ABC Co received from a customer a 5-year non-interest bearing note of P120,000 on Jan 1, 20X1. Effective rate is 12% and due on Dec 31, 20X5. PV of P1 at 12% for 5n = .56743 PV of an ordinary annuity of P1 at 12% for 5n = 3.60478 The note would be initially recorded on Jan 1, 20X1 at: a. 120,000 b. 86,515 c. 68,092
ABC Co received from a customer a 5-year non-interest bearing note of P120,000 on Jan 1, 20X1. Effective rate is 12% and due on Dec 31, 20X5. PV of P1 at 12% for 5n = .56743 PV of an ordinary annuity of P1 at 12% for 5n = 3.60478 The note would be initially recorded on Jan 1, 20X1 at: a. 120,000 b. 86,515 c. 68,092
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
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 15RE: On January 1, Kilgore Inc. accepts a 20,000 non-interest-bearing, 5-year note from Dieland Company...
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ABC Co received from a customer a 5-year non-interest bearing note of P120,000 on Jan 1, 20X1. Effective rate is 12% and due on Dec 31, 20X5.
PV of P1 at 12% for 5n = .56743
PV of an ordinary annuity of P1 at 12% for 5n = 3.60478
The note would be initially recorded on Jan 1, 20X1 at:
PV of P1 at 12% for 5n = .56743
PV of an ordinary annuity of P1 at 12% for 5n = 3.60478
The note would be initially recorded on Jan 1, 20X1 at:
a. 120,000
b. 86,515
c. 68,092
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