User Account

All Pages

What amount should be reported as interest expense

Assignment Help Financial Accounting
Reference no: EM132880999

On July 1, 2016, Jamelia Company borrowed P1,000,000 on a 10%, five-year note payable. On December 31, 2016, the fair value of the note is determined to be P975,000 based on market and interest factors. The entity has elected the fair value option for reporting the financial liability.

Problem 1: What amount should be reported as interest expense for 2016?

a. 100,000

b. 97,500

c. 50,000

d. 48,750

Problem 2: What is the carrying amount of the note payable on December 31,2016?

a. 1,000,000

b. 975,000

c. 500,000

d. 900,000

Problem 3: What is the gain or loss to be recognized in 2016 as a result of the fair value option

a. 25,000 gain

b. 25,000 loss

c. 12,500 gain

d. 0

Reference no: EM132880999

Questions Cloud

What amount should be recognized as gain from debt : Gold Company is experiencing financial difficulty, What amount should be recognized as gain from debt extinguishment as a result of the "equity swap"?
What amount should be report as gain on extinguishment : Under IFRS, what amount should be reported as gain on extinguishment of liability? The following information pertains to the transfer of real estate pursuant
What is a human resources consultant to do : Anthony LePage is the owner of a local recruitment agency that has an established presence in the northern Ontario market. He is looking to expand its service
Why managers dread performance appraisals : Explain the fear of why managers dread performance appraisals. What can be done to help prevent the fear?
What amount should be reported as interest expense : What is the gain or loss to be recognized in 2016 as a result of the fair value option?What amount should be reported as interest expense for 2016?
Examine the organization specific practices or policies : Examine the organization's specific practices or policies and the influence of these practices on individual and organizational outcomes
What amount should be recognized as interest expense : What amount should be recognized as interest expense for 2016? On January 1,2016, Kaila Company loaned P1,780,000 cash to Stone Company.
What amount should be reported as accrued interest payable : On December 31, 2017, what amount should be reported as accrued interest payable? On September 1,2016. Marco Company issued a note payable to National Bank
Several types of hr staffing forecasting : There are several types of HR staffing forecasting. Choose one of these and explain why you feel it is important. (exclude currency exchange rate forecast).

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