January 1, 2021, VKS Corporation sold goods to IntAcc2 Company. IntAcc2 signed a noninterest-bearing note requiring payment of P600,000 annually for seven years. The first payment was made on January 1, 2021. The prevailing rate of interest for this type of note at date of issuance was 10%. · PV of an ordinary annuity of 1 at 10% for 6 period- 4.36 · PV of an ordinary annuity of 1 at 10% for 7 period- 4.87
January 1, 2021, VKS Corporation sold goods to IntAcc2 Company. IntAcc2 signed a noninterest-bearing note requiring payment of P600,000 annually for seven years. The first payment was made on January 1, 2021. The prevailing rate of interest for this type of note at date of issuance was 10%. · PV of an ordinary annuity of 1 at 10% for 6 period- 4.36 · PV of an ordinary annuity of 1 at 10% for 7 period- 4.87
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
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 14RE: On January 1, 2019, Boater Company issues a 20,000 non-interest-bearing, 5-year note for equipment....
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On January 1, 2021, VKS Corporation sold goods to IntAcc2 Company. IntAcc2 signed a noninterest-bearing note requiring payment of P600,000 annually for seven years. The first payment was made on January 1, 2021.
The prevailing rate of interest for this type of note at date of issuance was 10%.
· PV of an ordinary annuity of 1 at 10% for 6 period- 4.36
· PV of an ordinary annuity of 1 at 10% for 7 period- 4.87
What is the carrying amount of the note receivable on January 1, 2021?
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