Module 2.2 2.3 UB Template PDF

UB INDEPENDENT LEARNING MATERIALS
College of Business, Accountancy and Auditing
Course Course
Intermediate Accounting 1a ACC3
Title Code:
Lecture Equivalent
3.00 units 54 hours
Units Hours
Laboratory Equivalent
units Hours
Course Description:
Intermediate Accounting 1A is a three-unit course that deals with the study of accounting
for current assets. It is designed to cover the review of accounting process and the
financial accounting standards relative to the recognition, measurement, statement
presentation, and disclosure requirements of current assets. Topics covered are cash
and cash equivalents, petty cash fund, bank reconciliation and proof of cash, accounts
receivables, notes receivable, receivable financing, inventories and inventory estimation
and investments. Accounting for investment in debt securities, other long-term
investments and basic derivatives are also discussed comprehensively in this course.
Course Objectives:
At the end of the course, the students should be able to:
CO1. Recite the UB, CBAA, and BSA PVMGO and explain its relevance to their
personality and future professional field.
CO2. Explain the different concepts characterized by each asset and execute the
proper accounting treatment for each one of them.
CO3. Design accurate accounting system in implementing daily business transactions
CO4. Differentiate the characteristics of financial assets between nonfinancial assets
and able to value the difference of the two.
CO5. Implement proper accounting treatment in the initial measurement of financial
assets and how it should be subsequently measured and reported in the financial
statements.
CO6. Implement proper accounting treatment in the initial measurement of
nonfinancial assets and able to solve the subsequent measurement of nonfinancial
assets and weigh the annual impairment of nonfinancial assets
CO7. Demonstrate the proper treatment for intangible assets and how it should be
measured initially and revalue subsequently in the financial statements.
Campuses: Hilltop | MH del Pilar | Pallocan East | Pallocan West | Lipa

Telephone Numbers: +63 43 723 1446 | 980 0041
Website: www.ub.edu.ph
Overview
Welcome to Intermediate Accounting 1a, this is a 3-unit course which will span
over a period of 18 weeks and will be delivered through the UBian LMS. For each of the
modules you will go through five phases of learning which we have termed as the UBIAN,
meaning Uncover, Brainstorm, Instill, Apply and Nutshell.
During the UNCOVER phase you will unlock the topic at hand as you read through
the learning materials and explore the links given. In the BRAINSTORM phase we will
discuss as we interact in our synchronous and asynchronous sessions. In INSTILL you
will collaborate with your fellow learners and accomplish the tasks and activities on hand
either individually or in collaboration with your fellow learners. In the APPLY period we
will assess your learning and understanding of the topic and finally in NUTSHELL we will
summarize what we have learned, provide you with references and additional
supplementary materials and assess the module that has just been completed.
Grading Scheme
The following are the grading systems to be used:
Midterm Final Transmutation Table
Performance Performance 1.00 97 – 100
50% 50%
Tasks Tasks 1.25 94 – 96
Major Major 1.50 91 – 93
30% 30%
Examinations Examinations 1.75 88 – 90
Written Works 20% Written Works 20% 2.00 85 – 87
2.25 82 – 84
Final
2.50 79 – 81
(Semester) 40% Midterm + 60% Final
Grade: 2.75 76 – 78
Passing 3.00 75
75% 5.00 Below 75
Grade:
Passing Grade The student shall pass the course after all
Conditions: the requirements have been satisfactorily
completed and accomplished.

Study Guide / Study Schedule for the Semester
This is a summary of the schedule of topics for the semester. As you go through
this ILM you will see that each topic will have its own set of UBIAN phases, and the
amount of time allotted for each is not constant.
Module
Inclusive Dates Title
Number
Day 1 Course overview
1.1 Week 1 Cash and Cash Equivalents

1.2 Week 2 Petty Cash Fund
1.3 Week 2 Bank Reconciliation
1.4 Week 3 Proof of Cash
2.1 Week 4 Accounts Receivable

WEEK 5 FIRST MONTHLY EXAMINATION
2.2 Week 6 Present Value Factors Computation
2.3 Week 6 & 7 Notes Receivable
2.4 Week 7 Loans Receivable
2.5 Week 8 Receivable Financing
3.1 Week 9 Inventories
3.2 Week 9 Inventory Estimation

WEEK 10 MIDTERM EXAMINATION
4.1 Week 11 Investments
4.2 Week 11 & 12 Investment in Equity Securities
4.3 Week 13 Investment in Associate
4.4 Week 13 Investment in Debt Securities

Module
Inclusive Dates Title
Number
WEEK 14 SECOND MONTHLY EXAMINATION
4.5 Week 15 Reclassification of Financial Assets
5 Week 16 Other Long-Term Investments
6 Week 17 Derivatives
WEEK 18 FINAL EXAMINATION
Read first the chapter discussion for Accounts Receivables (the 5th Chapter of
Intermediate Accounting 1a by Zeus Vernon Millan) through your textbook or the entire
module contents to get a comprehensive discussion of the core lessons of the topics. Do
not skip this as this is particularly important. Additional online reading materials were
provided at the end of this module to enhance your comprehension with each topic.
You may also access the links provided for video lectures. This module also
includes YouTube links for videos with educational contents that were strategically
selected. These videos will enable you to comprehend the topics easily.
After reading this LESSON, you should be able to:
1. Explain the concept and nature of notes receivable.
2. Describe the initial and subsequent measurement of notes receivable
3. Demonstrate the accounting for interest-bearing note receivable
4. Illustrate the accounting for noninterest-bearing note receivable

How Does John Deere Account for the Loans it
Makes to Farmers for the Purchase of Tractors and
Crop Supplies?
By DR. WENDY TIETZ, CPA, CMA, CSCA, CGMA
As John Deere, builds tractors and other farm equipment. For the past
several years, it has been difficult for farmers to get bank loans for planting
crops and for purchasing large, expensive farm equipment. Deere has
stepped in to fill the gap in agricultural financing – Deere makes loans to
farmers.
One type of loan Deere makes to farmers is to finance the purchase of
farm equipment. In exchange for the farm equipment they are buying from
Deere, farmers will make a cash down payment and sign a promissory note
with Deere.
Another type of loan Deere makes to farmers is to finance crop
supplies. Farmers can go to Deere for cash loans to purchase crop supplies,
including seeds, fertilizer, and chemicals. Farmers will sign a promissory note
with Deere and will receive a cash which they can then use to purchase the
crop supplies. Deere & Company is the fifth largest agricultural lender in the
United States (Wells Fargo is the top agricultural lender.)
QUESTIONS
1. How would Deere’s assets, liabilities, and equity be impacted when
Deere sells farm equipment to a farmer in exchange for a promissory
note and a cash down payment? What specific accounts will be
affected? Will each of these accounts be increased or decreased?
2. How would Deere’s assets, liabilities, and equity be impacted when
Deere makes a cash loan to a farmer? What specific accounts will be
affected? Will each of these accounts be increased or decreased?
3. When a farmer makes a loan payment to Deere, what general ledger
accounts will be impacted? Will these accounts increase or decrease?

LESSON 2.2 PRESENT VALUE FACTORS COMPUTATION
Present and future values are the terms which are used in the financial world to
calculate the future and current net worth of money which we have today with us.
Generally, both Present Value vs. Future Value concept is derived from the time value of
money and its monetary concept use by business owner or investors every day. It is a
simple idea that whatever money received today is worth more than money to be received
one year from now or any other future date. It is important to calculate the time value of
money so that the investor can distinguish between the worth of investment that offers
them different returns at a different time.
FUTURE VALUE PRESENT VALUE

 Future Value is the amount of money  Present value is nothing but how much
which will grow over a period of time future sum of money worth today.
with simple or compounded interest.  Present value is also called a
 Investors use this method to know what discounted value.
will be the future value of their  It is an indicator for investors that
investment after a certain period of time whatever money he will receive today
calculates based on the assumed can earn a return in the future.
growth rate.  With the help of present value, method
 Future value basically tells us how investors calculate the present value of
much money you will get in any sort of a firm’s expected cash flow to decide if
investment in the coming future. a stock is worth to invest today or not.
PV = FV / (1+r)n
FV = PV (1+r)n or
PV = FV x (1+r)-n
Where: Where:
PV = Present value or the principal PV = Present value or the principal
amount amount
FV = FV of the initial principal n years FV = FV of the initial principal n years
hence hence
r = Rate of Interest per annum r = Rate of Interest per annum
n = a number of years for which the n = number of years for which the amount
amount has been invested. have been invested.

FUTURE VALUE FACTOR PRESENT VALUE FACTOR
• Use when there is a lump-sum payment (one-time payment)
Single Period
• Installment payment but not equal Installment
(Of 1)
(1+i)n (1+i)-n
• Equal Installment payment

• Payment should be made one period after the deposit (at the
Ordinary
end of the period)
Annuity
[1 - (1+i)n] [1 - (1+i)-n]
i i
• Equal Installment payment

• First Installment is made immediately
• Installment is made right after the deposit is made or in
Annuity due advance (at the beginning)
• Usually involves advance payment
[1 - (1+i)n] [1 - (1+i)-n]
(1+i) (1+i)
i i
COMPUTATION USING BASIC CALCULATOR

Example: 12% interest rate for four periods.
FUTURE VALUE PRESENT VALUE
LUMP SUM PAYMENT

FUTURE VALUE OF 1 PRESENT VALUE OF 1
Step 1: Enter 1.12 (1+12%) Step 1: Enter 1.12 (1+12%)
Step 2: Press multiplication sign (x) twice Step 2: Press division sign (÷) twice
Step 3: Press equal sign for number of Step 3: Press equal sign for number of
periods minus 1 (3 times) periods (4 times)
ANNUAL YEAR-END PAYMENT

FUTURE VALUE OF ORDINARY PRESENT VALUE OF ORDINARY
ANNUITY ANNUITY
Step 1: Enter 1.12 (1+12%)) Step 1: Enter 1.12 (1+12%)
Step 4: Minus 1 Step 4: Minus 1
Step 5: Press equal sign Step 5: Press equal sign
Step 6: Divide it by the rate 12% Step 5: Divide it by the rate 12%
FUTURE VALUE OF ANNNUITY IN PRESENT VALUE OF ANNNUITY IN

ADVANCE ADVANCE
Step 1: Enter 1.12 (1+12%) Step 1: Enter 1.12 (1+12%)
Step 4: Minus 1 Step 4: Minus 1
Step 6: Divide it by the rate 12% Step 6: Divide it by the rate 12%
Step 8: Multiply by 1.12 (1+12%) Step 8: Multiply by 1.12 (1+12%)
You may watch the online tutorial on how to compute PV factors by through this
link https://youtu.be/-vKU-oJKd1Y

LESSON 2.3 NOTES RECEIVABLE
LEARNING OBJECTIVES
A. DEFINITION
Evidenced by a promissory note. Only represents claims arising from sale
of merchandise or service in the ordinary course of business
B. DISHONORED NOTES
A matured note that was not paid on time. Dishonored notes are going to
be a part of the accounts receivable (face value+ interest+ other charges)
C. MEASUREMENT OF NOTES RECEIVABLE

Type of receivable Initial measurement Subsequent
measurement
1. Short-term Face amount/ Present value/ Recoverable historical
Transaction price cost/ Amortized cost/
(for trade receivables) PFRS 15
2. Long-term w/ Face amount Recoverable historical cost
reasonable interest
3. Long-term w/ Present value Amortized cost
zero interest
4. Long-term w/ Present value Amortized cost
unreasonable
interest
5. CASH PRICE Fair Value (equal to the CPE, Amortized cost
EQUIVALENT (CPE) except when the practical
of the is determinable expedient allowed by PRFS is
applicable)
When the cash price equivalent of the non-cash asset given up in exchange for the
receivable is determinable, the fair value of the receivable is equal to the cash price
equivalent, except when the practical expedient allowed by PRFS is applicable
D. Present Value Factor
Please refer to previous LESSON (LESSON 2.2)

PROBLEM 3: EXERCISES
1. Solutions:
Initial measurement:
₱1,000,000 x PV of ₱1 @14%, n= 4 = ₱592,080
Requirement (a):
Date Interest income Unearned interest Present value
1/1/x1 407,920 592,080
12/31/x1 82,891 325,029 674,971
12/31/x2 94,496 230,533 769,467
12/31/x3 107,725 122,807 877,193
12/31/x4 122,807 0 1,000,000
Requirement (b):
1/1/x1
Note receivable 1,000,000
Unearned interest 407,920
Land 500,000
Gain 92,080
12/31/x1
Interest income 82,891
12/31/x2
12/31/x3
12/31/x4

Cash 1,000,000
2. Solutions:
₱900,000 x PV of ₱1 @12%, n= 3 = ₱640,602
Requirement (a):
1/1/x1 259,398 640,602
12/31/x1 76,872 182,526 717,474
12/31/x2 86,097 96,429 803,571
12/31/x3 96,429 0 900,000
Requirement (b):
1/1/x1
Note receivable 900,000
Accum. depn. 400,000
Loss 159,398
Machinery 1,200,000
12/31/x1
12/31/x2
12/31/x3
12/31/x3
Cash 900,000

3. Solution:
₱250,000 x PV of ₱1 @14%, n= 4 = ₱759,337
Requirement (a):
Date Collections Interest income Amortization Present value
1/1/x1 759,337
12/31/x1 250,000 91,120 158,880 600,457
12/31/x2 250,000 72,055 177,945 422,512
12/31/x3 250,000 50,701 199,299 223,213
12/31/x4 250,000 26,787 223,213 -
Requirement (b):
Current portion = 177,945 (see table above)
Noncurrent portion = 422,512 (see table above)
Requirement (c):
1/1/x1
Loss 240,663
Unearned interest (1M – 759,337) 240,663
Land 1,000,000
12/31/x1
Cash 250,000
12/31/x2
Cash 250,000
12/31/x3
Cash 250,000
12/31/x4
Cash 250,000
4. Solution:
₱400,000 x PV of ₱1 @15%, n= 3 = ₱913,290
Requirement (a):
1/1/x1 913,290
12/31/x1 400,000 136,994 263,006 650,284
12/31/x2 400,000 97,543 302,457 347,827
12/31/x3 400,000 52,173 347,827 (0)
Requirement (b):
Requirement (c):
1/1/x1
Loss 86,710
Unearned interest (1.2M – 913,290) 286,710
Land 1,000,000
12/31/x1
Cash 400,000
12/31/x2
Cash 400,000
12/31/x3
Cash 400,000
5. Solution:
(300,000 x PV of an annuity due of 1 @9%, n=3) = 827,733
Requirement (a):
1/1/x1 827,733
1/1/x1 300,000 - 300,000 527,733
1/1/x2 300,000 47,496 252,504 275,229
1/1/x3 300,000 24,771 275,229 (0)
Requirement (b):
Interest income in 20x1 = 47,496 (see table above)
Requirement (c):
1/1/x1
Cash 100,000
Unearned interest (900K – 827,733) 72,267
Land 800,000
Gain 127,733
1/1/x1
Cash 300,000
12/31/x1
6. Solution:
Face amount (1) (400,000 x 4) = 1,600,000
Unearned interest at initial recognition (2) (1.6M – 1,119,272) = 480,728
Effective interest rate (3) (179,084 ÷ 1,119,272) = 16%
Term of the note (in years) (4) 4 years

1/1/x1 1,119,272
12/31/x1 400,000 179,084 (5) 220,916 898,356
12/31/x2 400,000 (6) 143,737 256,263 (7) 642,093
12/31/x3 400,000 102,735 (8) 297,265 344,827
(9) 12/31/x4 400,000 (10) 55,172 344,828 0
7. Solutions:
First step: Place the given information on the amortization table:
1/1/x1 911,205
12/31/x1 300,000
12/31/x2 300,000 86,466 213,534 507,015
12/31/x3 300,000
12/31/x4 300,000
Second step: Squeeze for the carrying amount of the note on December 31, 20x1.
1/1/x1 911,205
12/31/x1 300,000 720,549*
12/31/x2 300,000 86,466 213,534 507,015
12/31/x3 300,000
12/31/x4 300,000
* (213,534 + 507,015) = 720,549
Third step: Compute for the effective interest rate

EIR = 86,466 ÷ 720,549 = 12%

Fourth step: Squeeze for the other missing information
1/1/x1 911,205
12/31/x1 300,000 109,345 190,655 720,549
12/31/x2 300,000 86,466 213,534 507,015
12/31/x3 300,000 60,842 239,158 267,857
12/31/x4 300,000 32,143 267,857 -
PROBLEM 6: FOR CLASSROOM DISCUSSION

1. Solutions:
₱133,100 x PV of ₱1 @10%, n= 3 = ₱100,000
Requirement (a):
1/1/x1 33,100 100,000
12/31/x1 10,000 23,100 110,000
12/31/x2 11,000 12,100 121,000
12/31/x3 12,100 - 133,100
Requirement (b):
1/1/x1
Land 100,000
12/31/x1
12/31/x2
12/31/x3
12/31/x3
Cash 133,100
2. Solutions:
₱100,000 x PV ordinary annuity of ₱1 @10%, n=3 = ₱248,685
Requirement (a):
1/1/x1 248,685
12/31/x1 100,000 24,869 75,131 173,554
12/31/x2 100,000 17,355 82,645 90,909
12/31/x3 100,000 9,091 90,909 0
Requirement (b):
Requirement (c):
Outstanding balance of face amount (100K x 2) 200,000
Carrying amt. on 12/31/x1 (173,554)
Unearned interest on 12/31/x1 26,446
OR
Unearned interest on 12/31/x1 = Interest income in 20x2 and 20x3: (17,355 + 9,091) =
26,446
Requirement (d):
1/1/x1
Accum. depreciation 700,000
Loss 51,315
Unearned interest (300,000 – 248,685) 51,315
Equipment 1,000,000
12/31/x1
Cash 100,000

12/31/x2
Cash 100,000
12/31/x3
Cash 100,000
Requirement (e):
Loss on sale of equipment (51,315)
Net effect on P/L - decrease (26,446)
3. Solutions:
(1.2M ÷ 3) = 400,000;
400,000 x PV of an annuity due of ₱1 @10%, n=3 = 1,094,215
Requirement (a):
1/1/x1 1,094,215
1/1/x1 400,000 - 400,000 694,215
1/1/x2 400,000 69,422 330,578 363,637
1/1/x3 400,000 36,363 363,637 (0)
Requirement (b):
69,422 – see table above.
Requirement (c):
Carrying amt. on 1/1/x2 363,637
Add back: Collection on 1/1/x2 400,000
Carrying amt. on 12/31/x1 763,637

Answer to this part must be submitted through your UBIAN-LMS accounts on or
before October 17, 2020
Intermediate Accounting 1a by Zeus Vernon Millan

