Question
On January 1, 2021, Jimmy Co. sold office equipment with a cost of P1,000,000 and accumulated depreciation of P150,000 in exchange for a 3-year, 10%,
On January 1, 2021, Jimmy Co. sold office equipment with a cost of P1,000,000 and accumulated depreciation of P150,000 in exchange for a 3-year, 10%, P2,000,000 note receivable. Principal is due on December 31, 2023 but interest is due annually every December 31. Prevailing interest rate for this type of note is 12%.
1. How much is the gain(loss) on sale of office equipment in 2021?
2. How much is the interest income for 2021?
3. How much is the carrying amount of the note on December 31, 2021?
4. How much is the current portion of the note on December 31, 2021?
5. How much is the noncurrent portion of the note on December 31, 2021?
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Financial Accounting A Valuation Emphasis
Authors: John S. Hughes, Frances L. Ayres, Robert E. Hoskin
1st Edition
0471203599, 978-0471203599
