Luis was granted a loan of P 20,000 by his employer CPM Industrial Fabricator and Construction Corporation with an interest of 6% for 180 days on the principal collected in advance. The corporation would accept a promissory note for P 20,000 non-interest for 180 days. If discounted at once, find the proceeds of the note.

Luis was granted a loan of P 20,000 by his employer CPM Industrial Fabricator and Construction Corporation with an interest of 6% for 180 days on the principal collected in advance. The corporation would accept a promissory note for P 20,000 non-interest for 180 days. If discounted at once, find the proceeds of the note.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 16Q: Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual...

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