On December 1, 2019, Marcy Lou raised emergency funds by issuing an 18% note for P500,000. The note has a term of 4 months, and the agreement states that Marcy will pay the principal in full plus the interest on the maturity date.

Answer the following questions. Round off answers to the nearest peso.

1. How much is the interest expense of Marcy on this note for the year ended 12.31.19?

2. How much interest was paid by Marcy on this note for the year ended 12.31.19?

Answer

3. How much interest payable is recognized on this note on 12.31.19?

Answer

4. How much is Marcy's total liabilities pertaining to this transaction on 12.31.19?

Answer

5.(A)What is the adjusting entry on 12.31.19?

Answer

A. Interest income

B.Interest Expense

C. InterestReceivable

D. Interest Payable

E. Cash

How much is the debit amount?

Credit

A. Interest income

B.Interest Expense

C. InterestReceivable

D. Interest Payable

E. Cash

How much is the credit amount?

5.(B)How much is the interest expense to be recognized on this note for the year 2020?

Answer

6. How much total cash was paid by Marcy on the maturity date?

Answer

7. What is the entry on the date of maturity to recognize the payment of the principal and the interest? Prepare a compound entry. For multiple debits or multiple credits, arrange the account titles from largest to smallest amount.

FirsT LARGEST ACCOUNT TITLE

A. Notes Receivable

B. Cash

C. Interest Expense

D. Interest Receivable

E. InterestPayable

F. Notes Payable

G.interest Income

How much is the amount for the FIRST largest account title?

SECOND LARGEST ACCOUNT TITLE

A. Notes Receivable

B. Cash

C. Interest Expense

D. Interest Receivable

E. InterestPayable

F. Notes Payable

G.interest Income

How much is the amount for the Second largest account title?

Third LARGEST ACCOUNT TITLE

A. Notes Receivable

B. Cash

C. Interest Expense

D. Interest Receivable

E. InterestPayable

F. Notes Payable

G.interest Income

How much is the amount for the third-largest account title?

Forth LARGEST ACCOUNT TITLE

A. Notes Receivable

B. Cash

C. Interest Expense

D. Interest Receivable

E. InterestPayable

F. Notes Payable

G.interest Income

How much is the amount for the fort largest account title or the smallest?