10%

YEAR PAYMENT INTEREST PRINCIPAL

1-Jan
First year 200,000.00 49,740.00 (150,260.00)
Second year 200,000.00 34,714.00 (165,286.00)
Third year 200,000.00 18,146.00 (181,854.00)

CURRENT LIABILITY:
Note Payable 200,000.00
Discount on Note Payable (34,714.00)
CARRYING AMOUNT 165,286.00

NONCURRENT LIABILITY:
Note payable 200,000.00
Discount on note payable (18,146.00)
CARRYING AMOUNT 181,854.00

IBANG NOTE SA NASA TAAS, HINDI MAGKADUGSONG, MAGKABUKOD ARE

ORDER OF PRIORITY:
ISSUANCE OF SHARE CAPITAL

a. FV of property received
b. FV of share capital
c. Par value or stated value of the share capital

ORDER OF PRIORITY:
ISSUANCE OF BONDS PAYABLE

a. FV of bonds payable
b. FV asset received
c. Face amount of bonds payable

EXCHANGE WITH COMMERCIAL SUBSTANCE *With gain or loss if with comercial substance
Aye Bee
Equipment 1,600,000 2,000,000
Acccumulated depreciation 900,000 1,350,000
Carrying Amount 700,000 650,000
Fair value 600,000 800,000
Cash paid by Aya to Bee 200,000 200,000

BOOKS of AYE (PAYOR)

Equipment new (Fair value + Cash payment) 800,000
Accumulated depreciation 900,000
Loss on exchange (Fair value - Carrying Amount) 100,000
Equipment-old 1,600,000
Cash 200,000

BOOKS of BEE (RECEPIENT)

Equipment new (Fair value - Cash received) 600,000
Accumulated Depreciation 1,350,000
Cash 200,000
Gain on exchange (Fair value-Carrying Amount) 150,000
Equipment old 2,000,000

EXCHANGE WITHOUT COMMERCIAL SUBSTANCE *no gain or loss if without commercial substance
Yee Zee
Equipment 800,000 1,000,000
Acccumulated depreciation 380,000 400,000
Carrying Amount 420,000 600,000
Fair value 450,000 500,000
Cash paid by Yee to Zee 50,000 50,000

BOOKS of YEE (PAYOR)

Equipment- New (Carrying amount + cash paid) 470,000
Accumulated depreciation 380,000
Equipment-old 800,000
Cash 50,000

BOOKS of ZEE (RECEPIENT)

Equipment- New (Carrying amount + cash received) 550,000
Accumulated depreciation 400,000
Cash 50,000
Equipment-old 1,000,000

TRADE IN
Old Equipment:
Cost 1,400,000
Accumulated depreciation 1,000,000
Carrying amount 400,000
Fair value 350,000
Trade in value 500,000

New equipment:
List price 2,000,000
Trade in value of old equipment -500,000
Cash Payment 1,500,000

a. FV + Cash payment (FAIR VALUE APPROACH)

Equipment new (FV + cash payment) 1,850,000

Accumulated depreciation 1,000,000
Loss on exchange (Fair value - Carrying Amount) 50,000
Equipment-old 1,400,000
Cash 1,500,000

b. Trade value + Cash Payment (TRADE IN VALUE APPROACH)

Equipment new (Trade value+Cash payment) 2,000,000

Accumulated depreciation 1,000,000
Gain on exchange (Trade in value of asset given-CA) 100,000
Equipment-old 1,400,000
Cash 1,500,000
PRESENT VALUE
497,400.00
347,140.00
181,854.00
-
1 Land
Building
Machinery
Share capital (60k*100)
Share premium (SQUUEZE)

2 Land (50,000 x 120)

Share capital (50,000*100)
Share premium (50,000*120-5M)

3 Land
Donated Capital

Donated capital
Cash

4 Land (5,500,000 x 2M/5M)

Building (5,500,000 x 3M/5M)
Cash

5 Land (7,500,000 + 2,500,000= 10,000,000 x 40%)

Building (7,500,000 + 2,500,0000= 10,000,000 x 60%)
Cash
Mortgage Payable
1,000,000.00
5,000,000.00
2,000,000.00
6,000,000.00
2,000,000.00

6,000,000.00
5,000,000.00
1,000,000.00

1,000,000.00
1,000,000.00

50,000.00 Expense will be charged to donated capital

50,000.00

2,200,000.00
3,300,000.00
5,500,000.00

4,000,000.00
6,000,000.00
7,500,000.00
2,500,000.00
1

5
Machinery 3,000,000.00
Accounts Payable 3,000,000.00

Accounts Payable 3,000,000.00

Cash 2,850,000.00
Machinery (3m*5%) 150,000.00

Equipment 3,000,000.00
Accounts Payable 3,000,000.00

Accounts Payable 3,000,000.00

Purchase discount loss (3M*10%) 300,000.00
Cash 3,000,000.00
Machinery 300,000.00

Machine 4,700,000.00
Interest Expense 800,000.00
Note Payable (1,250,000 x 4) 5,000,000.00
Cash 500,000.00

