13. On June 1, 2013, Yonder Company loaned P500,000 on a 12% note, payable in five annual installments of P100,000 beginning January 1, 2014. Interest on the note is payable on the first day of each month beginning July 1, 2013. The borrower made timely payments through November 1, 2013. On January 1, 2014, the entity received payment of the first principal installment plus all interest due. On December 31, 2013, what amount should be reported as accrued interest receivable? а. 0 b. 5,000 C. 10,000 d. 15,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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13. On June 1, 2013, Yonder Company loaned P500,000 on a 12% note, payable in five annual
installments of P100,000 beginning January 1, 2014. Interest on the note is payable on the
first day of each month beginning July 1, 2013. The borrower made timely payments
through November 1, 2013. On January 1, 2014, the entity received payment of the first
principal installment plus all interest due. On December 31, 2013, what amount should be
reported as accrued interest receivable?
а.
b. 5,000
с. 10,000
d.
15,000
Transcribed Image Text:13. On June 1, 2013, Yonder Company loaned P500,000 on a 12% note, payable in five annual installments of P100,000 beginning January 1, 2014. Interest on the note is payable on the first day of each month beginning July 1, 2013. The borrower made timely payments through November 1, 2013. On January 1, 2014, the entity received payment of the first principal installment plus all interest due. On December 31, 2013, what amount should be reported as accrued interest receivable? а. b. 5,000 с. 10,000 d. 15,000
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