ce value of P1,500,000. The note is payable in four equal annual installments of P375,000 plus accrued interest on the unpaid balance every September 30 starting September 30, 2022. What is the carrying value of the note on December 31, 2023?* 750,000 1,500,000 766,875 842,812.50 What amount shall be reported as interest payable on Decem
ce value of P1,500,000. The note is payable in four equal annual installments of P375,000 plus accrued interest on the unpaid balance every September 30 starting September 30, 2022. What is the carrying value of the note on December 31, 2023?* 750,000 1,500,000 766,875 842,812.50 What amount shall be reported as interest payable on Decem
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
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 6P: Non-Interest-Bearing Note Payable: Present Value On January 1, 2019, Northern Manufacturing Company...
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PROBLEM:
On October 1, 2021, Chrysanthemum Co. purchased equipment by issuing a four-year, 9% promissory note with face value of P1,500,000. The note is payable in four equal annual installments of P375,000 plus accrued interest on the unpaid balance every September 30 starting September 30, 2022.
What is the carrying value of the note on December 31, 2023?*
750,000
1,500,000
766,875
842,812.50
What amount shall be reported as interest payable on December 31, 2022?*
101,250
25,312.50
126,562.50
Zero
How much is the interest expense for the year 2023?*
92,812.50
16,875
101,250
67,500
How much is the interest expense for the year 2022?*
25,312.50
126,562.50
101,250
135,000
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