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PINK Company reported a 10% note payable of ₱3,600,000 on June 30, 2021. The note is dated October 1, 2019, and payable in three equal annual payments of ₱1,200,000 plus interest. The first interest and principal payment were made on October 1, 2020. On June 30, 2021, what amount should be reported as accrued interest payable for this note?    a. ₱ 180,000 b. ₱ 60,000 c. ₱ 90,000 d. ₱ 270,000

PINK Company reported a 10% note payable of ₱3,600,000 on June 30, 2021. The note is dated October 1, 2019, and payable in three equal annual payments of ₱1,200,000 plus interest. The first interest and principal payment were made on October 1, 2020. On June 30, 2021, what amount should be reported as accrued interest payable for this note?    a. ₱ 180,000 b. ₱ 60,000 c. ₱ 90,000 d. ₱ 270,000

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 1EA: Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest...
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PINK Company reported a 10% note payable of ₱3,600,000 on June 30, 2021. The note is dated October 1, 2019, and payable in three equal annual payments of ₱1,200,000 plus interest. The first interest and principal payment were made on October 1, 2020. On June 30, 2021, what amount should be reported as accrued interest payable for this note? 

 

a. ₱ 180,000

b. ₱ 60,000

c. ₱ 90,000

d. ₱ 270,000

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