User Account

All Pages

How much will appear as the carrying amount of the note

Assignment Help Financial Accounting
Reference no: EM132775114

On December 31, 2018, Conchita Martinez Company signed a P1,000,000 noninterest bearing note to Sauk City Bank. The market interest rate at that time is 12%. The stated interest rate on the note was 10%, payable annually. The note matures in 5 years. Considering these data, the bank released cash to the company amounting to P927,908; i.e., the total of the present value of the principal and interest. Unfortunately, because of lower sales, the company's financial situation worsened. On December 31, 2020, when the carrying amount of the loan is determined to be P951,968, Sauk City Bank determined that it was probable that the company would pay back only P600,000 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the P1,000,000 loan. The present value of 1 at 12% for 3 years is 0.71178 and the present value of an ordinary annuity of 1 at 12% for 3 years is 2.40183.

Problem 1. In the note amortization schedule before impairment, how much will appear as the carrying amount of the note as of December 31, 2019?

Reference no: EM132775114

Questions Cloud

Calculate the production costs incurred in may : Calculate the production costs incurred in May for each of the three jobs. Farm Equipment, Inc., produces tractors and other farm machinery.
Discuss different types of risk bias : In 250 words. Discuss the three different types of risk bias and determine a method of minimizing each type of risk bias with an example.
Was shane ryan an opportunity-driven : Was Shane Ryan an Opportunity-driven or Necessity-driven entrepreneur and What was the solution that fiid offered to solve this problem
Explain the essential concepts of recruitment : Specifically focus on the 3 essential concepts of recruitment and select any one of the concepts to discuss. After discussing, explain to the management team.
How much will appear as the carrying amount of the note : In the note amortization schedule before impairment, how much will appear as the carrying amount of the note as of December 31, 2019?
Explain the pain point or problem shane ryan identified : Explain the Pain point or problem Shane Ryan identified in this case study? What was the solution that fiid offered to solve this problem
What are all of the US tax consequences to all of parties : Individual A owns 50 common shares of X Corp. with an adjusted basis of 80,000. What are all of the US tax consequences to all of parties
Specificity of the immune system : The specificity of the immune system is amazing when you consider how many possible molecules it can recognize. How is this huge variety of cells and antibodies
List five non-financial or financial issues : List 5 non-financial/financial issues that should be considered before accepting or rejecting this order. Should they accept the order?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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