00,000 in principal plus accrued interest are due annually on July 1, 2021, 2022 and 2023. (Present value is not to be computed because it is interest-bearing note, hence P1,500,000 is the present value, be aware also that payment date d
00,000 in principal plus accrued interest are due annually on July 1, 2021, 2022 and 2023. (Present value is not to be computed because it is interest-bearing note, hence P1,500,000 is the present value, be aware also that payment date d
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Planet-X Company has an 8% note receivable dated June 30, 2020, in the original amount of P1,500,000. Payments of P500,000 in principal plus accrued interest are due annually on July 1, 2021, 2022 and 2023. (Present value is not to be computed because it is interest-bearing note, hence P1,500,000 is the present value, be aware also that payment date does not coincide with Dec. 31 year end.)
On June 30, 2022, what amount should be reported as accrued interest on the note receivable?
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