On December 31, 2019, Bart Company purchased a machine in exchange for a noninterest bearing note requiring eight payments 0 P200,000. The first payment was made on December 31, 2019 and the others are due annually on December 31. At date of issuance, the prevailing rate of interest for this type of note. was 11%. The present value of an ordinary annuity of 1 at 11% for 8 periods is 5.146 and the present value of an annuity of 1 in advance at 11% for 8 periods is 5.712 6) What amount should be recorded as the initial cost of the machine? 7) What is the discount on note payable on December 31, 2019? 8.) What amount should be reported as intereșt expense for 2020? 9) What is the carrying amount of note payable on December 31, 2020?
On December 31, 2019, Bart Company purchased a machine in exchange for a
noninterest bearing note requiring eight payments 0 P200,000. The first payment was made on December 31, 2019 and the others are due annually on December 31. At date of issuance, the
prevailing rate of interest for this type of note. was 11%. The present value of an ordinary
annuity of 1 at 11% for 8 periods is 5.146 and the present value of an annuity of 1 in advance at
11% for 8 periods is 5.712
6) What amount should be recorded as the initial cost of the machine?
7) What is the discount on note payable on December 31, 2019?
8.) What amount should be reported as intereșt expense for 2020?
9) What is the carrying amount of note payable on December 31, 2020?
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