05 - Receivable Financing and Notes Receivable

of 2
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Related Documents
  Page 1 of 2  REVIEW OF FINANCIAL ACCOUNTING THEORY AND PRACTICE RECEIVABLE FINANCING AND NOTES RECEIVABLE1.Purple Company shoe! he #ollo$n% &alan'es on De'em&er (1) *++,- A''oun s re'e$a&le/unass$%ne! P1)+++)+++ A''oun s re'e$a&le/ass$%ne! (++)+++ Alloan'e #or !ou& #ul a''oun s/0anuary 1 (+)+++Re'e$a&le #rom #a' or +)+++No e paya&le/&an2 *+)+++Dur$n% he year *++, Purple Company #oun! $ sel# $n #$nan'$al !$s ress an! !e'$!e! oresor o re'e$a&le #$nan'$n%.On 0une (+) Purple Company #a' ore! P*++)+++ o# $ s a''oun s re'e$a&le o a #$nan'e'ompany. The #$nan'e 'ompany 'har%e! a #a' or$n% #ee o# ,3 o# he a''oun s #a' ore!an! $ hhel! *+3 o# he amoun #a' ore!.On De'em&er (1) Purple Company ass$%ne! P(++)+++ o# $ s a''oun s re'e$a&le o a&an2 un!er a nonno $#$'a $on &as$s. The &an2 a!an'e! 4+3 less a ser$'e #ee o# ,3o# he a''oun ass$%ne!. Purple Company s$%ne! a prom$ssory no e #or he loan.On De'em&er (1) $ $s es $ma e! ha ,3 o# he ou s an!$n% a''oun s re'e$a&le mayproe un'olle' $&le. REQUIRED: a.En ry o re'or! he #a' or$n%.&.En ry o re'or! he ass$%nmen .'.En ry o a!5us he alloan'e #or !ou& #ul a''oun s on De'em&er (1.!.In!$'a e he 'lass$#$'a $on) presen a $on an! !$s'losure o# he a''oun s $nole! $nre'e$a&le #$nan'$n%.*.6an%al!an Company o& a$ne! a one/year loan o# P,)+++)+++ #rom a &an2 on Apr$l 1)*++,. The loan as !$s'oun e! a 1*3. The 'ompany s$%ne! a no e an! ple!%e! $ sa''oun s re'e$a&le o# P,)+++)+++ as 'olla eral #or he loan. In rela $on o he loan)6an%al!an shoul! repor no e paya&le on De'em&er (1) *++, a a. P)4,+)+++'. P,),+)+++&&. P)++)+++!. P),,+)+++(.On De'em&er 1) *++, Po7urru&$o Company ass$%ne! on a nonno $#$'a $on &as$sa''oun s re'e$a&le o# P,)+++)+++ o a &an2 $n 'ons$!era $on #or a loan o# 8+3 o# here'e$a&les less a ,3 ser$'e #ee on he a''oun s ass$%ne!. Po7urru&$o s$%ne! a no e#or he &an2 loan. On De'em&er (1) *++,) Po7urru&$o 'olle' e! ass$%ne! a''oun s o# P()+++)+++ less !$s'oun o# P*++)+++. Po7urru&$o rem$ e! he 'olle' $ons o he &an2$n par $al paymen #or he loan. The &an2 appl$e! #$rs he 'olle' $on o he $n eres an! he &alan'e o he pr$n'$pal. The a%ree! $n eres $s 13 per mon h on he loan &alan'e.In $ s De'em&er (1) *++, &alan'e shee ) Po7urru&$o shoul! repor no e paya&le as a'urren l$a&$l$ y a a.P1)9,)+++'. P1),,)+++&.P1)9++)+++!. P*)*,+)+++  Page 2 of 2  .B$nalonan Company #a' ore! P,)+++)+++ o# a''oun s re'e$a&le o ABC Company on0uly 1) *++,. Con rol as surren!ere! &y B$nalonan. ABC assesse! a #ee o# ,3 an!re a$ns a hol!