Notes Receivable Casset)

/formal promise to pay

>expectation to collect
>maker payee
-

<separate customer's NR w/NR from employee

NR XX
XX
NR from employees
-xxx

Dishonored Notes AR:face value

> di binayaran -interest
> reclassify back to AR -other charges (late penalty charge)

Presentvalue
magkano ngayon
(multsi terrest rates
-

Long term more than a year

short term less than a year (di na multiply a rate) (Presentvalued

interest

Face value nasa

-

papel (as is)

initial measurementa
pannang pagsukat (presentvalue)
subsequentmeasurement -
pagkuha ng rate manually
·

Interestbearing -
measured at
face amount (presentvalue upon issuance)
Non-interestbearing walang tubo (presentvalue discounted value)
·
- =

in overall
We deduct the interest
gain
-
 Accrued magrerecord tatawidng
Interest
langapag
-

InterestBearing Note
Land 800,000 sold
costing was for 1,000,000, entity received a 3-year
rate for 1,000,000 plus interestof 1290 compounded annually

1styear
129 190,000
1,000,000 x
=

interest

NR 1,000,000 Accrued interestreceivable 120,000

Land 800,000 InterestIncome 120,000

Gain in 200,000
sale of land

and year
FU 1,000,000

180,0
⑭
#
40890 1,254,400
=

Accrued Interestreceivable 134,400

Interest Income 134, 400

3rd year
FU 1,000,000 Accrued InterestReceivable 150,525
1st 120,000 Interest Income 150,528

e
Cash 1,404,928
NR 1,000,000
AIR 484,928

Dez 31 (due date) US Jan 1 collection

Cash 1,404,928 Dec 91 -
Account
NR 1,000,000 AIR 15,528
Interestincome 150,528 Int. income -

158,528
AIR 254,400 Jan)-conection
entry
Cash 1,404,928
AIR 404,928
NR 1,000,000

Non-interestbearing Note
400,000/4=
An entity manufactures and sells machinery. On Jan 1
100,000
2019, the entity sold machinery costing 250,000 for 400,000. *
the buyer signed a noninterestbearing for
note 400,000 payable in 4 equal installments
December 31. The cash sale price is 500
every pv
->

TO RECORD SALE:
NR 400,000
NR 400,000
Sales 350,000
-
150,000
unearned InterestIncome 55,000
TO RECORD IstInstallmentcollection: NR
(a) (2)
NR Faction Rate ->
Interest 50.000 X B

Cash 100,000 2019 400,000 4/10 20,000

2020 300,000 3/10 15,000

NR 100,000 2021 200,000 2110 10,000

To RECOGNIZE THEUNERNE INTEREST AS 2022

-
"o 2,000
100,000

INCOME OVER THE THENOTE:

T ERM OF 1,000,000

unearned Interest20,000

interestincome 20,000
 Realized collected
-

R
Toit
(a) (2)
NR Faction Rate ->
Interest 50.000 X B

2019 C 400,000 4/10 20,000

2020 c 300,000 3/10 15,000

2021 200,000 nc 2110 10,000

,000 "o 2,000
-

1,000,000
Dec 31, 2019
-

Dec 31, 2020

Realizable in

znaranjiancaiQuadrs want
a tool
2020 current15,000
NR-current
earned Intrate

CryingAmortisein
inthere
.

2021-2022

Jan 1 2019 NR is received amounting realized

500,000
to installmentof 100,000 Dec 31.
every

!go
=> non-current
->

DV is 450,000 interestare
current
->

buying
NR Fraction NR into income
500,000 33 16,600.67
2019 2019 100,000 16,600.67
2020400,000 24 13,349.43 2020 100,000 13,349.43
2021 300,000 20 10,000 2021 100,000 10,000
6,666. 67
"
2022 2022 100,000 6,666. 67

an inthe
Dec 31

NR-current100,000
in (13,333.33)
-ment.
CH/Amortized cost86, 660.47

On Jan 1, 2019 who

an entity sold an
equipment costof 250,000 for 400,000. The buyer paid a down 100,000
of and signed a non-interestbearing

equal annual every

installment
note for 300,000 payable in Dec. 31. The
prevailing interest
rate for a ofthis
note type is 1090.
installment
->

The PU of ordinaryannuity of 1 10% 2.4869.

for three periods
an at is
computation:
um.ram,inare
Dec 91
IV

Eudgut
note
of
PV
Cash 100,000 unearned int.inc. 24,869
-

NR 300,000 Int. inc. 24.869

inc
Equipment. 250,000
gain on sale of equip. 98,698
DV of note 248,690 unearned int.inc, 51,310
100,000
areived
Cash 100,000
SalePrice or re
ment NR 100,000
-5698
gain
sale on
 Effective interest method - atechnique for calculating
the actual interestrate in a period based on the amount
instruments, book value atthe beginning of
of financial
the accounting
period.
Effective InterestMethod
Annual collection InterestIncome principal Presentvalue

Jan 1 2019 248,698

Dec 31 2019 100,000 ***594 AG5, i pr-Principal
173,559 p
Dec 31 2020 17,355.9
100,000 82,642 98,915

9,085collection
Pv-annual
31

↳
Dec 2021 100,000 90,915 ⑧

lastna kasi