How much was the cash received by the company and the interest expense recognized for the year ended December 31, 2019? * P 1,800,000; 211,500 P 1,548,000; 306,000 P 1,588,500; P 319,500 P 1,584,000; P 306,000 P 1,588,500; P 324,000 P 1,584,000; P 216,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

How much was the cash received by the company and the interest expense recognized for the year ended December 31, 2019? *

P 1,800,000; 211,500

P 1,548,000; 306,000

P 1,588,500; P 319,500

P 1,584,000; P 306,000

P 1,588,500; P 324,000

P 1,584,000; P 216,000

On June 30, 2019, Franz Inc. borrowed P1,800,000 for one year from the bank with an interest of
12%. As security for the loan, Franz pledged its accounts receivable amounting to P2,500,000 to the
bank. The bank charged the company 8.46% of the accounts receivable pledged as service charge
deducted from the amount borrowed.
Transcribed Image Text:On June 30, 2019, Franz Inc. borrowed P1,800,000 for one year from the bank with an interest of 12%. As security for the loan, Franz pledged its accounts receivable amounting to P2,500,000 to the bank. The bank charged the company 8.46% of the accounts receivable pledged as service charge deducted from the amount borrowed.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education