Reference no: EM132963833

Questions -

Q1) On September 1, Jungkook Co. assigns specific receivables totaling P750,000 to Jimin as collateral on a P625,000, 12 percent note. Jungkook Co. will continue to collect the assigned accounts receivable. Jimin also assesses a 2 percent service charge on the total accounts receivable assigned. Jungkook Co. is to make monthly payments to Jimin with cash collected on assigned accounts receivable. Collections of assigned accounts during September totaled P260,000 less cash discounts of P3,500. What were the proceeds from the assignment of Jungkook's accounts receivable on September 1?

Q2) Jak Company sold a tract of land with carrying amount of P3,000,000 to Gorgeous Company on July 1, 2019. P1,200,000 was collected on the date of sale, and the balance of P2,800,000 is collectible in four equal installments of P902,500, consisting of principal and 11% interest on the unpaid balance. The first annual installment is due on July 1, 2020. What amount related to then notes receivable shall be classified as current assets on December 31, 2020?

Q3) On December 1, 2019, the State Finance Company gave Conanan Company a P2,000,000, 12% loan. Conanan Company received proceeds of P1,940,000, after deduction of non-refundable finance and other processing charges of P60,000. Principal and interest are due in 60 monthly installments of P44,500 beginning January 1, 2020. The repayment yields an effective interest rate of 13.4% based on the proceeds of P1,940,000. State Finance Company has the intention of collecting the contractual cash flows from this loan over the full term of the loan, thus, does not elect to measure this ate fair value. How much Interest Receivable should State Finance record on December 31, 2020?