Chapter 5: Notes Receivable
PROBLEM 2: MULTIPLE CHOICE – THEORY

PROBLEM 4: MULTIPLE CHOICE – COMPUTATIONAL
MODULE SUMMARY
KEY POINTS
 To record a journal entry for a sale on account, one must debit a receivable and
credit a revenue account.
 When the receivable is payed off, debit the cash account and credit the
receivable account.
 To estimate the net value of accounts receivable, subtract the balance of an
allowance account from the accounts receivable account.
 Account for bad debts by either the allowance method or the direct write-off
method.
KEY TERMS
 journal entry: A journal entry, in accounting, is a logging of transactions into

accounting journal items. The journal entry can consist of several items, each of
which is either a debit or a credit. The total of the debits must equal the total of
the credits or the journal entry is said to be “unbalanced. ” Journal entries can
record unique items or recurring items, such as depreciation or bond
amortization.
 bad debt: A debt which cannot be recovered from the debtor, either because the
debtor doesn’t have the money to pay or because the debtor cannot be found
and/or forced to pay.
 balance sheet: A summary of a person’s or organization’s assets, liabilities. and
equity as of a specific date.
ONLINE VIDEO LINKS AND MATERIALS
 Watch the online video lecture of the course instructor uploaded at NEO LMS
and to the class shared Google drive (if applicable).
THEORY
 PART 1 - https://youtu.be/-vKU-oJKd1Y
 PART 2 https://youtu.be/M2IlK0JCkxc
ILLUSTRATIONS
 Illustration 1 & 2 - https://youtu.be/4SZpCY82t0Y
 Illustration 3 - https://youtu.be/jZaGWg-uGA0
 Illustration 4 - https://youtu.be/2vao-fEI7XA
 Illustration 5 - https://youtu.be/Mv3vCc9TAFo
 Illustration 6 - https://youtu.be/pv6RDkB7TOc
 Illustration 7 - https://youtu.be/3IHrIgOgpDA
 Illustration 8 - https://youtu.be/ta14QW_qH88
 Illustration 9 - https://youtu.be/mFfY81oIh48
 Illustration 10 - https://youtu.be/2fCHvBXKDX0

RESOURCES
Deloitte (2020). IAS 27 — IFRS 9 — Financial Instruments. IASPlus.com. Retrieved from
https://www.iasplus.com/en/standards/ifrs/ifrs9
Deloitte (2020). IFRS 15 — Revenue from Contracts with Customers. IASPlus.com.
Retrieved from https://www.iasplus.com/en/standards/ifrs/ifrs15
Gor and Cha (2020, March 17). How to Compute Present Value Factor using Basic
Calculator. Retrieved from
https://www.youtube.com/watch?v=V69VoncWL1I&t=91s
Millan, Zeus Vernon B. (2020). Intermediate Accounting 1a. CHAPTER 5: Notes
Receivable. Bandolin Enterprise. #21 Paramount Vill., Sto. Tomas, Baguio City
Tietz, W. (2017, September 26). How does John Deere account for the loans it makes to
farmers for the purchase of tractors and crop supplies? Retrieved from
https://accountingintheheadlines.com/2017/09/26/how-does-john-deere-account-
for-the-loans-it-makes-to-farmers-for-the-purchase-of-tractors-and-crop-supplies/
ReiBies Accounting Tutorial (2020, September 28). Notes Receivable Theory Part 1.
Retrieved from https://youtu.be/-vKU-oJKd1Y
ReiBies Accounting Tutorial (2020, September 28). Notes Receivable Theory Part 2.
Retrieved from https://youtu.be/M2IlK0JCkxc
ReiBies Accounting Tutorial (2020, September 28). Notes Receivable Illustration Number
1 & 2. Retrieved from https://youtu.be/4SZpCY82t0Y
3. Retrieved from https://youtu.be/jZaGWg-uGA0
ReiBies Accounting Tutorial (2020, October 4). Notes Receivable Illustration Number 4.
Retrieved from https://youtu.be/2vao-fEI7XA
5. Retrieved from https://youtu.be/Mv3vCc9TAFo
6. Retrieved from https://youtu.be/pv6RDkB7TOc
7. Retrieved from https://youtu.be/3IHrIgOgpDA
ReiBies Accounting Tutorial (2020, October 2). Notes Receivable Illustration Number 8.
Retrieved from https://youtu.be/ta14QW_qH88
9. Retrieved from https://youtu.be/mFfY81oIh48
10. Retrieved from https://youtu.be/2fCHvBXKDX0


