DEFERRAL-TYPE 1. A company paid on June 1, 2021, one-year rent for the ground floor of a building at P720,000. The amount was debited to Prepaid Rent. 2. A company issued on October 17, 2021, a 180-day 12% P48,000 note. Interest has been paid in advance and was debited to Prepaid Interest. 3. On January 1, 2021, a company’s Office Supplies account has a balance of P7,850. On June 1 of the current year, the company bought additional office supplies for P80,000 on terms 20% down and the balance to be paid within 30 days. Before full payment was made, the company returned defective office supplies amounting to P2,550. At the end of the year, office supplies still unused amount to P12,420. 4. A company received a 10-month 18% P120,000 note dated August 31, 2021. The company collected in advance the full interest due on the note. The the amount was credited to Unearned Interest. 5. Unearned Rent for P284,400 was credited by a company on May 1, 2021 representing 18-month advance collection of rent from a tenant.
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
DEFERRAL-TYPE
1. A company paid on June 1, 2021, one-year rent for the ground floor of a
building at P720,000. The amount was debited to Prepaid Rent.
2. A company issued on October 17, 2021, a 180-day 12% P48,000 note.
Interest has been paid in advance and was debited to Prepaid Interest.
3. On January 1, 2021, a company’s Office Supplies account has a balance of
P7,850. On June 1 of the current year, the company bought additional
office supplies for P80,000 on terms 20% down and the balance to be paid
within 30 days. Before full payment was made, the company returned
defective office supplies amounting to P2,550. At the end of the year,
office supplies still unused amount to P12,420.
4. A company received a 10-month 18% P120,000 note dated August 31, 2021.
The company collected in advance the full interest due on the note. The
the amount was credited to Unearned Interest.
5. Unearned Rent for P284,400 was credited by a company on May 1, 2021
representing 18-month advance collection of rent from a tenant.
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