On January 1, 2019, a company acquired transportation equipment by paying cash of P400,000 and issuing a noninterest- bearing note payable of P4,000,000 due in 4 equal annual installments starting December 31, 2019. The prevailing rate of interest of this type of note is 12%. 1. How much is the interest expense in 2019? 2. How much is the carrying amount of the note on December 31, 2019? 3. How much is the noncurrent portion of the note on December 31, 2019?

On January 1, 2019, a company acquired transportation equipment by paying cash of P400,000 and issuing a noninterest- bearing note payable of P4,000,000 due in 4 equal annual installments starting December 31, 2019. The prevailing rate of interest of this type of note is 12%. 1. How much is the interest expense in 2019? 2. How much is the carrying amount of the note on December 31, 2019? 3. How much is the noncurrent portion of the note on December 31, 2019?

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

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 23P: Notes Receivable On January 1, 2019, Lisa Company sold machinery with a book value of 118,000 to...

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