On January 1, 2020, Company A issued 18% bearing note payable in ten semi-annual instalments every June 30 and December 31 starting June 30, 2020; P 5,0000,000. The market interest rate for this type of transaction is 10%. Get: Present Value/ Carrying Value Beg. Carrying Value December 31, 2022
On January 1, 2020, Company A issued 18% bearing note payable in ten semi-annual instalments every June 30 and December 31 starting June 30, 2020; P 5,0000,000. The market interest rate for this type of transaction is 10%. Get: Present Value/ Carrying Value Beg. Carrying Value December 31, 2022
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 11E
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Question
On January 1, 2020, Company A issued 18% bearing note payable in ten semi-annual instalments every June 30 and December 31 starting June 30, 2020; P 5,0000,000. The market interest rate for this type of transaction is 10%.
Get:
- Present Value/ Carrying Value Beg.
- Carrying Value December 31, 2022
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