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1. On January 1, 2015, Betilapeya Company purchased a specialized machinery with a cash equivalent price of P59, 737. Betilapeya signed a deferred payment contract that calls for P10 000 down payment and a three-year note for P49 737. The note is payable in 3 equal annual payments of P20 000 beginning December 21, 2015. The annual payment includes 10% interest. How much is the interest expense for the year ended December 31, 2015? _____ How much is the carrying amount of the note payable at December 31, 2015? _____

1. On January 1, 2015, Betilapeya Company purchased a specialized machinery with a cash equivalent price of P59, 737. Betilapeya signed a deferred payment contract that calls for P10 000 down payment and a three-year note for P49 737. The note is payable in 3 equal annual payments of P20 000 beginning December 21, 2015. The annual payment includes 10% interest. How much is the interest expense for the year ended December 31, 2015? _____ How much is the carrying amount of the note payable at December 31, 2015? _____

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...
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1. On January 1, 2015, Betilapeya Company purchased a specialized machinery with a cash equivalent price of P59, 737. Betilapeya signed a deferred payment contract that calls for P10 000 down payment and a three-year note for P49 737. The note is payable in 3 equal annual payments of P20 000 beginning December 21, 2015. The annual payment includes 10% interest. How much is the interest expense for the year ended December 31, 2015? _____ How much is the carrying amount of the note payable at December 31, 2015? _____
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