&a'2 e:ual o *+3 o# he a''oun s re'e$a&le. In a!!$ $on ABC 'har%e!1*3 'ompu e! on a e$%h e! aera%e $me o ma ur$ y o# he re'e$a&les o# (+ !ays.1.B$nalonan Company $ll re'e$e an! re'or! 'ash o# a.P()9++);4,'. P()9,+)+++&.P()9++)+++!. P)9++);4,*.Assum$n% all re'e$a&les are 'olle' e!) B$nalonan Company<s 'os o# #a' or$n% here'e$a&les oul! &ea.P*,+)+++'. P8)(1,&.P*88)(1,!. P +,.On Sep em&er (+) *++,) As$n%an Company !$s'oun e! a he &an2 a 'us omer<sP,)+++)+++ ;/mon h 1+3 no e re'e$a&le !a e! 0une (+) *++,. The &an2 !$s'oun e! he no e a 1*3. The pro'ee!s #rom h$s !$s'oun e! no e amoun e! o a.P,)+8*),++'. P)4*)+++&.P,)*,+)+++!. P,)19+)+++;.=r!ane a Company a''ep e! #rom a 'us omer P,)+++)+++) 1*+/!ay) 1*3 no e !a e! Au%us (1) *++,. On Sep em&er (+) *++,) =r!ane a !$s'oun e! he no e a heNa $onal Ban2. >oeer) he pro'ee!s ere no re'e$e! un $l O' o&er 1) *++,. In heSep em&er (+) *++, &alan'e shee ) he amoun re'e$a&le #rom he &an2 $n'lu!esa''rue! $n eres reenue o# a.P*++)+++'. P)+++ &.P1,;)+++!. P +9.=m$n%an Company has a 1+3 no e re'e$a&le !a e! 0une (+) *++,) $n he or$%$nalamoun o# P8)+++)+++. Paymen s o# P()+++)+++ $n pr$n'$pal plus a''rue! $n eres are!ue annually on 0uly 1) *++;) *++9 an! *++4. In $ s 0une (+) *++9 &alan'e shee ) ha amoun shoul! =m$n%an repor as a 'urren asse #or $n eres on he no e re'e$a&le?a.P8++)+++'. P(++)+++&.P;++)+++!. P +4.Balun%ao Company a''ep e! a P,)+++)+++) *3 $n eres &ear$n% no e #rom RosalesCompany on De'em&er (1) *++,) $n e@'han%e #or a ma'h$ne $ h a l$s pr$'e o# P)+++)+++ an! a 'ash pr$'e o# P()9,+)+++. The no e $s paya&le on De'em&er (1)*++9. In $ s *++, $n'ome s a emen ) Balun%ao shoul! repor he sale a a.P()9,+)+++'. P,)+++)+++&.P)+++)+++!. P,)*++)+++8.On 0anuary *) *++, Tayo% Company sol! e:u$pmen $ h a 'arry$n% amoun o# P;),++)+++ $n e@'han%e #or P4)+++)+++ non$n eres &ear$n% no e !ue 0anuary *) *++4.There as no es a&l$she! e@'han%e pr$'e #or he e:u$pmen . The prea$l$n% $n eres ra e #or h$s no e on 0anuary *) *++, as 1+3. The presen alue o# 1 a 1+3 #or hreeper$o!s $s +.9,.1.In he *++, $n'ome s a emen ) ha amoun shoul! &e repor e! as $n eres $n'ome?a.P4++)+++'. P;;+)+++&.P;++)+++!. P9+)+++*.In he *++, $n'ome s a emen ) ha amoun shoul! &e repor e! as %a$n or loss onsale o# e:u$pmen ?a.P1),++)+++ %a$n'. P,++)+++ %a$n&.P 1++)+++ %a$n!. P,++)+++ loss - end -
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks