On January 1, 2022, ABC Company issued 9% Note with face amount of P2,000,000 which matures on January 1, 2032. The Note was issued for P1,878,000 to yield 10% resulting in a discount of P122,000. Interest is payable annually on December 31. On December 31, 2022, what amount should be reported as discount on Note payable? Answer: 114,200 On December 31, 2022, what amount should ABC Company report as Interest expense? Answer: 7,800 Please kindly provide solutions for these answers. thank you
On January 1, 2022, ABC Company issued 9% Note with face amount of P2,000,000 which matures on January 1, 2032. The Note was issued for P1,878,000 to yield 10% resulting in a discount of P122,000. Interest is payable annually on December 31. On December 31, 2022, what amount should be reported as discount on Note payable? Answer: 114,200 On December 31, 2022, what amount should ABC Company report as Interest expense? Answer: 7,800 Please kindly provide solutions for these answers. thank you
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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On January 1, 2022, ABC Company issued 9% Note with face amount of P2,000,000 which matures on January 1, 2032. The Note was issued for P1,878,000 to yield 10% resulting in a discount of P122,000. Interest is payable annually on December 31.
On December 31, 2022, what amount should be reported as discount on Note payable?
On December 31, 2022, what amount should be reported as discount on Note payable?
Answer: 114,200
On December 31, 2022, what amount should ABC Company report as Interest expense?
Answer: 7,800
Please kindly provide solutions for these answers. thank you
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