On January 1, 2022, Bryan Company received from the government a P5,000,000 three-year, zero-interest loan evidenced by a promissory note. The prevailing rate of interest for a loan of this type is 10%. The present value of 1 at 10% for three periods is 0.751. 1. What is included in the journal entry to record the loan and grant? A. Debit discount on note payable, P1,245,000 B. Credit note payable, P5,000,000 C. Credit deferred grant income , P1,245,000 D. All of these are included in the journal entry 2. What is the grant income for 2022? А. 1,245,000 В. 415,000 C. 375,500 D. Zero

On January 1, 2022, Bryan Company received from the government a P5,000,000 three-year, zero-interest loan evidenced by a promissory note. The prevailing rate of interest for a loan of this type is 10%. The present value of 1 at 10% for three periods is 0.751. 1. What is included in the journal entry to record the loan and grant? A. Debit discount on note payable, P1,245,000 B. Credit note payable, P5,000,000 C. Credit deferred grant income , P1,245,000 D. All of these are included in the journal entry 2. What is the grant income for 2022? А. 1,245,000 В. 415,000 C. 375,500 D. Zero

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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