User Account

All Pages

What is the amount of interest income

Assignment Help Accounting Basics
Reference no: EM133171405

Question - On January 1, 2021, San Jose Company sold property to Cabanatuan Company which originally cost San Jose P7,600,000. There was no established exchange price for this property. Cabanatuan gave San Jose a P12,000,000 zero- interest- bearing note payable in three equal annual installments of P4,000,000 with the first payment due on December 21, 2021. The Note has no ready market. The prevailing rate of interest for a Note of this type is 10%. The present value of a P12,000,000 note payable in three equal annual installments of P4,000,000 at a 10% rate of interest is P9,948,000. What is the amount of interest income that should be recognized by San Jose, using the effective- interest method?

Reference no: EM133171405

Questions Cloud

What amount should be credited to share premium : What amount should be credited to share premium as a result of the issuance of the preference shares and the subsequent conversion into ordinary shares
What is landry balance of retained earnings on december : Assuming Landry reported net income of $65,000 for the fiscal quarter ended Dec. 31, 2019, what is Landry's balance of retained earnings on December 31, 2019
Draw a well labelled bar chart representing the variable : Draw a well labelled bar chart representing the variable "Age" - What is the probability that FOUR or more rooms are occupied on any particular weekend night?
Why managers do not delegate : 1) Select one of the reasons why managers do not delegate that you think is most true. Explain why and then explain how a manager can/should overcome that reaso
What is the amount of interest income : What is the amount of interest income that should be recognized by San Jose, using the effective- interest method
How much must she deposit at the end of each month : Jose deposits $75 into a bank account at the end of every month for eight years. How much must she deposit at the end of each month
Small-scale example of social constructionism : Discuss how a trial by jury is a small-scale example of social constructionism.
Discuss the economic benefits of risk retention : Organisations may decide to accept the uncertainty associated with a particular risk exposure.
What is the balance of retained earnings on january : The share capital balance of P5,000,000 remained unchanged during the year, What is the balance of retained earnings on January 1

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