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On September 1,2019, Pine Company issued a note payable in the amount of P1,800,000, bearing interest at 12%, and payable in three equal annual principal payments of P600,000. On this date, the prime rate was 11%. The first interest and principal payment was made on September 1,2020. 1. On December 31,2020, what amount should be reported as accrued interest payable? A. 44,000 B. 48,000 C. 66,000 D. 72,000

On September 1,2019, Pine Company issued a note payable in the amount of P1,800,000, bearing interest at 12%, and payable in three equal annual principal payments of P600,000. On this date, the prime rate was 11%. The first interest and principal payment was made on September 1,2020. 1. On December 31,2020, what amount should be reported as accrued interest payable? A. 44,000 B. 48,000 C. 66,000 D. 72,000

Corporate Financial Accounting
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter10: Liabilities: Current, Installment Notes, And Contingencies
Section: Chapter Questions
Problem 10.6BE: Journalizing installment notes On the first day of the fiscal year, a company issues 45,000, 8%,...
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Problem 8-15

On September 1,2019, Pine Company issued a note payable in the amount of P1,800,000, bearing interest at 12%, and payable in three equal annual principal payments of P600,000. On this date, the prime rate was 11%.

The first interest and principal payment was made on September 1,2020.

1. On December 31,2020, what amount should be reported as accrued interest payable?

A. 44,000

B. 48,000

C. 66,000

D. 72,000

 

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