Please provide explanation and solution for my guidance thank you ?? Take time to answer ? Im not in a rush :)
LOWS of QUESTIONS not yet 1. Explain discounting of note receivable. so fall terion 2. Who are the original parties in a promissory note? 3. Who are the parties involved after discounting of note receivable? of the 4. Explain endorsement of a negotiable instrument. wards" 5. What is the formula in computing net proceeds from discounting of note receivable? 6. Explain maturity value. 7. What is the formula in computing interest on the note receivable? among 8. Explain discount in relation to discounting of note earcut receivable. ancial 9. What is the formula in computing discount? 10. Explain the carrying amount of the note receivable upon ting of discounting. or as a ability. 11. What is the formula in computing gain or loss on discounting of note receivable? ing or 12. Explain discounting without recourse. without ol over 13. Explain discounting with recourse accounted for as conditional sale. ver the 14. Explain discounting with recourse accounted for as secured actical borrowing. taching 15. What are the criteria for the derecognition of a financial asset? 261Northical C Recent note PROBLEMS 19 The n Problem 9-1 (ACP) Walleye Company provided the following transactions: Jan. 1 The entity sold merchandise for P500,000 accepting 3 Receiv a note of P500,000 for six months with interest to be note d May paid at maturity at 12%. March 1 The entity discounted the note without recourse at 16 The n the local bank at 15%. July 1 The customer paid the bank in full. 25 Receiv 12% Required: Prepare journal entries to record the transactions. Gave the no Problem 9-2 (IAA) Morale Company provided the following transactions: June 7 Receiv March 14 Sale of merchandise, P2,050,000 to a customer. FOB destination 2 / 10, n / 30. was n April 7 Receipt of a 60-day, 12% note dated April 5 from the customer. The face of the note was the amount of Paid the invoice minus freight charge of P50,000 paid by the customer in connection with the March 14 sale. charg 20 The note of the customer was discounted with the bank at 15%. 15 Rece June 4 Receipt of notification from bank that the customer dishonored the note. Accordingly, the the entity paid the bank the amount due including protest fee and 18 Rece other charges of P10,000. July 4 Receipt of cash from the customer for the full amount of indebtedness plus interest on the org original face value. Required: Required: a Prepare jour Prepare journal entries to record the transactions assuming any discounting of note receivable is accounted for as any discou conditional sale with recognition of a contingent liability condition Prepare 262Problem 9-3 (LAA) Mythical Company provided the following transactions : ns: April 5 Received from A, a customer, P500,000, 60-day, 12% accepting note, dated April 4, in payment of an account. rest to be 19 The note of A was discounted with the bank at 14%. course at May 3 Received a P1,000,000, 30-day noninterest bearing note dated May 1 from B, in payment of an account. 16 The note of B was discounted with the bank at 12%. 25 Received from C, a customer, a P1,500,000, 60-day 12% note dated May 15 and made by Company X. Gave the customer credit for the maturity value of the note less discount at 12%. ions: customer. June 7 Received notice from the bank that the note of A was not paid on maturity. 5 from the Paid bank the amount due plus protest fee and other amount of charges of P20,000. 00 paid by ch 14 sale. 15 Received a 60-day, 12% note, P800,000, dated June d with the 15, from D, a customer for sale of merchandise. e customer 18 Received full payment from A including interest of entity paid 12% on total amount due from maturity date of est fee and original note. Required: or the full est on the a. Prepare journal entries to record the transactions assuming any discounting of note receivable is accounted for as conditional sale with recognition of a contingent liability. 8 assuming b. Prepare the necessary adjustments on June 30. ed for as at liability 263
