On January 1, 2019, James Co. received a 10%, five year note from a customer.Interest is paid every December 31. The note has a face value of P12,000,000. Theeffective rate on the date of the receipt of the note was 12%1. Determine the initial amount of the note.2. Prepare an amortization table to show the balance of the note at the end of eachreporting period from 2019 to 2023.3. Compute for the interest income recognized by James during each period from 2019to 2023.On January 1, 2019, Frank Co. received a 14%, three-year note from a customer.The interest on the note is paid every June 30 and December 31. The note has a facevalue of P1,000,000. The effective rate applicable on the note is 12%.1. Determine the initial amount of the note.2. Prepare an amortization table to show the balance of the note at the end of eachreporting period from 2019 to 2021.3. Compute for the interest income recognized by Frank during each period from 2019to 2021.

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On January 1, 2019, James Co. received a 10%, five year note from a customer. Interest is paid every December 31. The note has a face value of P12,000,000. The effective rate on the date of the receipt of the note was 12% 1. Determine the initial amount of the note. 2. Prepare an amortization table to show the balance of the note at the end of each reporting period from 2019 to 2023. 3. Compute for the interest income recognized by James during each period from 2019 to 2023.

On January 1, 2019, James Co. received a 10%, five year note from a customer. Interest is paid every December 31. The note has a face value of P12,000,000. The effective rate on the date of the receipt of the note was 12% 1. Determine the initial amount of the note. 2. Prepare an amortization table to show the balance of the note at the end of each reporting period from 2019 to 2023. 3. Compute for the interest income recognized by James during each period from 2019 to 2023.

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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