At year end, Rei company issued a P2,000,000 face amount note payable in exchange for services rendered. The note, made at usual trade terms, is due in nine months and bears interest, payable at maturity, at the annual rate of 3%. The market interest rate is 8%. The compound interest factor of 1 due in nine months at 8% is .944. At what amount should the note payable be reported at year-end?
At year end, Rei company issued a P2,000,000 face amount note payable in exchange for services rendered. The note, made at usual trade terms, is due in nine months and bears interest, payable at maturity, at the annual rate of 3%. The market interest rate is 8%. The compound interest factor of 1 due in nine months at 8% is .944. At what amount should the note payable be reported at year-end?
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 24Q: Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms...
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18. At year end, Rei company issued a P2,000,000 face amount note payable in exchange for services rendered. The note, made at usual trade terms, is due in nine months and bears interest, payable at maturity, at the annual rate of 3%. The market interest rate is 8%. The compound interest factor of 1 due in nine months at 8% is .944. At what amount should the note payable be reported at year-end?
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