Machine (500,000x 3.17) 1,585,000.00

Discount on Note Payable (SQUUEZE) 415,000.00
Note payable 2,000,000.00

Note payable 500,000.00

Cash 500,000.00

Interest Expense (500k x 3.17=1,585,000 x 10%) 158,500.00

Discount on Note Payable 158,500.00

Machinery (2,000,000x 0.68) 1,360,000.00

Discount on Note Payable (SQUUEZE) 640,000.00
Note payable 2,000,000.00

Interest expense 136,000.00

Discount on Note Payable 136,000.00
 NOT SURE SINCE MAY MGA FREIGHT NA INVOLVE

10%
PAYMENT INTEREST PRINCIPAL PRESENT VALUE
1,585,000.00
500,000.00 158,500.00 (341,500.00) 1,243,500.00

10%
PAYMENT INTEREST PRINCIPAL PRESENT VALUE
1,360,000.00
500,000.00 136,000.00 (364,000.00) 996,000.00
Present value of Note Payable - 500,000 x 3.17 = 1,585,000

Present value of Note Payable - 2,000,000 x .68 = 1,360,000

1 2022
31-Dec Machinery (200,000 x 5.712)
Discount on Note Payable
Note Payable (200k x 8)

Note Payable
Cash

2023
31-Dec Note Payable
Cash

Interest Expense
Discount on Note Payable

2 CARRYING AMOUNT OF THE NOTE PAYABLE IN DECEMBER 31, 2

 1,142,400.00
457,600.00
1,600,000.00

200,000.00
200,000.00

200,000.00
200,000.00
11%
103,664.00 PAYMENT INTEREST PRINCIPAL
103,664.00
200,000.00 103,664.00 (96,336.00)

OTE PAYABLE IN DECEMBER 31, 2023 846,064.00

PRESENT VALUE OF NOTES PAYABLE
942,400.00 (Present value of NP- 200,000 x 5.712= 1,142,400 - NP 200,000 = 942,400)
846,064.00
P 200,000 = 942,400)
 Equipment-new 1,000,000
Accumulated depreciation 600,000
Loss on exchange 80,000
Cash
Equipment-old

Cash price without trade in 900,000

- Cash paid with trade in -780,000
TRADE IN VALUE OF OLD EQUIPMENT 120,000

List price 1,000,000

- Trade in value of old equipment -120,000
CASH PAYMENT 880,000

Trade in value of asset given 120,000

+ Cash payment 880,000
COST OF NEW ASSET 1,000,000
 (Cost of New asset= Trade in value of asset given + Cash payment) ( 120,000 + 880,000)

880,000
800,000
+

+
Delivery equipment- new 2,800,000.00 (SQUEEZE) (FV+CASH PAYMENT)
Accumulated depreciation (1,500,000 - 400,000) 1,100,000.00
Value Added tax 300,000.00
Insurance 130,000.00
Taxes and licenses (registration) 20,000.00
Loss on exchange (FV-CA) (350k-400k) 50,000.00
Delivery equipment- old 1,500,000.00
Cash 2,900,000.00

Price of new truck 2,500,000.00 THIS ONE MEDJ MAHIRAP MAGETS PERO KERI NAMAN
Charge for extra equipment 150,000.00
Capitalizable cost 2,650,000.00
Trade in value of old truck (200,000.00)
Cash payment ?not so sure iniba ko ng title 2,450,000.00
Fair value of old truck 350,000.00
COST OF NEW TRUCK 2,800,000.00
PAYMENT)

MAGETS PERO KERI NAMAN, KERI SYA ISQUEEZE PEDE DIN GAMITIN MO ITONG COMPUTATION
 Cash price 1,550,000
+ Installation Cost 50,000 (directly attributable cost)
CAPITALIZED COST 1,600,000
 Cash price
+ Installation Cost
TOTAL COST OF THE NEW MACHINE
2,000,000.00
50,000.00 (directly attributable cost)
2,050,000.00
 GIVEN:
Down payment 1,000,000
Four annual installments 1,500,000
Cash price 5,800,000
Storage cost 50,000
Installation Cost 100,000

Cash price 5,800,000

Installation Cost 100,000 (directly attributable cost)
CAPITALIZED COST 5,900,000
 Cash Price
+ Installation cost
Capitalized Cost of the machine
950,000
30,000
980,000
Acquisition Cost 3,600,000
Purchase discount -180,000
Shipping cost 90,000
Installation cost 240,000
CAPITALIZED COST 3,750,000
Acquisition cost 840,000
Shipping Cost 50,000
Foundation work 80,000
Waterline 40,000
Labor and Testing 60,000
Materials 30,000
CAPITALIZED COST 1,100,000 All cost included are capit
All cost included are capitalized
 Fair value of the inventory given
+ Cash payment
COST OF THE NEW INVENTORY

Fair value of the inventory received

- Fair value of the inventory given
GAIN or LOSS on EXCHANGE
2,100,000
100,000
2,200,000

2,200,000
-2,200,000
0
GIVEN:
Yola Cost 1,000,000
Fair value 1,200,000
Cash paid 300,000

Zaro Cost 1,400,000

Fair value 1,500,000
Cash received 300,000

BOOKS OF YOLA Equipment-new 1,300,000

Equipment- old 1,000,000
Cash 300,000

BOOKS OF ZARO Equipment-new 1,100,000

Cash 300,000
Equipment- old 1,400,000
(CA+cash payment) (1,000,000 + 300,000)

(CA - cash received ) (1,400,000 -300,000)