On January 1, 20X1 Grin Corporation acquired a building for P10M. The entity paid P1M down and signed a 3-year non-interest bearing note for the balance. Note is payable on due date. Prevailing rate for the note of this type is 12%. REQUIRED: Journal entries to record the purchase of the building up to the settlement of the note. How should the note be presented in the statement of financial position at Dec 31, 20X1?
On January 1, 20X1 Grin Corporation acquired a building for P10M. The entity paid P1M down and signed a 3-year non-interest bearing note for the balance. Note is payable on due date. Prevailing rate for the note of this type is 12%. REQUIRED: Journal entries to record the purchase of the building up to the settlement of the note. How should the note be presented in the statement of financial position at Dec 31, 20X1?
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
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 23P: Notes Receivable On January 1, 2019, Lisa Company sold machinery with a book value of 118,000 to...
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On January 1, 20X1 Grin Corporation acquired a building for P10M. The entity paid P1M down and signed a 3-year non-interest bearing note for the balance. Note is payable on due date. Prevailing rate for the note of this type is 12%.
REQUIRED:
Journal entries to record the purchase of the building up to the settlement of the note.- How should the note be presented in the
statement of financial position at Dec 31, 20X1?
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