Juniors Co. sold transportation equipment with a historical cost of P20,000,000 and accumulated depreciation of P7,000,000 in exchange for cash of P500,000 and a noninterest-bearing note receivable of P8,000,000 due in 4 equal annual installments starting on December 31, 2019 and every December 31 thereafter. The prevailing rate of interest for this type of note is 12%. How much is the current portion of the receivable on December 31, 2019?