On January 1, 2022, SEEMLY HANDSOME Co., sold a used equipment for a ₱12,000,000 non-interest bearing note payable in three annual installments as follows: ........ Date.........................Amount January 1, 2025.............. ₱ 6,000,000 January 1, 2026.................. 4,000,000 January 1, 2027....................2,000,000 The current market rate of interest on January 1, 2022 is 12%. How much is the carrying amount of the note on initial recognition?

On January 1, 2022, SEEMLY HANDSOME Co., sold a used equipment for a ₱12,000,000 non-interest bearing note payable in three annual installments as follows: ........ Date.........................Amount January 1, 2025.............. ₱ 6,000,000 January 1, 2026.................. 4,000,000 January 1, 2027....................2,000,000 The current market rate of interest on January 1, 2022 is 12%. How much is the carrying amount of the note on initial recognition?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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