A company offered a contest in which the winner would receive P 1,000,000, payable over twenty years. On December 31, 2021, the company announced the winner of the contest and signed a note payable to th winner for P 1,000,000, payable in P 50,000 installments every January 2. Also on December 31, 2021, the company purchased an annuity for P 498,250 tp provide the P 950,000 prize remaining after the first P 50,000 installment, which was paid on January 2, 2022. 1. On December 31, 2021, what amount should be reported as note payable- contest winner, net of current portion?
A company offered a contest in which the winner would receive P 1,000,000, payable over twenty years. On December 31, 2021, the company announced the winner of the contest and signed a note payable to th winner for P 1,000,000, payable in P 50,000 installments every January 2. Also on December 31, 2021, the company purchased an annuity for P 498,250 tp provide the P 950,000 prize remaining after the first P 50,000 installment, which was paid on January 2, 2022. 1. On December 31, 2021, what amount should be reported as note payable- contest winner, net of current portion?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A company offered a contest in which the winner would receive P 1,000,000, payable over twenty years. On December 31, 2021, the company announced the winner of the contest and signed a note payable to th winner for P 1,000,000, payable in P 50,000 installments every January 2. Also on December 31, 2021, the company purchased an annuity for P 498,250 tp provide the P 950,000 prize remaining after the first P 50,000 installment, which was paid on January 2, 2022.
1. On December 31, 2021, what amount should be reported as note payable- contest winner, net of current portion?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education