In October 2021, United Corporation obtained a loan amounting to US $ 120,000 for the purchase of machinery and equipment. By the end of the year, one-half of the loan was still unpaid and a ten per cent decrease has taken place. If the foreign loan payable account is correctly reported in the balance sheet at P1,848,000, the rate of exchange at the time the loan was obtained must have been: Group of answer choices a. $1.00 = P27.00 b. $1.00 = P28.00 c. $1.00 = P29.00

In October 2021, United Corporation obtained a loan amounting to US $ 120,000 for the purchase of machinery and equipment. By the end of the year, one-half of the loan was still unpaid and a ten per cent decrease has taken place. If the foreign loan payable account is correctly reported in the balance sheet at P1,848,000, the rate of exchange at the time the loan was obtained must have been: Group of answer choices a. $1.00 = P27.00 b. $1.00 = P28.00 c. $1.00 = P29.00

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 9PB: Pickles R Us is a pickle farm located in the Northeast. The following transactions take place: A. On...

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Pickles R Us is a pickle farm located in the Northeast. The following transactions take place: A. On November 6, Pickles borrows $820,000 from a bank to cover the initial cost of expansion. Terms of the loan are payment due in six months from November 6, and annual interest rate of 3%. B. On December 12, Pickles borrows an additional $200,000 with payment due in three months from December 12, and an annual interest rate of 10%. C. Pickles pays its accounts in full on March 12, for the December 12 loan, and on May 6 for the November 6 loan. Record the journal entries to recognize the initial borrowings, and the two payments for Pickles.
In October 2020, United Corporations obtain a loan amounting to US$120,000 for the purchase of machinery and equipment. By the end of the year, one-half of the loan was still unpaid and a ten percent decrease has taken place. If the foreign loan payable account is correctly reported in the balance sheet at P2,970,000, the rate of exchange at the time of the loan was obtained was must have been:
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