1) Frame Company has an 8% note receivable dated June 30, 2009, in the original amount of P1,500,000. Payments of P500,000 in principal plus accrued interest are due annually on July 1, 2010, 2011, and 2012. In its June 30, 2011 balance sheet, what amount should Frame report as a current asset for interest on the note receivable?

2) On January 1, 2009 Ott Company sold goods to Fox Company, Fox signed a non-interest bearing note requiring payment of P600,000 annually for seven years. The first payment was made on January 1, 2009. The prevailing rate of interest for this type of note at date of issuance was 10%. How much is the sales to be recorded? Information on present value factors is as follows:

Period PV of 1at10% PV of ord. annuity of 1at10% 6 0.56 4.36 7 0.51 4.87

3) Pangasinan Company is a dealer in equipment. On December 31, 2009, Pangasinan Company sold an equipment in exchange for a non-interest bearing note requiring five annual payments of P500,000. The first payment was made on December 31, 2010. The market interest for similar notes was 8%. The relevant present value factors are: PV of 1 at 8% for 5 periods, 0.68; PV of an ordinary annuity of 1 at 8% for 5 periods, 3.99. In its December 31, 2009 balance sheet, what amount Pangasinan report as note receivable?

4) Using the data in no. 8, what amount of interest income should be reported for the year 2010?

5) On July 1, 2014, AWIT Inc. received a 180-day P1,000,000 note receivable from its customer with 10% interest. Due to financial difficulties, AWIT Inc. discounted the said notes receivable to RCBC Inc. on August 15, 2014 at a 15% discount rate. What is the net proceeds from the note discounting to be received by AWIT Inc.? (Assume 360-day)