9. Answer what is required of the problem. On January 1, 2021, Heritage Company had a note payableto bank in the amount P2,800,000.Transactions during 2021 and other information relating toliabilities are:a. Principal amount of the note payable to bạnk is P2,800,000and bears a 12% interest. The note is dated April 1, 2020and is payable in four equal annual installments beginningApril 1, 2021. The first principal and interest paymentwas made on April 1, 2021.b. On July 1, 2021, the entity issued for P1,774,000 a P2,000,000: face amount note payable to a wealthy shareholder. Thenote was dated July 1, 2021 and matures on July 1, 2022. Noexplicit interest rate is stated in the note aad the entireface amount of the note is payable at maturity date.Required:a. Prepare journal entries for 2021.0. Compute the total current liabilities on December 31, 2021.C. Determine the interest expense for 2021.

in the given problem we have to calculate the followings total Interest for the year 2021 Quarterly…

Answered: 9. Answer what is required of the…

Business

Accounting

9. Answer what is required of the problem.

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

9. Answer what is required of the problem.

On January 1, 2021, Heritage Company had a note payable
to bank in the amount P2,800,000.
Transactions during 2021 and other information relating to
liabilities are:
a. Principal amount of the note payable to bạnk is P2,800,000
and bears a 12% interest. The note is dated April 1, 2020
and is payable in four equal annual installments beginning
April 1, 2021. The first principal and interest payment
was made on April 1, 2021.
b. On July 1, 2021, the entity issued for P1,774,000 a P2,000,000
: face amount note payable to a wealthy shareholder. The
note was dated July 1, 2021 and matures on July 1, 2022. No
explicit interest rate is stated in the note aad the entire
face amount of the note is payable at maturity date.
Required:
a. Prepare journal entries for 2021.
0. Compute the total current liabilities on December 31, 2021.
C. Determine the interest expense for 2021.

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