26 On January 1, 2021, Biliran Company received a 5%, P10,000,000, note collectible in installment plus interest every December 31 of each year until December 31, 2024. The note is collectible in principal as follows: December 31, 2021 P1,000,000 December 31, 2022 2,000,000 December 31, 2023 3,000,000 December 31, 2024 4,000,000 The interest effective on January 1, 2021 is at 3%, on December 31, 2021 is at 4%. How much is the carrying value of the note on December 31, 2021? How much of the carrying value of the note receivable is reported as non-current as of December 31, 2022?
26 On January 1, 2021, Biliran Company received a 5%, P10,000,000, note collectible in installment plus interest every December 31 of each year until December 31, 2024. The note is collectible in principal as follows: December 31, 2021 P1,000,000 December 31, 2022 2,000,000 December 31, 2023 3,000,000 December 31, 2024 4,000,000 The interest effective on January 1, 2021 is at 3%, on December 31, 2021 is at 4%. How much is the carrying value of the note on December 31, 2021? How much of the carrying value of the note receivable is reported as non-current as of December 31, 2022?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 28E: On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First...
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26
On January 1, 2021, Biliran Company received a 5%, P10,000,000, note collectible in installment plus interest every December 31 of each year until December 31, 2024. The note is collectible in principal as follows:
December 31, 2021 |
P1,000,000 |
December 31, 2022 |
2,000,000 |
December 31, 2023 |
3,000,000 |
December 31, 2024 |
4,000,000 |
The interest effective on January 1, 2021 is at 3%, on December 31, 2021 is at 4%.
How much is the carrying value of the note on December 31, 2021?
How much of the carrying value of the note receivable is reported as non-current as of December 31, 2022?
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