Reference no: EM132997086

Questions -

Q1. At the beginning of current year, an entity purchased from another entity a P 2,000,000 8% five- year note that required five annual year - end payments of P 500,900. The note was discounted to yield a 9% rate. At date of purchase, the company recorded the note at present value of P 1,948,500. How much is the interest revenue recognized by the entity at the end of year after current year? Round off to the nearest Peso.

Q2. At the beginning of current year, an entity purchased from another entity a P 2,000,000 8% five- year note that required five annual year - end payments of P 500,900. The note was discounted to yield a 9% rate. At date of purchase, the company recorded the note at present value of P 1,948,500. What is the carrying amount of the note at the end of second year? Round off to the nearest Peso.

Q3. BBB Company factored P6,000,000 of accounts receivable to a finance entity at the beginning of current year. Control was surrendered by BBB Company. The factor assessed a fee of 3% and retained a holdback equal to 5% of the accounts receivable. In addition, the factor charged 15% interest computed on a 30 - day per month basis to maturity of the accounts receivable for 54 days. If all of the accounts are collected, what is the cost of factoring the accounts receivable?