On Janaury 1, 2021, ABC Company acquired equipment by issuing a 3-year, P4,800,000 non-interest bearing note due in semi-annual payment starting July 1, 2021. The prevailing rate of interest of this type of note is 10%. (PVF 5 decimal) How much is the carrying amount of the note on INITIAL recognition? a. 4,060,552 b. 4,000,000 c. 3,980,342 d. 3,786,309 How much is the CARRYING amount of the note on December 31, 2021? a. 3,463,580 b. 3,343,341 c. 2,836,760 d. 2,279,830

On Janaury 1, 2021, ABC Company acquired equipment by issuing a 3-year, P4,800,000 non-interest bearing note due in semi-annual payment starting July 1, 2021. The prevailing rate of interest of this type of note is 10%. (PVF 5 decimal) How much is the carrying amount of the note on INITIAL recognition? a. 4,060,552 b. 4,000,000 c. 3,980,342 d. 3,786,309 How much is the CARRYING amount of the note on December 31, 2021? a. 3,463,580 b. 3,343,341 c. 2,836,760 d. 2,279,830

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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