Company is due in five years. On both notes, interest is calculated on the outstanding principal The note from Hart Company, made under customary trade balance at the annual rate of 3% and payable at maturity. At year-end, Jet Company received two P1,000,000 notes receivable from customers in exchange for services rendered. Problem 6-9 (AICPA Adapted) At year-end, Jet Company received two P1,000,000 notes On both notes, interest is calculated on the outstanding principal terms, is. due in nine months and the note from Maxx The market interest rate for similar notes at year-end was 8%. The compound interest factors to convert future value into present value at 8% are: Present value of 1 due in nine months Present value of 1 due in five years .944 .680 What total carrying amount of notes receivable should be reported at year-end? 1,624,000 b. 1,747,200 1,680,000 d. 1,782,000 a. с. Adapted) P hleinm 6 10 (AICPA

Company is due in five years. On both notes, interest is calculated on the outstanding principal The note from Hart Company, made under customary trade balance at the annual rate of 3% and payable at maturity. At year-end, Jet Company received two P1,000,000 notes receivable from customers in exchange for services rendered. Problem 6-9 (AICPA Adapted) At year-end, Jet Company received two P1,000,000 notes On both notes, interest is calculated on the outstanding principal terms, is. due in nine months and the note from Maxx The market interest rate for similar notes at year-end was 8%. The compound interest factors to convert future value into present value at 8% are: Present value of 1 due in nine months Present value of 1 due in five years .944 .680 What total carrying amount of notes receivable should be reported at year-end? 1,624,000 b. 1,747,200 1,680,000 d. 1,782,000 a. с. Adapted) P hleinm 6 10 (AICPA

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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