Jeanneth company bought a new machine and agreed to pay in equal annual installment of P300,000 at the end of each of the next 5 years. The prevailing interest rate for this type of transaction is 12%. The rpesent value of an ordinary annuity of 1 at 12% for five periods is 3.60. The future amount of an ordinary annuity of 1 at 12% for five periods is 6.35. The present value of P1 at 12% for five periods is 0.567. What is the interest expense for the first year?

Jeanneth company bought a new machine and agreed to pay in equal annual installment of P300,000 at the end of each of the next 5 years. The prevailing interest rate for this type of transaction is 12%. The rpesent value of an ordinary annuity of 1 at 12% for five periods is 3.60. The future amount of an ordinary annuity of 1 at 12% for five periods is 6.35. The present value of P1 at 12% for five periods is 0.567. What is the interest expense for the first year?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 3MC: Electro Corporation bought a new machine and agreed to pay for it in equal annual installments of...

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Janess company bought a new machine and agreed to pay in equal annual installment of P300,000 at the end of each of the next 5 years. The prevailing interest rate for this type of transaction is 12%. The rpesent value of an ordinary annuity of 1 at 12% for five periods is 3.60. The future amount of an ordinary annuity of 1 at 12% for five periods is 6.35. The present value of P1 at 12% for five periods is 0.567. What amount should be reported as note payable if financial statements were prepared today?
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