On Jan. 1, 2020, EC Company reported a note payable of P 1,200,000. The note is dated Oct. 1, 2019, bears interest at 12% and is payable in three equal annual payments of P 400,000. The first interest and principal payment was made on Oct. 1, 2020. What amount should be reported as interest expense for 2020? * a. P 30,000 b. P 132,000 c. P 165,000 d. P 180,000
On Jan. 1, 2020, EC Company reported a note payable of P 1,200,000. The note is dated Oct. 1, 2019, bears interest at 12% and is payable in three equal annual payments of P 400,000. The first interest and principal payment was made on Oct. 1, 2020. What amount should be reported as interest expense for 2020? * a. P 30,000 b. P 132,000 c. P 165,000 d. P 180,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On Jan. 1, 2020, EC Company reported a note payable of P 1,200,000. The note is dated Oct. 1, 2019, bears interest at 12% and is payable in three equal annual payments of P 400,000. The first interest and principal payment was made on Oct. 1, 2020. What amount should be reported as interest expense for 2020? *
a. P 30,000
b. P 132,000
c. P 165,000
d. P 180,000
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