PROBLEM 6: MULTIPLE CHOICE 1. Entity A obtained a 12%, P100,000, one-year loan on October 1, 20x1. On October 1, 20x2, Entity A paid the lender P112,000, PRODiy A obtained a 12%, P100,000, one-year loan on October 1, 201 On October 1, 20x2, Entity A paid the lender 112,000, representing settlement of both the principal and interest on she loan. The P12,000 total interest should be recognized as interest expense c. partly in 20x1 and partly in 20x2. d. Not recognized as expense a. in 20x1. b. in 20x2.

PROBLEM 6: MULTIPLE CHOICE 1. Entity A obtained a 12%, P100,000, one-year loan on October 1, 20x1. On October 1, 20x2, Entity A paid the lender P112,000, PRODiy A obtained a 12%, P100,000, one-year loan on October 1, 201 On October 1, 20x2, Entity A paid the lender 112,000, representing settlement of both the principal and interest on she loan. The P12,000 total interest should be recognized as interest expense c. partly in 20x1 and partly in 20x2. d. Not recognized as expense a. in 20x1. b. in 20x2.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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