Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you please help me to solve these problems? So that I can compare your solution on mine too. Thank you! 1. Included in N

Can you please help me to solve these problems? So that I can compare your solution on mine too. Thank you!

1. Included in N Corporation's liability account balances at December 31, 20x6 was a Note payable for 2,800,000. The principal amount of the note payable is P2,800,000 and bears interest at 15%. The note is dated April 1, 20x6 and is payable in four equal installments of P700,000 beginning April 1, 20x7. The first principal and interest payment was made on April 1, 20x7. Determine the non-current portion of the note payable as of December 31, 20x7.

2. Jason Company offered a contest in which the winner would receive P1,000,000 payable over twenty years. On December 31, 2019, Jason Company announced the winner of the contest and signed a note payable to the winner for P1,000,000 payable in P50,000 installments every January 31. On December 31, 2019, Jason Company purchased an annuity for P418,250 to provide the P950,000 prize remaining after the first P50,000 installment which was paid on January 31, 2020. On December 31, 2019, what amount should be reported as note payable-contest winner, net of current portion?

3. Included in M Corporation's liability account balances at December 31, 20x6 was a Note payable for 2,800,000. The principal amount of the note payable is P2,800,000 and bears interest at 15%. The note is dated April 1, 20x6 and is payable in four equal installments of P700,000 beginning April 1, 20x7. The first principal and interest payment was made on April 1, 20x7. Determine the interest expense for20x7.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting Chapters 1-9

Authors: James Heintz

22nd Edition

1305888537, 978-1305666184

More Books

Students also viewed these Accounting questions

Question

1. What does this mean for me?

Answered: 1 week ago