On October 1, 2019, a company acquired land by issuing a two-year note, 12%, P4,000,000 note payable. Principal is due on October 31, 2021 but interests are due annually every October 1. Boxer uses the calendar year as its accounting period. How much is the interest expense recognized in 2019?
On October 1, 2019, a company acquired land by issuing a two-year note, 12%, P4,000,000 note payable. Principal is due on October 31, 2021 but interests are due annually every October 1. Boxer uses the calendar year as its accounting period. How much is the interest expense recognized in 2019?
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 15DQ
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On October 1, 2019, a company acquired land by issuing a two-year note, 12%,
P4,000,000 note payable. Principal is due on October 31, 2021 but interests are due
annually every October 1. Boxer uses the calendar year as its accounting period.
How much is the interest expense recognized in 2019?
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