Presentation of Notes Receivable

Remarkable Company had the following account balances on January 1, 2021:

Note receivable from sale of an idle building 7,500,000

Note receivable from an officer 2,000,000

The P7,500,000 note receivable is dated May 1, 2020, bears interest at 9% and represents the balance of the consideration received from the sale of an idle building to Solid Company. Principal payments of P2,500,000 plus interest are due annually beginning May 1, 2021. Solid Company made the first principal and interest payment on May 1, 2021.

The P2,000,000 note receivable note receivable is dated December 31, 2018, bears interest at 8% and is due on December 3, 2023. The note is due from the president of Remarkable Company. Interest is payable annually on December 31 and all interest payments were made through December 31, 2021. On July 1, 2021, Remarkable Company sold a parcel of land to Boom Company for P4,000,000 under an installment sale contract. Boom Company made a P1,200,000 cash down payment on July 1, 2021, and signed a 4-year 10% note for the P2,800,000 balance. The equal annual payments of principal and interest on the note totaled P880,000, payable on July 1 of each year from 2022 through 2025. The fair value of the land at the date of sale was P4,000,000. The cost of the land was P3,000,000.

Required:

1. Determine the amount of Notes Receivable including accrued interest that should be classified as Current Asset on December 31, 2021.

2. Determine the amount of Notes Receivable that should be classified as Noncurrent Asset on December 31, 2021.

Can someone please explain the solution as well for me to further understand how it came up with the final answer? Thank you.