Question
On October 1, 2021. Chrysanthemum Co. purchased equipment by issuing a four-year, 9% promissory note with face value of P1,500,000. The note is payable in
On October 1, 2021. Chrysanthemum Co. purchased equipment by issuing a four-year, 9% promissory note with face value of P1,500,000. The note is payable in four equal annual installments of P375,000 plus accrued interest on the unpaid balance every September 30 starting September 30, 2022
How much is the interest expense for the year 2022?
126,562.50
What amount shall be reported as interest payable on December 31, 2022?
25,312.50
How much is the interest expense for the year 2023?
92,812.50
What is the carrying value of the note on December 31, 2023?
766,875.00
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College Accounting, Chapters 1-27
Authors: James A. Heintz, Robert W. Parry
21st Edition
1285055411, 9781285055411
