How much is Lupin estimated inventory at July

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Reference no: EM132850083

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Q1. Kylie Company has sold its old equipment with an original cost of $2,000,000 and accumulated depreciation of $1,800,000 for 3-year $250,000 note. The loan's interest rate is 7% while the market rate of similar notes is 8%. What should be the journal entry to record the disposal of the equipment?

Q2. Lupin Inc. utilizes the retail inventory method in estimating its inventory for interim statement purposes. Information in connection to the computation of the inventory at July 31, 2021 are the following:

Particulars	Cost	Retail
Inventory, January 1, 2021	$180,000	$250,000
Purchases	1,020,000	1,575,000
Net markup		175,000
Sales		1,705,000
Estimated normal shoplifting losses		20,000
Net markdown		125,000

How much is Lupin's estimated inventory at July 31, 2021 under the average cost retail method?

Q3. Metrobank made a $2,000,000, 8% loan on January 1, 2018. The $160,000 interest is receivable at the end of each year, with the principal amount to be received at the end of five years. By the end of 2018, the first year's interest of $160,000 has not been received yet because the borrower is experiencing financial troubles. The borrower negotiated a restructuring of the loan. The payment of all of the interest for 5 years will be delayed until the end of the 5 year loan term. In addition, the amount of principal repayment will be dropped from $2,000,000 to $1,200,000. The Present Value of 1 at 8% for 4 periods is .735. No interest revenue has been recognized in 2018 in connection with the loan. What is the loan impairment loss for 2018?

Reference no: EM132850083

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