Solution-What amount should be recognized as interest income

What amount should be recognized as interest income

Assignment Help Accounting Basics

Reference no: EM132756756

On January 1, 2019, an entity sold equipment with carrying amount of P2,000,000 in exchange for a noninterest bearing note for P5,000,000 requiring ten annual payments for P500,000. The first payment was made on December 31, 2019. The market interest for similar note was 12%. The present value of an ordinary annuity of 1 is 5.65 for ten periods and 5.33 for nine periods.

Problem 1: What amount should be recognized as interest income for 2019?

Reference no: EM132756756

Questions Cloud

How much should be presented as trade and other receivables : On December 31, 2019, the "Receivable" account, How much should be presented as "trade and other receivables" under current assets?

Communicating policy even when you do not agree : How will you accommodate multiple cultures when communicating these issues to employees?

How much would each preferred shareholder receive : On 1/1/20, RAD Corp issued $100 Par Value Preferred Stock with provisions for $5 dividends. How much would each preferred shareholder receive

Define the various technologies that are emerging : Please review the article and define the various technologies that are emerging as noted in the article. Note how these emerging technologies are impacting.

What amount should be recognized as interest income : What amount should be recognized as interest income for 2019? On January 1, 2019, an entity sold equipment with carrying amount of P2,000,000 in exchange

Calculate the residual income of Paver Hospital : Superior has established a required rate of return equal to 18 percent of invested capital. Calculate the residual income/EVA of Paver Hospital

Non-medical staff making medical decisions : The pros and cons of having non-medical staff making medical decisions. Getting the buy-in of facility staff and administrators with suggested changes.

Have you been issued cpt or are currently on cpt : In a 200-word document, describe your topic. Identify research in the area any models/theories developed in the area. Have you identified a cite problem.

How much can wildhorse expect to receive for the sale : The discount rate for such securities is 10%. How much can Wildhorse expect to receive for the sale of these bonds

User Account

All Pages

What amount should be recognized as interest income

Reference no: EM132756756

Reference no: EM132756756

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT