1. How much is the interest income in 20x1? 2. How much is the current portion of the receivable on December 31, 20x1? 3. How much is the carrying amount of the receivable on December 31, 20x2?
On January 1, 20x1, ABC Co. sold transportation equipment with a historical cost of ₱20,000,000 and
Cash 500,000
Notes Receivable 8,000,000
Accumulated Depreciation 7,000,000
Loss on Sale of Equipment 6,425,301
Transportation Equipment 20,000,000
Unearned Interest Income 1,925,301
1. How much is the interest income in 20x1?
2. How much is the current portion of the receivable on December 31, 20x1?
3. How much is the carrying amount of the receivable on December 31, 20x2?
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