22. On December 31, 2020, Ebasan Company finished consultation services and accepted in exchange a promissorynote with a face value of P300,000, a due date of December 31, 2023, and a stated rate of 5%, with interestreceivable at the end of each year. The fair value of the services is not readily determinable and the note isnot readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rateof interest of 10%, The service revenue to be recognized for the year ended December 31, 2020 isA. 300,000B. 273,953C. 262,694D. 247,92023. The carrying amount of the note receivable as of December 31, 2021 isA. 300,000B. 273,953C. 262,694D. 247,920

Service revenue is the revenue which has been earned through the performance of the obligations or…

of interest of 10%, The service revenue to be recognized for the year ended December 31, 2020 is A. 300,000 B. 273,953 C. 262,694 D. 247,920 23. The carrying amount of the note receivable as of December 31, 2021 is

of interest of 10%, The service revenue to be recognized for the year ended December 31, 2020 is A. 300,000 B. 273,953 C. 262,694 D. 247,920 23. The carrying amount of the note receivable as of December 31, 2021 is

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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Question

22. On December 31, 2020, Ebasan Company finished consultation services and accepted in exchange a promissory
note with a face value of P300,000, a due date of December 31, 2023, and a stated rate of 5%, with interest
receivable at the end of each year. The fair value of the services is not readily determinable and the note is
not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate
of interest of 10%, The service revenue to be recognized for the year ended December 31, 2020 is
A. 300,000
B. 273,953
C. 262,694
D. 247,920
23. The carrying amount of the note receivable as of December 31, 2021 is
A. 300,000
B. 273,953
C. 262,694
D. 247,920

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