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UB INDEPENDENT LEARNING MATERIALS

College of Business, Accountancy and Auditing

Campuses: Hilltop | MH del Pilar | Pallocan East | Pallocan West | Lipa

Campuses: Hilltop | MH del Pilar | Pallocan East | Pallocan West | Lipa

1.1 Week 1 Cash and Cash Equivalents

1.3 Week 2 Bank Reconciliation

1.4 Week 3 Proof of Cash

2.1 Week 4 Accounts Receivable

2.2 Week 6 Present Value Factors Computation

2.3 Week 6 & 7 Notes Receivable

2.4 Week 7 Loans Receivable

2.5 Week 8 Receivable Financing

3.1 Week 9 Inventories

3.2 Week 9 Inventory Estimation

4.1 Week 11 Investments

4.2 Week 11 & 12 Investment in Equity Securities

4.3 Week 13 Investment in Associate

4.4 Week 13 Investment in Debt Securities

Campuses: Hilltop | MH del Pilar | Pallocan East | Pallocan West | Lipa

4.5 Week 15 Reclassification of Financial Assets

5 Week 16 Other Long-Term Investments

Campuses: Hilltop | MH del Pilar | Pallocan East | Pallocan West | Lipa

Campuses: Hilltop | MH del Pilar | Pallocan East | Pallocan West | Lipa

FUTURE VALUE PRESENT VALUE

Campuses: Hilltop | MH del Pilar | Pallocan East | Pallocan West | Lipa

• Equal Installment payment

• Equal Installment payment

COMPUTATION USING BASIC CALCULATOR

FUTURE VALUE PRESENT VALUE

LUMP SUM PAYMENT

ANNUAL YEAR-END PAYMENT

FUTURE VALUE OF ANNNUITY IN PRESENT VALUE OF ANNNUITY IN

Campuses: Hilltop | MH del Pilar | Pallocan East | Pallocan West | Lipa

C. MEASUREMENT OF NOTES RECEIVABLE

D. Present Value Factor

Please refer to previous LESSON (LESSON 2.2)

Campuses: Hilltop | MH del Pilar | Pallocan East | Pallocan West | Lipa

Campuses: Hilltop | MH del Pilar | Pallocan East | Pallocan West | Lipa

Campuses: Hilltop | MH del Pilar | Pallocan East | Pallocan West | Lipa

Date Collections Interest income Amortization Present value

* (213,534 + 507,015) = 720,549

Third step: Compute for the effective interest rate

Campuses: Hilltop | MH del Pilar | Pallocan East | Pallocan West | Lipa

PROBLEM 6: FOR CLASSROOM DISCUSSION

Campuses: Hilltop | MH del Pilar | Pallocan East | Pallocan West | Lipa

Campuses: Hilltop | MH del Pilar | Pallocan East | Pallocan West | Lipa

Intermediate Accounting 1a by Zeus Vernon Millan

PROBLEM 2: MULTIPLE CHOICE – THEORY

 journal entry: A journal entry, in accounting, is a logging of transactions into

ONLINE VIDEO LINKS AND MATERIALS

Campuses: Hilltop | MH del Pilar | Pallocan East | Pallocan West | Lipa

Campuses: Hilltop | MH del Pilar | Pallocan East | Pallocan West | Lipa

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