User Account

All Pages

What amount should be reported for jhonson company

Assignment Help Accounting Basics
Reference no: EM132838225

On January 1, 2015, Jhonson Company sold equipment with a carrying amount of P4,800,000 in exchange for a P6,000,000 noninterest-bearing note due January 1, 2018 There was no established exchange price for the equipment.

  • The prevailing rate of interest for a note of this type was 10%. The present value of 1 at 10% for three periods is 0.75.

Problem 1: What amount should be reported as interest income for 2015?

a. 600,000

b. 500,000

c. 450,000

d. 400,000

Problem 2: What amount should be reported as gain or loss on sale of equipment for 2015?

a. 1,200,000 gain

b. 2,700,000 gain

c. 300,000 gain

d. 300,000 loss

Reference no: EM132838225

Questions Cloud

Compute the return on investment for each alternative : The first location (A) requires a $500,000 investment and is expected to yield annual net income of $85,000. Compute the return on investment
How are community resources shared with families : How are community resources shared with families? Are supports discussed in the beginning of the school year, at conferences, in IEPs, or elsewhere?
Find what is carrying amount of note receivable on december : What is the gain on sale of equipment to be recognized in 2015? What is the carrying amount of the note receivable on December 31, 2016?
Create a digital newsletter for parents and caregivers : Create a 1-2 page digital newsletter or brochure for parents and caregivers that provides background information on utilizing resources.
What amount should be reported for jhonson company : What amount should be reported as interest income for 2015? Jhonson Company sold equipment with a carrying amount of P4,800,000 in exchange for a P6,000,000
How the given standards change over time : It seems that our society has a great inclination to solve ethical problems through the legal system. What can be said about current and future ethical.
Compute the depreciation for all the years : The bus was used 15,000 miles in the 1 st Year and 12,000 miles in the 2 nd , 3 rd and 4 th Year. Compute the depreciation for all the years
What amount of interest revenue for unilever company : Unilever Company sold a building and received as consideration P1,000,000 cash. What amount of interest revenue should be reported for 2016?
Limitations and advantages of advanced cloud technologies : Identify and discuss the limitations and advantages of advanced cloud technologies - An excellent poster design, with detailed implementation of the service

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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