On October 1, 2021, Chrysanthemum Co. purchased equipment by issuing a four-year, 9% promissory note with face value of P1,500,000. The note is payable in four equal annual installments of P375,000 plus accrued interest on the unpaid balance every September 30 starting September 30, 2022. What is the carrying value of the note on December 31, 2023? a. 842,812.50 b. 1,500,000 c. 750,000 d. 766,875 How much is the interest expense for the year 2023? a. 67,500 b. 92,812.50 c. 101,250 d. 16,875 How much is the interest expense for the year 2022? a. 135,000 b. 101,250 c. 126,562.50 d. 25,312.50 What amount shall be reported as interest payable on December 31, 2022? a.101,250 b. Zero c.126,562.50 d. 25,312.50

On October 1, 2021, Chrysanthemum Co. purchased equipment by issuing a four-year, 9% promissory note with face value of P1,500,000. The note is payable in four equal annual installments of P375,000 plus accrued interest on the unpaid balance every September 30 starting September 30, 2022. What is the carrying value of the note on December 31, 2023? a. 842,812.50 b. 1,500,000 c. 750,000 d. 766,875 How much is the interest expense for the year 2023? a. 67,500 b. 92,812.50 c. 101,250 d. 16,875 How much is the interest expense for the year 2022? a. 135,000 b. 101,250 c. 126,562.50 d. 25,312.50 What amount shall be reported as interest payable on December 31, 2022? a.101,250 b. Zero c.126,562.50 d. 25,312.50

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 1RE

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