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Naughty Co. has a 12% note receivable dated June 30, 2009 in the original amount of P3,000,000. Payments of P1,000,000 in principal plus accrued interest are due annually on July 1, 2010, 2011 and 2012. In its June 30, 2011 balance sheet, what amount should Naughty report as accrued interest on Notes receivable? a. P-0- b. P240,000 c. P360,000 d. P120,000

Naughty Co. has a 12% note receivable dated June 30, 2009 in the original amount of P3,000,000. Payments of P1,000,000 in principal plus accrued interest are due annually on July 1, 2010, 2011 and 2012. In its June 30, 2011 balance sheet, what amount should Naughty report as accrued interest on Notes receivable? a. P-0- b. P240,000 c. P360,000 d. P120,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Please answer no.18 correctly and provide computation. Thank you;)

18. Naughty Co. has a 12% note receivable dated June 30, 2009 in the original amount of P3,000,000. Payments of P1,000,000 in principal plus accrued interest are due annually on July 1, 2010, 2011 and 2012. In its June 30, 2011 balance sheet, what amount should Naughty report as accrued interest on Notes receivable? c. P360,000 d. P120,000 а. Р-0- b. P240,000
Transcribed Image Text:18. Naughty Co. has a 12% note receivable dated June 30, 2009 in the original amount of P3,000,000. Payments of P1,000,000 in principal plus accrued interest are due annually on July 1, 2010, 2011 and 2012. In its June 30, 2011 balance sheet, what amount should Naughty report as accrued interest on Notes receivable? c. P360,000 d. P120,000 а. Р-0- b. P240,000
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