ABC Co. receives P210,000 3-year non-interest bearing note. Collections is on the principal and interest is to be made every 12 months. Effective rate was 12%. How will ABC measure the note on initial recognition? 210,000 X PV of P1 at 12% for 3n 70,000 X PV of ordinary annuity at 12% for 3n 210,000 X PV of ordinary annuity at 12% for 3n 70,000 X PV of P1 at 12% for 3n
ABC Co. receives P210,000 3-year non-interest bearing note. Collections is on the principal and interest is to be made every 12 months. Effective rate was 12%. How will ABC measure the note on initial recognition? 210,000 X PV of P1 at 12% for 3n 70,000 X PV of ordinary annuity at 12% for 3n 210,000 X PV of ordinary annuity at 12% for 3n 70,000 X PV of P1 at 12% for 3n
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 16Q: Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual...
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ABC Co. receives P210,000 3-year non-interest bearing note. Collections is on the principal and interest is to be made every 12 months. Effective rate was 12%. How will ABC measure the note on initial recognition?
210,000 X PV of P1 at 12% for 3n
70,000 X PV of ordinary annuity at 12% for 3n
210,000 X PV of ordinary annuity at 12% for 3n
70,000 X PV of P1 at 12% for 3n
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