On December 31, 2019, Bart Company purchased a machine in exchange for a noninterest bearing note requiring eight payments 0 P200,000. The first payment was made on December 31, 2019 and the others are due annually on December 31. At date of issuance, the prevailing rate of interest for this type of note. was 11%. The present value of an ordinary annuity of 1 at 11% for 8 periods is 5.146 and the present value of an annuity of 1 in advance at 11% for 8 periods is 5.712 What is the carrying amount of note payable on December 31, 2020?
On December 31, 2019, Bart Company purchased a machine in exchange for a noninterest bearing note requiring eight payments 0 P200,000. The first payment was made on December 31, 2019 and the others are due annually on December 31. At date of issuance, the prevailing rate of interest for this type of note. was 11%. The present value of an ordinary annuity of 1 at 11% for 8 periods is 5.146 and the present value of an annuity of 1 in advance at 11% for 8 periods is 5.712 What is the carrying amount of note payable on December 31, 2020?
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
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 10MC: On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major...
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On December 31, 2019, Bart Company purchased a machine in exchange for a
noninterest bearing note requiring eight payments 0 P200,000. The first payment was made on December 31, 2019 and the others are due annually on December 31. At date of issuance, the
prevailing rate of interest for this type of note. was 11%. The present value of an ordinary
annuity of 1 at 11% for 8 periods is 5.146 and the present value of an annuity of 1 in advance at
11% for 8 periods is 5.712
What is the carrying amount of note payable on December 31, 2020?
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