Reference no: EM132872470
Question - On December 31, 2019, Innovation Company sold a machinery costing P5,200,000 which had a carrying amount of P2,200,000 for P3,000,000. The terms of the sales were P600,000 down payment and P1,200,000 payable on December 31 of the next two years.
The sale agreement made no mention of interest. However, 9% would be a fair rate for this type of transaction. The present value of an ordinary annuity of 1 at 9% for two years is 1.76.
Required -
1. Journal entries for 2019, 2020 and 2021.
2. What is the carrying amount of the note receivable on December 31, 2019, December 31, 2020 and December 31, 2021?
3. What is the interest income for 2019, 2020 and 2021?
|
Imperfect decision-making in an organization
: Based on the video, how do we make ourselves vulnerable or not so vulnerable with decision-making? What are some factors that may contribute to imperfect decisi
|
|
What would be the appropriate journal entry
: If the transaction was considered to have commercial substance, what would be the appropriate journal entry
|
|
Prepare the entry required on December
: Prepare the entry required on December 31, 2021, to record the payment of the first 6 months' interest and the amortization of premium on the bonds
|
|
Differentiate between term bonds and mortgage bonds
: Differentiate between term bonds, mortgage bonds, debenture bonds, income bonds, callable bonds, registered bonds, bearer or coupon bonds
|
|
What is the carrying amount of note receivable on December
: What is the carrying amount of the note receivable on December 31, 2019, December 31, 2020 and December 31, 2021
|
|
Assess between types of jobs outsourced to china and india
: Assess the similarities and differences between the types of jobs being outsourced to China and India. Your post should also address the pros of outsourcing job
|
|
What the depreciation expense reported
: The geological survey of the resource property indicated an estimated content of 1,000,000 units. What the depreciation expense reported
|
|
Explain the confucian understanding of material and moral
: Explain the Confucian understanding of material and moral incentives. Explain law as reconciliation, law as restitution. Explain moral markets
|
|
Analyzing purchase history is the key to customer retention
: Analyzing purchase history is the key to customer retention. When building customer segments, treat buyers with 2 purchases differently
|