Reference no: EM132945071
Questions -
Q1) On July 1, 2017. Karma Company sold equipment to a customer for P1,000,000. The entity accepted a 10% note receivable for the entire sale price. This note is payable in two equal installments of P500,000 plus accrued interest on December 31, 2017 and December 31, 2018. On July 1, 2018, the entity discounted the note at a bank at an interest rate of 12%.
What is the amount received from the discounting of note receivable?
a. 484,000
b. 493,500
c. 503,500
d. 517,000
Q2) Apex Company accepted from a customer P1,000,000 face amount, 6-month, 8% note dated at the beginning of current year. On the same date, Apex discounted the note with recourse at the bank at a 10% discount rate. The discounting is accounted for as a secured borrowing.
What is the interest expense to be recognized on the date of discounting?
a. 50,000
b. 40,000
c. 52,000
d. 12,000
Q3) On November 1, 2017. Duress Company discounted with recourse at 10% a one year, noninterest bearing, P2,050,000 note receivable maturing on January 31, 2018. The discounting of the note receivable is accounted for as a conditional sale with recognition of a contingent liability.
What amount of contingent liability should be disclosed in the financial statements for 2017?
a. 2,050,000
b. 2,000,000
c. 2,033,333
d. 0
|
Explain the alternatives to leadership with examples
: With reference to the above situation, explain the alternatives to leadership with examples. Answer this question in not more than 400 words.
|
|
What will be the total liquidity requirement of this bank
: Actual Loans outstanding are $200m and $150m respectively. What will be the total liquidity requirement of this bank based on structure of fund approach
|
|
Explain the barriers to inclusion
: In your opinions, explain the barriers to inclusion. Answer this question in not more than 400 words.
|
|
Determine what type of bias the study involves
: You interview every twentieth person as they leave the church in your neighborhood. Determine what type of bias the study involves.
|
|
What is the amount received from the discounting
: On July 1, 2017. Karma Company sold equipment to a customer for P1,000,000. What is the amount received from the discounting of note receivable
|
|
Why should any business use forecasting models
: Given that any forecast demand rarely matches the actual demand for any period (that is all forecasts have some errors), why should any business use forecasting
|
|
Explain the relationship between bill of materials
: Explain the relationship between bill of materials, work centres, and product routings. Briefly describe component assignment in the production order process
|
|
How is the revenue on this service contract recognized
: How is the revenue on this service contract recognized in the year 2017 under (1) U.S. GAAP and (2) IFRS 15? Prepare the necessary journal entries
|
|
How much is the lease liability on december
: If the equipment is to have a guaranteed residual value of 500,000 at the end of the lease, how much is the lease liability on December 31, 2019?
|