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A note payable to the Bank of the Philippine Islands for P2,400,000 is outstanding on December 31, 2017. The note is dated October 1, 2016, bears interest at 18%, and is payable in three equal annual installment of P800,000. The first interest and principal payment was made on October 1, 2017. What amount should be reported as current liability in the December 31, 2017 balance sheet?

A note payable to the Bank of the Philippine Islands for P2,400,000 is outstanding on December 31, 2017. The note is dated October 1, 2016, bears interest at 18%, and is payable in three equal annual installment of P800,000. The first interest and principal payment was made on October 1, 2017. What amount should be reported as current liability in the December 31, 2017 balance sheet?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A note payable to the Bank of the Philippine Islands for P2,400,000 is outstanding on December 31, 2017. The note is dated October 1, 2016, bears interest at 18%, and is payable in three equal annual installment of P800,000. The first interest and principal payment was made on October 1, 2017. What amount should be reported as current liability in the December 31, 2017 balance sheet?
Transcribed Image Text:A note payable to the Bank of the Philippine Islands for P2,400,000 is outstanding on December 31, 2017. The note is dated October 1, 2016, bears interest at 18%, and is payable in three equal annual installment of P800,000. The first interest and principal payment was made on October 1, 2017. What amount should be reported as current liability in the December 31, 2017 balance sheet?
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