Ghapter 5 ~ Financial Liabitteies What amount should Hoover report as accounts payable on its statement of financial position as of December 31, 2022? a P555,000 b. —_P564,000 S P570,000 (4) P585;000 MC24 The effective interest on a 12-month zero-interest-bearing note Payable of P300,000, discounted at the bank at 10% is ex \a) 11.11% \o0% ; b 10.87% te 1%) © 10.00% = HII / a -9,09% MC25 On January 1, 2022, Las Vegas Company purchased a specialized machinery with a cash equivalent price of P59,737. Las Vegas signed a deferred payment contract that calls for P10,000 down payment and e for P49,737. The note i Jof P20,000 beginning des 10% interest. the year ended nt of the note ued a three-year, P3,000,000 for a ion. The note is every December as an equivalentMC28 MC29 given in MC26. How much of the iscount, should be reported as part of Position? 8 on December'31, 2022 statement of financial me P1,000,000 b. 890,560 7 P 805,120 ) 4 797,440 4 tae the Same information given iri MC26. What is the balance of the Discount on Notes Payable on December 31, 2022? suet Kei a P360,000 aofop 3 BS ° 8 at any at The statement of financial position of Denver Company ing items December 31, 2022 showed, among others, the following it under its liabilities seotiMC31 The following information pertains etal Liabili ds ‘The total issue price (rounded to nearest P100) of the bonds was a. P'1,000,000. b, P 980,000. /E P 965,800. (a.) P 877,100. RY 9 San Francisco Company's nud edt PO“ ny’ Face amount -{P10,000,000} Term - 10 yéars: slat = cae are interest payment dates - July 1 and ‘January 1; issuance of bonds on July 1, 2022. Spx 00 gi! 0 “Effective yield — 12%. me oh 7.36 PV of an ordinary annuity of 1 for 10 periods 8.11 PV of an ordinary annuity of 1 for 20 periods 13.59 Guat) PV of a single amor of 1 for i > ‘single amount of 1 for 10 periods 0.68 (oSK, PV of a single amount of 1 for 20 periodsChapter 5 - Financtat LAabilities 10% Bond without warrant Warrant = 5 7) Ordinary Share, PSO par i What amount should Mani . i bond: Payable 00 May 120299” Stilt (© ‘premiush_on_bonde a. 120,000 ae tlh dy : ; bP 80,000 ae 2 \ev P 40,000 TUE VOW of Bone a P98 MC34 On December 31, 2021, the liability section of Texas Company's statement of financial position included bonds payable of P10 / (million-_and unamortized premium on bonds payable of \P180,000) Further verification revealed that these bonds were \ssued ‘on December 31 \d will become due on December 31, 2029.) snd5 - Financial Liabit ichi lio) bonds (at 102) MC36 Michigan, Inc. issued (P1 million, 12%, 20-year “ \ plus accrued interest or’ February 1, 2022, The bonds are dated, January I, 2022 and pay interest semi-annt every and December 31. Transaction costs totaled(P50,000. Fed Wt ae " How much €ccrued interés on the bonds shall Michigan collect from the investor on February 1? (2) P10,000 AN in ) i Me % Yee \y P20,000 Laan P30,000 rat 0,000 ion face value, 1024 on which a balance of converted into that time, eachChapter 5 - Financtat Liabilities (c40 On July 1, 2029 ; MC" 1,000,000 face mae naoa Company received P1,032,880 for nt, 12% bonds, a price that yields 10%. How much is the In S.jo% = Femym/-) December 31, 20299 St expense for the six months erided a. P61,973 1097.88 vin . b, P60,000 : w XID (al ed} .) ( PS51,644 d. PS50,000 MC41 Use the same information given in MC40. At what amount 4 {\) should Madison report the bond liability on December 31, 2022? P1,024,524 _ MC42. On January 1, bonds, which issued for P1,8 of P122,000. What is the 2022? a. b. oeChapter 5 ~ Financial Liabilities : ce > MR > Pre rnin MC44 Nevada, Inc. issued a(P5,000,000, 10%, 10-year bonds on July 1, 2022 for 113.6 when-the effective interest rate wag 8%, Interest is payable on June 30 and December 31. Tony na tht i ‘nt interest expehsé should Nevada report in profit or How mucl loss for the year ended-Décember 31, 2022? MX 119 7 5.6900 a. P284,000 De P250,000 P227,200 ,000,000) face id 6% annual ount of the should Fresh sition? 51,032,880 for it yields 10%. nd DecemberMC48 oneeter § ~ Financial abilities Due Date ri Pr Toya Principal resent Value at 12/31/29 400, 00ReS Interest Due 2/3112 12/31/23 400/000 160,000 P 509,000 12/31/24 400/000 128,000 436,100 ¢ ‘ 0 96,0 iaiglf2s 400,000 64000 316/500 126 400,000 32,000 268,300 1,902,800 In its December 31, 2029 st i ’ 'atement of financial position, at what amount should Bell report the carrying amount of the bonds? a P1,393,800 b. —_P1,491000 c. P1,502,800 4. P1,533/080 On December 31, data with resp. Notes Payable Accrued Interes! The company is its maturing de agreement with, extreme hag yayment on Bt, 2022. TheIn an agreement with the creditor, Guimaras Corporation obtained the following changes in the terms of the note The accrued interest’ (of P600,000 Jon December 31, 2022 is forgiven. The new interest rate is~12%, which approximates the prevailing rate of interest for similar obligation at the time of the restructuring. The new date of maturity is December 31, 2027. What is Guimaras Corporation’s gain on debt restructuring? (Round of present value factors to three decimal points) P1,032,720 P 602,400 riencing interest! cember r 31eee ———e——eE—E—EEr re As a result of a settlement on December 31, 2022, City Bank agreed to the following restructuring arrangement: Reduced the principal obligation to P6,000,000. Forgave the P640,000 accrued interest. Extended the maturity date to December 31, 2024. Annual interest of(10% is to be paid on December 31, 2023 and 2024. ‘The market rate of interest for similar debt on December 31, 2022 . 8%! What is Down Company’s gain on debt restructuring? (Round off present value factors to four decimal points)