Question
On December 1, 2020, A Co. signed a 15-month, P69,325 mortgage note payable to X Bank in conjunction with the purchase of Equipment. The mortgage
On December 1, 2020, A Co. signed a 15-month, P69,325 mortgage note payable to X Bank in conjunction with the purchase of Equipment. The mortgage calls for a 1.0 % interest per month. The note is fully amortized over 15 months. The monthly payments amount to P5,000.
What is the Journal entry on the date of issuance:
Use the following accounts:
| Notes Payable | Discount on Notes Payable |
| Cash | Premium on Notes Payable |
| Equipment | Interest Payable |
| Interest Expense |
1.December 1, 2020, Journal Entry
2. What is the Journal entry on December 31: 3. Compute for the Current portion of the Notes Payable as of December 31, 2020. 4. Compute for the Current portion of the Notes Payable as of December 31, 2020. 5. Compute for the Total Cost of Borrowing:
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Fundamental Accounting Principles
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
20th Edition
1259157148, 78110874, 9780077616212, 978-1259157141, 77616219, 978-0078110870
