On December 31, 2021, Bart Company purchased a machine from fell company in exchange for a noninterest bearing note requiring eight payments of P200,000. The first payments was made on December 31, 2021 and the other are due annually on December 31. At date of issuance, the prevailing rate of interest for this type of note was 11%. Present value factors are as follows: PV of an ordinary annuity of 1 at 11% for 8 periods 5.146 PV of an annuity of 1in advance at 11% at 8 periods 5.712 In the December 30, 2021 statement of financial position, what is the carrying amount of the note payable?
On December 31, 2021, Bart Company purchased a machine from fell company in exchange for a noninterest bearing note requiring eight payments of P200,000. The first payments was made on December 31, 2021 and the other are due annually on December 31. At date of issuance, the prevailing rate of interest for this type of note was 11%. Present value factors are as follows: PV of an ordinary annuity of 1 at 11% for 8 periods 5.146 PV of an annuity of 1in advance at 11% at 8 periods 5.712 In the December 30, 2021 statement of financial position, what is the carrying amount of the note payable?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On December 31, 2021, Bart Company purchased a machine from fell company in exchange for a noninterest bearing note requiring eight payments of P200,000. The first payments was made on December 31, 2021 and the other are due annually on December 31. At date of issuance, the prevailing rate of interest for this type of note was 11%. Present value factors are as follows:
PV of an ordinary annuity of 1 at 11% for 8 periods 5.146
PV of an annuity of 1in advance at 11% at 8 periods 5.712
In the December 30, 2021 statement of financial position , what is the carrying amount of the note payable?
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