On January 1, 2019, James Co. received a 10%, five year note from a customer. Interest is paid every December 31. The note has a face value of P12,000,000. The effective rate on the date of the receipt of the note was 12% 1. Determine the initial amount of the note. 2. Prepare an amortization table to show the balance of the note at the end of each reporting period from 2019 to 2023. 3. Compute for the interest income recognized by James during each period from 2019 to 2023.
On January 1, 2019, James Co. received a 10%, five year note from a customer. Interest is paid every December 31. The note has a face value of P12,000,000. The effective rate on the date of the receipt of the note was 12% 1. Determine the initial amount of the note. 2. Prepare an amortization table to show the balance of the note at the end of each reporting period from 2019 to 2023. 3. Compute for the interest income recognized by James during each period from 2019 to 2023.
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 30E
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