Luna Company discounted its own 2-year P500,000 12% interest bearing note at the bank on September 1, 2020. The note was dated August 1, 2020. The discount rate was 15%. Prepare the journal entries relating to the said note starting September 1, 2020 until its payment.

Luna Company discounted its own 2-year P500,000 12% interest bearing note at the bank on September 1, 2020. The note was dated August 1, 2020. The discount rate was 15%. Prepare the journal entries relating to the said note starting September 1, 2020 until its payment.

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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Problem 8-2 (with solution/explanation)
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